An obligation of $17 320 is due two years from now with interest at 9.2% compounded annually. The obligation is to be settled by a payment of $8000 in seven months and a fi payment in sixteen months. What is the size of the second payment if interest is now 10. compounded monthly?

Q: Investigate the concept of breakeven volume and explain the characteristics drive of BEV.

A: Break even volume is that volume of sales at which there is no profit or loss to the firm.

Q: What is general ledge

A: What is general ledger?.

Q: Define geometric-gradient-series?

A: When there is a change in the cash flows series whether it is positive or negative then the series…

Q: What are IO and PO strips?

A: Mortgage-backed securities: The financial instruments intended in raising investment which is…

Q: Define DuPont equation

A: A Du-pont analysis is an equation which calculates the return on equity by multiplying net profit…

Q: Explain noncumulative pari passu distribution?

A: Pari passu refers to equal footing in Latin. It is the situation where all the stakeholders of the…

Q: What is common size analysis?

A: Answer: Common size analysis that measures the percentage sums of each element on the financial…

Q: Define correlation

A: Correlation: Correlation is a statistical method that can display whether and just how strongly…

Q: Define Factoring.

A: Accounts Receivable: It refers to the amount of money due to the company from the debtors.

Q: Describe the Scatterplot Method

A: The objective of the question is to understand the Scatterplot method, which is a graphical…

Q: so where the 2nd ansawer

A: Relevant cost is the cost which alters under two alternatives. Variable cost hence are relevant and…

Q: What is Mark-up chain?

A: Introduction: Markup is generally shown as a percentage of the cost or the sale price. The term…

Q: What is peachtree

A: The answer is provided as follows:

Q: Define conversion ratio

A: Ratios are used in financial analysis to determine different aspects about the financial condition…

Q: Define binomial lattice

A: A binomial is a polynomial that includes the addition of two terms of the monomial.

Q: Explain gaining ratio

A: Introduction:- Gaining ratio may be defined as Gaining ratio is a type of financial tool, which…

Q: How is RI calculated?

A:

Q: Define workout

A: Introduction: A workout may be part of bankruptcy process. Bankruptcy is a condition where the…

Q: Define split-off point.

A: Contribution approach: The contribution approach calculates the net profit by calculating the…

Q: Define Double-entry system.

A: Double entry system: Double entry system is a way of accounting or bookkeeping which implies that…

Q: What are the categories of processing controls?

A: Internal Control:   It is a process of assuring the effectiveness and efficiency of the objectives…

Q: What is lapping?

A: Definition: Lapping: Lapping is an accounting fraud in which an employee steals cash from accounts…

Q: Define characteristic line

A: Characteristic line is a graphical representation of alpha (α) where alpha is the difference between…

Q: Define two-bin method

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: What is a sweep?

A: A sweep account is a bank account or brokerage account that will automatically transfers amounts…

Q: Characteristics of factor factor model

A: Factor models are mathematical models that are developed to estimate the returns of financial…

Q: Describe about the concept of COGS.

A: Cost of goods sold (COGS): Cost of goods sold is the accumulate amount of all direct cost incurred…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.