What is the approximate annual cost of foregoing the cash discount if the credit term is 2/15, net 40 and the company pays end of 50 days? Use 360 days a year.
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Q: What is the approximate annual cost of foregoing the cash discount if the credit term is 2/15, net…
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- If the present value of $444 to be paid at the end of one year is $400, what is the one-year discount factor?If $476 invested today yields $500 in one year's time, what is the discount rate?Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is 10% converted monthly. How much of the 47th payment goes to pay the interest? How much of the 47th payment goes to pay the principal?
- How much is the effective cost if you need to borrow $400,000 for one year with $475,000 line credit, where any borrowing have a single payment interest of 20% and there is a 1.5% fee for any unused credit?What is the monthly payment on a loan of $5,000 at APR = 10% for one year.You are borrowing $10,000 over a two-year period. The annual percentage rateis 4.5%.1) What is the monthly payment?2) What is the total amount paid for loan? 3) What is the total interest paid for the loan?
- You put \$1,000$1,000 into a savings account today that offers a 5\%5% APR with semi-annual compounding (i.e., two times per year). What is the effective annual rate of the saving account?If you borrow $5,300 at $400 interest for one year, what is your annual interest cost for the following payment plan? (Round the final answers to 2 decimal places.) a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective rate % op % %Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12% converted monthly. 1. How much is the outstanding balance after the 36th payment? 2. How much of the 37th payment goes to pay the interest the principal?
- You borrow a GPM of $120,000 with annual payments and 30-year term. The interest rate is 10%. The payment rises by 2% each year. please show how to solve using excel to answer a. b. and c. below a. What are the annual payments for years 1 to 30? b. What is remaining balance at the end of each year? c. What are the interest payment and principal payment for years 1 to 30?What is the present value of a 3-year annutiy of $220 if the discount rate is 6%.How much should you deposit each month in order to save $20,000 in five years? The account you will use pays 5.75% APR compounded monthly. PMT= A divided by 1 plus APR divided by n to the factor of n times Y minus 1 divided by APR divided by n) or [(1+APR/N)^(nY)-1)/(APR/n)].