You pay a visit to your local payday loan company and you need to borrow £1000 for 1 week. They inform you there will be a 10% finance charge on the amount you borrow. Calculate the APR you are being charged on the loan. Choose the closest value. 5% 521% 36 50%
Q: Consider a stock with current price S0 = 29 per share. A european call option on this stock that…
A: A call option gives the right but not the obligation to buy at the strike price. In this question,…
Q: On Lorenzo first birthday his parents deposited 7000 into a savings account that earns a fixed rate…
A: Data given: Amount deposited on 1st birthday=$7000 (Assumed currency=$) Rate=4% (compounded…
Q: Suppose you have mean-variance utility function with a coefficient of risk Aversion-0, which stocks…
A: The risk aversion measures the risk preference. In this case, the investor is risk neutral as his…
Q: Olsen Outfitters Inc. believes that its optimal capital structure consists of 65% common equity and…
A: A company's capital structure indicates the mix of all the funding sources available that the firm…
Q: The financial staff of Cairn Communications has identified the following information for the first…
A: It is the problem that requires the calculation of cash flows for year 1. Here, the cash flow…
Q: An investment of x dollar is made at the end of each year for three years, at an interest rate of 9%…
A: Future value of an annuity is the value of a series of equal payments made at regular intervals,…
Q: Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commercial purposes…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: Which of the following would you NOT consider when making a capital budgeting decision? A. the…
A: While making decisions on the capital budget, the cost of marketing research conducted in the…
Q: Sarah bought stock on margin 8 months ago borrowing $10,000 at 7% EAR. She has just received a…
A: An investor has used leverage to buy stocks. There is a margin call now. The value of the assets…
Q: Find the interest on a loan of $3300 at 7% if I borrow on April 7 and repay on June 2 using the…
A: Exact Time measures 365 days in a yearOrdinary Time measures 360 days in a yearBanker's rule…
Q: Do dividends matter? Provide theoratical literature, empirical evidence, examples and relevant…
A: Dividends are a critical component of the financial markets and have been studied extensively in…
Q: 1) Determine the portfolio initial and final value and the percentage change in portfolio value…
A: Calculation of the initial and final values of a portfolio consisting of two stocks, ABC and XYZ,…
Q: Grupo Bimbo, although Mexican by incorporation, evaluates all business results, including financing…
A: We will fist have to convert the amount to be borrowed at the current spot rates in the foreign…
Q: (Common stock valuation) Dubai Metro's stock price was at $90 per share when it announced that it…
A: Given, Current stock price = $90 Dividend (D1) = $8 Growth rate = 0.09
Q: An interest rate swap with a notional of $100mln involves payment of 5% per annum fixed (paid…
A: Interest rate swap: It represents a contractual agreement between two parties wherein it involves…
Q: Consider a world with only two risky assets, A and B, and a risk-free asset. Stock A is held at 1/3…
A: To find the expected return of the market portfolio, we need to take a weighted average of the…
Q: Ransford and Alda Mariano own a home recently appraised for $422,500. The balance on their existing…
A: Firstly we will calculate loan for which bank is willing to give on appraised value : Loan…
Q: An investor holds 700,000 shares in Didi & Co. and is considering buying some put options to hedge…
A: a) To calculate the value of the put options, we can use the Black-Scholes formula: Put option value…
Q: 49. Dyl Inc.'s bonds currently sell for $1,040 and have a par value of $1,000. They pay a $65 annual…
A: Since you have asked multiple question , we will solve the first question for you. If you want any…
Q: Extra #4. A $10,000 loan will be repaid by 30 level annual payments at the end of each year. The…
A: We can prepare an amortization chart for a period of 30 years and identify when the interest payment…
Q: You own a portfolio consisting of the following stocks. Calculate the expected return of the…
A: The expected return on a portfolio calculates the expected value of a portfolio. The probability…
Q: A company has $20 million portfolio with market beta 1.2. Current index futures price is F0 = 1080…
A: We will use following formula to calculate number of contracts to be hedged : Amount to be Hedged…
Q: TSLAZ had returns of 0.03, 0.06, 0.12 and -0.1 during the last four "periods". Can you calculate the…
