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E SECTION 5-17 Days In Year 1a. Suppose a company borrowed $1 million at a rate...
2a. Suppose you deposited $1,000 in a credit union that pays 7% with daily compounding and...
2a. Suppose you deposited $1,000 in a credit union that pays 7% with daily compounding and a 365-day year. What is the EFF%, and how much could you withdraw after 7 months, assuming this is 7/12 of a year? Loan $1,000 Interest rate S Complyear 7 7% 365 Time period (months) 7 8 Effective rate Account value 0 Effective rate 1 2 3
Billy Thornton borrowed $215,000 at a rate of 7.25%, simple interest, with interest paid at the...
Billy Thornton borrowed $215,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month?
Simple Interest USE A 360 DAY YEAR Calculate the simple interest amount and the future value...
Simple Interest USE A 360 DAY YEAR Calculate the simple interest amount and the future value using the simple interest formula. 365 day year Principal Interest Rate Time Simple Interest Amount Future Value $ 18,000 4.5% 18 months $ 21,000 5% 1.75 Years $ 18,000 7.25% 9 months $ 1,000 8% 93 days $ 585 9% 193 days $ 1,200 12% 187 days 1) Leslie Hart borrowed $15,000 to pay for her child’s education. Leslie must repay the loan...
Hell with these three questions please. 10. Uneven cash flows Aa Aa E A series of...
Hell with these three questions please.
10. Uneven cash flows Aa Aa E A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years: Year 1 $250,000 Annual Cash Flows Year...
10. Uneven cash flows A Aa E A series of cash flows may concept of the...
10. Uneven cash flows A Aa E A series of cash flows may concept of the time valu s necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the Il continue to apply Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next six years: Year 1 Year 2 Annual Cash Flows Year 4 $180,000 $450,000 Year 3 Year 6 $375,000...
Assume a 360 day year. You borrow $450 from your bank for 3 months. The loan...
Assume a 360 day year.
You borrow $450 from your bank for 3 months. The loan agreement states that you must repay the loan at a rate of $150 per month plus interest. The interest rate for the loan is % above the prime interest rate. During the first month the prime rate is 45%, during the second month it is 5%, and during the third month it is 5%. What is the total amount of interest you pay on...
19) Data Back-Up Systems has obtained a $10,000, 90-day bank loan at an annual interest rate of 1...
19) Data Back-Up Systems has obtained a $10,000, 90-day bank loan at an annual interest rate of 12%, payable at maturity. (Note: Assume a 365-day year.) a.How much interest (in dollars) will the firm pay on the 90-day loan? b.Find the 90-day rate on the loan c.Annualize your result in part b to find the effective annual rate for this loan, assuming that it is rolled over every 90 days throughout the year under the same terms and circumstances.
1) Consider a 10-year bond trading at $1150 today. The bond has a face value of...
1) Consider a 10-year bond trading at $1150 today. The bond has a face value of $1,000, and has a coupon rate of 8%. Coupons are paid semiannually, and the next coupon payment is exactly 6 months from now. What is the bond's yield to maturity? 2)A coupon-paying bond is trading below par. How does the bond's YTM compare to its coupon rate? a. Need more info b. YTM = Coupon Rate c. YTM > Coupon Rate d. YTM <...
The number of compounding periods in one year is called compounding frequency. The compounding frequency affects...
The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 13.20%; however, interest will be compounded quarterly. What are the nominal (or stated), periodic, and effective interest rates for this investment opportunity? Interest Rates Nominal rate Periodic rate Effective annual rate Tim needs a loan and is speaking to...
Suppose you decide to deposit $20,000 in a savings account that pays a nominal rate of...
Suppose you decide to deposit $20,000 in a savings account that pays a nominal rate of 6%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after 6 months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) A) $20,196.86 B) $21,639.49 C) $20,609.04 D) $19,990.77
2a. Suppose you deposited $1,000 in a credit union that pays 7% with daily compounding and a 365-day year. What is the EFF%, and how much could you withdraw after 7 months, assuming this is 7/12 of a year? Loan $1,000 Interest rate S Complyear 7 7% 365 Time period (months) 7 8 Effective rate Account value 0 Effective rate 1 2 3
Hell with these three questions please.
10. Uneven cash flows Aa Aa E A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next five years: Year 1 $250,000 Annual Cash Flows Year...
10. Uneven cash flows A Aa E A series of cash flows may concept of the time valu s necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the Il continue to apply Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next six years: Year 1 Year 2 Annual Cash Flows Year 4 $180,000 $450,000 Year 3 Year 6 $375,000...
Assume a 360 day year.
You borrow $450 from your bank for 3 months. The loan agreement states that you must repay the loan at a rate of $150 per month plus interest. The interest rate for the loan is % above the prime interest rate. During the first month the prime rate is 45%, during the second month it is 5%, and during the third month it is 5%. What is the total amount of interest you pay on...
The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 13.20%; however, interest will be compounded quarterly. What are the nominal (or stated), periodic, and effective interest rates for this investment opportunity? Interest Rates Nominal rate Periodic rate Effective annual rate Tim needs a loan and is speaking to...
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