Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to 3,000. Bank of Wildcats charges Inc P15 for every transaction with the bank. The bank grants 5% annual interest. Inc is contemplation if it will still need to have the cash buffer. How much is the annual savings in annual holding cost of cash for Inc if it will not have a cash buffer?
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Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to 3,000. Bank of Wildcats charges Inc P15 for every transaction with the bank. The bank grants 5% annual interest. Inc is contemplation if it will still need to have the cash buffer. How much is the annual savings in annual holding cost of cash for Inc if it will not have a cash buffer?
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- Bridgette Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to 3,000. Bank of Wildcats charges Bridgette P15 for every transaction with the bank. The bank grants 5% annual interest. Bridgette is contemplation if it will still need to have the cash buffer. 1.How much is the annual savings in annual holding cost of cash for Bridgette if it will not have a cash buffer?NEKO Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to 3,000. Bank of WildPUS charges NEKO P15 for every transaction with the bank. The bank grants 5% annual interest. NEKO is contemplation if it will still need to have the cash buffer. How much is the annual savings in annual holding cost of cash for NEKO if it will not have a cash buffer?Mama Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to 3,000. Bank of Tigers charges Mama P15 for every transaction with the bank. The bank grants 5% annual interest. Mama is contemplation if it will still need to have the cash buffer. How much is the annual savings in annual holding cost of cash for Mamaif it will not have a cash buffer?
- Find the equivalent present worth of the cash receipts in the accompanyingdiagram, where i = 8% compounded annually. In other words, how much doyou have to deposit now (with the second deposit in the amount of $600 at the end of the first year) so that you will be able to withdraw $300 at the end of the second year through the fourth year, and $800 at the end of the fifth year, where the bank pays you 8% annual interest on your balance?City Bank pays two per cent simple interest on its savings accounts. Central Bank pays two per cent interest, compounded annually on its savings accounts. If you deposited sufficient funds 16 years ago so that you will have $3,000 today. Which bank requires you to deposit a larger amount?Allied Bank pays 4% interest compounded annually on deposits, while bonkers Bank pays 3.5% compounded daily.a. Based on the EAR which bank should you use?b. Could your choice of banks be influenced by the fact that you might want to with draw your funds during the year as opposed to at the end of the year? Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.
- YY Corporation has daily collections of 130,000 from a selected foreign customer group. The bank offered to accelerate the clearing time of these collections from 8 days to 3 days for a quarterly fee of 1,000. YY can invested freed cash into a mutual fund to earns 5% annually. How much is the net benefit/(cost) of this bank service?Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8% compounded annually. In other words, how much do you have to deposit now (with the second deposit in the amount of $1,000 at the end of the first year) so that you will be able to withdraw $600 at the end of the second year through the fourth year , and $ 800 at the end of the fifth year , where the bank pays you 8% annual interest on your balance ?Bank A pays 2% interest compoundedannually on deposits, while Bank B pays 1.75% compounded daily.a. Based on the EAR (or EFF%), which bank should you use?b. Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year? Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.
- Solve the following question with complete solution and include cash flow diagram: (DO NOT USE EXCEL) (Handwritten/Type only) Your parents make 20 equal annual deposits of $2185 each into a bank account earning 3% per year compounded quarterly. The first deposit will be made one year from today. How much money can be withdrawn from this account immediately after the 20th deposit? (Round off the interest rate to 5 decimal places and answer to 2 decimal places)If accounts receivable is projected to be $800,000 at the beginning of the next operating year and $1,100,000 at the end of the next operating year: would cash be generated by accounts receivable or needed to fund accounts receivable? And, by how much? a. $300,000 of cash needed to fund accounts receivable b. $1,100,000 of cash needed to fund accounts receivable c. $500,000 of cash needed to fund accounts receivable d. $300,000 of cash generated by accounts receivableThe company decided to borrow a one-time loan of $100,000 in Jan 2023 to launch a marketing campaign to expand the business. The $100,000 is taken from the bank and use in the marketing campaign directly and as such no additional $ is plough back into the cash flow. Given the bank charges 4% interest rate and the company wishes to borrow for 5-year term, add another row for Annual Payment to the bank (SAFELOCK LTD chooses to pay monthly payment, calculate the total 12 monthly payments using the appropriate built-in functions and formula.) Also calculate the Total Bank term payment for the loan assuming the monthly payment scheme, Total Interest for the loan taken.