Trisha is having difficulty in deciding as to which investment firm she will choose: Bugal Ventures, which offers 11.68% simple exact interest; or Vidad Financing offering 11.52% simple ordinary interest. Is she is to invest ₱1,000,000 for 120 days which investment firm will you recommend? Why?

Trisha is having difficulty in deciding as to which investment firm she will choose: Bugal Ventures, which offers 11.68% simple exact interest; or Vidad Financing offering 11.52% simple ordinary interest. Is she is to invest ₱1,000,000 for 120 days which investment firm will you recommend? Why?

Name: Trisha is having difficulty in deciding as to
Uploaded: 2022-11-23T16:32:22.000Z
Channel: Bartleby
Description: Trisha is having difficulty in deciding as to which investment firm she will choose: Bugal Ventures, which offers 11.68% simple exact interest; or Vidad Financing offering 11.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 4DQ

See similar textbooks

Related questions

Q: eather is willing to invest $30,000 for six years, and is an economically rational investor. She has…

A: Simple interest is simple that is there is no interest on interest and only there is interest on the…

Q: The buyer of a piece of real estate is often given the option of buying down the loan. This option…

Q: Sue plans to save $4765, $0, and $5419 at the end of Years 1 to 3, respectively. What will her…

A: Future Value refers to the compounded value of a single cash flow received today, or multiple cash…

Q: You have to decide whether to invest $100 in a friend's enterprise, where in a year's time the money…

A: To solve this problem, use the concept of present value and compare the outcomes of different…

Q: Your client is 26 years old. She wants to begin saving for retirement, with the first payment to…

Q: s and what rate is optimal is often a matter of how long the buyer intends to keep the property.…

A: a) Computation of amount being financed is shown as follows: B4 f x =B2-B3 (A) (B)…

Q: Your client is 32 years old. She wants to begin saving for retirement, with the first payment to…

Q: You are considering a safe investment opportunity that requires a $1,410 investment today, and will…

A: IRR also known as the Internal Rate of Return is the break even rate of return at which Net Present…

Q: Your client is 31 years old. She wants to begin saving for retirement, with the first payment to…

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your…

A: Present Value: The term present value is defined as the current or present day’s value of the amount…

Q: Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new…

A: Investments can be made by individuals for fulfilling their short-term or long-term financial goals.…

Q: u are trying to decide between two mobile phone carriers. Carrier A requires you to pay $180 for the…

A: In this question one way to analyse which option is better can be done by calculating present value…

Q: Sarah Wiggum would like to make a single investment and have $1.2 million at the time of her…

A: Future Value = $1.2 million Time Period = 30 years Rate of Return = 4%

Q: Frank Zanca is considering three different investments that his broker has offered to him. The…

A: Step 1: Calculate the Present Value (PV) of Investment A:Investment A has cash flows of $300 at the…

Question

Practice Pack

OFFON

Trisha is having difficulty in deciding as to which investment firm she will choose: Bugal
Ventures, which offers 11.68% simple exact interest; or Vidad Financing offering 11.52%
simple ordinary interest. Is she is to invest ₱1,000,000 for 120 days which investment
firm will you recommend? Why?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

