A loan of $14,865 was repaid at the end of 7 months. What size repayment check (principal and interest) was written, if an 8% annual rate of interest was charged?
Q: The promised cash flows of three securities are listed below. If the cash flows are risk-free, and…
A: Here, To Find: No-arbitrage price of security =?
Q: suitability assessment is not required for the sale of low risk (product risk rating 2 or below)…
A: A statement had been given. We have to assess if it's TRUE or FALSE.
Q: How much more is a perpetuity of $ 1000 worth than an anuity of the same amount for 25 years? Assume…
A: Information Provided: Perpetuity amount = $1000 Cash flow for 25 years = $1000 Interest rate = 15%…
Q: Why is the salvage value $480,000 in the spread sheet? Is that supposed to be $240,000?
A: Given: Fixed asset will have a market value of $240,000 at the end of the project. Working Note#1…
Q: A stock has a required return of 13%, the risk-free rate is 6.5%, and the market risk premium is 3%.…
A: Capital Asset pricing Model (CAPM) is used to determine the required rate of return on investment…
Q: Larry wants to start an IRA that will have $620,000 in it when he retires in 26 years. How much…
A: Annuity refers to a series of regular payments being made for a defined period. If the payments are…
Q: lease try to describe the outlook of international monetary system in 2030.
A: The international monetary system refers to and consists of the entire operating system of the…
Q: roperty and was purchased for $118,551. Click the icon to view a table of MACRS rates.
A: MACRS is modified accelerate depreciation in which there is more depreciation in the initial years…
Q: How much net interest will you get at the end of January?
A: The monthly interest is calculated on the daily balance as on closing day when there is a change in…
Q: One of the options is Delta Airlines. They have paid an annual divendend of $3.98 for the past 25…
A: Dividend growth model The model that helps investors calculate the current value of a company's…
Q: The price of a (non-dividend) stock is $21 and the price of a 3-month European call option on the…
A: The Put-Call Parity: The put call parity explains the relationship between the spot price, call and…
Q: Suppose that you are a U.S.-based importer of goods from the United Kingdom. You expect the value of…
A: Given: US risk free rate = 3.3% UK risk free rate = 1.8% Spot rate = $1.3069
Q: Jim Green wants to receive $3,500 each year for 12 years. How much must Jim invest today at 12%…
A: Present value is equivalent amount of investment that is needed today based on interest rate and…
Q: An over-the-road tractor is purchased for $137,530 and placed in service in July 2017. The owner…
A: Accumulated depreciation An asset's total depreciation over its entire life cycle is called…
Q: Ashburn Corporation issued 15-year bonds two years ago at a coupon rate of 8.8 percent. The bonds…
A: Given, Par value is $1000 Coupon rate is 8.8%
Q: What is the price of a share of the company's common stock? Do not round intermediate calculations.…
A: Information Provided: Stockholders equity = $5.75 billion Price/Earnings ratio = 9.5 Common shares…
Q: Assume a bond has duration of 2.75 at a required yield of 6%. If the yield were to increase from 6%…
A: Duration is an important concept in finance related to bonds. Essentially duration is the measure of…
Q: Particulars Procter & Gamble Colgate-Palmolive Net Sales 2018 66832 15544 Accounts…
A: Companies extend short-term loans to their consumers through accounts receivable, which are…
Q: 20. Consider the following expected returns, volatilities, and correlations: Expected Return Stock…
A: Risk free assets have a standard deviation of 0 and we need to create a portfolio with weights such…
Q: Question 7 Prior to the 2008 financial crisis, if the central bank is interested in performing an…
A: Monetary Policy The action or policy taken by the central bank to control the money supply in the…
Q: In negotiating a contract for your business, you have to decide between receiving $45000 now, or…
A: Interest rate (r) = 0.0515 Payment 1 (CF0) = $20,000 Payment 2 (CF4) = $35,000 We will…
Q: To purchase a specialty guitar for his band, for the last two years JJ Morrison has made payments…
A: Firstly we will calculate accumulated value of last 2 years using future value of annuity formula.…
Q: 3. A loan of $50,000 due in one year is to be repaid by three equal payments due today, six months…
A: A loan is one where the lender provides money to the borrower on interest. The lender received…
Q: Financial Break-Even Ayden’s Toys, Inc., purchased a $435,000 machine to produce toy cars. The…
A: We need to find the break even sales volume for the investment into a new machine. At the financial…
Q: What is the present value of an ordinay annuity if its value at the end of 10 years is Php 50,000?…
A: To calculate the present value we will use the below formula Present value = FV/(1+r/m)(n*m) Where…
Q: Shares Remaining After Recapitalization Dye Trucking raised $255 million in new debt and used this…
A: Solution:- Buy back of shares means when a company buys its own shares from the market to cancel the…
Q: 12. Calculating EAR Find the EAR in each of the following cases. Stated Rate (APR) Number of Times…
A: Effective Annual Rate The rate of return on an investment made or the interest rate on a loan is…
Q: he Milan Corporation just issued a 5-year and a 10-year bond, each with a coupon rate of 10%. Both…
A: The price of bond is the present value of annual coupon payment and plus the present value of the…
Q: The future value in thousands of dollars of an annuity of 500 months and a monthly payment of $380,…
A: Three different graphs have been given to represent the FV of three different annuities. We have to…
Q: Consider stocks with the following statistics: Return and Volatility Asset Expected Return…
A: Sharp ratio Sharp ratio is calculated as shown below. Sharp ratio=Portfolio return-Risk…
Q: Suppose that the annual interest rate of the Euro (€) is 2% and the annual interest rate of the US…
