RomZar Sdn Bhd takes a simple interest, 180-day note from a SoonWay Supplier with a face value RM 17,500, at a rate 9.5%. Due to emergency, SoonWay Supplier need an urgent cash to settle their debt and sell the promissory notes 100 days late at the discount rate of 11%. Find the bank profit and proceeds. Rossa invested RM 3,600 in a mutual fund containing bonds. Find the interest rate if she earned RM 237.50 in interest in 250 days.

RomZar Sdn Bhd takes a simple interest, 180-day note from a SoonWay Supplier with a face value RM 17,500, at a rate 9.5%. Due to emergency, SoonWay Supplier need an urgent cash to settle their debt and sell the promissory notes 100 days late at the discount rate of 11%. Find the bank profit and proceeds. Rossa invested RM 3,600 in a mutual fund containing bonds. Find the interest rate if she earned RM 237.50 in interest in 250 days.

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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Yoo, Incorporated, has arranged a line of credit that allows it to borrow up to $51 million at any time. The interest rate is 627 percent per month. Additionally, the company must deposit 5 percent of the amount borrowed in a noninterest-bearing account. The bank uses compound interest on its line-of-credit loans. If the company needs $27 million for 8 months, how much will it pay in interest? Multiple Choice $1.307,50417 $1,457,29019 $1619,200.22 $1.230.592.16) $1,384,41618
4. Saltanat borrowed money at 18% discount, after 2 months she returned 20000 soms. Find effective interest rate, knowing that a bank charges 500 soms for loan processing. (%).
On March 24, 2014, Brendan and Madison borrow $18,000 each at a simple interest rate r = 12%. Brendan’s bank calculates interest using exact interest, while Madison's bank uses the Banker's Rule (ordinary interest). Let X = amount Brendan pays back on September 24, 2014, and Y = amount Madison pays back on September 24, 2014. What is the value of X - Y?
Max Wholesaler borrowed $7,500 on a 8%, 120-day note. After 45 days, Max paid $2,625 on the note. Thirty days later, Max paid an additional $2,250. Use ordinary interest. a. Determine the total interest using the U.S. Rule. (Round your intermediate balances and interest amounts to the nearest cent. Round your final answer to the nearest cent.) Total interest amount 24 b. Determine the ending balance due using the U.S. Rule. (Round your intermediate balances and interest amounts to the nearest cent. Round your final answer to the nearest cent.) Ending balance due 24
Simple Simon's Bakery purchases supplies on terms of 1.1/10, net 25. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A local bank has quoted Simple Simon's owner an interest rate of 10.6% on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Hint: Use 365 days for a year.) The cost of forgoing the discount is %. (Round to one decimal place.) Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Select the best choice below.) A. Simple Simon's should enter into the loan agreement but not begin taking the discount. B. Need more information to answer the question. OC. Simple Simon's should enter into the loan agreement with the bank and begin taking the discount. D. Simple Simon's should not enter into the loan agreement but should begin taking the discount.
Banca Monte dei Paschi di Siena has 300 depositors. Each depositor deposits $150 into the bank at time t=0. The bank promises each depositor 8% interest rate. Each depositor can either withdraw their money at t=1 or t=2. The bank uses the deposits to issue 2-year simple loans. If the bank faces a demand for withdrawal at t=1, it is able to sell its 2-year simple loans at the original loan value. If 200 depositors withdraw at t=1, what is the amount of payment (in $) each depositor who withdraws at t=2 receives? Round your answer to at least 2 decimal places.
A bank charges 10% bank discount on short-term loans. Find the maturity value of the non-interest bearing note given by the bank, if the borrower receives Php 3,000 from July 5 to September 19, 2012. Select the correct response: Php 3,305.32 Php 3,490.89 Php 1,616.28 Php 3,064.70
2. On 30 December 2020, Salina received a 90-day promissory note with a simple interest rate of 4.5%. She discounted the note after 32 days with a bank discount rate of 2.33%. The proceeds received was RM10,784.36. Using Banker's Rule. No use excel. Find: a) the maturity date of the note. b) the maturity value of the note.
Marlon borrowed 15,000 Php from a lending company that charges a simple interest rate of 11%. Identify the simple interest after 1 year and What is the total amount that must be paid after 1 year?
YY Corporation has daily collections of 130,000 from a selected foreign customer group. The bank offered to accelerate the clearing time of these collections from 8 days to 3 days for a quarterly fee of 1,000. YY can invested freed cash into a mutual fund to earns 5% annually. How much is the net benefit/(cost) of this bank service?
Johnny Rockefeller had a bad credit rating and went to a local cash center. He took out a $100.00 loan payable in two weeks for $105.50. What is the percent of interest paid on this loan? (Do not round intermediate calculations. Round your answer to the nearest whole percent.) Percentage of interest paid %
GH Traders wrote off R1 750 which represented 20% of the amount owed by a debtor. The debtor settled the balance on her account by means of an electronic funds transfer. These transactions have not yet been recorded. Which of the following statements is correct in respect of the above transactions? OA. The Debtors Control account will decrease by R7 000. OB. The debtor owed R8 750. OC. The Bank account will be credited with R7 000. OD. The amount received from the debtor was R1 400.

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