Answered: What principal will make a profit of…

Business

Accounting

What principal will make a profit of $71.99 at 8 ½% in 200 days?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

See similar textbooks

Related questions

Q: Suppose a person invests a toal of $10,000 in two accounts. One account earns 8% annually and the…

A: Simple Interest is method of computing interest where compounding is not done. Compounding refers to…

Q: If P100,000 is invested for 6 months at 1.5% per annum, how much interest is earned? P750 P100,750…

A: Interest Earned = Principal Amount * Rate of Interest * Number of months/12

Q: 8. Computing APY. What would be the annual percentage yield for a savings account that earned $56 in…

A: APR is the Annual Percentage Rate and APY is the Annual Percentage yield. Both the terms used to…

Q: An investor receives $1,050 in 6 months in return for an investment of $1,000 now. What is the…

A: Compound = ContinuousFuture Value = fv = $1050Time = t = 6 / 12 = 0.5 YearsPresent Value = pv =…

Q: The past five monthly returns for PG&E are -3.25 percent, 4.08 percent, 3.85 percent, 6.59 percent,…

A: The rate of return that an investor is expected to earn from the investment is term as the expected…

Q: Question 2: A debt of $24,000 is repaid by quarterly payments of $1,100. If interest is 6.0%…

A: Approach to solving the question: Detailed explanation: Examples: Key references:

Q: If the arithmetic gradient is 1000$ and interest rate is 10% what the present sum of company after 5…

A: The arithmetic gradient is a special case of cash flow series, in the series cash will either…

Q: If $1 million face amount of commercial paper(270 day paper) is sold for $982,500, what is the…

A: Calculating the value of simple rate of interest paid on commercial paper. We have,Face value of…

Q: How long would it take for an investment of $3,500 to become $4,200 if it is invested in an account…

A: The provided information are: Principal amount (P) = $3500 Future value (A) = $4200 Compounding is…

Q: If a company sells on terms of 3/12, net 30, a customer who consistently pays in 30 days incurs an…

A: The terms "3/12, net 30" are commonly used in the business world to describe the credit terms…

Q: You invest $8,500 in a savings account that pays interest of 4.8% compounded monthly. To the nearest…

A: The future value function is applied when the investor wants to know how much he/she will get after…

Q: uppose you deposit $1,681.00 into an account today that earns 11.00% p.a. It will take years for the…

A: Future value of the money is the amount deposited and the amount of compounding interest accumulated…

Q: 1. If $100 is deposited today in an account paying 9 percent compound annual interest, how much will…

A: The first question is asking for the future value of a single sum. The formula for future value is…

Q: Calculate the simple interest earned. Round to the nearest cent. P = $9080, r = 5.25%, t = 4 months

A: Simple interest means that the borrower only needs to calculate interest each year on the principal…

Q: what is the annual percentage yield for an account that earns 6.1 % intreast compounded continously

A: annual percentage yield (APY) is the return earned on a deposit taking into consideration the…

Q: How much will $7500 in savings today be worth 5 years from now if it earns 6%, compounded monthly?…

A: Compound = Monthly = 12Present Value = pv = $7500Time = t = 5 * 12 = 60Interest Rate = r = 6 / 12 =…

Q: What amount of money will accumulate to $8365.5 in 337 days at an interest rate of 8.6% p.a.?

A: Accumulate amount is equal to interest plus principal amount. Here aked to. Calculate principal…

Q: What was a $4400 investment worth after 6 and 3/4 years if it earned 5.4% compound monthly?

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Solve for the missing item in the following. Principal is $530 interest rate is 6% simple interest…

A: Simple interest = Principal x rate of interest x month/12

Q: Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12%…

A: Solution:- When an amount is borrowed, it can either be repaid as lump sum payment or in…

Q: You invested 7,667.40 into an account that pays 9.15% interest. How much money will you have in 40…

A: The future value of money refers to the estimated value of a certain amount of money on a specific…

Q: What is the effective annual rate of 6%, compounded monthly? O 6.12% O 6.06% O 6.14% O 6.17% O 6.24%

A: Effective Annual rate The effective annual interest rate is that real return that is paid on the…

Question

What principal will make a profit of $71.99 at 8 ½% in 200 days?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1Basic Information

VIEW

Step 2 Solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is the FV at the end of year 5 of $2212 put in an account today if the return is 8.6% per year?
28. If $1000 is invested in an account earning 3% compounded monthly, how long will it takethe account to grow in value to $1500?
1.If your sales is 250,000, How much will be your total earnings if you received a fixed salary of 40,000 and a commision rate of 6% on all your sales?
Assume the average management cost per account per year is $200 and the average fees earned per account per year is $170. The average annual size of account is $1800. What is the average implicit interest rate (round to two decimals)? Select one: a. 4.86% b. 1.67% c. 15% d. -1.67%
If $476 invested today yields $500 in one year's time, what is the discount rate?
Calculate the nominal cost of credit if the credit terms are 2/10 net 30. Assume that there are 360 days in a year. 33.83% 35.73% 36.73% 35.92%
Find the present value of $1270 due in 60 days if money is worth 6.2%.
Suppose that P dollars in principal is invested in an account earning 2.1% interest compounded continuously. At the end of 2 yr, the amount in the account has earmed $193.03 in interest. a. Find the original principal. Round to the nearest dollar. (Hint: Use the model A = Pe" and substitute P + 193.03 for A.) b. Using the original principal from part (a) and the model A = Pe", determine the time required for the investment to reach $6000. Round to the nearest tenth of a year.
Suppose that P dollars in principal is invested in an account earning 3.2% interest compounded continuously. At the end of 5 yr, the amount in the account has earned $1388.09 in interest. Part: 0 / 2 Part 1 of 2 (a) Find the original principal. Round to the nearest dollar. (Hint: Use the model A = Pe' and substitute P+1388.09 for A.) The original principal was approximately S
You expect to receive $5,000 in 25 years. How much is it worth today if the discount rate is 5.5%? a. $1,245.61 Ob. $1,067.95 Oc$1,311.17 d. $1,124.16 Oe. $1,183.33
What is the effective annual cost of credit terms of 3/15 net 30, if the firm stretches. the accounts payable to 60 days? A) 28.03% B) 1.7% OC) 12.65% OD) 3.35%
How much is the principal to earn 2, 310 pesos for 4 years at 2.5% simple interest? Show your solution.