merchant receives an invoice for $8000 with terms 2/10, n/50. a) What is the maximum interest rate that the merchant could borrow money at to take advantage of the discount? b) If the bank offers a loan for 15% interest, should he accept it, and if so, what will be his savings?
Q: You want to buy a $200000 home. You plan to pay $20000 as a down payment, and take out a 20 year…
A: Here, Value of Home is $200,000 Down payment is $20,000 Time Period of Loan is 20 years Interest…
Q: If your uncle borrows $70,000 from the bank at 12 percent interest over the ten-year life of the…
A: Annual payment refers to the payment that is made each year including interest and principal for…
Q: Suppose someone offered to sell you a note calling for the payment of $1,000 15 months from today.…
A: given, future value of note = $1000 n=15 months = 1512year rate = 7% present value of =$850
Q: Suppose you borrow $21,000 from your bank to buy a car. You agree to pay $433.89 per month for 60…
A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…
Q: What’s the equivalent interest rate to the terms 3/20, n/60? In other words, what is the effective…
A: Time Value of Money: The term 3/20 means if the customer makes payment within 20 days he will enjoy…
Q: (1)You decide to purchase a new home and need a $100000 mortgage. You take out a loan from the bank…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is…
A: Future value of an amount is calculated as follows: FV = PV*(1+r)t Where, FV = Future value of…
Q: Suppose your bank’s loan officer tells you that if you take out a mortgage (i.e., you borrow…
A: A short sale in terms of real estate is one in which a house is sold for a price that is less than…
Q: A merchant buys a bill of goods requiring the payment of $1,500 at the end of 180 days. He is…
A: Cash management involves decision regarding whether, to make early payments to the suppliers and…
Q: Do you want to By A home for $330,000. You plan to pay 33,000 as a down payment and take out a 15…
A: Loan amount is the amount that is borrowed from a financial institution after paying a certain…
Q: k A has offered you a loan worth $20,000 for 180 days whereas bank B offered you the same loan but…
A: Credit, operational, market and liquidity risks are among the most serious threats that banks face.…
Q: A firm is offered credit terms of 2/10 net 45 by most of its suppliers. The firm also has a credit…
A: Credit term refers to the term and conditions specified in a credit transaction by the seller to the…
Q: You are in desperate need of cash and turn to your uncle who has offered to lend you some money. You…
A: Computation of the implied rate of this transaction is shown as follows: Hence, the implied rate on…
Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…
A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…
Q: You are considering a $75,000, 30-year mortgage to purchase a new home. The bank at which you have…
A: Mortgage payments are the regular monthly payments made to cover the amount borrowed as a loan…
Q: Suppose someone offered to sell you a note (an investment) that calls for $1,000 payment two years…
A: .Future Value (FV) :FV represents the projected worth of an initial sum of money at a specific point…
Q: You borrow $6000 from a loan shark named Johnny Hammerhead. If you will owe $7200 in 18 months, what…
A: Here to calculate the simple interest rate we will use the following formula: Simple interest =…
Q: You are taking out a single-payment loan that uses the simple interest method to compute the finance…
A: Amount of Loan = $10,000Interest Rate (annual) = 6% = 0.06 (as a decimal)Term of Loan = 2 yearsThe…
Q: A bank is considering offering a loan of $100,000 to a client. If the loan is not offered, then the…
A: EVPI means different between two alternatives on the basis of monetary value. It helps to determine…
Q: Suppose a person has a total credit card debt of $1.375 that has a 12% yearly interest rate. This…
A: Interest rate on savings provides the earnings to the investors while interest rate on credit card…
Q: II. Solve the following problems involving credit cards. Round your answers to the nearest…
A: Variables in the question:12. APR=22.2%13. Average balance for last credit card…
Q: A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that…
A: To calculate the simple interest rate we will use the below formula Interest rate = [(A-P)/P]/T…
Q: Paige is planning on depositing $1,000 in one of two different savings accounts from two financial…
A: Annual percentage rate (APR) refers to the stated interest rate or the nominal rate that is being…
Q: A CD, or “certificate of deposit,” is a type of savings account with a fixed rate and term, meaning…
A: Variables in the question:Initial deposit = $2200APR = 0.26% (compounded monthly)N=10 years
Q: In buying a cellphone, the buyer was offered the options of paying P 17,500 cash or P 22,200 at the…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: A bank pays 5% with daily compounding on its savings accounts. Should it advertisethe nominal or…
A: An interest rate is usually in two forms namely nominal interest rate and effective interest rate.…
Q: Your bank offers you a car loan with an interest rate of 6%. You expect inflation to be 2%. What is…
A: Here,Nominal interest rate is 6%Inflation Rate is 2%
Q: Suppose I have a balance of $4500 on my Bank of America credit card. Assume the interest rate on my…
A: Payment is made monthly, hence it is a question of annuity. Annuity means number of payments which…
Q: 2. Remi deposits $2,000 into a savings account at her bank. If the interest rate is 3.25 percent,…
A: Deposit = 2000 Interest rate = 3.25℅ N = 5
Q: A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is…
A: a) Future value = Present value * (1+rate)^year
Q: A man borrowed P300,000 from a bank and agreed to pay the loan at the end of a month. The bank…
A: Maturity amount (F) = P 300,000 Net proceeds (P) = P 250,000 Period (n) = 1 Month = 1/12 Year
Q: our mother received an offer from a bank. The flier is offering your mother to open a credit card…
A: The 15% mentioned in the flier is the stated rate or the nominal rate. It is not the effective…
Q: How much is the maximum amount of loan that ABC Co. can get from the bank?