Includes step-by-step video

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Learn your way

Includes step-by-step video

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,080 at the end of each of the next three years. The opportunity requires an initial investment of $1,020 plus an additional investment at the end of the second year of $5,100. What is the NPV of this opportunity if the cost of capital is 2.3% per year? Should Marian take it? What is the NPV of this opportunity if the cost of capital is 2.3% per year? The NPV of this opportunity is $. (Round to the nearest cent.)
Stan Marsh, an investor, is considering two financing plans for purchasing a parcel of real estate costing $152,264. Alternative 1 involves paying cash; alternative 2 involves obtaining 82% financing at 9.4% interest. If the parcel of real estate appreciates in value by $17,153 in 1 year, calculate (a) Stan's net return and (b) his return on equity for each alternative. If the value dropped by $17,153, what effect would this have on your answers to parts a and b?
A person has $30,000 to invest. As the person's financial consultant, you recommend that the money be invested in Treasury bills that yield 2%, Treasury bonds that yield 4%, and corporate bonds that yield 6%. The person wants to have an annual income of S1160, and the amount invested in corporate bonds must be half that invested in Treasury bills Find the amount in each investment What is the solution? Select the correct choice below and fil in any answer boxes within your choice and the amount in corporate bonds is S O A. There is one solution The amount in treasury bils is S (Type integers or decimals) the amount in treasury bonds is S O B. There are infinitely many solutions The amount in treasury bills is S where z is any real number (Simplify your answers) the amount in treasury bonds is S and the amount in corporate bonds is Sz. O C. There is no solution
The Browning family of Colorado wants to buy a $102,000 house. (a) If they can get a loan of 80% of the value of the house, what is the amount of the loan?$ (b) What will be the down payment on this loan?$ (c) If they decide to obtain an FHA loan, what will be the minimum cash investment? (Do not forget that the maximum FHA loan for this location has to be determined using the FHA Maximum Loan Values by State table.)$
What is the excel function and formula for this question? Off-The-Books Investment Firm, LLC, has offered you an investment it says will return to you $20,000 in 2 years. To get in, you'll need to make a $10,000 deposit to their receivables account and promise not to tell anyone about it. What is the annual return on this investment?
This is a Debt Coverage Ratio or DCR question for part a and a CAP rate question for part b]. Wendy is going to purchase a commercial building and is working with a commercial lender at her local bank. The bank has some loan parameters that Wendy must follow. Understanding the rules will allow her to calculate her cash, income, and payment projections. The bank requires a 1.4 debt coverage ratio for her project. Wendy needs to calculate her net operating income or NOI first. The debt coverage ratio is based on this number. Then she will apply for a 20 year loan at 5% with annual payments. Information on the property includes: Gross rents- $780,000 Vacancy 5% Salaries $85,000 Other Fixed Expenses $125,000 Variable Expenses 20% of gross rents. NOI=_________________ Use the NOI and Debt Coverage requirement to calculate the answer. What is the largest annual payment the bank will allow? If Wendy had to buy the property at a 6% CAP (capitalization) rate, what is the asking price?
The minimum down payment to obtain the best financing rate on a house is 20%. Assuming that John has set aside $27,000, and wants to take advantage of the best financing rate, what is the most expensive house he can purchase?
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $16,000 at the end of each of the next 3 years. The opportunity requires an initial investment of $4,000 plus an additional investment at the end of the second year of $20,000. What is the NPV of this opportunity if the interest rate is 3% per year? Should Marian take it? The NPV of this opportunity is $____ (Round to the nearest dollar.)
Suppose you are a cashed-up real estate investor considering purchasing an investment property in Brisbane to buy and then rent out. a) Find a two-bedroom apartment that is advertised for sale (provide a web link to the example). Given the listed (or estimated) sale price of this apartment (use apartment with price of $670,000), what would be the minimum rental income that would make it profitable to invest in this apartment? Make and state your assumptions (e.g., interest/discount rates, maintenance costs). b) Suppose interest rates went up. Would you now be willing to pay more or less for the same property?
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $40,000 per year forever. If the required return on this investment is 6.3 percent, how much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Bob Smith is saving for the down payment on a new car. If he is very careful with his money, he will have the full down payment in six months. Because his time frame is short, he is deciding between a low-risk saving option and a moderate-risk investment account. What would you recommend for Bob in these circumstances and why
Evee Cardenas is interested in investing in a women's specialty shop. The cost of the investment is $280,000. She estimates that the return from owning her own shop will be $35,000 per year. She estimates that the shop will have a useful life of 6 years. Assuming a required rate of return of 8%, calculate the NPV for Evee Cardenas' investment. What if the estimated return was $135,000 per year? Calculate the new NPV for Evee Cardenas' investment.