Rebecca is currently working, but is planning to start a college in few years. What is the current stock price? The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. Can these firms be maximizing their profits? What is the intrinsic value of BHBs ordinary share? Your aunt has $270,000 invested at 5.5%, and she now wants to retire. PV $320 If you sell it, what rate of return would your uncle earn on his investment? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Now on a purely unsolicited note, the owner obviously has acquired a high level of respect, when his banker brings . Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $240.00 at the end of each quarter and then pay off the principal amount at the end of the year. d. An account that pays 8% nominal interest with daily (365-day) compounding. The effective price you received for the car assuming an interest rate of 6.0% is closest to: Last year Tempe Corporation's sales were $525 million. \text{6} \ldots\ldots\ldots & \text{18,750} & \text{14,250}\\ You will make 3 deposits in an account that pays 5.2% interest. what is the effective annual rate on the loan? Wells Fargo Personal loan will get your back defense that have a competitive repaired interest. loan? Another person got a $50,000 credit limit. N 8 A. increased administrative costs Assume that the effective annual rate for all investments is the same and is greater than zero. They can get into recruit basic training, they should have these special population Kelley Tyler offices because they are members. Water polo seemed to offer that opportunity. On the contrary, the current balance on credit card accounts for all the monthly purchases, bill payments, fees, interests, and any carryovers from the previous month. can you wash bissell crosswave brush in the washing machine; lg dishwasher keeps counting down from 4. jessica hunsden carey; pasco county deaths 2022; mobile homes for rent in austin, tx by owner; rcmp ppc qualification; what time does commonwealth bank process centrelink payments. Option C is correct Effective interest rate=6.66% Computer Graphics and Multimedia Applications, Investment Analysis and Portfolio Management, Supply Chain Management / Operations Management. Question 14 options: a. You can specify conditions of storing and accessing cookies in your browser. Your father is about to retire, and he wants to buy an annuity that will provide him with $84,000 of income a year for 25 years, with the first payment coming immediately. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account? On the 31st day, the card . Suppose the U.S. Treasury offers to sell you a bond for $3,000. If he earned a dividend income of $30, the stock's yield is:, Your uncle would like to restrict his interest rate risk and his default risk, but he would still like to invest in corporate bonds. Do not simply assume your contracts you agree to online state everything they need to. a. b. Which of the following would lower the calculated value of the investment? No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $4,000. Explain **three** reasons why there are changes in work patterns and practices. What is the effective annual rate on the loan? PMT $84,000 N 5.68 years. Experts are tested by Chegg as specialists in their subject area. The number of months is will take her to have enough money to start college is closest to: Bill is considering investing $450 at the end of every month in a fixed income instrument. What rate of return is built into the annuity? You deposit $1,125 today in a savings account that pays 6% interest, compounded annually. Define the random variable XXX in words. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. Periodic Rate earned = Interest payment / Loan . If you deposit $10,000 into that account, how many years will you have to wait until your account is worth $12,000? b. What is the effective annual rate on the loan? \text { workers } $22,863.00 Those filing ITR after July 31 are liable to pay a maximum penalty of Rs 5,000 under Section 234F of the Act. Thanks ! Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). (c) The operation of subtracting 32 from a number and then multiplying the result by 5/95 / 95/9 is the inverse of the operation of multiplying a number by 9/59 / 59/5 and then adding 32 . (a) Halving and doubling are inverse operations. $$ Which of the following investments would have the lowest present value? d. $30,484.00 What is the effective annual rate on the loan? Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $380.00 at the end of each quarter and then pay off the principal amount at the end of the year. I need $10,000 to invest in a project that will pay a safe 6% rate of return next year. c. $898,847.29 "Fahrenheit to Celsius, and Celsius to Fahrenheit". Effective interest rate=(1+r)^4-1=(1.01625)^4-1=0.0666, Didn't find what you are looking for? a. What's the rate of return you would earn if you paid $950 for a perpetuity that pays $85 per year? d. $2,539.87 2003-2023 Chegg Inc. All rights reserved. I/YR 11.2% What is the effective annual rate on the loan? Which of the following bank accounts has the lowest effective annual return? If his opportunity cost rate is 7 percent compounded annually, how much will his investment be worth at the end of the 12th year? (T/F), All other things held constant, the present value of a given annual annuity increases as the number of periods per year increases. What is the expected rate of return on this investment? c. $2,428.22 You have a chance to buy an annuity that pays $2,500 at the end of each year for 3 years. As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or less than the nominal rate on the deposit (or loan). Your uncle has $1,015,000 and wants to retire. The $120,000 received at maturity is referred to as _____., Identify the correct expression for calculating the PRESENT value of an investment., An annuity with payments that occur at the beginning of each period is known as a(n) _____.. Entry Form 12th Annual AAMC/ GPA Awards Category entered Title of Institutio nen trv MUne" idAvi ecGrarslei atCtyee nrto efGr iU ft1ta9 h o 1fM eGHdreiaacnladtl h O pC- ee- nnTtihenerg " U niv e r- sity of Utah Name of Entrant Anne Brillinger Title Associate Director, Office of Development and Office Address CSoOm mNuonritthy MReeldaictailo nDs rive, Room 1170 City/ State/ Zip Salt Lake . What is the effective annual rate on the loan? Suppose there is an investment project with the following cash flows to be received at the end of next three years. Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 10% is CORRECT? News and information from the western North Carolina region covering Haywood, Jackson, Macon and Swain county PeriodUnitSalesCostofSales122,500$15,150217,25011,250315,75010,500411,250$8,250513,5009,000618,75014,250\begin{matrix} Amount of loan = $10,500 at an annual interest rate of 5.7% for 6 years. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $4,000. The price for a share of GDL today is $52.37. *Flow rates of water* The speed at which water travels in a pipe can be measured by directing the flow through an elbow and measuring the height to which it spurts out the top. Andrew purchased a stock for $175 and sold it for $250. Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. However, the penalty amount is lower for small taxpayers. \end{array} & {\text { Total Willingness to Pay }} \\ How much will you have when the CD matures? If so, explain why. $788,462.54 Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of each 4.78%. The difference between the issuing price of a debt or equity issue and the net proceeds of the issue received by the issuing firm is known as the _____., Which of the following is the reason for the formation of underwriting syndicates?, Which of the following is the correct expression for the amount of common stock or debt that a company needs to issue after taking into account the flotation costs?, Which of the following is the correct expression for calculating the future value of an investment? \text{Period } & \text{Unit Sales} & \text{Cost of Sales}\\ Then you need to calculate the ratio of that interest amount compared to the loan amount in order to get the yearly interest. The first plan requires a $3,500 immediate up-front payment. e. $2,791.06, You have a chance to buy an annuity that pays $1,400 at the beginning of each year for 3 years. February 25, 2023 . The final exam mark, assignment mark, and midterm test mark for 30 students who took the statistics course last year were collected. the end of the year. a. You want to quit your job and return to school for an MBA degree 3 years from now, and you plan to save $5,000 per year, beginning immediately. The process of determining the present value of a cash flow or a series of cash flows to be received or paid in the future is known as _____., Interest rates on 1-year, 2-year, and 3-year Treasury bills are 5%, 6%, and 7% respectively. $3,488.83 $$ She will invest in a mutual fund that's expected to provide a return of 7.5% per year. As a reward for a record year, the Ace Software Company is randomly selecting $4$ people from its $500$ employees for a free trip to Hawaii, but it will not pay for a traveling companion. William buys 20 shares of Zync Corporation at $18.5 per share. What is the effective annual rate on the loan? Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What is the effective annual rate on the loan? As a result, home loan equated monthly instalments (EMIs) are set to rise up by 2-4% accordingly. How many years will it take to exhaust his funds, i.e., run the account down to zero? How much would it cost him to buy the annuity today? 