A: Debt ratio is calculated as total debts (liabilities) divided by total assets. It is a measure of a…
Q: You want to buy a $216,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…
A: A home indicates the sum borrowed to purchase a new house. A home loan offers funding to afford the…
Q: Mint.com, GoodBudget, Mvelopes, BillGuard, PocketExpense, HomeBudget, and Expensify. After using…
A: Notes payable are promissory notes because one party promises to pay the other party money within a…
Q: ou have agreed to loan some money to a friend at a simple interest rate of 62% your friend needs a…
A: Rate = 62% Principal = $1470 Maturity Value =$3200 Interest = $3200 -$1470 Interest = $1730
Q: Clark’s Landscaping bills customers subject to terms 2/25, n/60. Required: Compute the annual…
A: Annual Interest Rate= Discount % / 100 - Discount % * 365 / days paid early
Q: Amir needs 12000 to get his business started as soon as possible. He decides to take a loan from a…
A: Amount needed = 12000 Discount amount = 354.15
Q: A man took out a loan with a loan shark. He accepts P21,342.00 from the loan shark and promises to…
A: Equation for calculation of simple interest is as follows: Interest= P x R x T ÷ 100 so, to…
Q: Assume that a broker agent introduces you to a local bank, and that bank offers you their lowest…
A: we need to use loan amortization formula given below for calculation of monthly payment PMT…
Q: Jamila wants to deposit OMR 5000 in a bank fixed deposit for 8 years. She has the following bank…
A: Investments are the crucial methods through which individuals and companies invest or park their…
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…
merchant receives an invoice for $8000 with terms 2/10, n/50.
a) What is the maximum interest rate that the merchant could borrow money at to take advantage of the discount?
b) If the bank offers a loan for 15% interest, should he accept it, and if so, what will be his savings?
Step by step
Solved in 3 steps with 1 images
- A friend asks to borrow $48 from you and return will pay you $51 in one year. If your bank is offering a 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $48 instead? b. How much money could you borrow today if you pay the bank $51 in one year? c. Should you loan the money to your friend or deposit it in the bank? Dmerchant receives an invoice for $8000 with terms 2/10, n/50. What is the maximum interest rate that the merchant could borrow money at to take advantage of the discount? a 18.25% b 14.90 % € 18.62% d 14.60%You have agreed to loan some money to a friend at a simple interest rate of 62% your friend needs a $1470 loan you tell him to pay you back $3200.When should you tell him to pay you back if you want to hold that interest rate of 62%?
- help with the question of "which is better and why"?A payday lender lends money on the following terms: “If I give you $100 today, you will write me a check for $120, which you will redeem or I will cash on your next payday.” Noting that calculated rates would be even higher for closer paydays, assume that the payday is two weeks away. (a) What nominal interest rate per year (r) is the lender charging? (b) What effective interest rate per year (ia) is the lender charging? (c) If the lender started with $100 and was able to keep it, as well as all the money received, loaned out at all times, how much money does the lender have at the end of one year?suppose that you overdrew your bank account by $200. the bank charge you a fee of $30 and your paycheck will be deposited in 5 to cover the overdraft. please calculate the period rate apr and aer that you pay for this overdrew
- Your bank offers you a car loan with an interest rate of 6%. You expect inflation to be 2%. What is the real interest rate on this loan?Suppose your bank’s loan officer tells you that if you take out a mortgage (i.e., you borrow money to buy a house), you will be permitted to borrow no more than 80% of the value of the house. Describe this transaction using the terminology of short-sales.If you borrowed P250,000 from a bank payable for two years and 6 months at simplediscount rate, how much will you receive from the bank?
- You want to buy a $200000 home. You plan to pay $20000 as a down payment, and take out a 20 year loan at 5.25% interest for the rest. a) What is the amount of the payment? $ b) If the bank charges 1.5 points on the loan, what is the amount charged for points? $ c) If the bank charges 1.5 points on the loan, what is the true interest rate? $ Question Help: D Video Submit QuestionA depositor currently has $6,000 and plans to invest it in an account that accrues interest continuously. What interest rate must the bank pay if the depositor needs to have $10,000 in four years?Clark’s Landscaping bills customers subject to terms 2/25, n/60. Required: Compute the annual interest rate implicit in the sales discount. If his bank charges 17 percent interest, should the customer borrow from the bank so that he can take advantage of the discount?