6. A sari-sari store vendor buys some goods from a dealer who asks P15,950 at the end of 180 days. The vendor prefers to pay in cash and the dealer offers to compute the cash price at 13% simple interest. Find the cash price of the goods. 7. Edward Cariaga loans P35,300 at 6½% simple interest, how long it will take him to get P3,800 interest? Elmer Martin paid P26,800 on a loan made 4 months before at 9½% simple interest. Find the interest generated. 8. 9. If a principal of P13,300 earns interest of P1,500 in 3 years and 6 months, what interest rate is in effect? 10. Ruel Dayrit deposited P80,250 in a bank paying 5% simple interest for 4 years. How would he have in his account at the end of four years assuming that no withdrawals were made?

6. A sari-sari store vendor buys some goods from a dealer who asks P15,950 at the end of 180 days. The vendor prefers to pay in cash and the dealer offers to compute the cash price at 13% simple interest. Find the cash price of the goods. 7. Edward Cariaga loans P35,300 at 6½% simple interest, how long it will take him to get P3,800 interest? Elmer Martin paid P26,800 on a loan made 4 months before at 9½% simple interest. Find the interest generated. 8. 9. If a principal of P13,300 earns interest of P1,500 in 3 years and 6 months, what interest rate is in effect? 10. Ruel Dayrit deposited P80,250 in a bank paying 5% simple interest for 4 years. How would he have in his account at the end of four years assuming that no withdrawals were made?

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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XYZ Construction Inc. wants to purchase a new pick-up truck. The price for the new truck is $43, 688. The dealer allows XYZ to trade - in the old truck for $5,224. XYZ can payback the remaining balance through a 4-year payment plan. Given the agreed interest rate is 3%: How much is the monthly payment?
1. The Villa Pawnshop charges 24% simple interest on the loan of all items pawned to them. If Rose pawned her necklace for P1,200.00, how much will she pay the pawnshop after 90 days assuming Villa Pawnshop charges the following? b. ordinary interesta. exact interest
A radio commercial for a loan company states: "You only pay 36¢ a day for each $500 borrowed." If you borrow $2,710 for 162 days, what amount will you repay, and what annual interest rate is the company actually charging? (Assume a 360-day year.) a. Amount you repay=$(Round to two decimal places.) ID
6. On 1 – 4 – 2018 Ms. Bushra Al Khair LLC buys 150 Apple phone @ 225 each from a local supplier. (i.e. the trade discount does not apply to the first RO 10,000). He is offered a 2.5% cash discount for immediate payment. What is the amount payable by Ms. Bushra Al Khair LLC assuming that if she makes payment after 3 months? The supplier offers a trade discount of 5% on amounts in excess of RO 10,000
2a. You decide to purchase a new touchscreen Chromebook. The price is listed at $499.99 but the salesperson tells you that everything in the store is 25% off today. What is the total price that you pay for the Chromebook (including 8% Tax)? 2b. You decide to take advantage of the store's payment plan. The payment plan's terms are as follows: 18 equal monthly payments, 6% interest, compounded monthly. a) What is the total cost that you will end up paying for
Kayla just signed a contract to purchase her inventory exclusively from one vendor. The contract allows for terms of 3/15, net 90. Kayla estimates that she will need to borrow $150,000 to take the discount. Her bank will lend money for 75 days at an interest cost of $2,000. Should Kayla borrow the money to take the discount? Or does it make more sense for her to not take the discount and just pay her invoice within 90 days? Back up your recommendations with your calculations.
Seis
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire first year and then to pay $576.83 at the end of each month over years 2, 3, and 4 (first payment is in 13th month). a. What nominal interest rate is Aerotron paying on the loan? % b. What effective interest rate are they paying? % Round your answer to 4 decimal places for a and b. The tolerance is ± 0.0005. c. How much of the 14th month's payment is interest? How much is principal? payment interest = $ , and principal = $ d. How much of the 18th month's payment is interest? How much is principal? payment interest = $ , and principal = $ e. How much of the 22nd month's payment is interest? How much is principal? payment interest = $ , and principal = $ Round your answers to the nearest whole dollar for c-e. The tolerance is ± 5.
A building contractor gives a $15,000 promissory note to a plumber who has loaned him $15,000. The note is due in 9 months with interest at 8%. Three months after the note is signed, the plumber sells it to a bank. If the bank gets a 9% return on its investment, how much will the plumber receive? Will it be enough to pay a bill for $ 15,285? How much will the plumber receive?
You have just purchased new goods worth 10,000 EUR from your supplier. Your supplier offers you to pay within 45 days. If you pay within the first 10 days, you get a discount of 1.3%. You know that he might accept a delay of 2 days, but if you pay later than day 47, you will most likely get an additional fee of 550 EUR. You need your next delivery in 60 days and you know he will not deliver the new goods unless you pay the outstanding invoice. When would you pay? Why? What is the effective interest rate?
A local restaurant decides to take out an amortized loan as follows: Amount of loan = $50,000; Interest rate = 8%; Term = 5 years. After two instalments the borrower decides to pay off the loan. What is the payoff amount? a. $32,273 b. $22,331 c. $31,543 d. $31,670 Accrual basis in loan pricing refers to a. the number of days used to calculate interest b. the effective yield c. the method of accounting used to record the loans d. none of the above Which of the following accurately describes the other real estate owned that appears as an asset on the bank’s balance sheet? a. includes premises and equipment b. includes only the land owned by the bank. c. usually represents property obtained through foreclosure on problem loans d. is limited to the equipment owned by the bank Collateral does not reduce the risk of a loan per se, because a. it is not part of the loan agreement b. the risk of a loan is determined by the borrower’s willingness and ability to repay…

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