Jane requested a loan from a bank amounting to P405,630 to contin her small business. But she only received 83.84% of the loan as the bank collected the interest at the time money is requested. If the agreement will mature after 12 years and 4 months: Determine the 1.Simple interest, 2.simple discount rate, 3.total interest accumulated at the end of the year.
Q: Stéphanie visited a financial institution and signed a 10-year, non-interest-bearing promissory note…
A: We have; Value of note now is $6000 Time period of note is 10 years Interest rate is 2.15%…
Q: Golden Corporation have the following information from its books: Sales P1,600,000 Credit sales 90%…
A: Sales = P1,600,000 Credit sales are 90% of sales Average Collection period is 30 days Assume number…
Q: A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be…
A: Here, Note: We are solving Part d to g as mentioned in the question.
Q: Currency $150 billion Bank reserves $400 billion $1,200 billion $2,400 billion $60 billion Checkable…
A: Currency to deposit ratio = currency/checkable deposit
Q: Jody has been dreaming to purchase a car for $22,000 i. Calculate the monthly payment for the…
A: A loan is a sum of money borrowed from a third party, such as a bank, and then repaid with interest…
Q: Suppose you bought a sofa for a total purchase price of $1,184.97. State taxes were 4%. What was the…
A: Sales tax rate Sales tax rate is imposed on the purchase price of the item. The amount of sales tax…
Q: Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to exploit a mineral…
A: The net present value or NPV of any project is a financial measure through which the profitability…
Q: The following table lists prices of Amazon options in January 2018 when Amazon stock was selling for…
A: Options are categorized into two major types as calls and puts where call provides a buying right to…
Q: A stock has a beta of 1.38. The risk free rate is 0.817% and the market risk premium is 5%. What is…
A: Solution:- Capital Asset Pricing Model (CAPM) is the model which helps to compute the fair return on…
Q: Conside thể following ate of Labanos Company: Year Investment Cash Inflow 1 4,000 1,000 2 3 2,000 4…
A: Given: Year Investment Cash inflows 1 -$4,000 $1,000 2 $0 3 $2,000 4 -$2,000 $1,000…
Q: How much will deposits of $35 made at the end of each month amount to after 12 years if interest is…
A: Amount deposited each month = $ 35 Amount deposited in each quarter = $35*3 = $105 = PMT Number of…
Q: A $10,000, 8% bond redeemable at par with semi-annual coupons bought ten years before maturity…
A: Given that: Face value of the bond=$10000 yearly Coupon rate=8% Semi Annual Coupon rate= 4% Coupon…
Q: Find the present value of the following perpetuity. Perpetuity Payment Made Payment Period Interest…
A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…
Q: Determine the purchase price at the indicated time before maturity of the following bond redeemed at…
A: Here, To Find: Purchase price of the bond =?
Q: Auto Industrial Corporation issues zero coupon bonds at a price of $378 per bond and the face value…
A: FORMULA YTC = (CP/PP)1/T-1 Where YTC - Yield to call CP - Call price i.e. $1050 PP - Purchase price…
Q: A company is considering the purchase of a new machine for $50,000, installed. The machine has a tax…
A: For evaluating any new asset or project, cashflows are considered. For overall evaluation cashflows…
Q: 1involveo ptenning, organizing, directing, and controlingthe financial activities such of the…
A: The difference between a company's current assets and working capital, also known as net working…
Q: Sierra Company is considering a long-term investment project called ZIP. ZIP will require an…
A: Solution:- We know, Internal Rate of Return (IRR) is the rate of return the project is yielding ie.…
Q: Assuming no withdrawals or additional payments were made, how much money will be in your retirement…
A: Time value of money (TVM) is used to measure the value of money at different point of time in the…
Q: Three mutually exclusive projects, A, B, and C, each require $100,000, S62,500, and $75,000 initial…
A: Internal Rate of Return (IRR) of a project is the rate at which the present value of all the cash…
Q: Direction: Read the statements carefully. Write TRUE if the statement is correct. Otherwise, write…
A: Because you have asked question with multiple parts (MULTI PART) , we will solve the first 3 parts…
Q: Jeffery Johnson is saving $1,450,000 per year in a savings account that is paying annual compound…
A: The value of equal payments or a single payment at any specific date which falls in future is called…
Q: years from a retirement fund at 4% compounded semi-annually. Future Value Ordinary Simple 2)Suppose…
A: An annuity is a payment plan where there is an exchange of periodic fixed payments for a lump sum…
Q: How emergence or evolution of entrepreneurship took plate? Please explain in Detail.
