Friendly's Quick Loans, Inc., offers you $6.00 today but you must repay $8.15 when youget your paycheck in one week (or else).a. What is the effective annual return Friendly's earns on this lending business? (Do notround intermediate calculations and enter your answer as a percent rounded to 2decimal places, e.g:, 32.16.)b. If you were brave enough to ask, what APR would Friendly's say you were paying? (Donot round intermediate calculations and enter your answer as a percent rounded to2 decimal places, e.g., 32.16.)Effective annual returnb. Annual percentage ratea.%%

Effective annual rate is computed after taking into account all the compounding due in a year.…

Answered: Friendly's Quick Loans, Inc., offers…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Ricky Ripov’s Pawn Shop charges an interest rate of 18.25 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. a. What rate should the shop report? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
1. What are the advantages and disadvantages of offering credit? 2. What precautions should she take before offering credit to people like John? 3. If Kate grants credit to John, the terms will be 2/10, n/30. Assuming the payment is made during the 10-day discount period, what would be the journal entry to record the sale and then subsequent payment? 4. If instead of playing early John pays in 25 days, what would the journal entry to record the payment? 5. Rather than providing the financing directly, assume that Kate decides to allow the use of credit cards. Further, assume that during the month there is 15,000 worth of credit cards sales. Provide the journal entry to record the sales, along with the associated credit card fee. The cost of goods sold total is 13,500.
PLEASE Use the correct function on EXCEL
(1)If compounding monthly, how would I find percent and intrest of a problem? (2) How do I compute if I paid $5 weekly for cofee and $175 monthly for food? What percentage of coffe did I pay over food? (3) suppose you start saving today for a $45,000 down payment that you plan to make on a house in 6 years. Assume you make no deposits in the account after initial deposit. For the account below, how much would you have to deposit now to reach $45000 in 6 years : an account with daily compounding and apr of 7%
Problem:Answer the following questions completely. Show all computations. Round off only the final answers to two decimal places.On June 26, 2019, Naomi obtained a loan of P150,000 from a local businessman. The interest rate on the loan was 7.75% and it is to be paid on November 15, 2020.1. What is the exact time from June 26, 2019, to November 15, 2020? 2. What is the approximate time from June 26, 2019, to November 15, 2020? 3. What is the Ordinary simple interest using exact time? 4. What is the Ordinary simple interest using approximate time? 5. What is the Exact simple interest using exact time? 6. What is the Exact simple interest using approximate time? 7. If Naomi was given the option to choose the type of interest to use, which should she had chosen? Explain why in one sentence.
(b) Find the amount of the mortgage. The amount of the mortgage is $ Part 3 of 4 Show Transcribed Text (c) Find the monthly payment. The monthly payment is S Part 4 of 4 X 3 Show Transcribed Text (d) Find the total interest paid. The total interest paid is S 5 X X C 5
A firm offers terms of 1.2/10, net 60. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the terms are changed to 2.2/10, net 60, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What effective annual interest rate does the firm earn if the terms are changed to 1.2/10, net 75, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) d. What effective annual interest rate does the firm earn if the terms are changed to 1.2/15, net 60, and the customer does not…
Answer number 3 please. And kindly type the solution not handwritten. Thank you.
I keep getting EAR wrong
JUVE ANG Your company has received a $50,000 loan from an industrial finance company. The annual payments are $6,202.70. If the company is paying interest of .09 per year, how many loan payments must the company make? (Hint: Calculating by hand is difficult, try using a calculator/excel/etc.) Instruction: Round to the nearest whole number. E.g., if your answer is 77.77, you should type ONLY the number 78, neither 77.77, nor 77.8. Otherwise, Blackboard will treat it as a wrong answer.
The Patel Company has several financial issues to solve. As the company’s Financial Analyst you have been asked to answer the following 2 questions: Their bank will lend them $100,000 for 90 days at a cost of $1,200 interest. What is the company’s effective annual rate? A major supplier has granted credit terms of 1/10 N120. Assuming the company can borrow any amount of money at the rate you have calculated above (in part 1), should the company take the discount? (Your answer must be supported with a calculation of the cost of not taking the discount – using either simple or effective annual rate)
You wish to buy a $9,700 dining room set. The furniture store offers you a 2-year loan with an APR of 9 percent. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

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