aned today. What will be the size of 10 annual payments that you should pay to a loan of ₱10,000, if your first payment will start 3 years from

Q: Topic: Mean and Variance of Discrete Random Variable and the Characteristics of Normal Random Variab...

A: 1 . Mean and std deviation of portfolio A. R(return)   P(Probab) r × p (r)2× p -2000 0.3 -600...

Q: nt I: Systematic risk is the inherent certainty in the market which cannot be diversified. Statem...

A: Step 1   The chance of loss connected with the entire market or market sector is referred to as syst...

Q: Many firms in the United States file for bankruptcy every year, yet they still continue operating. W...

A: Bankruptcy is a legal procedure that allows people or organizations to be free of their obligations ...

Q: Because you study at AUIS when you graduate, we expect you to earn $150 more a month than another st...

A: Here, Earning per Month is $150 Annual Interest Rate (r) is 10% Compounding Period (m) is Semi Annua...

Q: What is the difference between mutual and stock insurance company?

A: Risk is an inseparable part of investment. To reduce the risk, different techniques are used. Insura...

Q: 14. Jan plans to invest $7500, part at 4% simple interest and the rest at 5% simple interest. What i...

A: Interest is an additional amount which is received on deposited amount for the period. Simple intere...

Q: Question 2:: Mohamed is going to be paying AED 120,000 rent for his new apartment in JVC at the begi...

A:

Q: A Pump manufacturer expects its materials cost to be $1,000,000 this quarter and to increase by $100...

A: Present Worth(PW) is the accumulation of discounted values for all amounts in a series. It is determ...

Q: Accounting Question 4. Today is Mr. Wang's 30th birthday. He plans to retire on his 65th birthday. A...

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...

Q: How do trade-ins and sales taxes come into play when purchasing a car?

A: Taxes: Monetary charges imposed on individuals or legal entities by a government in order to fund va...

Q: Make a personal assessment of any government bank in the Philippines.

A: A financial institution (FI) is a company that deals with financial and monetary transactions such d...

Q: Suppose that the average income in 1954 was 1,050£. Suppose further that the CPI in 1954 was 35.3, a...

A: Solution:- 2020 value of 1954 average income= (Average income in 1954 / CPI in 1954) x CPI in 2021

Q: Under which of the following scenarios, the minimum variance portfolio that contains two stocks has ...

A: Assuming weight of the first stock and the second stock in the portfolio as (W) and (1 - W) Standard...

Q: FCF Co. has 13,000 shares outstanding and a total market value of $1 million, $340,000 of which is d...

A: Equity value = $660000 Number of shares = 13000 Stock dividend = 10%

Q: A full-time worker aged 25 invests $250 a month in a fund which has an average yearly return of 8.4%...

A: Compound interest is the investment method where the interest earned in one period is reinvested, wh...

Q: Selling widgets/ sales projection (units) rands, 1,500 sales projection rands 1,650,000variable cost...

A: Sales projection = 1,650,000 Sales units = 1500

Q: n you take your job, you decide to start saving for your retirement. You put P3k per year into the c...

A: There is need of proper planning for retirement and that you must do as early as possible so that re...

Q: Translate into symbolic proof and provide the reason for each step: If interest rates fall, then th...

A: An investment is a purchase made with the intention of earning money or increasing in value. The ter...

Q: Calculate the effective rate given continuously compounding 2% interest. a 2.07% b 2.12% c 3.02% ...

A:

Q: Management is considering a number of expansion and diversification opportunities in the current bud...

A: Wealth creation is defined as the building of the wealth with the different methods through an usage...

Q: Jim’s Shoes Ltd manufactures elite sports shoes. The main raw material for the production of these s...

A: Net present value or N.P.V. is the capital budgeting technique which helps in the decision making pr...

Q: 12 .  Consider a  T-bill that will have a  125  days  to maturity at  the time  of forward contract ...

A: A treasury bill is a debt obligation which is backed by the Treasury Department. It has maturity of ...

Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals when a first...

A: The flow of payments which are made at regular interval of time are termed as annuity when amount is...

Q: sheet 3, use information to complete sheet 4 & 5 Date Closing Market Index value Closing Price for ...

A: Here, Excess Return is equal to =Return Earned - Risk Free Rate of Return Monthly Return is calcula...

Q: Mr. Jones will invests P 5,000 in a fund at the end of each 6 months to accumulate P 100,000 to buy ...

