compute the present value of interest and the principle amount

Q: List the Elements ofTransactions Involving Interest?

A: The amount that is charged from the borrower over the borrowed amount or the amount that is provided…

Q: Discuss the difference between an unrealized holding gain and a realized gain.

A: The gain is the excess of revenue earned over the expenses incurred.

Q: normal balance of asset, liability, and equilt

A: The balance sheet shows the financial position of the company that including the assets,…

Q: What is the empirical evidence on Uncovered Interest Parity?

A: Interest parity can be subdivided into two parts. these parts are: Covered interest parity…

Q: Compare simple interest to compound interest.

A: Answer: Simple interest: This is the fundamental type of interest in which interest is paid on the…

Q: What is return on assets(roa)?

A: In general terms, ROA is similar to  Return on Investment.

Q: interest

A: Exact Interest = P*r*(t/365) Ordinary Interest = P*r*(t/360)

Q: Define Effective interest method.

A: Effective interest method: It refers to the method of accounting that is usually used for the…

Q: Are there any particular elements to interest-bearing transactions

A: There any particular elements to interest-bearing transactions will be explained:

Q: Explain how to calculate time interest earned.

A:

Q: Adjusted Net Asset Value method

A: Assets represent the future economic value of the company that is sacrificed in order to pay off the…

Q: Give me the formula of net present value

A: Net Present Value of a project is equivalent to the difference between the present value of cash…

Q: would the return on as

A: Return on Assets is net income divided by the average total assets

Q: In general terms, what is the Capital AssetPricing Model (CAPM)? What assumptions weremade when it…

A: CAPM: The capital asset pricing model (CAPM) is a method utilized to determine a hypothetically…

Q: what do you mean by proceeds in this question? is it only the interest calculated or the matured…

A: In the question, it was asked to calculate " Proceeds from redemption" Redemption means company…

Q: Briefly explain the following a. Relation between present value and interest rate

A: Present value = Applying time value to the future cash flows using interest rates Present Value =…

Q: Define both current liabilities and current assets. In what ways are they related?

A: Maintaining an appropriate balance between current assets and current liabilities is crucial for a…

Q: Explain the Accumulation of a Future Sum?

A: The concept which gives the value or worth of money held today at the future date due to its…

Q: clearly distinguish between norminal interest rate and effective interest rate

A: The term interest rate can be defined as the fixed income received on the investment. . There are…

Q: What is the difference between simple and compound interest? Give examples.

A: Simple interest: It is the interest calculated on the principal of the loan and the account holder…

Q: hat are the factors being considered in computing for the simple Interest?  State the simple…

A: The simple interest is an interest that is paid on the principal amount over the period. The simple…

Q: What is net interest margin(NİM)?

A: There are various profitability ratios

Q: explain the term force of interest as used in interest theory.

A: interest : it is the compensation that the borrower of the capital pays to the lender for use of it.