1. Cardinal Financing lent an engineering company Php 500,000 to retrofit an environmentally unfriendly building. The loan is for 5 years at 10 % per year simple interest. How much money will the firm repay at the end of 5 years?

Q: Explain the differences between a PPO and an HMO.

A: The question is based on the concept of different types of health insurance policy and their…

Q: Compare simple interest to compound interest.

A: Answer: Simple interest: This is the fundamental type of interest in which interest is paid on the…

Q: Explain compound interest.

A: Compound interest.

Q: Define compound interest

A: Compound interest: Compound interest is the accumulation of interest to the principal amount of a…

Q: What is a limit order?

A: Limit order It is such an order to buy or trade a security at or superior to a predefined cost. The…

Q: Explain the put call parity model. What are the advatages and disavantages of it?

A: Put-call parity characterizes the connection between calls, puts and the underlying assest price or…

Q: Does the IRR analysis yield the results consistent with PW and other equivalence methods?

A: Yes, the IRR analysis gives the results consistent with PW analysis and Equivalence methods.

Q: Draw a figure to explain Elements of required return - establishing a MARR?

A: The figure is represented as below: Note: Values assumed

Q: Discus the elements of GAAS, how does it relate to GAAP?

A: GAAS(Generally Accepted Auditing Standards) :- provides standards by which the prepared financial…

Q: what is pooling of Interest Method?

A: The accounting method that governed how the balance sheets of two companies that were merged would…

Q: How did you compute what the "R" value was in the equation?

A: IRR is the internal rate of return and is the break even rate of return at present value of cash…

Q: What is forward points?

A: Forward points are nothing but basis points added or subtracted from the spot rate of an underlying…

Q: briefly explain compound interest and the purpose of it

A: There are two methods of interest rate one is simple interest and other is compounding interest.

Q: Define Simple interest.

A: Simple interest: The amount of interest computed on the principal amount for a time period at a…

Q: How do I calculate FIFO and LIFO?

A: Meaning of FIFO:First in first out means if company purchases any goods for sale purpose then…

Q: what is a provable intrinsic value? can you give a example

A: Intrinsic value of a stock is its fundamental value. This is calculated by taking in to…

Q: How does compounded interest work?

A: compound interest : it is the interest on loan calculated based on principal and interest.

Q: Elements of required return - establish a MARR? Explain how/

A: Introduction: A capital investment to be appealing should have a return which goes beyond the…

Q: How can we compute the true IRR, or RIC, as a function of the MARR?

A: Minimum Acceptable rate of return is the minimum rate which the management wishes to have from any…

Q: What does RI measure?

A: Residual Income: Residual income is the income earn over the minimum rate return of the company. In…