Calculate the excess reserves for Bank 5 if the reserve requirement 10%.

Q: Find the effective rate of  interest if the nominal rate is 12 % compounded bi - monhtly.

A: Annual Nominal interest rate = 0.12 Number of compounding in a year (n) = 6 (i.e. 12 months / 2)  Bi…

Q: 5. A fund of P3,000,000 needs to be available after 10 years. How much deposit should be made every…

A: Future value required (FV) = P3,000,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50%…

Q: Find the savings plan balance after 6 months with an APR of 9% and monthly payments of $200. The…

A: Future value refers to the value of an asset present today at some future date affected by interest…

Q: A loan was to be amortized by a 5 end-of-year payments forming an ascending arithmetic progression.…

A: Here, First Payment is P 10,000 Increase in Payment is P1,000 Interest Rate is 10% Time Period of…

Q: Assume that you want to have $ 4100 saved in a sinking fund in 1 year. The account pays 3%…

A: Future value (FV) = $ 4100 Annual interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25%…

Q: An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a…

A: Loan amount (L) = 50000 r = 10% Let CFn be the payment in year n. Let size of first payment = X CF1…

Q: 2. What is the future worth of P600 deposited at the end of every quarter for 4 years if the…

A: The value of an asset at a specific date is referred to as its future value. It is the present value…

Q: An annuity pays $200 at the end of each period for 10 periods. Set up the CFs in an Excel…

A: The implied discount rate (r) will be the rate at which the values of the year-end cash flows equal…

Q: petuities 4. What amount is required to fund a perpetuity that begins annual payments of P50,100…

A: Perpetuity is payment forever and there are annual payments forever period depending on time and…

Q: What is the effective interest rate p.a. on an overdraft facility where the bank requires 3.5%…

A: Value of bank overdraft=Utilization rate×Maximum limit=70%×NOK 500,000=NOK 350,000

Q: Assume you want to have $4050 saved in a sinking fund in 1 year. The account pays 3.5% compounded…

A: The amount of money invested over a period of time with the assumption of investment growth at a…

Q: Which of these choices will use more working capital?

A: Working capital is one of the important and crucial for every business as by the determination of it…

Q: Construct the Annuity Savings Model that satisfies: (a) The initial balance is $800, and each month…

A: Annuity Savings Model Balance at end of month = [Balance at beginning of month T-1 * (1+Interest%) +…

Q: Calculate the annual cost for years 1 through 9 of the following series of disbursements. Use an…

A: Present value is calculated by the formula:PV= FV1+inwhere FV= future value of moneyn= number of…

Q: If the reserve requirement is 20 percent and a new deposit of $10,000 in cash is made by a customer…

A: Whenever the cash is kept in reserve is more than the federal reserve's requirement, this is called…

Q: Assume that you want to have $ 2900 saved in a sinking fund in 1 year. The account pays 5%…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: Draw a Cash Flow Diagram for P10,535 being loaned out at an interest rate of 12% per year over a…

A: Simple Interest per annum = Principle * Rate * Time = P10,535 * 12% * 1 = 1264.2   Cash flow diagram…

Q: suppose that a codominium unit pirchased for 2,800 and the bank requires 30% down oayment how much…

A: The question is based on the concept of a mortgage loan. A financial institution provides a loan to…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT…

A: Given Values:Future worth is $50000Interest rate is 7% per annumMonthly payment is 5 yearsFormula…

Q: Perpetuity of value $800 monthly has a rate of 12% compounded quarterly. a. Determine the present…

A: Present Worth is the present value of Future Cash flow with discounted with provided rate of…

Q: fund of P 30,000 is invested at 14 % compounded quarterly. A withdrawal of 000 is agreed upon. How…

A: The fixed amount of annuities can be withdrawn from the accumulated and that carry the interest and…

Q: 1. Find the difference between the simple interest and compound interest on a savings account…

A: Simple Interest and Compound Interest   Calculating the interest above the principal amount is known…

Q: required reserve ratio is 10%, how much a new $10,000 deposit can a bank lend? What is the pote

A: Introduction : In simple words, the amount of reserves that the federal authorities command the…

Q: What equal annual deposits must be made at t = 2, 3, 4, 5, and 6 in order to accumulate $25,000 at t…

A: Future value is the value of current cashflow compounded to the future date at specified rate.…

Q: A company estimates that it will need $375,000 in 11 years to replace an important machine. If it…

A: We need to use future value of annuity formula to calculate payment size  PMT =FVn(1+i)n -1i Where…

Q: n the information given int he following case, determine the number of years that the given oridinay…

A: Initial amount (PV) = $ 26,800 Annual cash flow (P) = 6,561 Rate of return (r) = 6% Number of year =…

Q: The discount rate is 8.25%.  What is the present value of five annual $41 cashflows? The first…

A: Present Value = Future Value /((1+i)n) n is the Number of Years

Q: Your client is invested in a registered indexed-linked annuity (RILA). The RILA contains a 7% floor,…

A: Year 1:The S&P 500 return is 12%.The cap rate is 10%, so the credited interest rate is capped at…

Q: the periodic paymer necessary tő accumu the given amount in an annuity account. (Assume…

A: We use PMT function in excel to calculate monthly payments

Q: What is the annual percentage yield on a fund which earns 4.6% compounded weekly?

A: interest rate = r = 4.6% Compound = weekly = n = 52

Q: Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer…

A: A fund that is created to repay a debt or replacement of an asset by putting an equal sum of amount…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: Here, Particulars Values Accumulated amount in an annuity account (FV)  $30,000.00 Present…

Q: Find the periodic payments PMT necessary to accomulate the given account in an annuity account.…

A: The annuity in which fixed amounts are paid at the end of each period is known as an ordinary…

Q: Start with a $1,000 deposit and assume a reserve requirement of 15 percent. Trace the amount of…

A: Lending cycles refer to the recurring patterns in a financial institution's willingness to extend…

Q: Consider a borrowing of $400,000, with monthly payments to be made over 15 years with a 15% add-on…

A: Borrowing = $400,000Number of years for which monthly payments are to be made = 15 yearsAdd- on…

Q: An amount of 50,000 was borrowed at an interest rate of 10% per year and repaid over a 5-year period…

A: Present value of all of future payments considering the interest rate and time period should be the…

Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.