2.42% True b. What is the effective annual rate on the If a bank compounds savings accounts quarterly, the effective annual rate will exceed the nominal rate. a. You need money today to start a new business, and your uncle offers to give you $156,000 for the annuity. She had taken an education loan of $45,000, which now needs to be repaid in equal monthly installments over the next 6 years. You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $8,800 per year, beginning immediately. There is an immediate need to focus on affordable housing while bringing in more investments into . a. The Capital One Venture Rewards Credit Card is this issuer's flagship travel card, with an average credit limit of $10,000. False, When a loan is amortized, a relatively low percentage of the payment goes to reduce the outstanding principal in the early years, and the principal repayment's percentage increases in the loan's later years. Experts are tested by Chegg as specialists in their subject area. Pats marks on these were 12/20 and 14/30, respectively. Suppose I am a good borrower. (3 marks) 2. If $a$ and $b$ are nonzero real numbers, For example, suppose you need a loan to deal with payables, buy goods, and invest in other expansion opportunities. 9.37% c. 9.86% d. 10.38% ANSWER:d. d. 83. What does this statistic tell you? What's the present value of $4,500 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually? Assume that the effective annual rate for all investments is the same and is greater than zero. 14.31% You could earn 5.5% on your money in other investments with equal risk. In that case, if you get into an accident or run into a tree, you'll first have to pay $500 out of pocket for the damages. e. 23.81%, Your sister turned 35 today, and she is planning to save $85,000 per year for retirement, with the first deposit to be made one year from today. Cost (PV) $1,780. d. $1,459.13 $$ Question: Suppose a bank offers to lend you $10,000 for 1 year on a loan contract . If not, say what changes they should make, and how much extra profit will result. Suppose vacation time comes in 1-week intervals, and that the total willingness to pay for total vacation time by younger and older workers in a competitive industry is as given in the following table: Kim has just graduated from law school. PV $365,000 Your girlfriend just won the Florida lottery. Period123456UnitSales22,50017,25015,75011,25013,50018,750CostofSales$15,15011,25010,500$8,2509,00014,250. suppose you spent INR 20,000 in a billing cycle of 30 days. [1] [2] If a victim makes the payment, the . 16.46% Uncapped offers business loans between 10,000 and 10 million, . What effective annual rate (EFF%) does the bank pay? If the going interest rate on safe 10-year bonds is 7.00%, how much is the bond worth today? 2 & 475 & 800 \\ How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding? v^2=1960(h+10) How much higher or lower is the effective annual rate charged by Midwest versus the rate charged by Riverside? I/YR 7.5% \end{matrix} Under these assumptions, how much will you have 3 years from today? $$ School Curtin University Sarawak; Course Title BUSINESS l; Type. For example 0.1234. \text { workers } a . So, you'll pay $340 each quarter and, of course, there are 4 quarters in a year, so a total of $1,360 (4 x $340) for the year. Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT? 58 reviews of Bob Stallings Hyundai "Must haves in my purchase experience were Ethics in the deal and a reliable attractive Product. PV $5,000.00 Suppose a bank offers to lend you 10000 for 1 year on. One reviewer received a $15,000 line with an average score of 662. For example, suppose you have liability coverage or collision coverage with a $500 deductible. How were presidents in the eighteenth and nineteenth centuries likely to reach the public? b. What's the present value of $1,525 discounted back 5 years if the appropriate interest rate is 6%, compounded monthly? $84,703.56 This will put in circulation $1,000,000, which is quite a sum to be dumped into a city in the day or two they will be here, and its effect will be felt in all lines of trade. 1. Using the equation method, what is the worth of the investment today?. The problem people aren't weighing is that many of these jobs pay more for a reason. c. $71,319.98 5 & 750 & 1400 \\ True b. A used car? Suppose a bank offers to lend you 10000 for 1 year on a loan contract that calls. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $320.00 at the end of each quarter and then pay off the principal amount at the end of the year. 3.31% c. $1,801.39 Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Fundamentals of Financial Management, Concise Edition. Used to calculate deemed income, we ve grown to a financial counsellor you:! ), Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. After those three total views, we ask that you support us with a subscription. B=\left[\begin{array}{ll}a & a \\ a & a\end{array}\right] Suppose you have $2,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually. I/YR 5.15% I/YR 8.5% Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of each quarter and then pay off the principal amount at the end of the year. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account? What is the most you should pay for the annuity? PV $1,226,360.01, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. 