Mr. Flores made a money market placement of P1, 000.000 for 30 days at 7.5% per year. If the withholding tax is 20%, what is the net interest that Mr. Flores will receive at the end of the month? Ans. Net Interest = P5, 000A bill for a motorboat specifies the cost as P1, 200 due at the end of 100 days but offers a 4% discount for cash in 30 days. What is the highest rate, simple interest at which the buyer can afford to borrow money in order to take advantage of the discount? Ans. r = 21.4%The monthly demand for ice cans being manufactured by Mr. Sison is 3,200 pieces with a manually operated guillotine, the cost cutting price is 25 pesos per piece. An electrically operated hydraulic guillotine is offered to Mr. Sison with the price of 275,000 pesos and which will cut by 30% less the unit cutting cost of money. How many months will Mr. Sison be able to recover the cost of the machine if he decides to buy now.Ans. 11.5 months

Hi student Since there are multiple questions, we will answer only first question. Interest is the…

Answered: Mr. Flores made a money market…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 10P: The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new...

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Mr. Flores made a money market placement of P1, 000.000 for 30 days at 7.5% per year. If the withholding tax is 20%, what is the net interest that Mr. Flores will receive at the end of the month? Ans. Net Interest = P5, 000
A bill for a motorboat specifies the cost as P1, 200 due at the end of 100 days but offers a 4% discount for cash in 30 days. What is the highest rate, simple interest at which the buyer can afford to borrow money in order to take advantage of the discount? Ans. r = 21.4%
The monthly demand for ice cans being manufactured by Mr. Sison is 3,200 pieces with a manually operated guillotine, the cost cutting price is 25 pesos per piece. An electrically operated hydraulic guillotine is offered to Mr. Sison with the price of 275,000 pesos and which will cut by 30% less the unit cutting cost of money. How many months will Mr. Sison be able to recover the cost of the machine if he decides to buy now.

Ans. 11.5 months

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

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