What is the annuity payment?

Q: Suppose you invest $180 a month for 6 years into an account earning 10% compounded monthly. After 6…

A: When the money is deposited or collected at a regular interval of time with the given interest rate,…

Q: Did did the principal became 25600?

A: Cost of trade credits is the cost which a buyer will incur if he takes the trade credit. In the…

Q: 1. A Machine costs P80,000 and an estimated life of 10 years with a salvage value of P5,000. What is…

A: Depreciation can be defined as the reduction in the value due to wear and tear in asset over a…

Q: When the actual foreign exchange rate for the dollar is greater than the equilibrium rate, the…

A: The above statement is true.

Q: High Roller Properties is considering building a new casino at an after-tax cost of $10.0 million at…

A: Here, To Find: Value of the abandonment option =?

Q: Blue Bell stock is expected to return 23 percent in a boom, 16 percent in a normal economy, and lose…

A: Expected Return  (E(X)) = 0.23*0.05 + 0.16*0.90 - 0.32*0.05  = 0.0115 + 0.144 - 0.016 = 0.1395

Q: Question 1 Which of the following is true? O Forward contracts have no default risk. O Forward…

A: Solution:- Forward is an agreement in which two parties contract over the counter each other to sell…

Q: Cash Advance/Borrowed Interest Rate for Total Amout Due After 2 Amount 2-Week Loan (%) APR Interest…

A: Loan Amount = $500 Interest Rate for 2-Week Loan(%) = 15%

Q: A man borrowed from a bank with a promissory note that he signed in the amount of P25000 for a…

A: The following information has been provided in the question: Amount of promissory note = P25000…

Q: Mega Company purchased 12 years ago a Mega Pen for P50,000. As the life of the Mega Pen was 20…

A: Straight-line depreciation method is the most common and easiest method to calculate depreciation.…

Q: long-term debt, preferred stock, and commercial paper

A: Debt that matures in more than one year is called long-term debt. Long-term debt is a liability for…

Q: Zero coupon bond yields and oil forward prices for the next three years are: Year 3 Oil Forward…

A: Zero coupon yield for year 1 (r1) = 5% r2 = 6% r3 = 7% Forward price in year 1 (P1) = 60 P2 = 62 P3…

Q: In a loan, the principal borrowed plus interest must be repaid. So, part of each loan payment is…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: . Finance the farm manager's personal expenses,

A: Liability refers to a future obligation that a person or a company has to pay at a future date These…

Q: rouomet that costs $123,100 and wil be depreciated at a CCA rate of 30%. Shell will Kra te ecupment…

A: Calculation of present worth of cash flows:               Year 0 Year 1 Year 2…

Q: Company A will pay a dividend at the end of each year at 150Php for the next 3 years for Stock A…

A: Share price: Share price is the current market price of the share. It is the price of the share at…

Q: explain the strategies that enhance the return on equit

A: Return on equity is a very important financial ratio. This ratio is essentially a measure of…

Q: A company estimates that a certain piece of machinery will have to be replaced in five years' time…

A: Future value of growing annuity (due) = [P/(r-g)] *((1+r)^n - (1+g)^n / (r-g))P = Initial payment =…

Q: Now suppose that annual unit sales, variable cost, and unit price are equal to their respective…

A: Concept. Annual profit = revenue - variable cost - fixed cost.

Q: today's interest rate on one-year Canadian deposits; İe = today's interest rate on one-year U.K.…

A: Expected $/£ = [Spot rate * ( 1 + $ Interest rate)]/(1+ £ Interest rate)

Q: Suppose you require a 10% return on your investments while purchasing a stock tha ently trading at…

A: For a stock investment return on investment is the quantum of net profit or benefit or gain that…

Q: what is the Total Asset Turnover Ratio for pepsi company for year 2019, 2020, 2021?

A: The Total Asset Turnover Ratio measures the average number of times the sales over the total asset.

Q: Spot Forex quote: EUR/USD = 1.06. A friend from France has asked you to purchase a Bobcat baseball…

A: Spot rate EUR/USD = 1.06 Cost of Bobcat baseball cap in USD = $21 Cost of Bobcat baseball cap in EUR…

Q: You borrow $700,000 at 3% interest for 30 years on a mortgage. What is your monthly payment?…

A: To calculate the monthly payment we will use EMI formula as follows:   Monthly payment =…

Q: Construct a table showing the amortization of the loan.

