1. i) What is the future value of an investment of P200 for three months at a simpleinterest of 6.5 %? Specify the interest earned. ii) Knowing that the investment mentionedin the last problem was purchased from January 15 to March 5, 2005, focus the solutionusing a) exact simple interest and b) the Banker's Rule.2. A note having a face value of P1300 and bearing interest at 7.5% will mature in 110days. What is the maturity value?3. a) Calculate the interest rate applied in a loan of P1000 with repayment of P1100 andduration of 10 months. b) What is the monthly interest, daily interest, equivalent to theyearly interest found in a)?4. A man received a 30-day loan of P550 from the bank. The proceeds were P544.50. a)What was the discount rate applied? b) What are the monthly discount, daily discount,equivalent to the yearly discount found in a)?

note :- According to bartleby guidelines , if multiple questions are asked , then 1st question needs…

1. i) What is the future value of an investment of P200 for three months at a simple interest of 6.5 %? Specify the interest earned. ii) Knowing that the investment mentioned in the last problem was purchased from January 15 to March 5, 2005, focus the solution using a) exact simple interest and b) the Banker's Rule.

1. i) What is the future value of an investment of P200 for three months at a simple interest of 6.5 %? Specify the interest earned. ii) Knowing that the investment mentioned in the last problem was purchased from January 15 to March 5, 2005, focus the solution using a) exact simple interest and b) the Banker's Rule.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Equity is the difference between an Asset's value and the loan balance. For instance, if you have a car (the Asset) that is worth $30,000, but you owe (Liability) $25,000, then you have $5,000 of equity. (Asset - Liability = Equity). If you borrow $30,000 for a vehicle at a 7% APR for 72 months, your payment is $511.47. After two years, your car's Asset Value is $22,000. If the car's value is $22,000, how much equity do you have in the car? Step 1: Calculate the balance that you owe after two years. This is how much you still owe (the Liability). Step 2: Subtract the Liability from the Asset Value to find your Equity. (Asset Value - Liability = Equity). $3,953 $8,640 $837 $2,432 $640 $21,359
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A design studio received a loan of $8,950 at 5.60% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? ← a acer SUBMIT QUESTION SAVE PROGRESS V SUBMIT ASSIC
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Questions D, E, F, G
A firm, whose cost of capital is 8 percent, may acquire equipment for $146,825 and rent it to someone for a period of five years. Note: Although payment of rent is typically considered to be an annuity due, treat it as an ordinary annuity when completing this problem in a spreadsheet or when using present value factors. If the firm charges $38,730 annually to rent the equipment, what are the net present value and the internal rate of return on the investment? Use Appendix D to answer the questions. Use a minus sign to enter negative values, if any. Round your answers for the net present value to the nearest dollar and for the internal rate of return to the nearest whole number. NPV: $ IRR: % Should the firm acquire the equipment? The firm acquire the equipment as the net present value is , and the internal rate of return the firm's cost of capital. If the equipment has no estimated residual value, what must be the minimum annual rental charge for the firm to earn the required 8…
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Your company is planning to borrow $1 million on a 5-year, 11%, annual payment, fully amortized term loan. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet What fraction of the payment made at the end of the second year will represent repayment of principal? Do not round intermediate calculations. Round your answer to two decimal places. %

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