A: When an investor makes regular periodic deposits in an investment, this is known as an annuity. The ...

Q: a firm has earnings of $500 million of which 40% will be paid out to investors. the firm has $2.5 bi...

A: When all the earnings available for common shareholders are distributed to common shareholders, the ...

Q: Can someone help me figure out this problem?   Complete the following homework scenario: Compare t...

A: Payback period means the period upto which the original cost of the investment is recovered. It is c...

Q: How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth ...

A: Loan Amount = P 1,400,500.00 Time Period = 20 Years Interest Rate = 518%

Q: The zero growth model of stock valuation;

A: The zero growth model is a type of dividend discount model.

Q: You expect to have it $12,000 in one year. A bank is offering loans at 3.5% interest per year. How m...

A: Amount available after one year (FV) = $12000 Interest rate (r) = 3.5%

Q: Current Prior Year Year Total Assets $ 2,731,792 $ 2,580,708 Total Liabilities $ 867,106 $ 957,022 T...

A: There is impact of capital structure of company on the earning of the company and valuation of the c...

Q: Which TWO of the following statements are correct for a potential project with an investment followe...

A: Capital Budgeting techniques are used to know the profitability of the project. The NPV and the IRR ...

Q: Suppose you are planning to save BDT 2,000 at the beginning of each of the next 10 years with 12% in...

A: Annuity due is a term which describes a series or payments or savings which are equal at the beginni...

Q: Define the difference between a proprietorship and a partnership. What are the advantages and disadv...

A: The business entity can be established, managed, and operated using a variety of business structures...

Q: Choose the letter/s of the correct answer/s. In an investor’s perspective, which among these has th...

A: Compound interest is referred to as interest on the calculation of the deposit or the loan on the ba...

Q: North American location known for its high temperature ocean surface and its much lower ocean temper...

A: Before investing in new projects or assets, profitability of the project is evaluated on the basis o...

Q: Natsam Corporation has $268 million of excess cash. The firm has no debt and 481 million shares outs...

A: The profits of the company refers to the income generated by the company and is left with the compan...

Q: Insurance companies perform functions that are similar to those of investment companies. * True or ...

A: Insurance companies are those companies that have been formed in order to cover the loss of an asset...

Q: 5) You friend wants to create a plan to invest for their future. They ask you to describe the five i...

A: Investment strategies can be defined as the plan of action taken by the investors in order to select...

Q: Two mutually exclusive investment opportunities require an initial investment of $8 million. Investm...

A: Here, Initial investment = $8 million Cashflows of Investment A = $1.5 million Cashflows of Investme...

Q: Manning Imports is contemplating an agreement to lease equipment to a customer for four years. Manni...

A: A lease is a written legal agreement between a two-party lessor and the lessee. In lease agreement l...

Q: In buying a farm worth P 1,500,000 cash, the purchaser pays P 500,000 cash and agrees to pay the bal...

A: Payments are the modes of the cash outflow therefore, the person who pays the amount has to make it ...

Q: You've decided to buy a house that is valued at $1 million. You have $250,000 to use as a down payme...

A: Mortgage Payment: It is the payment of mortgage amortization paid by the borrower to the lender. Th...

Q: Which of the following are characteristics of consumer closed

A: answer   statement 2 is false  because no flexibility in timing , time is fixed.   statement 5 is fa...

Q: Janice opened a franchise short of Krispy Kreme Doughnuts in her hometown. She has been working real...

A: Here we will look at the relevant costs. In finance relevant costs are those costs that will change ...

Q: How much of the original principal is still unpaid after he has made the 8th payment?

A: Get the annuity first using P = 600000,i =12%= 0.12 , n = 15 P= A*(1-(1+i)^-n)/i 600000=A*(1-(1+12%)...

Q: What is realized real interest rates? Give example.

A: realized real interest rate  = nominal interest rate - actual inflation rate realized real interest ...

Q: A stock's beta is more relevant as a measure of risk to an investor who holds only one stock than to...

A: Beta represents the systematic risk and it shows the relationship of the stock with the market. 

Q: what is the role of the Insurance Core Principles as it relates to underwriting risks, in the effect...

A: It is very important to evaluate and regulate the insurance supervision. There will be flaws in the ...

Q: You purchase a newly issued bond from Apple. The bond has a face value (F) of $1,000; coupon interes...

A: A bond is a debt instrument issued by a company that allows them to borrow a sum of money with the p...

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.