Beautinator Cosmetics borrowed $152,300 from a bank for three years. If the quoted rate (APR) is 10.44 percent, and the compounding is daily, what is the effective annual rate (EAR)?

Q: A credit card company compounds monthly and charges an interest of 1 ½ % per month. What is the…

A: Effective Interest Rate It is a rate that discounts the approximate future cash flows over the…

Q: In one instance, a financial institution loaned you $20,000 for two years at an apr of 4.75% for…

A: Interest refers to the cost of borrowing money from the lender.

Q: A washer-dryer combination can be purchased from a department store by making monthly credit card…

A: Purchase price refers to the price at which an investor pays for buying an investment. It is used…

Q: An auto repair shop borrowed $15,000 to be repaid by semi-annual payments over 8 years. Interest on…

A: Interest rate (i): 12% per year, compounded semi-annually, so it's 6% per period.Number of periods…

Q: Suppose that Bank A pays 1.89% interest compounded quarterly on a 5-year CD, while Bank B pays 1.88%…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: An engineering company currently pays $18,175 a quarter for insurance. They pay on the 1st day of…

A: The quarterly interest rate will be the rate with equates the present value of the quarterly…

Q: A company plans to purchase a new piece of equipment in 36 months. If $3105 is deposited into a…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: You borrowed some money at 8 percent per annum. You repay the loan by making three annual payments…

A: Present value factor is computed as follows:-Present value factor = wherer = interest raten = time…

Q: The Men's Store charges 1.25 percent interest per month. What is the effective annual rate?

A: Every business firm suffers from the scarcity of funds. There are several investment…

Q: XTZ Company took a loan from the bank for 10 years, and compounded quarterly interest of 8.7 per…

A: Loans play a pivotal role as crucial financial instruments that empower both individuals and…

Q: A landscape architect accrued $7,855.39 in credit card debt. If the architect makes a monthly…

A: Credit card debt:The sum of funds that a person owes to a credit card issuer is referred to as…

Q: A washer-dryer combination can be purchased from a department store by making monthly credit card…

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

Q: Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following.…

A: Loan amortization can be defined as the procedure of amortizing the loan in such a way that the loan…

Q: An account pays interest at 1.5% per month. If you deposit $5000 at the beginning of this year, how…

A: Future Value = Present Value * (1+rate)^n Where, Present value =$5000 rate = 1.5% or 0.015 n = no of…

Q: $111,000. If this debt has generated interest at 3.6% compounded quarterly, how long ago (in years…

A: An annuity is the payment of a fixed amount at a fixed interval of time, over a specified period of…

Q: Joseph Moore borrowed $15550 from a bank for three years. If he quoted rate (APR) is 8.90 percent,…

A: Solution:- Effective annual interest rate means the interest rate for the year after effect of all…

Q: Charles Wilson borrowed $15,550 from a bank for three years. If the quoted rate (APR) is 7.00…

A: The effective annual rate is the interest rate that an investment provides after the effects of…

Q: Falco Inc. financed the purchase of a machine with a loan at 2.82% compounded quarterly. This loan…

A: Quarterly payments = $8,000Period = 5 YearsInterest rate = 2.82% per annumNote : “Since you have…

Q: A local business received a $45,000 loan at 4.95% compounded monthly. The business settled the loan…

A: Loan repayments of equal amounts can be defined as an annuity. The principal amount of loan is the…

Q: A company borrowed at 3.27% compounded annually to purchase equipment, agreeing to make payments of…

A: Loan: The loan represents the amount borrowed by the borrower from the lender. The borrower markets…

Q: a. What was the balance of the loan at the end of the first year? Round to the nearest cent b. What…

A: Given loan = $170,000Here, P = $170,000 r = 5.75% = 5.75/100 = 0.0575t =1n = 2 (as compound semi…

Q: oday Bill invested $5400 in an account that pays an annual interest rate of 2.6%, compounded…

A: Given information, Principal (P) = $5,400Annual interest rate (r) = 2.6% or 0.026Compounding…

Q: Sidney Poitier accumulated $620,000 in an RRSP. He converted the RRSP into a RRIF and started to…

A: The concept of TVM refers to the interest-earning capacity of money which makes money earned earlier…

Q: Suppose you deposit $2606.00 into an account today. In 7.00 years the account is worth $3969. The…

A: Present Value = pv = $2606Time = t = 7 YearsFuture Value = fv = $3969

Q: A loan of $28,500 is repaid by payments of $725 at the end of every month. Interest is 3.4%…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: (a) How many payments are needed to repay the debt? (b) What is the size of the final payment?

A: First we need to determine the equivalent interest rate as the compounding rate and period are…

Q: A loan of $14,865 was repaid at the end of 7 months. What size repayment check​ (principal and​…

A: Given, Loan amount $14865 term is 7 months Annual rate is 8%

Q: John Johnson borrowed $15,550 from a bank for three years. If the quoted rate (APR) is 5.20 percent,…

A: In the given question we need to compute the effective annual interest rate (EAR) if the nominal…

Q: while at the bank, you see a brochure with two saving account options. One pays interest at 4.35%…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: Suppose you invest $19,640.00 into an account earning an interest rate of 2.399% compounded…

A: Future value of continuous compounding = Present Value *e^(rate*Term)

Q: $480 is deposited at the beginning of every 6 months into a savings account. This will continue for…

A: An account where deposit made by accountholder is credited and credit balance is added with interest…

Q: Suppose that $850,000 is invested in a savings account paying 5.25% interest per year. (Round…

A: the given information  amount = $850,000 interest rate = 5.25%

Q: Royal Bank issued a loan of $90,000 at 6.94% compounded semi-annually. The loan was repaid by…

A: The periodic payment is the regular and equal repayment of the loan amount over the period of the…

Q: Onse took a loan of P2,000 that is repaid by a payment of P2,500 made 24 months later. Find the…

A: Loan amount is P2,000 Amount repaid is P2,500

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.