(c)The discount rate on this week's Government of Ghana 182-day treasury bills is quoted as 19.5521%   If you buy 182-day bills with a face value of GHS10,000, how much would you pay for them? How much would you earn in interest over the holding period? [Express your answer as a percentage] Express the interest you would earn

Q: For the following treasury bill bought in 2007, find (a) the price of the T-bill, and (b) the actual…

A: T-bills are short term investment generally up to 1 year. They are risk less as they are issued by…

Q: Assume that somebody has to pay £2000 in three years’ time and £3000 in seven years’ time. They want…

A: To solve this question we will use the concept of time value of money.   The concept of time value…

Q: Suppose you take out a loan for 180 days in the amount of $15,500 at 13% ordinary interest. After 40…

A: answer principal amount = $15,500 rate of interest = 13% partly payment  after 40days  partly…

Q: 3. When will a single payment of SR 2,200 discharge the debts of (a) SR 500 due in 4 months, (b) SR…

A: Single Payment Amount = 2200 Interest Rate = 9%/12 = 0.75% Debt Payments: Months Cash OutFlow 4…

Q: Q4: A dealer quotes a customer 7.35% to borrow for one year with interest paid monthly. The customer…

A: Effective rate of interest = [(1+ (Nominal rate/m) )]^m -1 Where m = no. of compounding period

Q: When preparing for a business trip to China, Karim Darmati determined he needed to bring $4,200. How…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: If your gross income is OMR 1800 per month, and you need a housing loan. What is the maximum amount…

A: 28/36 rule states that an individual should not spend more than 28% of their gross monthly income on…

Q: What is the discount interest rate if P129,750 was obtained after a loan of P150,000 was granted for…

A: Simple interest is a quick and easy way to find out how much money you owe. The daily interest rate…

Q: How much is the compensating balance if you need to borrow $350,000 for one year with 9% single…

A: The compensating balance is the extra amount that needs to be maintained at all times above the…

Q: 3. The price of a certain item is P1,000, payable in O days but if paid in 30 days there will be a…

A: Formula: Simple Interest = Principle X Rate X Time/365 days

Q: ALVR Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 12%…

A: The question requires calculation of interest on December 31 , 2022. Given that , Interest payable =…

Q: What is the amount of compensating balance would be required for a nominal interest rate of 12% to…

A: Nominal interest rate (r) = 12% Effective interest rate (i) = 14.40% Let the compensating balance as…

Q: The total accumulated ordinary simple interest on a principal is P30,360 at a simple interest rate…

A: Principal and the accumulated ordinary interest on it are given. The date of the borrowing is to be…

Q: bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of…

A: The effective annual interest rate is a crucial concept in finance that is used to describe the true…

Q: For the following treasury bill bought in 2007, find (a) the price of the T-bill, and (b) the actual…

A: Treasury Bills: Treasury bills are the borrowing instrument of the money market used by the…

Q: se you recently bought a house for R1 650 000 and secured a home loan from the bank, with an…

A: Mortgage loans are paid by equal monthly installments and these carry the payment for interest and…

Q: 4. You have an option to lend $1,250 at 7.5% interest for 60 days. 14a. If you charge ordinary…

A: In the time value of money we consider simple interest for short period of time and in this there…

Q: Q45. Suppose you are planning to accept bank offer as given in below Reference No.01 but instead of…

A: We will first calculate the effective rate and then with that the nominal rate.

