10. Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non-free trade credit if it pays 140 days after the purchase? (Assume a 365-day year.) а. 13.13% b. 11.89% c. 13.83% d. 17.01% е. 15.76%

10. Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non-free trade credit if it pays 140 days after the purchase? (Assume a 365-day year.) а. 13.13% b. 11.89% c. 13.83% d. 17.01% е. 15.76%

Name: 10. Your company has been offered credit terms of 4/30, net 90 days.
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Description: 10. Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non-free trade credit if it pays 140 days after the purchase? (Assume a 365-day year.)a. 13.13% b. 11.89% c. 13.83% d. 17.

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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P10,000 IS BORROWED FOR 75 DAYS AT 20% PER ANNUM SIMPLE INTEREST. HOW MUCH WILL BE DUE AT THE END OF 75 DAY O a. P11,416.67 O b. P10,416.67 О с. P10,461.67 O d. P10,146.67
2. A bank loan of P6,000,000 charged at 9.65% pa compounded quarterly , is to be paid in 10 equal annual payments, the first of which to be paid 12 months from now. How much does Mr. Eden still owe to the bank after he has made the 9th payment? Select the correct response: O . P1,211,510 O P887,702.15 O P1,864,174.52 O P1,452,040
Problem A DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for the coming year. The supplier is offering a credit term of 3/15, n/45. How much is the simple annual effective cost of paying on the 45th day? Problem B ABC can take a 45-day loan with a 15% interest deducted in advance, to be reapplied each time. How much is the simple annual cost of the loan? Problem C ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000. How much is the compounded annual effective cost of the bank loan?
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F1
National Company has a P25,0000 line of credit at a 9% interest rate. The loan agreement requires a 3% compensating balance, which is based on the total amount borrowed, and which will be held in an interest-free account. What is the effective interest rate if the firm borrows P160,000 on the line of credit for one year? 8.67% 9.03% 8.78% 9.28%
PROBLEM 1 On December 31, 2023, JFG Company, a financing institution, lent P4,000,000 to MFG Company due 3 years after. The loan is supported by an 8% note receivable. Transaction costs incurred to originate the loan amounted to P248,000. P374,000 was chargeable to MFG as origination fees. Interest on the loan is collectible at the end of each year. The yield rate on the loan after considering the direct origination fees and origination costs incurred is 9.25%. JFG was able to collect interest as it became due at the end of 2024. During 2025, however, due to MFG Company's business deterioration and due to political instability and faltering global economy, the company was not able to collect amounts due at the end of 2025. After reviewing all available evidence at December 31, 2025, JFG determined that it was probable that MFG would pay back only P3,400,000 collectible as follows: December 31, 2027 December 31, 2028 December 31, 2029 December 31, 2030 P1,400,000 1,000,000 600,000…
A $51,000 loan at 9.6% compounded semiannually is to be repaid by semiannual payments of $3,900 (except for a smaller final payment). (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What will be the principal component of the sixteenth payment? Principal $ b. What will be the interest portion of the fifth payment? Interest $ c. How much will Payments 8 to 14 inclusive reduce the principal balance? Principal reduction $ d. How much interest will be paid in the fifth year? Interest paid $ e. What will be the final payment? Final payment $
Ee. 272.
M3

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