The buyer of a car pays PhP169,000 cash and PhP12,000 every month for 5 years. If money is 10% compounded monthly, how much is the cash price of the car?

Q: At what nominal rate compounded semi-annually will PhP5,000 amount to PhP6,000 in 2 years? A) 9.54%…

A: Nominal Rate of Interest: The nominal rate of interest represents the rate of interest that does…

Q: f. To help you reach your $1,000 goal, your father offers to give you $400 in one year. You will get…

A: The future value of an amount is the value of the investment after certain time period when invested…

Q: Question 6 Peter started to deposit PhP5,000 quarterly in a fund that pays 1% compounded quarterly.…

A: formula. Future value of annuity = PMT * [(1+r)n - 1]r where , PMT = periodic deposit r= interest…

Q: You own a small networking startup. You have just received an offer to buy your firm from a large,…

A: Here, Stock Price is $25.01 per Share Strike Price is $25.01 per share Risk Free Interest Rate is…

Q: Moskowitz Corporation has provided the following data for its two most recent years of operation:…

A: The absorption costing system is the method adopted by the business entity that attributes the total…

Q: (Cost of commercial paper) Tri-State Enterprises plans to issue commercial paper for the first time…

A: Commercial notes, also known as commercial paper, are short-term unsecured promissory notes issued…

Q: FO

A: The lease represents the transfer of an asset for a particular period to use the asset but it…

Q: Question 2 What amount must be deposited by a 15-year old student in a bank that pays 1% compounded…

A: Interest is defined as any compensation made by the borrowing party to the person from whom money…

Q: A bank vice president is attempting to rank, in terms of the risk-reward trade-off, the loan…

A: There should be an optimal combination of risk and return and both should be moderate and optimal.

Q: What amount must be deposited by a 15-year old student in a bank that pays 1% compounded annually so…

A: Discounting is a technique to arrive at the present equivalent amount of future cash flow. With the…

Q: You have a 25-year maturity, par bond with 9.4% coupon rate and a duration of 10 years and a…

A: Bond with a higher convexity will experience a greater price change for a given change in interest…

Q: Find the amount necessary to fund the given withdrawals. Semiannual withdrawals of $700 for 9 years;…

A: An annuity is a financial product or investment that provides a regular income stream for a fixed…

Q: QS 14-10 (Algo) Recording bond issuance and discount amortization LO P2 Snap Company issues 9%,…

A: Answer:-  Journal entry meaning:- The process of recording the transactions in an accounting journal…

Q: Michael's Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking…

A: Since there are multi sub-parts, we will solve first three for you. To get the remaining sub-parts…

Q: . What are her expected returns and the risk from her investment in the three assets? How do they…

A: Expected return refers probability adjusted weighted average return under all scenarios.Standard…

Q: Question 17 Mr. Yuson obtained a 20-year mortgage for PhP 2,200,000. If his monthly payment is PhP…

A: concept. Total interest paid = Total amount paid - amount of loan.

Q: The capital structure for Cain Supplies is: Cain Supplies Debt 108 Common stock, $10 par Total…

A: The stock price refers to the current market value or trading price of a single share of a publicly…

Q: You have just received a windfall from an investment you made in a friend's business. He will be…

A: As per the concept of time value of money the worth of money changes with passage of time. This is…

Q: You are considering how to invest part of your retirement savings. You have decided to put $200,000…

A: Return on stocks refers to the minimum return to be earned over the investment made initially. It is…

Q: Problem 8-08 A company had $20 of sales per share for the year that just ended. You expect the…

A: As per the given information: Sales = $20Growth in sales= 6.5%Growth in perpetuity = 3.5%ROE =…

Q: Which of the following is NOT an advantage of starting a partnership rather than a sole…

A: Choosing the right business structure is an essential decision for any entrepreneur. A sole…

Q: 64. You purchased a 10-year 5.75% (annual payment) coupon bond at par yesterday. What will be your…

A: In a typical purchase and sale transaction of a bond, the realized annual compound return needs to…

Q: Operating cash flow (growing each year, MACRS). Mathews Mining Company is looking at a project that…

A: Operating cash flow is the net cash flow after deducting all costs and expenses from the revenue,…

Q: Assume the zero-coupon yields on default-free securities are as summarized in the following table:…

A: The coupon payment is a concept that is used to make annual or periodic payments to the buyers of…

Q: Jackson & Sons uses packing machines to prepare its products for shipping. They need to replace…

