Your company has been offered credit terms on its purchases of 4/30, net 90 days. What will be the nominal annual cost of trade credit if your company pays on the 35th day after receiving the invoice? (Assume a 365-day year.) a. 30% b. 304% c. 3% d. 87% e. 156%

Q: Find the equated date at which the original payments are equivalent to the single payment State your…

A: Duration of payments:The duration of payments refers to the length of time over which payments are…

Q: A $31,000 new car loan is taken out with the terms 3​% APR for 48 months. How much are monthly…

A: Loan amount (PV)=$31,000 Rate per period (i)=0.0312=0.0025 Duration (n)=48 periods Monthly amount…

Q: Question 2. A company makes payments continuously at a rate of $200 per year. The payments are made…

A: Annual payment = $200Annual interest rate = 6.5%Future value period = 10 Years

Q: An automobile loan of $15,000 at 12% APR compounded monthly for 36 months requires equal monthly…

A: Repayment of loan is made in installments of fixed amount which include interest as well as portion…

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day,…

A: Interest charged by the bank -Interest is still calculated as Principal x Interest x Frequency of…

Q: Your company was charged $44.19 interest on an overdue amount of $6,275 that was 20 days overdue.…

A: The interest is the fixed financial charge which is required to be paid by the borrower to the…

Q: A $10,000 credit supply has the following terms: trade terms are 5/5 net 50, interest rate 8%. What…

A: If the amount is paid within 5 days of invoice then the 5% discount will be allowed on net amount…

Q: A company has a collection period of 37 days and factors all receivables immediately at a discount…

A: The company sells credit to their customer. The average number of days it takes a company to get…

Q: What is the interest earned in a savings account after 12 months on a balance of $4000 if the…

A: Since compounding is annually and we have to find the interest earned for 12 months, formula would…

Q: What is the nominal annual percentate cost of the non-free trade credit if it pays within 120 days…

A: Nominal annual % cost of non-free trade credit = [ { Discount / ( 1 - Discount ) } x { 365 / ( Days…

Q: An account pays interest at 1.5% per month. If you deposit $5000 at the beginning of this year, how…

A: Future Value = Present Value * (1+rate)^n Where, Present value =$5000 rate = 1.5% or 0.015 n = no of…

Q: A deposit $400 today in an account paying 7% per year. What would be the balance in your account…

A: We need to use compound interest formula to calculate account balance after 6 years A=P(1+i)n where…

Q: 5. Hansel Co is to make a payment of $8494. to a supplier. A 004% discount is available for paying…

A: Discount is given by the supplier to pay early. This discount is given because suppliers need money…

Q: You have taken a loan of $95,000.00 for 27 years at 5.5% compounded quarterly. Fill in the table…

A: Given Loan amount is $95000 Term is 27 years Rate is 5.5%

Q: If a $27,000 loan is repaid by end of month payments of $640 and interest is at 9% compounded…

A: Loan amount = $ 27000 Monthly payment = $ 640 Interest rate = 9% Monthly interest rate = 9%/12 =…

Q: A student has a total of $3,000.00 in student loans that will be paid with a 48-month installment…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: You have taken a loan of $64,000.00 for 26 years at 4.7% compounded quarterly. Fill in the table…

A: Here, Particulars Values Loan Amount  $ 64,000.00 No. of years  26.00 Interest rate 4.700%…

Q: Complete the following table: (Use Table 15.1.) Note: Round your intermediate calculations and final…

A: The process of amortization is used to account for the progressive reduction of a liability or to…

Q: A supplier grants credit terms of 1/5, net 30. What is the effective annual rate of the discount on…

A: Given;Discount = 1%Allowed payment days = 30Discount days = 5Effective rate of discount = ?…

Q: Directions: 1. At the beginning of the month, you have a balance due of $3,000 and plan to pay off…

A: Debt:  It is an amount borrowed by an entity from other parties. It is an obligation under which the…

Q: Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 11.0% but…

A: First we need to use loan amortization formula below to calculate monthly payment.  where P=Loann…

Q: What is the amount of interest expense in the current year and the following year from this note?…

A: Interest expense is the cost incurred for borrowing the fund. Interest is calculated on the…

Q: On January 1, a company agrees to pay $26,000 in seven years. If the annual interest rate is 6%,…

A: Present value means the present value of the money which is to be payable or receivable in the…

Q: What is the correct debit/credit entry for... Company borrows $3 million from a bank with interest…

A: There are 3 golden rules for recording journal entry : 1. Debit what comes in , Credit what goes out…

Q: If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5% per…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…