A: Today, entrepreneurs are paving the way for success as entrepreneurs. They find opportunities, lead…
Q: Mr. C, married, is a citizen and resident of the Philippines. He had the following data on income…
A: Individuals and businesses pay income taxes based on their earnings or profits. In most…
Q: A sum of ₱ 35,000 is invested from March 8,2019 to December 5,2019, at 18 ½ % Simple Interest. Find…
A: Following are the four methods to compute the Simple Interest: Ordinary Interest using Approximate…
Q: You are choosing between two projects. The cash flows for the projects are given in the following…
A: IRR OR internal rate of return is tool of financial analysis , through which the profitability of a…
Q: 3. Which of the following statements is most correct? a. Trade credit is provided to a business…
A: A creditor is a legal entity (individual or institution) that gives credit by giving another legal…
Q: Many professions and sectors have transformed as a result of the arrival of digital technology. What…
A: The Accounting Information System (AIS) is the structure that companies use to collect, store,…
Q: s the discounted value of payments of $120.00 made at the end of each month for 7.5 years if…
A: Discounted value of money is the present value of monthly payment that is equivalent to money today…
Q: Jane requested a loan from a bank amounting to P405,630 to continue her small business. But she only…
A: Given: Maturity Value "M" = P405630 Proceeds = 83.84%*P405630 = P340080.192 Number of years = 12…
Q: Do you think it is important to study first what is the best investment you will invest in for your…
A: There are many investment choices available for an investor, like debt, equity, real estate,…
Q: 4. How much money will accumulate that generates a cash flow of P1000 every year for the next 8…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Mike purchases a bicycle costing $176.90. State taxes are 4% and local sales taxes are 3%. The store…
A: The purchase price is the amount paid by an investor for an investment, and it serves as the…
Q: XYZ corp. has issued $100 zero-coupon corporate bonds with 5-year maturity. Investors believe there…
A: Given: Face Value "FV" = $100 Default % = 20% Amount when default = 0.50*$100 = $50 Not default % =…
Q: Describe how Investment Managers measure the non-systematic risk of their portfolio
A: Non-systematic risk refers to firm specific risk factors. This type of risk is usually eliminated or…
Q: An instalment contract for the purchase of a car requires payments of $280.49 at the end of each…
A: Solution:- When a loan is taken, it is to be repaid in lump sum or in installments. If it is paid in…
Q: Taking a country of your choice, explain the national economic system under which the country…
A: A national economic system is a collection of systems for producing, consuming, and distributing…
Q: Jane requested a loan from the bank amounting to 312,870 to continue her small business. But she…
A: Requested loan amount is 312,870 Loan amount is 84.68% of requested amount Time period is 8 years…
Q: $1,090. The bond pays interest annually. Each bond can be exchanged for 20 shares, and the stock…
A: Price of bond is present value of coupon payment and present value of par value of bond considering…
Q: . The Central Bank of the Bahamas pegs the Bahamian Dollar to the United States Dollar at a price of…
A: Given, The information regarding the Central Bank of the Bahamas pegs the Bahamian $ to the United…
Q: It is the responsibility of the board of directors to: * Ensure that the financial report is O…
A: The board of directors is the top-level management of the company elected by the shareholders. The…
Q: The beneficiary of life insurance of policy is to receive $2000 a year for 5 years, the first paymen…
A: Present value of future cash flow is the amount that is equivalent today considering the period and…
Q: HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of $55,000.…
A: The periodic payments accumulate interest which is added to the original deposit. The result is that…
Q: Proper tax planning for capital gains often involves controlling the _____ of the gain. Choose the…
A: Tax planning Tax planning is the planning of financial situations to ensure that one has to be…
Q: You can purchase today a share of a company for 242$. It is expected that the a dividend of 12.4$…
A: To Find: Expected price 4 years from today
Q: What is the expected return on a portfolio? How can the expected return on a portfolio be…
