If $1 million face amount of commercial paper(270 day paper) is sold for $982,500, what is the simple rate of interest paid? What is the compound annual rate?

Q: What is the present value of 6 annual payments of $6,340 each with the first payment being received…

A: An ordinary annuity is a set of recurring payments that are received once the current period is…

Q: What's the rate of return you would earn if you paid $2,880 for a perpetuity that pays $65 per year?…

A: Perpetuity is a type of payment at the regular intervals which is likely to continue forever. It is…

Q: A payment of $750 is due in 2 years, and $5,100 is due in 4 years. What single payment made today…

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

Q: Two payments of $5,000 are to be received four and eight months from now. a. What is the combined…

A: Present value is the equivalent today of the future payments that are going to be received in the…

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $2,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

Q: What would be the annual percentage yield for a savings account that earned $60.00 in interest on…

A: Annual Precentage Yield = (Annual interest / Principal amount ) x 100Note : 365 days = 1 year

Q: ARAB Bank pays 0.074 percent, compounded weekly (based on 52 weeks), on an 8-month certificate of…

A: The effective annual rate of interest is the real return on the savings account when the effects of…

Q: ARAB Bank pays 0.07 percent, compounded weekly (based on 52 weeks), on an 8-month certificate of…

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

Q: What is the maturity value for a discount note of $7,000, 120-day, with a discount rate of 6%?

A: Note discount is the difference between the face value (or principal amount) of a promissory note…

Q: How much is the interest if you need to borrow 400,000 for one year with 475,000 line credit, where…

A: Interest = amount borrowed * rate of interest

Q: Example 6 A person requires a loan of R10 000. The bank offers a simple interest rate of 15% p.a..…

A: Lets understand the basics. For calculating loan period we will need to use below formula. Interest…

Q: What was the annual rate of simple interest offered on a savings of $7106 if the amount of interest…

A: What was the annual rate of simple interest:- Given information:- Savings(P)…

Q: A payment of $3769.45 due 9 months ago and payment of $1898.63 due in 8 months are to be repaid by a…

A: Single equivalent payment refers to the amount paid with the adjustment of interest of the various…

Q: What is the effective annual rate the bank is offering

A: We can determine effective annual rate using the formula below:q = compounding frequency = 365

Q: What would be your annualized discount rate% on the purchase of a 170-day Treasury bill for $4700…

A: Annualized discount rate can be calculated as: = (Maturity amount - Initial amount) / Initial amount…

Q: Suppose a business takes out a GHC5000, 5-year loan at 9%. If the loan agreement calls for the…

A: Here, Loan Amount = GHC 5,000 Term of loan = 5 years  Interest rate = 9% Principal payment each year…

Q: How is the accumulated value 12,373.78 if yearly payments of 20,000 are made?

A: Solution:- When an equal amount of payment is made each period at the beginning of period, it is…

Q: What would be the annual percentage yield for a savings account that earned $54 in interest on $750…

A: Investment amount = $750Interest earned = $54

Q: If a loan of ₱45,000 will amount to ₱76,400 when converted quarterly for 3.25 years what interest…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: A payment of $700 is due in 3 years, and $5,000 is due in 5 years. What single payment made today…

A: PV=FV11+rn=$70011+4.54×1004×3+$500011+4.54×1004×5=$612.062293+$3997.59977=$4609.66206=$4609.66

Q: suppose the rate of $1 for yen is 83 yen, what is 2,5000,000 in dollar

A: Given amount = A = 25,000,000 YenExchange rate (Yen / $) = 83 ie. 83 Yen = 1 $We have to express A…

Q: Suppose that ​$290,000.00 is owed on a house. The monthly payment for principal and interest at 8.0%…

A: The amount paid by the borrower on the amount owed is regarded as interest rate.

Q: A person invests $1000 at 3% compounded monthly. When will the  account have $1800 in it?

A: Time value of money means the amount of money received in the present period will be worth more…

Q: Suppose the lender of $2,000 uses add - on interest method (Rule 78 loan) and also charges 9%, what…

A: The objective of the question is to calculate the monthly payment and the total cost of a loan of…

Q: A 60-day $100,000 T-bill was bought for $99,500. What rate of return will be realized if the T-bill…

A: Given: Face  value = $100,000 Present value = $99,500 Days = 60

Q: A product is to be paid perpetually for P 10,551 at the rate of 1%. How much is the present worth of…

A: Present value of perpetuity is the value of never ending cash flows today. Although the cash flow is…

Q: How long will it take for a lender to discount ₱75,000 by 11.45% in order to gain ₱10,500 as his…

A: Simple interest is simple interest without compounding of interest and in discount we use the simple…

Q: You borrow $260,000.00 that charges you 6.1% interest, compounded monthly. You will make payments…

A: Monthly Payment (PMT) = P * r * [ (1 +r)n /({1 + r}n -1)] Where P = Principal amount borrowed…

Q: If an electric appliance present worth is P 11,712 and is being paid P 1,636 indefinitely, calculate…

A: Perpetuity means infinite no. of payments of same amount and made in equal intervals. Person can…

Q: SM corp has loaned you P1,000. The interest rate you must is 20% compounded monthly. The loan will…

A: Given: Loan amount =P1,000 Interest rate = 20% Periods = 24 Compounding = monthly

Q: $2350 was borrowed 4-years ago, is to be settled by following payments: $1175 today, $1030 in…

A: To solve this question, we need to calculate the balance of the loan at different points in time,…

Q: Assume that a one-year CD purchased for $1000 pays an APR of 6% that is compounded semi-annually.…

A: Here, Value of CD is $1,000 Time Duration is one year Interest Rate is 6% Compounding period is…

Q: 1) If ₱22578 is borrowed for 9 months and ₱555 is paid, then the annual simple interest rate is…

A: Hi student Since there are multiple questions, we will answer only first question.  Simple interest…

Q: 1) what is the discount yield on a 9-month T-bill sold for RM925, assuming there are 365 days in a…

A: T bill are sold at discount to face value the discount rate is YEILD on T bills.

Q: t purchased new goods worth 100,000 EUR from your supplier. Your supplier offers you to pay within…

A: Supplier provide credit for payment but due to this default on loan occurs but due to this they give…

Q: A lender requires PMI that is 0.8% of the loan amount of $590,000. How much (in dollars) will this…

A: A loan's PMI or Private mortgage insurance is a kind of mortgage insurance that is used by lenders…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.