A: Amortization: It is the process of paying the loan amount in periodic payments by the borrower to…

Q: Spot Forex quote: EUR/USD = 1.06. A friend from France has asked you to purchase a Bobcat baseball…

A: Spot exchange rate EUR/USD = 1.06 Purchase cost in USD = $21   Cost in EUR = ?     We will use…

Q: If the annual interest rate is 8%, what is the daily interest rate that would be used as the "r" in…

A: Daily interest rate is often used in finance to determine the amount of interest that one will owe…

Q: (c) As part their responsible business initiative, DEVCON Industries wants to establish a trust fund…

A: This question can be solved in light of increasing annuity due. That is, a series of growing…

Q: Suppose that the price of a Treasury bill with 85 days to maturity and a $25,000 face value is…

A: Bond equivalent yield can be calculated by using the below equation. Bond equivalent yield =(face…

Q: Contrast and compare sources of business finance and assess various determinants of the cost of…

A: There are different financing options available to the firm. It includes, preference shares, debt,…

Q: Use the following information about SV Inc. to calculate the company’s Cost of Capital. The stock…

A: Hi, since the question posted has multiple subparts, I will answer the three sub-parts of Section B.…

Q: Use the following information about SV Inc. to calculate the company’s Cost of Capital.   The stock…

A: Given,  Three projects A, B and C with betas and expected return

Q: Eric has an option position on Langdon stock that results in a zero dollar payoff when the stock…

A: Purchasing a put option means the right to sell at certain security only if stock price is less than…

Q: In the fourth and final year of a project, XYZ expects operating cash flow after taxes of P440,000.…

A: The cash flow of the year is what is received after payment of all operating expenses and all…

Q: Local Co. has sales of $10.9 million and cost of sales of $6.1 million. Its selling, general and…

A: Ratio Analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: loan of $1000 is repaid by equal annual amounts of principal for 10 years and annual interest of 7%…

A: To construct Amortization Table, first we need to find out the annual repayment of the loan…

Q: I, III, and IV

A: The gross estate refers to the term which is to define the dollar value of an individual's assets at…

Q: The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $45,000. It had…

A: NPV or net present value is defined as the sum of the PV of all future cash inflows minus the sum of…

Q: forecase sales for the period of April to August using the weight as given

A: An important part of financial management is budgeting and forecasting future sales. Forecasting is…

Q: When choosing the appropriate group of risk factors to include in a multifactor Arbitrage Pricing…

A: APT model is essentially an asset pricing model that is based on multiple factors. The model is…

Q: Consider that you take out a $250,000, 15-year mortgage with 3.5% interest with monthly payments.…

A: Loan amount (P) = $250,000 Monthly period of loan (n) = 180 (i.e. 15 years * 12) Monthly interest…

Q: You use a broker to increase your available capital for investing into the shares of Globe Plc from…

A: Maintenance margin is the minimum amount which the investor must maintain in its account. Margin…

Q: what is the challenge og hong hong as financial gateway to and from China

A: Hong Kong, for many years now, has been the financial gateway to and from China. Besides being a…

Q: t 2 of 3-B Suppose the following model describes changes in Company ABC's sales: AABCt = 0.078 -…

A: The sales growths are changing and change in sales depends on the change in sales of previous change…

Q: USE MICROSOFT EXCEL FORMAT SHOW FORMULAS USED   Find the Break Even Quantity of production for…

A: The break-even point is the point at which total cost and total revenue are equal, indicating that…

Q: Solve manually using formulas. Xia received an HMO card which allows her to reimburse all of her…

A: The future value is used to measure how much money an account will hold after certain deposits have…

Q: Alfredo wants to know how much he must put in a bank account today to have within 14 years an amount…

A: As per the information provided: Future value of the invested amount = $20,000 Time = 14 years…

Q: Master Machines, Inc. 2017 2018 Sales $1,240 $1,385 COGS 820 910 Interest 25 20 Dividends 25.50…

A: Operating cash flow is cash flow available after the payment of all operating expenses including the…

Q: The index model has been estimated for stock A with the following results: RA = 0.01 + 1.2RM + eA.…

A: Standard deviation is referred to as the measure of the dispersion of a dataset relative to its mean…

Q: School fees at a certain school are due at the beginning of the year. The fees are set at R12000 for…

A: When the future amount is deposited at a regular interval with the growth in the periodic deposit…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.