A: Expected Return on Portfolio =( Weights of Stock 1 * Return of Stock 1) + ( Weights of Stock 2 *…
Q: A man borrowed a certain sum of money from a bank which charges interest at 18%, compounded…
A: The borrowed amount is calculated as the present value of payments
Q: You have a chance to buy an annuity that pays RM1,000 at the beginning of each year for 5 years. You…
A: The payment required to be made for the investment can be calculated with the help of present value…
Q: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 9% interest. a) How…
A: An annuity is a series of equal payments made at regular intervals. It accumulates interest on a…
Step by step
Solved in 2 steps with 3 images
- Jane requested a loan from a bank amounting to P405,630 to continue her small business. But she only received 83.84% of the loan as the bank collected the interest at the time money is requested. If the agreement will mature after 12 years and 4 months: Determine the Simple interest, simple discount rate, total interest accumulated at the end of the year.Jane requested a loan from a bank amounting to P186,980 to continue her small business. But she only received 85.75% of the loan as the bank collected the interest at the time money is requested. If the agreement will mature after 6 years and 9 months, determine the following: 1. Simple interest rate, %. 2. Simple discount rate, %. 3. Total interest accumulated at the end of 4 years.Jane requested a loan from the bank amounting to 312,870 to continue her small business. But she only recieved 84.68% of the loan as the bank collected the interest at the time money is requested. If the agreement will mature after 8 years and 9 months, Determine the simple interest rate, simple discount rate and totl interest accumulated at the end of 4 years
- To start a new business, Alysha intends to borrow $25.000 from a local bank. If the bank asks her to repay the loan in 5 equal annual instalments of $6,935.24, determine the bank's effective annual interest rate on the ipan transaction. With annual compounding, what nominal rate would the bank quote for this loan?Jonathan wishes to borrow $180 000 from a commercial bank. He was told that the loan would be amortized over five years and that payment could be made at the beginning or at the end of each year. Please assist Jonathan by answering the following questions. a. Explain to Jonathan, what is the purpose of a loan amortization schedule? b. Jonathan borrows $180 000 at 9% per annum for five years. The loan is repayable in five equal instalments at the beginning of the year. What is the annual payment?Keiko obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 9.65%. Her loan is for $16,500 for 76 days. Assume each day is of a year. Answer each part below. 365 Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 76 days. (b) Assuming Keiko doesn't make any payments, find the amount owed after 76 days.
- Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in order to purchase a vehicle. He negotiated for the stated rate of the loan at 6% wherein the current market rate is 10%. How much proceeds will Mr. Dalisay receive from the bankMrs. Shimizu borrowed money from a bank. She received from the bank P1,342 and promised torepay P1,500 at the end of 10 months. Determine (a) simple interest rate (b) discount offered asBanker’s discount. Show your complete solution.Ms. Kim borrowed an amount from a bank but she only recieved from the bank P1,340. She promised to pay the principal at the end of 9 months. If the corresponding discount rate or often referred toas the banker's discount is 13.73%, what is the amount borrowed?
- Reena took a loan of 1200 with simple interest for as many years as the rate of interest. If she paid 432 as interest at the end of the loan period, what was the rate of interest?Charmaine obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 9.65%. Her loan is for $17,100 for 76 days. Assume each day is of a year. Answer each part below. Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 76 days. (b) 1 365 s Assuming Charmaine doesn't make any payments, find the amount owed after 76 days. $ 3To start a new business, Alysha intends to borrow $19,000 from a local bank. If the bank asks her to repay the loan in 5 equal annual instalments of $4,758.67, determine the bank's effective annual interest rate on the loan transaction. With annual compounding, what nominal rate would the bank quote for this loan? (Round answer to O decimal places, e.g. 15%.) Effective annual interest rate Nominal rate % %