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Q: What constant annual payment is this equivalent to if the annual rate is 10%?
A: Equivalent Annual Payment: It computes the constant annual cash flow produced by a project over its…
Q: 8. a. What is the annual interest amount for a $2,000 bond that pays 7.5 percent interests? b.…
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A: Calculations are done in excel, so there is no intermediate rounding. (1+i) = (1+i(2)2))^2(1+i) =…
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Q: effective interest rate
A: The effective rate of interest refers to the interest rate which is charged on the amount of the…
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A: The weights are proportion in which sources of funds are employed in the capital structure. Weighted…
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A: The Weighted Average Cost of Capital WACC is calculated with the help of following formula WACC =…
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A: Inventory : Inventory refers to the items or goods that any business holds with the objective of…
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Q: 37) You receive a perpetual cash flow of $500 every year from the University at Albany at a rate of…
A: Since you have posted multiple questions, as per answering guidelines we shall be solving first…
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A: Future Value: It represents the future worth of the present amount of cash flows. It is computed…
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A: A risk-free rate of return is the return that an investor earns by investing in securities that have…
Q: 14: Ali deposits $ 1000 in a savings account at the end of each year. If the bank pays interest rate…
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For a Federal Credit Union that provides a
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- Create a loan repayment schedule for a loan of $30295 and payments of $8482 made annually. Assume a rate of interest of 6.13% per year compounded annually. What is the balance remaining after the second payment?A bank CD that pays 6.86 percent compounded daily (on a 365-day per year basis). Calculate the effective annual interest rate (EAR).Credit card issuers must by law print the annual interest rate they charged borrowers. If the annual interest rate is stated to be 15%, with interest paid monthly, what is the actual annual cost that the bank charges its customers on the card?
- Determine the annual financing cost of a 6-month (182 day) $20,000 discounted bank loan at a stated annual interest rate of 10 percent. Assume that no compensating balance is required.(b) Bank A pays 11.50% annual interest, compounded quarterly, on its savings accounts. BankB wants to ensure that the effective annual rate offered by bank A, with its interest beingcompounded on monthly basis. Calculate the nominal rate bank B must set.For a short-term cash requirement of $ 85,000, a 12-month term loan with equal installments will be drawn from the bank. If the monthly interest rate is 1.75, prepare the loan payment table (loan amortization table) by finding the monthly payment amount.
- A life insurance company offers loans to its policyholders against the cash value of their policies at a (nominal) annual interest rate of 6 percent, compounded monthly. Determine the effective annual percentage interest rate on these loans. Round your answer to two decimal places.7. The remainder on a home loan is refinanced by a bank. The refinanced loan is a 15-year loan for $176,200 scheduled to be paid off using monthly payments. The annual percentage rate for the loan is 3.15% a. Identify the APR for this loan in decimal form. Use four decimal place accuracy. b. Identify the number of payments per year used in the loan payment formula. C. Calculate the monthly payment required to pay off this loan. d. Calculate the total amount of all the payments required to pay off this loan. e. Calculate the total amount paid towards interest after the loan is paid off. f. Calculate the percentage of the total amount that is paid towards interest.A person pays interest on a loan semi - annually at a nominal annual interest rate of 16%. What is the most nearly effective annual interest rate?
- The following information is given for a 60-month loan from a bank: Debt repayments are made at the end of each month.The annual effective interest rate for this loan is 12.682503%.The interest portion of the first installment is 300 TL. The remaining debt balance of this loan after the tenth payment is restructured with an annual effective interest rate of 11%. Calculate the new installment payments accordingly.Determine the annual payment on a OMR 500,000 and 12 percent business loan from a commercial bank that is to be amortized over a five year period.A commercial bank offers you a credit card with an annual percentage rate APR = 9%, compounding monthly. What’s the credit card’s nominal annual rate?