Q: The bank is offering to sell 6-month certificates of deposit for $9800. At the end of 6 months, the…

A: Certificate of deposits are issued by the banks at discount and that discount is interest rate on…

Q: You can purchase a 1 million treasury bill that is currently selling on a discount basis at 97 1/2 %…

A: Par value of T bill (F) = 1,000,000 Selling price (P) = 1,000,000*(97.50/100) = 975,000 Period (T) =…

Q: You plan to borrow P10,000 from your bank, which offers to lend you the money at a 7.5% nominal rate…

A: Nominal rate (D)= 7.5% Borrowed amount = P10,000

Q: 5. Mr. Eden borrows from the bank P600, 000 at 12% pa compounded quarterly, agreeing to pay the loan…

A: First we need to calculate loan amount after 1 year by using compounding interest formula given…

Q: REQUIRED Use the information given below to prepare the Statement of Financial Position of Merryvale…

A: The statement of financial position is one of the financial statement that is also known as balance…

Q: 1.Suppose that a client borrows a loan amount of R50,000 at annual interest rate of 10% compounded…

A: Interest is the periodic obligation of the borrower to pay towards the sum borrowed. It is computed…

Q: What will be the compounded amount on a loan of P1.500 at 12% interest compounded quarterly for I…

A: Loan amount (PV) = P 1500 Annual interest rate = 12% Quarterly interest rate (R) = 12%/4 = 3% Period…

Q: If the proceeds of a loan of P12,450 will be paid with P12,840 at the end of 1 year and 9 months.…

A: Loan amount = P 12450 Par value = P 12840 Discount amount = Par value-Loan amount…

Q: You buy a K10 000 face value Treasury Bill in one month for K9 900. Calculate your holding period…

A: Holding period rate of return(HPR) on treasury bill is calculated using following equation HPR =…

Q: What amount should be paid on October 5, 2022, on a loan of P100,000 made on December 13, 2021 with…

A: Simple interest is a type of interest that is calculated based only on the principal amount of a…

Q: Lee wants to know how much he will have available to spend on his trip to Costa Rica in 2 years if…

A: The amount available to spend is calculated as future value of account.

Q: For the following treasury bill bought in 2007, find (a) the price of the T-bill, and (b) the actual…

A: (a) Price of T-bill P = $21000 r = 3.04% = 0.0396 t = 9/12 = 0.75 Discount = P x r x t = 21000 x…

Q: Vijay

A: The objective of the question is to calculate the actuarial rate for a home loan. The actuarial rate…

Q: What is the annualized investment rate % on a Treasury bill that you purchase for 9310 that will…

A: Value at the maturity (F) = 9533 Purchase price (P) = 9310 n = 91 days

Q: Suppose you have $2,300 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.4%…

A: A Certificate of Deposit (CD) is a financial tool that offers a predetermined interest rate for a…

Q: #5 Hy Potenuse bought a $10,000 T-bill at a 0.115 percent discount rate for 13 weeks (91 days). How…

A: T-Bill or Treasury Bill is short-term debt instrument which is used by government to borrow from…

Q: Mr. Eden borrows from the bank P600,000 at 12% pa, agreeing to pay the loan in 15 equal quarterly…

A: Number of quarterly payments (N) = 15 Loan = 600,000 Rate = 12% p.a. Number of compounding periods =…

Q: 1) If ₱22578 is borrowed for 9 months and ₱555 is paid, then the annual simple interest rate is…

A: Hi student Since there are multiple questions, we will answer only first question.  Simple interest…

Q: You are going to borrow $30,000 to purchase a car. You agree to repay the loan in 36 monthly…

A: The nominal interest rate is the rate of interest charged on the loan amount. It is the sum total of…

Q: Calculate the simple interest due on a 72-day loan of P3,000 if the annual interest rate is 4%.

A: Given: Loan = P 3000 Interest rate = 4% number of days in loan = 72 total number of days in year =…

Q: A man borrowed P18,400.00 from a credit union that charges 8% simple interest for 1 year and 9…

A: Total months = 12 + 9 = 21 months

Q: 2. It is desired to have P200,000 two years from now by depositing an initial amount P, plus P50,00…

A: Future value = P 200,000 Annual interest rate = 12% Monthly interest rate = 12%/12 = 1% Deposit…

Q: 3. Suppose a $1,000 EOY loan payment was made today for money that was borrowed in 2021 (two years…

A: Present value is the estimation of the current value of future cash value which is likely to be…