A part) what is the APR on a 5 year (60 month) 25,000 loan with a monthly payment of 500? B part)What is the effective annual rate (EAR) on the loan in a part?
Q: Since he was 24 years old, Ben has been depositing $225 at the end of each month into a tax-free…
A:
Q: ASK YOUR TEACHER A computer chip designer purchased a car for $59,476.47, which included sales tax…
A: Loan and its repayment: A loan taken can be repaid in several ways. Loans taken to purchase…
Q: Kristina just won the lottery, and she must choose among three award options. She can elect to…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: Calculate the intrinsic value of Rio Tinto in each of the following scenarios by using the…
A: The intrinsic value of a share refers to the true or fair value of a company's stock based on its…
Q: Assume that the yield-to maturity on a straight € fixed-rate bond is 4%. A comparable risk…
A: To find the implied $/€ exchange rate at maturity, we can use the following formula: Implied…
Q: You purchased 400 ordinary shares of GE Corporation at $60 per share. The initial margin is 60%.…
A: In order to calculate what is required in the equity investment , the total investment being done if…
Q: Walter is terminally ill and has a 20-year level term life insurance policy with a face value of…
A: When Walter sells his life insurance policy to a viatical settlement company, he receives a lump-sum…
Q: Laura is planning for her retirement 34 years from now. She plans to invest $4,100 per year for the…
A: We need to use future value of ordinary annuity formula to calculate value of annuity. FVA…
Q: A 3-month zero-coupon bond is selling for $99.7 and a 10-year zero-coupon bond is selling for $54.3.…
A: It is the case of calculation of spread in yields given by 3-month maturity bonds and 10 years…
Q: You are considering making a movie. The movie is expected to cost $10.5 million up front and take a…
A: 13. It is a problem that requires the use of a non-discounting technique (payback period) as well as…
Q: Critically explain the WACC result of Toyota. 2020=5,34 2021=2,7
A: WACC stands for the weighted average cost of capital and is a measure of the cost of financing a…
Q: Vigour Pharmaceuticals Ltd. is considering investing in a new production line for its pain-reliever…
A: Initial cost includes the cost of equipment, installation cost and increase in net working capital.…
Q: Professor Very Busy needs to allocate time next week to include time for office hours. He needs to…
A: The forecast using simple moving average is calculated by Ft=At-1+At-2+At-3+....+At-nn Where, Ft =…
Q: Sheldon is considering opening a hockey clinic as a side business but is worried about whether he…
A: Break-even sales are the point where a business earns a zero-point profit. In this situation,…
Q: The beta of Southeast has been estimated to be 0.85. Which of the following statements about…
A: Beta is a measure of the sensitivity/volatility of a stock's returns to changes in the returns of…
Q: Marla has $25,000 invested in a stock with a beta of 0.75, $15,000 invested in a stock with a beta…
A: The beta of a portfolio is the weighted average beta of all the individual stocks. So we will have…
Q: If gasoline prices have increased over the past 32 years from 25.9 cents per gallon to $3.459 per…
A: The inflation rate refers to the increase in the price of a commodity over time. It is used to…
Q: Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $1.10 at the end of each…
A: Stock Price: The price of a stock in the market represents the current value to the buyer and…
Q: Problem 3: Compute the equivalent rate of (A+B+C+D+E) % compounded semi-annually to a rate…
A: Let's assume that the annual interest rate compounded semi-annually is r_sa, and that the sum of the…
Q: The Treasury Department auctioned $34 billion in 3-month bills in denominations of $10,000 at a…
A: First we need to calculate discount on treasury bill by using formula given below. Discount =Face…
Q: When the last sale price of N&N is $10, I enter a stop loss order to sell at $8 trailing by $2. In…
A: Stop loss order It instructs the broker to sell security if the market price drops to or below a…
Q: Using financial arguments, make a case to persuade a senior management team (SMT) to invest in a…
A: There is a need for financial appraisal for each investment project or campaign. It helps to know…
Q: an attempt to manage economic exposure, the following are examples of diversifying operating cash…
A: Cash flow is an important financial statement and matrix which help us to understand the total…
Q: The following three mutually exclusive alternatives have no salvage value after 5 years. Construct a…
A: Net present value shows the difference between the cash inflows and outflows during the year. It…
Q: Find the compound interest earned if PhP 41,139 is deposited in a bank at 3.2% compounded monthly…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: Problem #3: Create a table showing the payment of a mortgage of $221,000 month by month. Create…
