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%

Q: Question 2. A company makes payments continuously at a rate of $200 per year. The payments are made…

A: Annual payment = $200Annual interest rate = 6.5%Future value period = 10 Years

Q: You borrowed $660,000 in your mortgage to purchase a property. The mortgage requires equal annual…

A: Annual payments can be calculated by using the Excel formula ''=PMT''Note : PMT refers to…

Q: To borrow $1,200, you are offered an add-on interest loan at 9 percent. Two loan payments are to be…

A: Borrowed Amount = $1,200 Interest Rate = 9% Time Period = 1 Years

Q: 2.43 You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will…

A: The tenure of the loan means the duration for which loan has been taken. If loan tenure is more than…

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A: Annual rate (r) = 0.1425 or 14.25% Number of compounding (n) = 12 EAR = ?

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A: We first need to determine the effective annual rate of semiannual compounding by using the formula…

Q: Purchase price = Today's Zillow Zestimate 521500 You will pay a down payment = 15% of purchase price…

A: The purchase price is the price at which the asset is available for the customers to purchase. Down…

Q: a-1 mortage makes loans with the interest charged on the loan principle rather than on the unpaid…

A: Equal Annual Payment: $2,052.19Explanation:We are givenPrincipal amount (P): $10,000Annual interest…

Q: A $10,000 credit supply has the following terms: trade terms are 5/5 net 50, interest rate 8%. What…

A: If the amount is paid within 5 days of invoice then the 5% discount will be allowed on net amount…

Q: One has the following data regarding spot and 18 month forward for USDCHF Spot 1.2000 F 1.1200 # of…

A: The arbitrage in the market refers to the profits that the investors can earn because of the…

Q: What is the nominal annual percentate cost of the non-free trade credit if it pays within 120 days…

A: Nominal annual % cost of non-free trade credit = [ { Discount / ( 1 - Discount ) } x { 365 / ( Days…

Q: You owe $1985.00 and $1794.00 in 5 months from now and 9 months from now respectively. What single…

A: Information Provided: Amount owed for 5 months = $1985 Amount owed for 9 months = $1794 Annual…

Q: You want to have $65,000 in your savings account 11 years from now, and you're prepared to make…

A: Solution:- When an equal amount is deposited each period at end of the period, it is called ordinary…

Q: What is the yield to the lender on a $300,000 loan at 5.50 percent interest, with monthly payments…

A: Loans and interest rates are divided into small monthly payments that carry the payment for interest…

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A: First we need to use loan amortization formula below to calculate monthly payment.  where P=Loann…

Q: Bank A offers a 1-year Forward Rate Agreement at 7% p.a. which will settle against the 3-month…

A: A financial contract known as a forward rate agreement (FRA) is made between two parties in order to…

Q: On January 1, a company agrees to pay $26,000 in seven years. If the annual interest rate is 6%,…

A: Present value means the present value of the money which is to be payable or receivable in the…

Q: 9. A company borrows 1,000,000 at an annual effective discount rate of 4%. The loan is to be repaid…

A: In a time value of money concept based payment stream, we have to find the value of the last…