A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $59.29 for three-and-a-half years. The first payment is due on the date of sale and interest is 16% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing?
Q: YYYYMM Return(Stk1) Return(Stk2) Return(Market) Return(T-bill) 201701 7.75% 3.00% 6.18% 0.20% 201702...
A: The Capital Asset Pricing Model (CAPM) is a mathematical model that explains the relationship betwee...
Q: Auto loan scenario. Vehicle cost 37955. Interest rate is 4% for 60 months.
A:
Q: Find the rate of interest if the principal value is $28000 with an interest value is $9000 after 5 y...
A: Principal value (P) = $28000 Interest value (I) = $9000 Period (n) = 5 Years
Q: It is likely that your college tuition will increase an average of 8% per year for the next 4 years....
A: Given, the payment for the first year is $12,000 Growth rate is 8% Interest rate is 5% Term is 4 yea...
Q: The Charleston Company is a relatively small, privately owned firm. Last year the company had after-...
A: The price-earnings ratio is the ratio of the market price of a stock to the earnings per share. It i...
Q: Find the final amount in the following retirement account, in which the rate of return on the accoun...
A:
Q: A man wants to recieve P800 immediately and pay it back in one year. The bank charges a simple disco...
A: Borrowings/Mortgage are the loan which is taken by the individual to meet its financial requirements...
Q: 693.97 per ounce for a four-month futures contract, what is the potential carry trade profit per oun...
A: Carry trade off would be the profit available after the cost of carry and interest rate on the gold.
Q: The cost of supplies for a 10-year project increases by P900 every year, starting at the end of the ...
A: We should ascertain the cash flows for the next 10 years and then should compute its present value t...
Q: You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now, D...
A: The Internal Rate of Return (IRR) is the discount rate that causes a project's net present value (NP...
Q: The central issue of efficient market concens: O regulations O structure O participants O informatio...
A: Market efficiency is the ability of markets to process the information quickly and generate the unbi...
Q: Lilly Inc has a DSO of 20 days, and its annual sales are $3,550,000. What is its accounts receivable...
A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new que...
Q: Bart is a college student who has never invested his funds. He has saved $540 and has decided to in...
A: An initial investment accumulates interest. The future value is the accumulated value of the initial...
Q: Spot USDJPY is trading at 113.15 and the 3 month forward points are -22. The exchange rate for the l...
A: Given: Spot USDJPY rate = 113.15 3-month forward points = -22
Q: Find the compound amount and the amount of interest earned by the deposit below. $9,000 at 7.79% com...
A: Deposit amount (P) = $9000 Interest rate (r) = 7.79% Period (t) = 3 years Mathematics constant (e) =...
Q: What is the monthly payment on a loan of $5,000 at APR = 6% for 3 years
A: Monthly payment can be calculated by loan amount divided by present value factor of an ordinary annu...
Q: List each of the key financial statements and identify the kinds of information they provide to corp...
A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts ...
Q: hat is SWIFT code in the philippine
A: SWIFT code is used in sending money internationally from one country to other country. This code is ...
Q: Peter makes a deposit at the end of every month into a savings account that earns interest at 5.4% c...
A: There is need of proper financial planning for the future needs and there is need proper savings nee...
Q: Jean Co. sponsors a defined benefit pension plan. For the current year ended December 31, the follow...
A: Since you have posted a question with multiple sub parts but as per our guidelines we will be solvin...
Q: What is the present value of a security that promises to pay you $5,000 in 20 years? Assume that yo...
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at t...
Q: A contractor bought a concrete mixer at P 150,000 if paid in cash. The mixer may also be purchased b...
A: Cost of mixer (PV) = P 150,000 Interest rate (r) = 8% Period (n) = 5 Years Annual payment = P
Q: Brian Baluya was a subscriber of Global Appliance Corporation for 300 ordinary shares at P150 par va...
A: Since multiple subpart questions are asked , we will solve 1st sub 3 parts for you as per prescribed...
Q: Brooks Clinic is considering investing in new heart-monitoring equipment. It has two options. Option...
A: Net present value in the difference between present value(PV) of cash inflows and present value(PV) ...
