SBC Inc. owes your firm $90,000. This amount is seriously delinquent so your firm has offered to arrange a payment plan in the hopes that it might collect this receivable. Your firm's offer consists of weekly payments for one year at an interest rate of 4 percent. What is the amount of each payment? $1,766.28 $1,800.00 $1,366.84 $4,138.39 None of the answers is correct.

SBC Inc. owes your firm $90,000. This amount is seriously delinquent so your firm has offered to arrange a payment plan in the hopes that it might collect this receivable. Your firm's offer consists of weekly payments for one year at an interest rate of 4 percent. What is the amount of each payment? $1,766.28 $1,800.00 $1,366.84 $4,138.39 None of the answers is correct.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

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?
Arab Bank offers interest rate of 0.2 on its CD to Mr. Ahmad, a bank client. The client initially invested $1,000 and agreed to have the interest compounded monthly for one full year. What is the effective interest rate? Answer:
The bank is offering you 9 APR on a loan. Currently the conditions are that the 9 APR is compounded monthly. Say the bank was open to changing the compounding period to anything you would like.... b) What is the BEST-case scenario for your ieff (annual) as far as you (the customer) is concerned? Type your response
II. Solve the following problems. 1. Cris borrows P40,000 and promises to pay the principal and interest at 14% compounded annually. How much must he repay after 8 years? Solution: Given: Unknown: Formula: 2. If you deposit P4000 into an account paying 8% annual interest compounded monthly, how long until there is P9000 in the account? Given: Unknown: Formula: Answer: Given: Unknown: Formula: Solution: Answer: 3. How much money would you need to deposit today at 7% annual interest compounded quarterly to have P16000 in the account after 4 years? Solution: Answer:
P. Use PMT to determine the regular payment amount, rounded to the nearest dollar. Your credit card has a balance of $4800 and an annual -nt interest rate of 12%. You decide to pay off the balance over three years If there are no further purchases charged to the card, a. How much must you pay each month? b. How much total interest will you pay? ked Scol a. The monthly payments are approximately S (Do not tound until the final answer Then round to the nearest dollar as needed) suon estion
One of your customers is delinquent on his accounts payable balance. You've mutally agreed to a repayment schedule of $520 per month. You will charge .92 percetn per month interest on the overdue balance. If the current balance is $14740, how long will it take for teh account to be paid off?
You have a loan outstanding. It requires making8 annual payments at the end of the next8 years of$8,000 each. Your bank has offered to allow you to skip making the next7 payments in lieu of making one large payment at the end of the loan's term in 8 years. If the interest rate on the loan is4.75%, what final payment will the bank require you to make so that it is indifferent between the two forms of payment?
The "-5-6" scheme is availed by a lot of individuals and prohibited by law. This transaction is considered usurious because of the unreasonable interest charged by the creditor to the borrower of the loan. It is called 5-6 because when you borrow P5 you are required to pay P6 after a month. This translates into a monthly interest rate of 20%. Assuming monthly compounding, what is the effective annual interest rate of this scheme that makes it too much of a burden to bear by the borrower? Which of the two projects, Project O and Project Y, should the company pursue? Why?
You want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year loan at 4.75% interest for the rest. After 7 years, you decide to pay off the entire loan.a) What is the amount of the payment? $814.24. b) What is the outstanding principal after 7 years? $94,634.01c) If the bank charges 3.5 points on the loan, what is the amount charged for points? $4,410 PLEASE ONLY SOLVE FOR D OTHER ANSWERS ARE ALREADY SOLVED. d) If the bank charges 3.5 points on the loan, what is the true interest rate?
K You have a loan outstanding. It requires making seven annual payments of $4,000 each at the end of the next seven years. Your bank has offered to allow you to skip making the next six payments in lieu of making one large payment at the end of the loan's term in seven years. If the interest rate on the loan is 9%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment? The final payment the bank will require you to make is $ (Round to the nearest cent.)
A loan of $5000 is taken out today. It is due with interest at j4 = 8% in 2 years. Instead, the borrower negotiates with the lender to pay $2500 in 1 year and $X in 3 years. If the lender can reinvest any payment at j₂ = 5%, what is the value of X? OA. $3038.93 OB. $2493.59 OC. $3581.68 D. $3395.34
Suppose that you wish to buy a new home that will cost you $452,847. You must put $80,000 down, and the bank offers you a 5-year 5.1% APR negative amortization loan with a payments $1,258 per month, and a balloon payment of $92,233 (your 360th payment). How much will your remaining payments be?

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