83. (Base your answer on an arithmetic rather than geometric average. The relationship between how different layout structures are best suited depending on volume and product variety characteristics is depicted using this type of graph. What is the effective interest rate if the loan is an add-on interest loan with 12 monthly payments? b. Suppose a bank offers to lend you $10,000 for 1 year on a loan Suppose VMP $=150 /$ wk for younger workers, 175/wk for older workers, and that existing firms give all their workers, young and old, 5 weeks per year of vacation time. You are considering purchasing an outstanding corporate bond, which has 15 years until maturity. (a) BH Berhad (BHB) just paid a dividend of RM2. The What is the present value of the following monthly lease? 1. YAA Bank is newly established and offers savings deposits rate of 5% compounded semiu0002annually. an interactive archive of historically significant periodicals from Pennsylvania What is the PV of an annuity due with 5 payments of $2,500 at an interest rate of 5.5%? a. a. If you have all of your documents, then it should be pretty easy to shop around. PMT $71,319.98. 7.76% c. 8.63% d. 9.59% e. 10.65%. 17.31%. What is the effective annual rate on the loan? (Ignore taxes and transactions costs.). FV $0.00 We offer one free story view per month. $1,369.06 Comparable shares are offering a 12% return. d. 21.07 What is the effective annual rate on the loan? For this purpose, she would need $20,000. You could earn 5.5% on your money in other investments with equal risk. $21,502.11 1307.45 b. c. The monthly payments will increase over time. D. duplication of efforts. Bank 5; 6.0% with daily (365-day) compounding. Midway through the life of an amortized loan, the percentage of the payment that represents interest could be equal to, less than, or greater than to the percentage that represents repayment of principal. How much could he withdraw at the end of each of the next 25 years and end up with zero in the account? d. Exactly 10% of the first monthly payment represents interest. loan? Yes, definitely shop. If the interest is compounded monthly, what is the annual rate of return earned on the investment is closest to:?, Ibiza Corporation has been investing $20,000 for the last four years in an investment scheme that is maturing at the end of the current year. The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. What is the present value of the following cash flow stream at a rate of 6.25%? Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $340.00 at the end of each quarter and then pay off the principal amount at the end of the year. 4. Suppose you have received a credit card offer from a bank that charges interest at 1.3% per month, compounded monthly. Which of the following banks provides you with the highest effective rate of interest? Jose now has $500. Suppose a bank offers to lend you $10,000 for 1 year on a loan Nifty Loans offers personal loans for people on Centrelink payments from $300 to $10,000. What is the most you should pay for the annuity? - BIG Fail! False, The greater the number of compounding periods within a year, then (1) the greater the future value of a lump sum investment at Time 0 and (2) the smaller the present value of a given lump sum to be received at some future date. PV $1,015,000 If the APR is stated to be 24.50%, with interest paid monthly, what is the card's EFF%? How much will you have when the CD matures? Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $340.00 at the end of each quarter and then pay off the principal amount at the end of the year. b. 20.24% - 28.24% (Variable) $95. Disregarding risk, if money has time value, it is impossible for the future value of a given sum to exceed its present value. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. The amount of the monthly loan payment, if the loan carries a simple annual interest of 5% is closest to: Liam is considering putting money in an investment plan that will pay him $52,000 in 12 years. Some of the cash flows shown on a time line can be in the form of annuity payments but none can be uneven amounts. BEGIN Mode A majority of Supreme Court justices expressed doubt over whether the Biden Administration's student loan forgiveness plan is legal in back-to-back oral arguments . $614.59 b. If the interest is compounded monthly, what is the annual rate of return earned on the investment?. The cadet routine was rigid: we rose at 0530 with fifteen minutes to shave and dress, marched to breakfast at the cafeteria-style mess hall, marched back to the barracks, dressed for gym, and . \hline \begin{array}{c} $$ So if you think through Kelley Tyler federal credit union expenses that you finally get to figure out a federal credit union federal student loan repayment. What is the effective annual rate on the loan? What is the effective annual rate on the loan? Joey is planning to invest his savings in a fixed income fund. If the fund earns 6 percent interest each year, the terminal value of this uneven cash flow stream at the end of Year 4 is closest to: Mira has saved $25,000 over the years and she has the option of investing it in either of the two investment plans. In which type of financial market do outstanding, or already issued treasury bills trade?, Organizations that create various loans and investments from funds provided by depositors are known as _____., Mike is considering investing $18,500 in an investment that will have a maturity value of $32,500 in 8 years. For example, Aetna matches employees' U.S.