Q: Determine the present worth of a maintenance contract that has a cost of $30,000 in year 1 and annua...
A: The above is a case of Uniform Gradient Present Worth or UGPW. This is also known as Discrete Compou...
Q: What is the yield to maturity of a 13 percent semi-annual coupon corporate bond, which matures in 11...
A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of...
Q: explain the role/function of finance manager in today's world. please write about 500 words.
A: Finance managers are accounting experts responsible of a company's or organization's financial healt...
Q: For questions 37 – 40 use the following: Starlight Corporation has accounts payable of $200,000 (a ...
A: after tax cost of debt = cost of debt * (1-tax rate)
Q: 6. Calculating Rates of Return Assume the total cost of a college education will be $235,000 when yo...
A: Annual rate of return = (Future value / Present value)^(1/Time) - 1 where, Future value = $235,000 P...
Q: A $1,000 face value, 6.4% coupon bond pays interest semi-annually and matures in ten years. It has ...
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...
Q: Referencing Using Excel to Compute Interest and Maturity Date PROBLEM Compute interest and find the ...
A: Here, Total no. of days in a year = 360 days To Find: Interest =? Maturity date =?
Q: What is the WACC for Arnold and Rodgers, a law firm using 65% equity with a required return of 15%, ...
A: WACC = [Cost of debt x (1 - tax rate) x Weight of debt] + (Cost of preferred stock x Weight of prefe...
Q: Graham buys a piece of lot for P 200,000 down payment and 10 deferred semi- annual payment of P 8,00...
A: Down payment = P 200,000 Semi annual payment = P 8000 First payment period = 3 Years Number of payme...
Q: The questions fall under financial management
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a ti...
Q: oney for her two years old child education in the amount of fifty thousand pesos at the rate of 10 ½...
A: Given information : Current age of kid 2 Initial investment made 50000 Interest rate 10.50% ...
Q: The present worth for the DDM method is $ The present worth for the LS method is $ Ehe (Click to sel...
A: Present Worth: It represents the present value of the annual cash flow stream and is computed by di...
Q: Dakota Corporation 15-year bonds have an equilibrium rate of return of 8 percent. For all securities...
A: We know that nothing is free in this world, whenever company required funds they issued corporate b...
Q: Houston Tools has expected earnings before interest and taxes of $189,400, an unlevered cost of capi...
A: Value of firm is defined as an economic concept, which helps in reflecting the business value in the...
Q: s of financial management and provide strategies used by financial managers to overcome/avoid these ...
A: Step 1 Financial risk management is the process of dealing with and controlling potential and pres...
Q: 33. Nonconstant Growth. Better Mousetraps has come out with an improved product, and the world is be...
A: The current stock price is derived as the discounted value of future cash flows associated with the ...
Q: How much will it cost to purchase an ordinary annuity delivering semiannual payments of $2000 for 12...
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type]) Rat...
Q: A new equipment is being considered to replace an old equipment in a facility. The equipment would c...
A: New Equipment Cost = $7,480 Life =15 years Discount Rate = 6% Year 10 = Special Maintenance to be in...
Q: er year, how much will the investor have in the account in 3 years?
A: Future Value: It is the future worth of the present annuity stream of cash flows and is computed by...
Q: wed GH¢200,000 from his bankers to buy his dream house. Repayment is over 4 years and first payment ...
A: Given information : Amount borrowed 200000 Time period (years) 4 Current base rate 5% Above...
Q: etirement for 20 years, a self-employed engineer deposits P6,000 every end of 3 months in a fund tha...
A: Given information : Time period (years) 20 Periodic deposits 6000 Payment quarterly Intere...
Q: 6. What size monthly payments should occur when $10,000 is borrowed at 6% per year compounded semian...
A: Borrowings: Borrowings are the loan which is taken by the individual to meet its financial requirem...
Q: C: 9% Year Cash flows -$1,000 $500 $500 $500
A: Year Cash flow 0 -1000 1 500 2 500 3 500 WACC = 9%
Q: An equity analyst from Jefferies & Co. expects Johnson & Johnson (NYSE: JNJ) current annual dividend...