A: Mortgage payments are the monthly payments of the long-term loan taken from the lender. The borrowed…
Q: Answer the below questions. (a) For a single-name credit default swap, what is the difference…
A: A Credit Default Swap (CDS) is a financial contract between two parties where one party (the buyer…
Q: Code 71046
A: Given : APC weight = 1.56 Conversion factor CF = $80.79 Wage Index = 0.9445
Q: 1. If you invest $1,000 today in a security paying 8 percent compounded quarterly, how much will the…
A: A=P(1+i)n Where A =Amount P=Principal i=periodic interest rate n=number of compounding
Q: A credit card has a monthly rate of 1.6% and uses the average daily balance method for calculating…
A: When a credit card holder carries a balance on their credit card, they are charged interest on that…
Q: The Martinezes are planning to refinance their home. The outstanding balance on their original loan…
A: A fixed rate mortgage is one in which the interest rate remains constant over the entire term of the…
Q: A scholarship fund is to be set up to provide monthly scholarship of $840. If the first payment is…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: stress testing" entail, and why is it believed to be of such critical importance
A: Stress testing is a type of financial analysis that involves subjecting a financial institution or…
Q: Please could you anwser it with true or false :
A: In a risk neutral evaluation with no arbitrage opportunity especially for options, we can determine…
Q: Problem 4: A bank pays (A+B+C+D+E) % interest on saving account for times a year. Find the effective…
A: To calculate the effective annual interest rate for a savings account that pays interest…
Q: Calculate the expected return and standard deviation of the new overall portfolio if Stephenson…
A: Now if Coppa recommends to Stephenson to invest $2 million in Fund D, then equal amount will be…
Q: The EPA rating of a car is 21 mpg. If the car is driven 1,000 miles in 1 month and the price of…
A: EPA rating = 12 mpg (Miles per gallon) Distance travel = 1000 miles Price of gasoline per gallon =…
Q: What type of bond is this? What is the face value for this bond? What is the interest rate for this…
A: Bond: A bond is a debt security issued by a company or government that pays interest to the…
Q: Bob is researching variables like age, religion, gender and work occupation in his area. Which force…
A: To put it another way, external environmental elements are those that are not under the control of…
Q: A 10-year loan of L is prepaid by the amortization method with payments of $1,000 at the end of each…
A: Amortization In case of amortization, a series of equal periodic payments at equal interval is made.…
Q: Katrina has the option of an 8-year nonsubsidized student loan of $31,000 at an annual interest rate…
A: Given: First Case, Principal (P) = 31000 Rate of interest (R) = 2.5% Time (T) = 8 Years The…
Q: Your company is considering the purchase of a new ship for $8 million. The forecasted revenues are…
A: Net present value is the technique used in capital budgeting to evaluate the acceptability of the…
Q: 12. Suppose that 1-year bonds currently offer a nominal yield to maturity of 4% (1,0 = 0.04),…
A: Yield to maturity (YTM) of various maturities are known. The yield curve has to be plotted. Several…
Q: You are trying to determine the WACC for a company. It has the following characteristics. a. The…
A: Total debt = $600 mm Shares issued = 45 mm Treasury stock = 10 mm Current price = $19.45 Pre tax…
Q: Tim Houston purchased a wall unit for $2,200. He made a $800 down payment and financed the balance…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
Q: A property is expected to have NOI of $100,000 the first year. The NOI is expected to increase by 5…
A: To compute the BURR (Blended Internal Rate of Return) after ten years, we need to calculate the cash…
Q: A metallurgist purchases a car for total cost including tax and license of $31,795.66. If the…
A: Compound = monthly = 12 Present value = pv = $31,795.66 Time = t = 4 * 12 = 48 month Interest rate =…
Q: Hans Brinker is assistant vice-president for marketing for Skagen Ice Skate Company (SIS). SIS does…
A: Covered Interest Rate Parity (CIRP) is an economic theory that explains the relationship between the…
Q: Problem #2: You have taken a loan of $244,000. You can afford to pay monthly payments of $1921.13.…
A: When we take a loan we make a fixed periodic payment against that loan. This fixed periodic payments…
Q: Give typing answer with explanation and conclusion Property insurance protects you from financial…
A: Insurance is a contract between an individual or entity (the policyholder) and an insurance company.…
Only by excel, i know how to do written so by excel only please
A part) what is the APR on a 5 year (60 month) 25,000 loan with a monthly payment of 500?
