15. Olivia borrowed P5,500 to her friend and agrees to repay it in 90 days with 5% interest rate. If the amount of the interest is computed using the exact interest, how much does Olivia need to pay? (Note: The year is not a leap year) * A. P5,567.81 B. P67.81 C. P5,568.75 O D. P68.75
Q: ppreciate
A: Introduction : In simple words, the given question relates to the process of lease.
Q: alue of perpetuity amo
A: Given information : Perpetuity amount 18000 Nominal rate 5% Since the question have not men...
Q: The shares of toll road operator TransRural currently trade for $15 per share. Over the next 3 month...
A: It is a one step binomial model. Up factor "u" and down factor "d" is calculated and then C+ and C- ...
Q: What nominal rate compounded quarterly can be charged to a payment at a nominal interest rate of 12%...
A: Effective Annual Rate The effective annual rate of interest is the actual or the real rate of intere...
Q: US 3 month interest rates are 1.5% whilst Hungarian 3 month rates are 4.5% (both quoted using standa...
A: Exchange rate (ER) is a value at which two or more currencies are exchanged and traded. Rate at whic...
Q: worth of a ten year geometric gradient series of cash flows was found to be $100,000. If the interes...
A: Future value of growing annuity can be found out from the growth rate and interest rate and period o...
Q: Which of the following statements is most correct? A. If you add enough randomly selected stocks to...
A: The question is based on the concept of Investment, systematic and unsystematic risk in the portfoli...
Q: 5. William needs to take out a loan for $2,400. Which of these payment plans would have William payi...
A: The question is based on the concept of loan operation and the charge of interest on the payment. T...
Q: Find the future value for the ordinary annuity with the given payment and interest rate. PMT = $700;...
A: Annuity means a set of finite number of payments which are made in equal time intervals and same in ...
Q: Determine the exact simple interest and future worth of P1,500,000 invested for the period from Marc...
A:
Q: Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain ...
A: The stock value for current date is ascertained using the DDM (dividend-discount model) where each s...
Q: Referencing Using Excel to Compute Interest and Maturity Date PROBLEM Compute interest and find the ...
A: Here, Total no. of days in a year = 360 days To Find: Interest =? Maturity date =?
Q: Elijah now has $500. How much would he have after 7 years if he leaves it invested at 5.1% with annu...
A: We will apply the formula of future value so as to find the amount of money that Elijah will have af...
Q: A new engine was installed by a textile plant at a cost of P388,000 and projected to have a useful l...
A: First cost (F) = P 388000 n = 12 years Salvage value (S) = P 37000 r = 14% compounded semiannually =...
Q: Aluminum maker Alcoa has a beta of about 1.93, whereas Hormel Foods has a beta of 0.31. If the expec...
A: The term Beta ascertains the performance of an asset or security and change in the movement of the s...
Q: Bart Software has 7.6 percent coupon bonds on the market with 23 years to maturity. The bonds make s...
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of...
Q: 6667.63 is deposited in a bank that pays 18% annual intere compounded monthly. At the end of the sec...
A: Here the FV at the end of last withdrawal is 0.
Q: Leon's 6-month premium for auto insurance is $754.34, if he pays it all at once. If he decides that ...
A: In order to make the decision regarding the payment of insurance premium to be paid minimum, we are ...
Q: Bulawan Coin, Inc. is considering shortening its credit period from 30 days to 20 days and believes,...
A: Total cost is sum of variable cost plus fixed cost and at breakeven point total cost must be equal t...
Q: Five (5) years ago, your company purchased a skid-steer loader at the beginning of your construction...
A: Initial cost = $36000 Let S = Salvage value C = Annual cost = $6780 Total life of skid steer (n) = 7...
Q: Alan Angel made deposits of $400 semiannually to Sag Bank, which pays 10% interest compounded semian...
A: The present value of an amount is its current worth, whereas the future value is the total amount of...
Q: For insurance companies risk management is critical to the success and viability of their business. ...
A: An underwriter's risk of loss is known as underwriting risk. Underwriting risk in insurance can resu...
Q: The central issue of efficient market concens: O regulations O structure O participants O informatio...
A: Market efficiency is the ability of markets to process the information quickly and generate the unbi...
Q: A corporate expects to receive $34,442 each year for 15 years if a particular project is undertaken....
A: Initial investment (X) = $114290 Annual cash inflow = $34442 Annual expenses = $7570 Depreciation = ...
Q: 2. The Nedtran family decides to save money for a vacation in 3 years. They purchase an annuity with...
A: Semiannual payment (A) = P 10000 Interest rate = 9% compounded quarterly n = 3 years = 6 payments Le...
Q: The monthly payment is $430.33. What is the total interest paid on a loan of $5,000 at APR = 6% for ...
