A company has ordered 11 new personal computers at a cost of $1500 each  They will not be delivered for 5   What amount should the firm deposit in an account paying  7.32%  simple interest to have enough money to pay for them

Q: Having maxed out one credit card, the consumer is tempted by an offer of a second credit card (from…

A: A loan is a debt amount that represents funds borrowed by one person from another person at a…

Q: A graphic designer needs a laptop for audio/video editing, and notices that they can elect to pay…

A: Present value refers to the money received today being more valuable than the money will receive…

Q: Paul Stetson is offered credit terms of 3/10 net 40 by his suppliers. Paul, however, usually pays in…

A: I advise Paul Stetson not to take the bank loan and instead prioritize paying his suppliers within…

Q: A commercial bank will loan you $27,000 for five years to buy a car. The loan must be repaid in 60…

A: EMI or equated monthly installment is referred to as an amount payable, which is paid in each and…

Q: Your paycheck was just deposited and you noticed that had overdrawn your bank account 10 days ago.…

A: The problem case focuses on calculating the effective annual rate charged for the overdraft…

Q: You owe the Bank of US $700 in one year, $900 in 3 years, and $1200 in 6 years. How much would it…

A: Let's first understand the question and the information given -Amount due in 1 year$700Amount due in…

Q: You're trying to save to buy a new $195,000 Ferrari. You have $32,000 today that can be invested at…

A: Here, ParticularsValuesFuture value of money (FV) $1,95,000.00Present value (PV) $…

Q: A person wants to open a small business and according to his investment project he requires…

A: Deposits are made to accumulate money for the future but these deposits attract interest over the…

Q: You're trying to save to buy a new $205,000 BMW 3 series sedan. You have $55,000 today that can be…

A: Cost of BMW = $205,000Amount available = $55,000Interest rate = 5.4%

Q: If you have $10,000 that you want to save for 3 years, which of the following banks would you choose…

A: TVM refers to the capacity of money to earn interest because money earned earlier is considered more…

Q: Yoo, Incorporated, has arranged a line of credit that allows it to borrow up to $42 million at any…

A: Interest paid refers to an amount that is paid by the borrower to the lender on the loan amount at…

Q: Your firm has an average receipt size of $65. A bank has approached you concerning a lockbox service…

A: Savings= Average Receipt*Number of Checks Per Day*Time Saved= 65*8700*2= 1131000

Q: A graphic designer needs a laptop for audio/video editing, and notices that they can elect to pay…

A: First we need to calculate present value of lease payments by using equation below. Where PMT=…

Q: compounded 12 times a year. If the card holder wants to pay off will the card holder need to pay?…

A: Credit card balances are paid by the monthly payments and these monthly payments carry the payment…

Q: Hand-to-Mouth (H2M) is currently cash-constrained, and must make a F its suppliers, or take out a…

A: Cost of Credit is the amount of cost which is incur on amount used for a given period of time.It can…

Q: Kangaroo Autos is offering free credit on a new $13,500 car. You pay $1,500 down and then $400 a…

A: Following formula will be used to calculate the present value:

Q: Vijay

A: The objective of the question is to determine whether Paul Stetson should borrow money from his bank…

Q: You are the owner of four Taco Bell restaurant locations. You have a business loan with Citizens…

A: Cash management is an integral part of financial managers. Cash management involves making decisions…

Q: You want to buy a computer for $2,000.  The interest rate is on the loan is 12%, and you have 18…

A: First we will calculate EMI, so that we know how much we are paying in each payment.  Formula for…

Q: A few years down the road you move out, buying your own home. You decide to take another look at…

A: The finance charge represents the total interest amount to be paid over the loan term. When a loan…

Q: An electronics retailer is offering a deferred payment plan. A customer can buy a laptop today for…

A: Monthly payment (P) = $ 145 Number of monthly payments (n) = 12 Rate of return = 12% Monthly…

Q: Your firm has an average receipt size of $60. A bank has approached you concerning a lockbox service…

A: Given, Average receipt size = $60 Total collection time decreases = 2 days Checks received per day =…

Q: None

A: In 2a, we calculated the effective interest rate per year for a payday loan of $850, which required…

Q: Toyota is offering free credit on a new $10,000 car. You pay $1,000 down and then $200 a month for…

A: Formulas: For Toyota Total cost = Down payment + (Amount*(1-(1+rate)^-periods)/rate…

Q: A bank advertises car loans at 8% compounded monthly for 4 years. There is a 0.5% reduction in the…

A: Loans are paid by equal monthly installments that carry the payment of interest and payment of loan…

Q: Your firm has an average receipt size of $60. A bank has approached you concerning a lockbox service…

A: Under the lockbox system, the local bank collects the checks from nearby post office boxes where…

Q: Sharla is comparing a credit plan to buying an appliance for cash. The sticker price is $1200. The…

A: The amount payable on cash terms will be lower than the amount owed on credit term or deferral basis…

Q: What is the interest rate, monthly deposits, time amount, target Amount, actual Amount and…

A: Calculation of interest rates as follows:

Q: Melanie bought a used car for $10,000. (S) he put $100 down and financed the balance with the dealer…

A: The add-on interest is a method of calculation of interest where the interest is added first and the…

Q: You want to buy a house for $250,000.  The bank requires a down payment of 25%.  What is the amount…

A: Given: House cost =$250000Down payment =25%