A: Using excel function we can calculate the standard deviation of the returns as follows: Function…
Q: As companies evolve, certain factors can drive sudden growth. This may lead to a period of…
A: Dividend yield It is referred to as the ratio which shows how much a company pays out in dividends…
Q: You and your spouse are in good health and have reasonably secure jobs. Each of you makes about…
A: DINK refers to double income, no kids category of insured. In this time of insurance category, both…
Q: Calculate the APR of the following investment, entered as a percentage (Example: if your answer is…
A: APR: It represents the rate of return earned by a lender. It takes into consideration the borrowing…
Q: LOLI Inc. specializes in the sale of women's sportswear and wants to embark on a new project:…
A: A company's average after-tax cost of capital from all sources, including common stock, preferred…
Q: u bought a house for $400000 and made a downpayment of $100000. You make payments at the end of each…
A: we Need to calculate the payment at the end of year than the down payment is considered and…
Q: A company is deciding whether to lease or buy a new truck. The truck can b for a 5-year period for…
A: Present value of annuity Annuity is a series of equal payments at equal interval. With cost of…
Q: Sarah the Company Secretary of Beta Plc, The company is a non-listed public company. She seeks your…
A: Companies issue shares to the general public to raise funds to support business expansionary…
Q: Which of the following statements best describes how a change in a firm's stock price would affect a…
A: Constant growth stocks are those stocks that exhibit a steady growth in its prices. The value of…
Q: The real risk-free rate of interest is 4 percent. Inflation is expected to be 3 percent this coming…
A: Expectation theory is an economic theory that explains the relationship between the yield curve and…
Q: José borrowed 8100 at 5 1/2% for  three years compounded, semi am annually. What is the future…
A: Future value is the value of an investment or cash flow at a future point in time, based on the…
Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…
A: APR stands for Annual Percentage Rate. It is a measure of the cost of credit, expressed as a yearly…
Q: A perceptive engineer started saving for her retirement 15 years ago by deligently saving Php 18 000…
A: Using the concepts of time value of money, we can solve for this question. Time value of money…
Q: Spencer has $80,000 in a savings account that earns 1.3% annually. How much interest will he earn in…
A: Interest will be calculated using formula : Interest = Principal × [1 + r]n - Principalwhere,…
Q: An automobile DVD system sells to stores at a wholesale price of $497. A popular national chain…
A: Markup is a concept used in the final pricing of the product when it is sold to the consumers. It…
Q: According to our readings about the Silicon Valley Bank (SVB), the FDIC stepped in and took over…
A: Silicon Valley Bank's fall was due to the bank run wherein a large number of customers/depositors…
Q: Daily Enterprises is purchasing a $9.5 million machine. It will cost $50,000 to transport and…
A: Incremental earnings are the additional profit or gain that are occurred due to a positive change in…
Q: The margin on an adjustable-rate mortgage is 2.5% and the rate cap is 5% over the life of the loan.…
A: An adjustable-rate mortgage is a loan in which the interest rate on the loan keeps on fluctuating.…
Q: Percentage of
A: the potential credit in $s can be found out. AppraisedValue Lender'sPercentage Percentage…
Q: The return on the Tarheel Corporation stock is expected to be 14 percent with a standard deviation…
A: The projected rate of return for the firm in the present situation is 14%, with an 9% standard…
Q: Suppose XYZ were to do a share split of two to one and the share price falls to K50. (1) Calculate…
A: A share split is restructuring where company increases the number of outstanding shares by issuing…
Q: Typing answer A couple purchased a bond for $950.00 three years ago. The bond pays 7.75% APR with…
A: Price of bond will be calculated using formula : Price of bond = Interest × [(1 + r)n - 1(1 + r)n…
Q: AireAsia, headquartered in Kunming, China, needs US$5,000,000 for one year to finance working…
A: The problem requires an exchange rate concept. Here, two working capital loan alternatives are given…
Q: Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the…
A: WACC refers to the return that a company provides to its stakeholders in general. It can also be…
Q: A company had total revenues of $64 million, operating margin of 20.0%, and depreciation and…
