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: 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: 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: Where will you borrow money?  Justify your answer by showing all necessary calculations Choice A:…

A: Effective annual rate of DRSA Company (EAR) = ( 1+ i/n) n - 1 = ( 1+ 0.0466/2)2 -1 = (1.0233)2 - 1…

Q: A $4,500 loan at 8.4% compounded monthly was settled by a single payment of $5,500 including accrued…

A:

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: A company borrowed $100,000 from a local bank. The loan requires 10 equal annual payments beginning…

A: An annuity is a succession of payments used to cover or reimburse a one-time expenditure. Using the…

Q: you obtained a $10000 loan at 1.5% compunded monthly. how much more interest will you pay in the…

A: Data given: Loan amount=$10,000 Rate=1.5% (compounded monthly) Required: how much more interest will…

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: 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: An auto repair shop borrowed $18,000 to be repaid by quarterly payments over 7 year (a) What is the…

A: Loan repayment refers to an amount that is paid at every periodic period including principal and…

Q: company borrowed P45,200 from a savings and loan association that charges 14% converted quarterly.…

A: Loan are paid by the equal periodic payments that carry the payment for interest payment and also…

Q: Doreen Short was looking over the repayment schedule for a loan of $37,858 at 7% interest for 5…

A: The remaining balance after making payments for 15 months as the remaining payments will be 45 is…

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: A borrower had a loan of $7800 at 5.6% compounded semiannually, with 20 semiannual payments. Suppose…

A: We have; The loan amount is $7800 The interest rate is 5.6% compounded semiannually Total m=number…

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: If you borrow $29834 with an annual rate of 12% compounded monthly and make a payment of $403 every…

A: The borrowing is the amount that is borrowed by the person, a company from any of the financials…

Q: General Computers Inc. purchased a computer server for $60,500. It paid 45.00% of the value as a…

A: An amortized bond is one in which, during the course of the bond's existence, both the principal (or…

Q: A bank offers an investment account that has an annual interst rate of 9.9%, compounded quarterly.…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Questions 1 and 2 use the following information: A loan of $30451 requires payments of $7751 made at…

A: Given: Loan = $30,451 Interest rate =5.74% Payment = $7,751

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: You take out a $7,400 car loan that calls for 36 monthly payments starting after 1 month at an APR…

A: It is a case of amortization of a car loan that is to be repaid in 3 years as a monthly payment or…

Q: If you borrow $24398 with an annual rate of 9% compounded monthly and make a payment of $282 every…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: A laundry business valued at $120,000 is bought for a down payment of 30% and payments of $5000 at…

A: Time, the value of money refers to the concept used for determining the present value of an asset…

Q: Aragon credit Union offers to lend Cassidy $35,000 to buy a car; the loan calls for payments of…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: A loan, amortized over 15 years, is repaid by making payments of $1,900 at the end of every month.…

A: Principal payment refers to the amount of loan that is paid back by the borrower. The loan amount is…

Q: The company sells products to a customer for $60,000 and will receive $15,000 at the end of the…

A: Time value of money is the concept that states that the value of money have more worth than the same…

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: Mr. J. Dela Cruz borrowed money from a bank and he receives P1,340.00 and promised to pay P1,500 at…

A: Note: The question provided are two separate ones. In the first one, I have calculated both the…

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: $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: A business received a for year $2,000,000 loan at an interest rate of 7% per year. The principal is…

A: NPV means PV of amount which is receive or pay in future. NPV can be find by using discounting rate…

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

Q: The owner of the Pink Flamingo Motel borrowed $19 500.00 at 8.11% compounded semi-annually and…

A: Borrowed Loan = $19500Quarterly Payment =$1110Interest Rate = 8.11%Term of periodic payment =…

Q: TD Canada Trust issued a loan of $61,000 at 6.14% compounded semi-annually. The loan was repaid by…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: compounded quarterly, what was the loan principal?

A: Information Provided: Years = 20 Monthly payment = $1700 Interest rate = 5.70% compounded quarterly…

Q: Ten Thousand dollars is deposited into a savings account at 1.8% interest compounded monthly. How…

A: Using TVM Solver: (i) 10,000 +/- PV 1.8 i/y 10,665.74  FV CPT N = 3.61 It takes 3.61 months for…

Q: The Superior Tool Company is repaying a debt of $16,000 by payments of $1000 (a) How many payments…

A: Debt is loan that carry the interest rate on that but these are paid by periodic payment that carry…

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

A: The future value of cash flow is the future worth of a cash flow at a certain rate of interest and…

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.