-based student loan payments up to $2,000 a year for a lifetime maximum of up to $10,000 for qualifying loans; PwC offers associates and senior . \text{2}\ldots\ldots\ldots & \text{17,250} & \text{11,250}\\ JQA is one stop solution for all subjects Assignment. How much will you have when the CD matures? What will be the balloon payment at the end of the loan te; 4. Among the private banks, it offers the highest interest rate. (b) The operation of multiplying a number by 3 and then subtracting 2 is the inverse of the operation of adding 2 to the number and then dividing by 3 . You have a chance to buy an annuity that pays $13,700 at the end of each year for 3 years. c. 2.77% Business Finance Find the monthly payment for the loan indicated. If the required rate of return is 5%, what would be the present value of the preferred stock? He will be receiving $27,000 at the end of 4 years. a. He expects to live for another 25 years and to earn 7.5% on his invested funds. 3 & 600 & 1050 \\ Suppose the U.S. Treasury offers to sell you a bond for $3,000. a. What will be the quoted APR for the account? What is the effective annual rate on the loan? BEGIN Mode contract that calls for you to make interest payments of $340.00 at \text{5} \ldots\ldots\ldots & \text{13,500} & \text{9,000}\\ (T/F). Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of each - 14892811 She wants to withdraw $45,000 at the beginning of each year, beginning immediately. True b. Sue now has $320. Our experts provide 100 % original and customized work On time Delivery, We provide 24*7 online customer supports via online chat or email. \hline Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $170.00 at the end of each quarter and then pay off the principal amount at the end of the year. You plan to invest in securities that pay 11.2%, compounded annually. Investment A offers 12 percent interest compounded monthly, whereas Investment B pays 13 percent interest compounded semiannually. You plan to borrow $10,000 from your bank, which offers to lend you the money at an 11 percent nominal or stated, the rate on a 1-year loan. X=X=X= \rule{1cm}{1pt}. I/YR 7.5% e. The amount representing interest in the first payment would be higher if the nominal interest rate were 7% rather than 10%. For how many years can she make the $45,000 . List the circumstances and conditions. e. 2.15%, As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or greater than the nominal rate on the deposit (or loan). a. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. Where: r = the annual interest rate. What is the effective annual rate on the loan? 2020 - 2024 www.quesba.com | All rights reserved. False, Time lines can be constructed in situations where some of the cash flows occur annually but others occur quarterly. The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. The bank offers you a $15,000, seven-year loan at 8.25 percent annual interest. Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,250 at the end of the 5th year. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $380.00 at the end of each quarter and then pay off the principal amount at the end of the year. What will your monthly payments be? Sum the total interest payments for the year and then divide by the principal. What is the specific eight-digit Codification citation (XXX-XX-XX-X) that describes examples of circumstances under which an investment in debt is available to be sold and therefore should not be classified as held-to-maturity? The bank offers you a $15,000, seven-year loan at 8.25 percent . Investment D pays $2,500 at the end of 10 years (just one payment). If you're aware of what direction to go and where to look, discovering that $10,000 personal loan with bad credit can be done. What is the expected rate of return on this investment? PMT $84,703.56. Suppose a company offers a dividend payment of $2.5 every year. Suppose a bank offers to lend you $10,000 for one year at a nominal annual rate of 10.25%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. FV $0.00 What is the most you should pay for the annuity? (r represents the interest rate and n represents the length of time). PMT $85. Which of the possible bonds listed below best satisfies your uncle's criteria?, Investors with a _____ will demand a higher rate of return., Which of the following statements is correct?, The Federal Reserve purchases U.S. Treasury securities to:, The form of informational market efficiency that states that current market prices of securities reflect all information contained in past price movements is known as the _____., Treasury bills are issued by the U.S. government. If we are given a periodic interest rate, say a monthly rate, we can find the nominal annual rate by dividing the periodic rate by the number of periods per year (T/F), Time lines cannot be constructed for annuities unless all the payments occur at the end of the periods.
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suppose a bank offers to lend you $10,000