A: Monthly payment = $430.33 Number of monthly payments = 12 Loan amount = $5000 Interest rate = 6%
Q: Assume that in 2018, a copper penny struck at the Philadelphia mint in 1796 was sold for $495,000. ...
A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv], [typ...
Q: Suppose a bank has $1,000 in deposits and $100 in reserves. If the desired reserve ratio is 5 percen...
A: Reserve ratio is the percentage of bank's deposits that must be kept in cash as a reserve to meet e...
Q: You’re buying your first house for $180,000, giving $35,000 as down payment. The amount you will fin...
A: The amount of interest payable over the term of the loan and the loan amount due is equal to the tot...
Q: What annuity ou period at 8% int equivalent to a of P100.000?
A: The present value of an annuity due is calculated by utilising the current value of money to calcula...
Q: o. What is the yield to maturity of each bond? (Do not round intermediete calculations. Enter your a...
A: Maturity period = 10 years Face value = $100 The bond coupon is 3% then the price is 89% The The bon...
Q: Both Bond Bill and Bond Ted have 10.6 percent coupons, make semiannual payments, and are priced at p...
A: We can calculate the current price of the Bond bill and Bond ted then will find the change in the pr...
Q: er year, how much will the investor have in the account in 3 years?
A: Future Value: It is the future worth of the present annuity stream of cash flows and is computed by...
Q: Equity: 120,000 shares at $1 each. Share premium: $22,000 The company decides to issue 1:3 shares....
A: Share Premium- This is the amount which is over and excess of nominal value. If Say for example if n...
Q: The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential...
A: The exponential three-month moving average for the month of March = (2/3) * Closing stock price of M...
Q: Calculate the Modified Duration of the following securities: 10 % semi-annual coupon maturating in 5...
A: Assume that the face value of the coupon is $1,000. Therefore, the Modified duration for security ...
Q: You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now, D...
A: The Internal Rate of Return (IRR) is the discount rate that causes a project's net present value (NP...
Q: As an investor, would you rather invest on stock exchange with strict requirement or OTC market? And...
A: Listing on the stock exchange: A company that wishes to list on a stock exchange has to make several...
Q: A young woman 22 years old has just graduated from college. She accepts a good job and desire to est...
A: Current age = 22 Years Annual deposit (P) = P2000 Interest rate (r) = 15% Future value (FV) = 1,000,...
Q: Why there is a difference between the interest rate and the APR
A: Interest rates and APR are two phrases that are sometimes used interchangeably to refer to comparabl...
Q: The firm purchases a ship to rent out. Only equity capital is used, no debt. The terms of the rent...
A: Cash flows: Cash flows are used as the basis of all capital budgeting decisions since they are the m...
Q: what are the meaning of Revenue Enhancement and Cost Saving ? and I need examples for each.
A: Revenue enhancement is the enhancement or increase in the revenues which also leads to an increase i...
Q: ve determined the profitability of a planned project by finding the present value of all the cash fl...
A: Present value of cash flow is related to the discount rate and the period of cash flow of the projec...
Q: Inflation, recession, and high interest rates are economic events which are characterized as: A. Com...
A: Risk is defined as the term in which is the chance that actual returns differ from what is expected ...
Q: The Premiere Company obtained a short-term bank loan for P1,000,000 at an annual interest rate 12%. ...
A: Since you have posted a multi part question therefore as per the guidelines we will be solving the f...
Q: Find out debtors turnover ratio from the following information for one year ended 31st March 2014. A...
A: Debtors turnover ratio is the measure of finding out the efficiency of the company in collecting the...
Q: What is the total interest paid on a loan of $5,000 at APR = 8% for one year.
A: Loan amount (LV) = $5000 Interest rate (r) = 8% Period (n) = 1 Year
Q: A man wants to recieve P800 immediately and pay it back in one year. The bank charges a simple disco...
A: Borrowings/Mortgage are the loan which is taken by the individual to meet its financial requirements...
Q: Determine the present value of payments of $100 at the end of each month for 20 years. Use a discoun...
A: Monthly payment (P) = $100 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period = 20 ...
Q: Your company has been doing well, reaching $1.05 million in earnings, and is considering launching a...
A: Net present value is the difference between the present value of cash inflows and present value of c...
