Bank Muzn provides musharakah mutanaqisah financing to Moonway Corporation for house developing project amounting to OR 250,000. This amount represents 25% of the total cost of the project. The term of financing is for 10 years and the partner is required to pay back the bank in 10 equal installments yearly. Calculate Muzn's share of capital at the end of year 10 Answer:

Bank Muzn provides musharakah mutanaqisah financing to Moonway Corporation for house developing project amounting to OR 250,000. This amount represents 25% of the total cost of the project. The term of financing is for 10 years and the partner is required to pay back the bank in 10 equal installments yearly. Calculate Muzn's share of capital at the end of year 10 Answer:

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 24P

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Bank Muzn provides musharakah mutanaqisah financing to Moonway Corporation for house developing project amounting to OR 250,000. This amount represents 25% of the total cost of the project. The term of financing is for 10 years and the partner is required to pay back the bank in 10 equal installments yearly. Calculate Muzn’s share of capital at year 5
Bank Muzn provides musharakah mutanaqisah financing to Moonway corporation for house developing project amounting to OR 250,000. This amount represents 25% of the total cost of the project. The term of financing is for 10 years and the partners is required to pay back the bank in 10 equal installments yearly. Calculate Muzn's share of capital at the end of year 10.
‏Bank Muzn provides musharakah mutanaqisah‏financing to Moonway Corporation for house‏developing project amounting to OR 1,000,000.‏This amount represents 25% of the total cost of‏the project. The term of financing is for 10 years‏and the partner is required to pay back the bank‏in 10 equal installments yearly. Calculate Muzn's‏share of capital at year 4
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Suppose that you have generated the estimates listed below from a pro forma analysis for a company that had requested a three year loan. The loan is a $1.5 million term loan with the equal annual payments of principals. The P&I payments are due at the end of each year with the annual interest rate = Prime rate + 1.5%. Yr.1 Yr. 2 Yr. 3 Capital expenditure 250,000 125,000 75,000 Cash dividends 140,000 140,000 140,000 Cash flow from operations before interest expense 750,000 780,000 800,000 Assuming the Prime rate = 7.5% each year. What will be the interest payment at year 3? a). 25,000 b). 50,000 c). 45,000 d). 53,000 e). 10,000
Click to see additional instructions To provide funding for a particular project, a company decides to go for a loan worth GHC 200,000. The loan is to be paid at an interest rate of 18% per year in six annual installments starting from the beginning of the second year. The size of the equal payment needed each year is GHS
Cross Ltd has bought an asset with a life span of 4 years. At the end of the 4 years, replacement of the asset will cost GH¢12,000. In this direction, the company has decided to provide for the future commitment by setting up a sinking fund account into which equal annual investment will be made at the end of each year. Interest rate on the investment will be 12% per annum. Required:i. Calculate the annual instalmentsii. Draw up the sinking fund schedule to show the growth fundiii. Assuming the first payments will be made now and 12 months thereafter, what are the annualpayments? You are required to draw up the sinking fund schedule .
A company decides to borrow $100 000 at j1 = 12% in order to finance a new equipment purchase. One of the conditions of the loan is that the company must make annual payments into a sinking fund (the sinking fund will be used to pay off the loan at the end of 20 years). The sinking-fund investment will earn j1 = 6%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) a) What is the amount of each sinking-fund payment if they are all to be equal? Amount of each sinking-fund 2$ b) What is the total annual cost of the loan? Total annual cost c) What overall annual effective compound interest rate is the company paying to borrow the $100 000 when account is taken of the sinking-fund requirement? Compound interest rate %
Cleanborn Ltd has bought an asset with a life span of 4 years. At the end of the 4 years, replacement of the asset will cost GH¢12,000. In this direction, the company has decided to provide for the future commitment by setting up a sinking fund account into which equal annual investment will be made at the end of each year. Interest rate on the investment will be 12% per annum. Required: a.Calculate the annual instalments b.Draw up the sinking fund schedule to show the growth fund c. Assuming the first payments will be made now and 12 months thereafter, what are the annual payments? d. Draw up the sinking fund schedule under (c)
Your company intend to build an indoor sport complex estimated to cost RM1 million. You have applied for a loan, and they approved 80% from your original amount. Other conditions agreed by the bank are as below: The loan amount will be given in two stages, half in the first year and another half in the second year. Another 500,000 in year 2. Instalment can be deferred for the first 3 years. While deferment of instalment, compound interest of 10% per annum on balance will be charged. Interest of 6% per annum will be charged starting year 4 onwards. The whole loan must be paid in 18 years. Calculate the uniform instalment plan for your company.
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The Xeor supply company needs to increase its working capital Tk. 5.4 million. The following three financing alternatives are available (assume a 365 day year).i) Forgo cash discount (granted on a basis of 5/10, net 30) and pay on the final due date.ii) Borrow Tk. 6 million from a bank at 15 percent interest. This alternative would necessitate maintaining a 12 percent compensating balance.iii) Issue Tk. 5.7 million of six-month commercial paper to net Tk. 5.4 million. Assume that new paper would be issued every six months (Note: commercial paper has no stipulated interest rate. It is sold at a discount, and the amount of the discount determines the interest cost to the issuer.) Requirement: Assuming that the firm would prefer the flexibility of bank financing, provided theadditional cost of this flexibility was no more than 3 percent per annum, whichalternative should Xeor select? Why?