A: EAC is that amount which is also known as Equivalent Annual Cost. It is calculated when we have…

Q: Donna recently invested in real estate with the intention of selling the property one year from…

A: Expected return is the anticipated return on investment based on historical returns. expected return…

Q: Milano Pizza Club owns three identical restaurants popular for their specialty pizzas. Each…

A: Equity On a company's balance sheet, equity is the ownership interest of the shareholders. It is…

Q: Harry's Hairdresser is a barber shop owned by Harry who carries on his business as a sole…

A: As a sole proprietor, Harry's taxable income of $500,000 is subject to individual income tax rates.…

Q: How long will it take PhP15,000 to earn PhP5,000 if it is invested at 12% monthly?

A: The total number of compounding periods can be calculated using the NPER Function in excel. The…

Q: OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship operating the ship to be…

A: Open Seas Inc is evaluating the purchase of a new cruise ship. The ship will costs $500 million , 20…

Q: If you owe $1,000 on a credit card with 12% interest (monthly compounding) and make payments of…

A: To calculate the number of months it will take to pay off the credit card debt, we can use the…

Q: ustin's Manufacturing purchased a lot in Lake City ten years ago at a cost of $0.95 million. Toda…

A: Initial cash flow includes today's market value of all assets and investment required to start the…

Q: Determine the amount of a semi-annual coupon paid for a 3% bond with a face value of PhP80,000 which…

A: Interest on Bonds : Interest on Bonds is paid periodically as per the term of the bonds issue…

Q: Bond valuation-Semiannual interest Calculate the value of each of the bonds shown in the following…

A: The value of a bond can be calculated as the present value of the bonds coupon payments and its face…

Q: Question 8 How much should be invested in a fund each year paying 2% coumpounded annually to…

A: Present value The current value of the future investment is known as the present value of the…

Q: You want to create a portfolio equally as risky as the market, and you have $2,700,000 to invest.…

A: Beta of portfolio is computed as follows:-Bp =  ( Ba * Wa ) + (Bb * Wb) + (Bc * Wc) + (Br * Wr)where…

Q: Dana-Stallings, Inc., had the following financial statements for 20X1 and 20X2 ASSETS 20X1 Cash $…

A: Cash flows statement is one of the financial statement being prepared in business. It shows all cash…

Q: What is the shape of the yield curve given in the following term structure? What expectations are…

A: Yield curve-It is a line that plots yields of bonds having similar credit quality but having…

Q: Question 3 Rizza borrowed PhP20,000 payable with interest that is compounded quarterly at 9%. How…

A: WORKING-   CACULATION OF AMOUNT PAYABLE COMPUNDING QUARTERLY   Principal Amount(P)            20,000…

Q: In the context of marketing mix, which of the following aspects of customer value is closely…

A: The marketing mix is a set of tactics or variables that a business uses to promote…

Q: A town would like to build a new recreation center in 16 years. They predict they will need $18…

A: An annuity is a phenomenon of where a financial goal is reached by investing a small amount on a…

Q: Peter started to deposit PhP5,000 quarterly in a fund that pays 1% compounded quarterly. How much…

A: Introduction Quarterly compounding is the method for determining the income accrued on a deposit…

Q: An individual who wishes to invest more than $5,000 per year by participating in crowdfunding a…

A: Answer: Option (iii) having at least a $1 million net worth and $200,000 or more in net income over…

Q: AEG Corporation is considering adding leverage to its capital structure. AEG's managers believe they…

A: It is a case where the company is willing to establish a capital structure that is optimal. It means…

Q: Investment X offers to pay you $5,300 per year for eight years, whereas Investment Y offers to pay…

A: To determine the present value of a future recurring payment (PMT), Excel's PV function should be…

Q: at ient has as mance and

A: Introduction : Hours earned of a project will always be decided and calculated on the basis of the…

Q: For a DCF valuation, you find that the present value of FCFs is $100,000, and the present value of…

A: Intrinsic value is a measure of an asset's inherent worth, independent of its market value. It is…

Q: Requirement: Explain the GST consequences of this arrangement for both companies.

A: Goods and Service Tax (Australia) highlights:-  As per Australian Taxation Office, "Goods and…

Q: Question 18 A business loan of PhP 650,000 is to be settled by paying PhP 29,994.20 monthly in 2…

A: The balance of loan remaining after 6 payments can be simply calculated by using a single formula;-…