A: We know the interest rates on a pair of currency, and the spot and forward rates. We have to find if…
Q: ow long will it take for a $ 5000 investment to grow to $6000 at an annual rate of 13%, compounded…
A: Due to the compounding of interest over the period of time the interest accumulated is much more…
Q: Calculate the effective duration of an option-free 20-year 7% annual-pay par bond based on a…
A: Effective duration of a bond Effective duration measures the percentage change in bond price when…
Q: List the pros and cons of functional versus divisional structures( minimum of 4 examples)
A: Functional structure means the grouping of jobs of similar nature or employees having a similar area…
Q: To purchase a specialty guitar for his band, for the last three years JJ Morrison has made payments…
A: Data given: Part I Monthly payment = $106 (at the end of each month) n=3 years Interest=4.61%…
Q: Juanita Finn deposits $12,000 into Valley Bank that pays interest of 8%, compounded quarterly. At…
A: Compound Interest Interest added on the interest already received is known as compound interest. For…
Q: Compute the traditional payback period (PB) and the discounted payback period (DPB) for a project…
A: Payback period and discounted payback period A traditional method that helps calculate the number of…
Q: Pettit Printing Company (PPC) has a total market value of $100 million, consisting of 1 million…
A: We have a company up for capital structure changes. We have to find the firm's WACC and total…
Q: Favored stock will pay a dividend this year of $ 2.57 per share and its stock price is $ 45.63 .…
A: Dividend (D) = $2.57 Stock price (P0) = $45.63 Dividend yield = ? Dividend yield is percentage…
Q: Given the following attributes of an investment project with a 5-year life and an after-tax discount…
A: IRR of a project is the discount rate which makes net present value of the project equals to zero.…
Q: Stella deposits $1,250 in a bank account that pays 10.5% interest compounded monthly. In 7 years,…
A: We have; Amount deposited is $1,250 Interest rate is 10.5% compounded monthly Monthly interest rate…
Q: Problem 6-3 An Investor obtained a fully amortizing mortgage five years ago for $96.400 at 11…
A: Refinance: Refinancing is the process of changing a loan's terms, such as interest rate, payment…
Q: The Table below shows the returns for three stocks, and portfolios of Pairs of Stocks Stock Returns…
A: Covariance is calculated as: Correlation is: Correlation = CovarianceA,BStandard…
Q: Please include the excel formula Suppose you bought a bond with an annual coupon of 6 percent one…
A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…
Q: If a company has a forward (forecasted) EPS of 6.230 and a forward PE of 39.353, what is the…
A: The price-to-earnings ratio is a valuation metric that compares a company's current share price to…
Q: You are the product actuary for company A+ Life. You have developed a five-year decreasing annuity…
A: Macaulay duration shows how much time required to recover initial investment of projects with the…
Q: We project unit sales for a new household-use laser-guided cockroach search and destroy system as…
A:
Q: Digital Timber International (DTI) is a developer of distributed data storage technologies. The…
A: Select financials have been provided for a stock. We have to calculate various per share data. You…
Q: A machine manufacturer sells each machine for $7,300. The fixed costs are $279,550 per annum,…
A: Solution:- Break-even as a percent of capacity per annum measures that at how much percentage of the…
Q: The following information relates to the prices and dividends of two stocks listed on the Ghana…
A: Annual return of a stock The selling price and the dividends are two cash inflows that is received…
A loan of $14,865 was repaid at the end of 7 months. What size repayment check (principal and interest) was written, if an 8%
annual rate of interest was charged?
Step by step
Solved in 2 steps with 2 images
- Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600A loan of $20,483 was repaid at the end of 11 months. What size repayment check (principal and interest) was written, if a 7.8% annual rate of interest was charged?A loan of $21,238 was repaid at the end of 10 months. What size repayment check (principal and interest) was written, if a 10.3% annual rate of interest was charged? CUC The amount of the repayment check was $ 23,060 93 (Round to two decimal places)
- A loan of $12,068 was repaid at the end of 16 months. What size repayment check (principal and interest) was written, if a 10.7% annual rate of interest was charged? The amount of the repayment check was (Round to two decimal places)10. A loan of $14,064was repaid at the end of 7 months. What size repayment check (principal and interest) was written, if a 5.8% annual rate of interest was charged? The amount of the repayment check was $A loan of $15,752 was repaid at the end of 17 months.What size repayment check (principal and interest) was written 9.2% annual rate of interest was charged?
- Interest is $405 on a principal balance of $5,000; assuming a 7 month loan what is the rate?K A loan of $21,224 was repaid at the end of 14 months. What size repayment check (principal and interest) was written, if a 5.6% annual rate of interest was charged? The amount of the repayment check was $ (Round to two decimal places.)A loan of $2500 was repaid at the end of 39 weeks with a check for $2812.50. What annual rate of interest was charged?
- The interest amount on a $46,500 loan was $24,785.95. The interest rate charged on loan was 9.20% compounded semi-annually. a. What was the accumulated value of the loan? Round to the nearest cent b. What was the time period of the loan? years monthsA loan of $12,000 is repaid by payments of $571 at the end of every three months. Interest is 9% compounded quarterly (a) How many payments are required to repay the debt? (b) What is the size of the final payment?A debt of $819.07 was to be repaid in 33 months. If $1007.02 was repaid, what was the nominal rate compounded monthly that was charged?