A:
Q: Clark borrows P 600,000 at 15% compounded annually agreeing to repay the loan in 15 equal payments. ...
A: Loan amount (PV) = P600,000 Interest rate (r) = 15% Number of payments (n) = 15
Q: Assuming interest rates are at 6%, what is the fair value of this offer?
A: Fair value or present value can be calculated using the present value concept. 1. Find the value of...
Seis
Step by step
Solved in 7 steps
- Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $56.55 for three-and-a-half years. The first payment is due on the date of sale and interest is 15% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $8.50 per month is added to cover a service contract, what is the value of the entire contract on the date of sale? a) The purchase price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) b) The amount paid in installments will be $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) c) The cost of financing is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) d) The value of the entire contract on the date of sale is $…A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $37.17 for three-and-a-half years. The first payment is due on the date of sale and interest is 15% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $8.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale? a) The purchase price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) b) The amount paid in installments will be $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) c) The cost of financing is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) d) The value of the entire contract on the date of sale is S
- A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $56.86 for two-and-a-halfyears. The first payment is due on the date of sale and interest is 22% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $9.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?Consider a credit card with a balance of $7000. You wish to pay off the credit card in each scenario. Calculate the following. Round your answer to the nearest cent, if necessary.a. The amount of a monthly payment within the time frame givenb. The total amount paid over the time period12. APR of 17.99% paid off within 1 year APR of 24% paid off within 3 yearsCalculate the APR of a loan for $10,025, including loan fees of $310, at 11% for 6 years. (Do not round intermediate calculations. Round your answer to the nearest tenth percent.) APR If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehne is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 6% APR and the following transactions? (Round your answer to the nearest cent.) 31-day billing cycle 10/1 Previous balance 10/3 Credit 10/12 Charge: King Soopers 10/15 Payment 10/25 Charge: Delta 10/30 Charge: Holiday Fun $1,158 $ 85 cr. 142 250 cr. 315 55 Answer is not complete. Amount owed Calculate (a) the amount financed, (b) the total finance charge, and (c) APR by formula. (Do not round intermediate calculations.…
- Calculate the monthly finance charge for the credit card transaction. It takes 10 days for a payment to be received and recorded, and it's a 30 day month. Round to the nearest cent. $4000 balance, 16%, $2500 payment. what is the previous balance method, the adjusted balance method, and average daily balance method?A discount electronics store advertises the following financing arrangement: “We don’t offer you confusing interest rates. We’ll just divide your total cost by 11 and you can pay us that amount each month for a year.” The first payment is due on the date of sale and the remaining eleven payments at monthly intervals thereafter. Calculate the effective annual interest rate the store’s customers are paying on their loans. Report your answer to the nearest two decimal places (i.e., x.xx).Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments are $987 per month, and the total finance charge is $9,432. After 25 months, you decide to pay off the loan. After calculating the finance charge rebate, find your loan payoff (in $).
- A car loan of $23,800 is to be repaid with bi-weekly payments of $164. How many payments are required to repay the loan at 7.2% p.a. compounded bi-weekly? What is the size of the final payment? Round your answer up to the next whole payment (6 months). Payments = See "Finding the value of the final payment" on Chapter 11 Formula Sheet. Also see Example 11.D on page 452 of Edition 12. Do not include the dollar sign in your answer. Value of final payment = Watch this anSuppose that you decide to borrow $15,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 5.9% Installment Loan B: five-year loan at 4.8% P Use PMT = to complete parts (a) through (c) below. - nt 1- 1+ a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.)Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 24%, compounded monthly. The credit card company says your minimum monthly payment is $24.75. a. If you make only this minimum payment, how long will it take for you to repay the $1,100 balance (assuming no more charges are made)? b. If you make the minimum payment plus $7.17 extra each month (for a total of $31.92), how long will it take to repay the $1,100 balance? c. Compare the total interest paid in Part (a) with the total interest paid in Part (b). a. It will take b. It will take months for you to repay the initial balance. (Round to the nearest whole number.) months for you to repay the initial balance. (Round to the nearest whole number.) (Round to the nearest dollar.) c. The difference in the total interest paid in Part (a) and Part (b) is $