MA240 Financial Report_ Assignment M4
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Ashworth College *
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MA240
Subject
Accounting
Date
Apr 3, 2024
Type
docx
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Rebecca Majors/AC1507918
1
MA240: M4 Financial Report
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Rebecca Majors
AC1507918
M4 Assignment Financial Report
REMajors75@gmail.com
1. Go to your financial institution’s website or a local financial institution’s website and find the interest rate and compounding frequency (monthly, quarterly, annually, and so on) for a savings
account. Record that here:
First National Bank’s FirstRate Savings Account has an interest rate of .05 (First National Bank, 2024), which compounds quarterly (First National Bank, 2024) on deposits of $1000 - $2499.99. The zip code utilized to identify these rates was 15106.
Rebecca Majors/AC1507918
2
MA240: M4 Financial Report
(First National Bank, 2024)
(First National Bank, 2024)
Rebecca Majors/AC1507918
3
MA240: M4 Financial Report
2. Use the compound interest formula: A
=
P
(
1
+
r
n
)
nt
where r is the interest rate as a decimal
, n is the number of times it is compounded in the time frame, t is the amount of time, and P is the starting value. Calculate your balance if you invest $1,000 for 1 year. A
=
1000
(
1
+
0.05
4
)
4
(
1
)
A = 1000 * 1.0125
4
A = 1000 * 1.05094522821
A = $1050.9
3. Using the compound interest formula, calculate your balance if you invest $1,000 for 5 years.
A
=
1000
(
1
+
0.05
4
)
4
(
5
)
A = 1000 * 1.0125
20
A = 1000 * 1.28203700252
A = $1282.04
4. Now select a new compounding period (monthly, quarterly, annually, and so on) and redo your calculations from number 2 & 3, using the same interest rate. I’ve chosen to use the new compounding period of monthly which will be an interest rate of 0.016666666667.
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Related Questions
Cy loans Mookie The Beagle™ Concierge $2,000 at 6% annual interest. Record the transaction as a loan payable as follows.
Complete a Deposit.
Select Create (+) icon > Bank Deposit
Select Account: Checking
Select Date: 01/12/2022
In Add Funds to This Deposit section, select Account: + Add New > Loan Payable > Account Type: Other Current Liabilities > Detail Type: Loan Payable > Name: Loan Payable, then select Save and close
Select Payment Method: Check
Enter Ref No.: 5002
Enter Amount: 2000.00
Select Save and close
What is the Amount of the Loan Payable? (Answer this question in the table shown below. Round your answer 2 decimal places.)
View the Transaction Journal for the Deposit.
From the Navigation Bar, select Accounting
From the Chart of Accounts, select Loan Payable > View Register
From the Register, select the transaction just recorded > Edit
From the bottom of the Loan Payable transaction, select More > Transaction Journal
What are the…
arrow_forward
Cy loans Mookie The Beagle Concierge $1,000 at 6% annual interest. Record the transaction as a loan payable as follows.
Required:
1. Complete a Deposit.
a. Select (+) New icon > Bank Deposit
b. Select Account: 1001 Checking
c. Select Date: 01/12/2023
d. In Add Funds to This Deposit section, select Account: + Add New > Account Type: Other Current Liabilities > Detail Type: Loan
Payable > Name: Loan Payable> Number: 2300 > Save and Close
e. Select Payment Method: Check
f. Enter Reference Number: 5002
g. Enter Amount: 1000.00
h. Select Save and close
i. What is the Amount of the Loan Payable?
Note: Answer this question in the table shown below. Round your answer to the nearest dollar amount.
i. Amount of the loan payable
arrow_forward
Which one of the following bank accounts will you choose for a savings account?
Bank A: An account that pays 8% nominal interest (APR) with daily (365-day)compounding.
Bank B: An account that pays 8% nominal interest (APR) with annual compounding.
Bank C: An account that pays 7% nominal interest (APR) with daily (365-day)compounding.
Bank D: An account that pays 7% nominal interest (APR) with monthly compounding.
Please explain your choice. show in excel for all choice to see calculations
What is the effective annual return (EFF) of the account that you picked?
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You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $).
(Round dollars to the nearest cent.)
Finance
Amount
Financed
Monthly
Payment
Number of
Rebate
Payments
Made
Loan
Charge
Rebate
Payoff
Payments
Fraction
$1,800
18
$128.89
12
Enter a number.
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which of the following banks would you choose for a savings account based on the following rates offered?
1. 6% APR compounded annually
2. 5% APR compounded annually
3. 5% APR compounded semi-annually
4. 4% APR compounded weekly
5. 6% APR compounded quarterly.
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Cy Walker invests $20,000 of his personal savings into Mookie the Beagle Concierge. MTB Concierge needs to record the deposit
using QBO.