ASAP
Step by step
Solved in 4 steps
- 1) Ms. Smith borrowed P125,000 at 11% stated rate of interest and was to pay back the loan in 24 monthly payments. What is her effective rate of interest? A. 10.56% C. 21.12%B. 18.96% D. 22.00% 2) Kenneth's Arrows and Bows borrow P10,000 for one year at 12% interest. What is the effective rate of interest if the loan is discounted?A. < 12.5% C. > 13.5% but < 14.5%B. > 12.5% but < 13.5% D. > 14.5% 3) Koopman's Chickens, Inc. plans to borrow P300,000 from its bank for one year. The rate of interest is 10%, but a compensating balance of 15% is required. What is the effective rate of interest?A. < 11.4% C. > 11.6 % but < 11.8 %B. > 11.4% but < 11.6% D. > 11.8 %53. Ms. Ling purchases an automobile using a loan. The amount borrowed is €44,000 and the terms of the loan call for the loan to be repaid over seven years using equal monthly payments with an annual nominal interest rate of 12% and monthly compounding. The monthly payment is closest to: A. €776.72. B. €803.43. C. €923.13Melisandre deposits $500 in an account paying an effective monthly interest rate 0.62708%. Kobe deposits $2,000 in an account paying an effective interest rate j₁. After 24 years they have the same amount in their accounts. What is j₁? a. 1.91427% b. 1.89687% C. 1.84466% d. 1.75765% e. 1.74025%
- 19. Stacy makes monthly payments of $450 to pay off her student loan. Due to unem- ployment, she defaulted on her last two payments. If she wants to get out of arrears, what amount should she pay for her next payment? Assume the defaulted payments are compounded monthly at a rate of 4%. 20 Cetro0 1.61500Question: On May 1, 2020, Hazel borrowed a sum of money from Far East Bank , payable for 2 years at 8% simple interest. She paid P6,000 for the interest of her loan. Find how much was borrowed by Hazel.2. Simple versus compound interest A. Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Emma deposited $500 in a savings account at her bank. Her account will earn an annual simple interest rate of 9%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 11 years? $995.00 $145.00 $1,290.21 $549.05 B. Now, assume that Emma’s savings institution modifies the terms of her account and agrees to pay 9% in compound interest on her $500 balance. All other things being equal, how much money will Emma have in her account in 11 years? $545.00 $116.12 $995.00 $1,290.21 C. Suppose Emma had deposited another $500 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest…
- 1. On January 1, 2008, Gabe borrowed P12,000 and agreed to repay it with P4,473.60 interest. If the interest is at 8% compounded quarterly, what amount must she repay and on what date?On 29 March 2021, Justin deposited R3 500 into a savings account. The simple interest rate agreed upon was 7,5% per year. The accumulated amount in the savings account on 10 October 2021 is [1] R3 640,24. [2] R3 643,09. [3] R3 637,88. [4] R3 649,06. [5] none of the above4. Sandy borrowed 20039 R.O from a bank to buy a piece of land. If the bank charges 12 1/3% compounded each two months, what amount will she have to pay after 2 years and half? Also find the interest paid by her?
- 10. Kristine has $5,000 in an account today that pays 3% interest rate. Two years from now she withdraws $1,000 from that account to buy a laptop. How much will she have in this account in 6 years if she does not make any other deposits or withdrawals? Assume annual compounding. a. $4,844.75 b. $7,095.77 C. $4,776.21 d. $7,164.31 e. $4,970.26 11. Your grandaunt wants to buy an (ordinary) annuity that will pay her cost of living of $70,000 per year for 20 years. If the quoted interest rate today is 5% and the annuity compounds monthly, how much does this annuity cost? a. $872,354.72 b. $865,404.52 c. $883,897.66 d. $863,824.1510. Kristine has $5,000 in an account today that pays 3% interest rate. Two years from now she withdraws $1,000 from that account to buy a laptop. How much will she have in this account in 6 years if she does not make any other deposits or withdrawals? Assume annual compounding. a. $4,844.75 b. $7,095.77 c. $4,776.21 d. $7,164.31 e. $4,970.26 11. Your grandaunt wants to buy an (ordinary) annuity that will pay her cost of living of $70,000 per year for 20 years. If the quoted interest rate today is 5% and the annuity compounds monthly, how much does this annuity cost? a. $872,354.72 b. $865,404.52 c. $883,897.66 d. $863,824.15 12. After graduation, you get a great job. You budget $1,000 per month towards housing. You'd like to buy a house. Assume that the interest rate = 4% for a 30-year mortgage. a. How much can you borrow? i. $209,461.24 ii. $207,504.40 iii. $694,049.40 iv. $24,999.98 b. Eight years into the mortgage, your company decides to relocate you to Hawaii. How much must you…9. Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Jacob needed money for some unexpected expenses, so he borrowed $2,138.41 from a friend and agreed to repay the loan in three equal installments of $800 at the end of each year. The agreement is offering an implied interest rate of . Jacob’s friend, Devan, wants to go to business school. While his father will share some of the expenses, Devan still needs to put in the rest on his own. But Devan has no money saved for it yet. According to his calculations, it will cost him $31,897 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $3,800 at the end of every year in a mutual fund, from which he expects to earn a fixed 6% rate of return. It will take approximately for Devan to save enough money to go to business school.