B part)What is the effective annual rate (EAR) on the loan in a part?
Step by step
Solved in 3 steps with 1 images
- Determine the monthly payment for the installment loan. Use the installment payment formula m = 1- Amount Financed (P) $1,440 O A. $179.15 B. $35.15 O C. $125.26 O D. $366.02 P n 1+) - not Annual Percentage Rate (r) 8% Number of Payments per Year (n) 12 Time in Years (t) 4You apply for a loan of $151,000 with the following terms: A 7-year loan with semi-annual payments of $14,800 (paid at the end of each period). Based on this information, what is the APR of this loan? (Note: All answers are rounded to two decimals) 4.53% 4.82% 8.42% 9.06% 8.78%Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to the next highest day when necessary. Principal Rate (%) Time Interest $7,300 10.4 107 X days $227 Need Help? Read It
- Use the amortization table to determine how much interest is paid in the first 4 months of the loan. Click the icon to view the amortization table. (Type an integer or a decimal.)If you borrow $9000 at an annual percentage rate (APR) of r (as a decimal) from a bank, and if you wish to pay off the loan in 3 years, then your monthly payment M (in dollars) can be calculated using: M = 9000 (er/12-1) / 1 - e-3r 1) Describe what M (0.035) would represent in terms of the loan, APR, and time. 2) If you are only able to afford a max monthly payment of $300, describe how you could use the above formula to figure out what the highest interest rate the bank could offer you and you would still be able to afford the monthly payments. In addition, determine the maximum interest rate that you could afford.Use the amortization table to determine how much interest is paid in the first 4 months of the loan. Click the icon to view the amortization table. $ (Type an integer or a decimal.) Amortization Table Payment Number 0 1 2 3 4 5 6 7 8 9 10 11 12 Amortization Table Amount of Payment $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.13 Print Interest for Period $12.50 $11.49 $10.47 $9.44 $8.42 $7.38 $6.34 $5.30 $4.25 $3.20 $2.14 $1.07 Portion to Principal $202.67 $203.68 $204.70 $205.73 $206.75 $207.79 $208.83 $209.87 $210.92 $211.97 $213.03 $214.06 Done Principal at End of Period $2500.00 $2297.33 $2093.65 $1888.95 $1683.22 $1476.47 $1268.68 $1059.85 $849.98 $639.06 $427.09 $214.06 $0.00
- Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to the next highest day when necessary. Principal Rate (%) Time Interest $7,200 10.4 ?? days $22410) Compute the simple interest and final amount of each loan Principal Rate Time P 400 7% 1 year P 640 9% 3 months P 985 10% 180 days (ordinary time period) 60 days (exact time period) P 850 6% ABCD Interest ? ? ? ? Final amount ? ? ? ?FRM. (Term=30 years, Note Rate = 5.25, Loan Amount = 800,000, Points=2) What is the FTL annual percentage rate (FTLAPR) that the lender must disclose to the borrower? O 5.375% ○ 4.750% O 4.875% O 7.000% O 6.905% O 7.011%
- Use the actuarial method to find the payoff amount for the loan paid in full before its due date. Amount Financed: $9000 Regular Monthly Payment. $189 02 Total Number of Payments scheduled: 60 Loan repaid in full instead of making: 12th paymentDetermine A) Determine the monthly interest rate i charged by Coco-me-Loan B) How much is the principal repaid during the 4th month? C) What is the principal loan balance after 7th monthly amortization payment?Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days. Principal Rate (%) Time Interest 12 1- years $1,080 Need Help? Read It