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- Assume the average management cost per account per year is $200 and the average fees earned per account per year is $170. The average annual size of account is $1800. What is the average implicit interest rate (round to two decimals)? Select one: a. 4.86% b. 1.67% c. 15% d. -1.67%Suppose that P dollars in principal is invested in an account earning 2.1% interest compounded continuously. At the end of 2 yr, the amount in the account has earmed $193.03 in interest. a. Find the original principal. Round to the nearest dollar. (Hint: Use the model A = Pe" and substitute P + 193.03 for A.) b. Using the original principal from part (a) and the model A = Pe", determine the time required for the investment to reach $6000. Round to the nearest tenth of a year.When $8,600 is invested in a savings account paying simple interest for the year, the interest, i in dollars, can obtained from the equation i=8,600r, where r is the rate of interest in decimal form. Graph i=8,600r, for r up to including a rate of 16%. If the rate is 7%, how much interest is earned? OA. $6,020 OB. $602 O C. $586 OD. $622 I
- Note: Round your answer to 2 decimal places unless otherwise stated. Ignore symbols such as $, %, and commas. For example, if your answer is 0.1256, write 0.13 A company can choose one of two investment plans, A and B. Under plan A, it can invest $ 6800 at 7.5% p.a., compounded monthly. Under plan B, it can invest $x at 7.0% p.a., compounded continuously. If the company wants to have the same amount after 5 years using either plan, what is the value of x ? $What is the fixed charge coverage ratio? Answer in the form of 5.0x (one decimal place...hint: should end in .0x or .5x) Assume: Sales - $1,000 Depreciation - $3 PP&E - $15 Taxes paid - $8 Accounts receivable - $2.5 Debt due within one year - $10 Capital Expenditures - $2 Net Income - $25 Interest expense - $6 Total Debt - $112.5he Mickey corporation has an annual profit before interest and tax of $19.6M, and an interest cost on loans valued an amount of $10.8M. What is their interest coverage ratio? note: write the mumber with at most 2 decimal places (eg. 75.17)
- Suppose that P dollars in principal is invested in an account earning 3.2% interest compounded continuously. At the end of 5 yr, the amount in the account has earned $1388.09 in interest. Part: 0 / 2 Part 1 of 2 (a) Find the original principal. Round to the nearest dollar. (Hint: Use the model A = Pe' and substitute P+1388.09 for A.) The original principal was approximately SA firm has net income before interest and taxes of $192,000 and interest expense of $28,800. a. What is the times-interest-earned ratio? (Round your answer to 2 decimal places.) Times-interest eamed times FOULERION b. If the firm's lease payments are $43,600, what is the fixed charge coverage? (Round your answer to 2 decimal places.) Fixed charge coverage timesFind the interest earned on an investment of $10,000 into a money market account that pays a simple interest rate of 1.75% over a 39 wk period.
- Given the following, determine the gross of return after interest: Days inventory outstanding (DIO) = 60 Days sales outstanding (DSO) = 45 Days payable outstanding (DPO) = 30 Average markup =19 80% of sales is on credit. All capital is borrowed at 40.4% Assume 365 days of operations. Round your answers to TWO places of decimal.On January 1, a company agrees to pay $13,000 in six years. If the annual interest rate is 2%, determine how much cash the company. can borrow with this agreement. (PV of $1. EV of $1. PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Future Value Table Factor Amount BorrowedUse the following information about IGI security dealer. Market yields are in parenthesis, and amounts are in millions. Assets Liabilities and Equity Cash $10 Overnight Repos $170 1 month T-bills (7.05%) 75 Subordinated debt 3 month T-bills (7.25%) 75 7-year fixed rate (8.55% 150 2 year T-notes (7.50%) 50 8 year T-notes (8.96%) 100 5 year munis (floating rate) (8.20% reset every 6 months) 25 Equity 15…