Required:
1. Record the Deposit.
a. Select (+) New icon > Bank Deposit
b. Select Account: 1001 Checking
c. Select Payment Date: 01/01/2023
d. In the Add Funds to This Deposit section, select Account: 3003 Owner's Investment
e. Select Payment Method: Check
f. Enter Reference Number: 5001
g. Enter Amount: 20000.00
h. What type of account is Owner's Investment?
i. Select Save and close
h. Type of account
arrow_forward
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.)
AmountFinanced
Number ofPayments
MonthlyPayment
PaymentsMade
RebateFraction
FinanceChargeRebate
LoanPayoff
$1,800
18
$126.89
12
$
$
arrow_forward
which one is correct please confirm?
QUESTION 9
Your monthly statement from your bank credit card shows that the monthly rate of interest is 1.5%. What is the annual effective rate of interest you are being charged on your credit card?
a.
18.64%
b.
18.00%
c.
29.74%
d.
19.56%
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A borrower has two alternatives for a loan: (1) issue a $570,000, 90-day, 7% note or (2) issue a $570,000, 90-day note that the creditor discounts at 7%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file.
Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
X
Open spreadsheet
a. Compute the amount of the interest expense for each option. Round your answer to the nearest dollar.
for each alternative.
b. Determine the proceeds received by the borrower in each situation. Round your answers to the nearest dollar.
(1) $570,000, 90-day, 7% interest-bearing note: $
(2) $570,000, 90-day note discounted at 7%: $
c. Alternative
is more favorable to the borrower because the borrower
arrow_forward
You are the loan department supervisor for a bank. This installment loan is being
paid off early, and it is your task to calculate the rebate fraction, the finance
charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the
nearest cent.)
Finance
Monthly
Payment
Amount
Number of
Rebate
Payments
Made
Loan
Charge
Financed
Payments
Fraction
Payoff
Rebate
$4,700
36
$168.33
28
0.044
$ 60
2$
1,286
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A borrower has two alternatives for a loan: (1) issue a $360,000, 75-day, 6% note or (2) issue a $360,000, 75-day note that the creditor discounts at 6%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Calculate the amount of the interest expense for each option. Round your answer to the nearest dollar.
$ ________________________
Determine the proceeds received by the borrower in each alternative. Round your answers to the nearest dollar.
(1) $360,000, 75-day, 6% interest-bearing note: $___________________________
(2) $360,000, 75-day note discounted at 6%: $ _________________________
arrow_forward
Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table, Table 13-1. (Round your answers to the nearest cent.)
AmountFinanced
Number ofPayments
APR
TableFactor
FinanceCharge
MonthlyPayment
$7,900
36
10%
$
$
$
https://www.webassign.net/brecmbc9/13-table-1.pdf
arrow_forward
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $).
(Round dollars to the nearest cent.)
Amount
Financed
Number of
Payments
Monthly Payments
Rebate
Payment
Made
Fraction
Finance
Charge
Rebate
$4,700
36
$167.33
29
15/666 X
$ 85.76
Loan
Payoff
x
$785 89
arrow_forward
Study this case and answer question asked below: You have the following quotes from Bank A & Bank B
Bank A:
Bank B
SPOT
USD/CHF 1.4650/55
USD/CHF 1.4653/60
3-months
5/10
6-months
10/15
Cash/Spot
1/2
SPOT
GBP/USD 1.7645/60
GBD/USD 1.7640/50
3-months
25/20
6-months
35/25
If you want to buy 1 million GBP Spot against CHF you have to pay Minimum Amount you have to pay is
a.
CHF 2.5866 Million
b.
CHF 2.5881 Million
c.
CHF 2.5875 Million
d.
CHF 2.5863 Million
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The Money Multiplier Process
Loan
Loan
Loan
Initial
etc.
deposit
($100)
University
Bank
Deposit
Bank
#2
Deposit
Bank
#3
Bank
Deposit
#4
Excess reserves: $25
Required reserves: $75
Excess reserves: $6.25
Required reserves: $18.75
Excess reserves: $1.56
Required reserves: $4.69
Excess reserves: $0.39
Required reserves: $1.17
a. What volume of loans can the banking system in the figure support?
b. If the reserve requirement were 80 percent rather than 75 percent, what would the
system's lending capacity be?
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Comparing 2 banks. One bank is online and offers a savings account interest rate of 1.75% compounded quarterly. The other bank is in your hometown and offers a savings account interest rate of 1.72% compounded daily. You have 4500 to keep in a savings account for 2 years. 1.The online bank has an APY of what percentage? Round your percentage to 3 decimal places. 2. The hometown bank has an APY of what percentage? Round to 3 decimal places. 3.which bank pays more interest? 4. How much more interest would you earn at the bank you selected compared to the other bank? Round to two decimal places.
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