Question
In: Finance
you are borrowing money that musy be paid back after 6 months. You are given the...
you are borrowing money that musy be paid back after 6 months. You are given the following 12%per year, 11%per year compounded daily, 1% per month and 11.5% per year compounded monthly . Determine the effective semi annual intrest rate. which loan option do you prefer?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Government student loans usually do not need to be paid back until 6 months after you...
Government student loans usually do not need to be paid back
until 6 months after you graduate. Interest on your loan is
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6. You borrow $8000 for a car at 7.2% APR to be paid back in 4...
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b. How much do you owe on the loan after 3 years?
c. If the car decreases in value according to the equation ? =
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Scenario: You recently became a partner in a firm. After working there for 6 months as...
Scenario: You recently became a partner in a firm. After working
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Atlantis Company sells computer components and plans on borrowing some money to expand. After reading a...
Atlantis Company sells computer components and plans on
borrowing some money to expand. After reading a lot about earnings
management, Andy, the owner of Atlantis, has decided he should try
to accelerate some sales to improve his financial statement ratios.
He has called his best customer and asked them to make their usual
January purchases by December 31. Andy told the customers he would
allow them, until the end of February, to pay for the purchases,
just as if they...
Atlantis Company sells computer components and plans on borrowing some money to expand. After reading a...
Atlantis Company sells computer
components and plans on borrowing some money to expand. After
reading a lot about earnings management, Andy, the owner of
Atlantis, has decided he should try to accelerate some sales to
improve his financial statement ratios. He has called his best
customer and asked them to make their usual January purchases by
December 31. Andy told the customers he would allow them, until the
end of February, to pay for the purchases, just as if they...
You are going to receive $100 after one month, $110 after two months, $121 after three and four months, $133.1 after five months
You are going to receive $100 after one month,
$110 after two months, $121 after three and four months, $133.1
after five months, $146.41 from month seven to month thirty. What
is the present value of all these future cash inflows if the
discount rate is 3%?
A farmer is considering borrowing money from a bank. Given the following information: Initial loan amount...
A farmer is considering borrowing money from a bank. Given the
following information:
Initial loan amount is $88,000.
The loan will be fully amortized in 3 years at 12%.
Marginal tax rate is 20%.
(i) What is the interest payment in the 1st year?
a.
$12,672.00
b.
$13,200.00
c.
$10,560.00
d. None of the
answers are correct
(ii) What is the principal payment in the 1st
year?
a.
$20,862.97
b.
$20,041.13
c.
$4,400.00
d. $26,078.71...
A farmer is considering borrowing money from a bank. Given the following information: Initial loan amount...
A farmer is considering borrowing money from a bank. Given the
following information: Initial loan amount is $52,000. The loan
will be fully amortized in 3 years at 10%. Marginal tax rate is
15%. (i) What is the principal payment in the 1st year? a.
$15,709.97 b. $13,029.06 c. $13,353.47 d. None of the answers are
correct ENTER RESPONSE HERE: (ii) What is the principal payment in
the 2nd year? a. $14,835.71 b. $3,530.58 c. $17,280.97 d. None of
the...
A farmer is considering borrowing money from a bank. Given the following information: Initial loan amount...
A farmer is considering borrowing money from a bank. Given the
following information: Initial loan amount is $88,000. The loan
will be fully amortized in 3 years at 12%. Marginal tax rate is
20%. (i) What is the interest payment in the 1st year? a.
$12,672.00 b. $13,200.00 c. $10,560.00 d. None of the answers are
correct ENTER RESPONSE HERE: (ii) What is the principal payment in
the 1st year? a. $20,862.97 b. $20,041.13 c. $4,400.00 d.
$26,078.71 ENTER RESPONSE...
A farmer is considering borrowing money from a bank. Given the following information: Initial loan amount...
A farmer is considering borrowing money from a bank. Given the
following information: Initial loan amount is $250,000. The loan
will be fully amortized in 3 years at 14%. Marginal tax rate is
15%. (ii) What is the interest payment in the 1st year? a.
$41,176.47 b. $29,750.00 c. $40,250.00 d. $35,000.00 ENTER RESPONSE
HERE: (iii) What is the interest payment in the 2nd year? a.
$21,100.74 b. $29,205.17 c. $28,548.06 d. $24,824.40 ENTER RESPONSE
HERE: (iii) What is the...
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