A: The EV/EBITDA ratio is a well-liked indicator that is used as a valuation tool to evaluate the worth…
Q: Q.4:- Following are the direct exchange rates of Euro (EUR) and Canadian Dollar (CAD) at the…
A: VaR is a statistical measure used to estimate the maximum amount of potential loss that an…
Q: Mercer Corp. has 10million shares outstanding and $69 million worth of debt outstanding. Its current…
A: The Modigliani-Miller theorem (MM) states that the market value of a company is calculated by its…
Q: You will receive $100 from a savings bond in 3 years. The nominal interest rate is 8%. a. What is…
A: Future cash flow from a bond is known. The nominal rate of interest and inflation are known. Several…
You pay a visit to your local payday loan company and you need to borrow £1000 for 1 week. They inform you there will be a 10% finance charge on the amount you borrow. Calculate the APR you are being charged on the loan. Choose the closest value. 5% 521% 36 50%
Step by step
Solved in 2 steps
- If you lend $3000 to a friend for 15 months at 8% annual simple interest, find the future value of the loan. $ Need Help? Read It Master It 4A lending company advertises that for a fee of P10, you can immediately borrow up to P200 for one month.If a person accepts the offer, what is the nominal interest rate per year? O a. 60% O b. 6% O c. 50% O d. 5%Suppose you decide to take the tour now and use a 15% credit card for the purchase. A. How many months will it take to pay off the 6,000 for the tour if you make a fixed payment of 4% of the original balance? B. How much will you pay in interest if you make the fixed payment described in A. C. How many months will take to pay off the 6,000 tour if you make the minimum payment, assuming the minimum is 4% of the outstanding balance? D. How much will you pay in interest if you make only the minimum payment?
- You have just purchased a car and taken out a $50,000 loan. The loan has a five-year term with monthly payment and an APR of 5.5%. 1. What is the monthly interest rate? А. 2.75% В. 0.46% О С. 0.015% O D. 1.38%Your local loan shark offers weekly payday loans: You can borrow $1,000 and pay back $1,050 one week later (or lose a finger or two). a. What is the effective annual rate on the loan? b.Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments are $989 per month, and the total finance charge is $9,504. After 25 months, you decide to pay off the loan. After calculating the finance charge rebate, find your loan payoff (in $). (Round your answer to the nearest cent.) Need Help? Read It Watch It Master It
- Suppose that you decide to borrow $13,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 6.3% Installment Loan B: five-year loan at 4.8% P. Use PMT = to complete parts (a) through (c) below. - nt 1- a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan A is $. (Round to the nearest cent as needed.) b. Find the monthly payments and the total interest for Loan B. The monthly payment for Loan B is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan B is $. (Round to the nearest cent as needed.) MacBook AirSuppose you lend $11,500 to a friend at an APR of 10.00%. Your friend will pay you back beginning next month with 60 monthly installments. You can reinvest the payments you receive in your money market account at an APR of 1.10%, calculated monthly. a. How much will your friend pay you each month? ______________ b. How much will you have in your account at the end of 60 months? (to nearest $___________________ c. What is your effective annual return (EAR), _._ _%?______________You lend a friend $10,000, for which your friend will repay you $27,027 at the end of 5 years. What interest rate are you charging your "friend"? Question content area bottom Part 1 The interest rate you are charging your friend on the loan is enter your response here%.
- A customer of your bank comes for a car loan 10000 OMR. He is charged with an interest rate of 5% per year. The customer expects a monthly repayment schedule from you, to plan his repayment. Provide a loan amortization schedule for monthly repayment of I year.k-You borrow $5,000 fixed payment loan. What will be the fixed payment if you want to payoff the loan in 4 quarterly payments? The quarterly rate is linked with Loan Prime Rate (LPR). The annual LPR is 12%. How much will be the total interest payment made by you?Suppose that you decide to borrow $15,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 5.9% Installment Loan B: five-year loan at 4.8% P Use PMT = to complete parts (a) through (c) below. - nt 1- 1+ a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.)