Which one of the following statements is correct concerning annual percentages rates (APRs)? Answer: The APR is equal to the monthly interest rate multiplied by 12

Give an interest rate of zero percent, the future value of a lump sum invested today will always: Answer: remain constant

Answer: II and IV

A firm created as a separate and distinct legal entity that may be owned by one or more individuals or entities is called a: corporation
The capital structure of a firm refers to the firm’s: Long-term debt and equity

The Anderson Co. wants to borrow 5000 at the beginning of each year for six years at 7 percentage interest. The firm will repay this money in one lump sum at the end of year 6. How much of the firm’s loan repayment id due to the 5000 it received in year 4? Answer: 6125.22

Tayor has just received an insurance settlement of 58400. She want to save this money until her oldest daughter goes to college. Tayor can earn of 8.5 percent, compound annually, on this monty. How much will she saved for her daugther’s college education if her enters college 14 years from now? 182990.77

Warren’s diner needed a new location. This establishment spent 65000 to refurbish an old shop and create the current facility. The firm borrowed 75 percent of the refurbishment cost at 8 percent interest for 11 years. What is the amount of each monthly payment? 556.5

How much money does Melinda need to deposit into her investment account today if she wishes to withdraw 8000 a year for twenty years? She expects to earn an average rate of return of 8.5 percent. Answer: 75706.69

You want to retire early so you know you must start saving money. Thus, you have decided to save 4500 a year, start at age 25. You plan to retire as soon as you can accumulate 500,000. If you can earn an average of 11 on how old will you be when you retire? Answer；49.74

The primary goal of financial management is to maximize the: the correct answer is market value of the existing...

...20% of the purchase price in each of the next 4 years. If you pay the entire bill immediately, you can take a 5% discount from the purchase price. |
a. | Calculate the present value of the payments, if you can borrow or lend funds at a 7% interest rate. Assume the product sells for $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Present value | $ |
b. | Calculate the payment net of discount. |
Payment net of discount | $ ...

...Solutions to Questions - Chapter 4
Fixed Rate Mortgage Loans
Question 4-1
What are the major differences between the CAM, and CPM loans? What are the advantages to borrowers and risks to lenders for each? What elements do each of the loans have in common?
CAM - Constant Amortization Mortgage - Payments on constant amortization mortgages are determined first by computing a constant amount of each monthly payment to be applied to principal. Interest is then...

...Chapter 5 : Interet rates
Page161
Interest rate quotes and adjustments
5-1. Your bank is offering you an account that will pay 20% interest in total for a two-year deposit. Determine the equivalent discount rate for a period length of
a. Six months.
b. One year.
c. One month.
a. Since 6 months is [pic] of 2 years, using our rule [pic]
So the equivalent 6 month rate is 4.66%.
b. Since one year is half of 2...

...INTEREST RATES
a 6. The interest rate expressed in terms of the interest payment made each period is called the _____ rate.
a. stated interest
b. compound interest
c. effective annual
d. periodic interest
e. daily interest
EFFECTIVE ANNUALRATE
c 7. The interest rate expressed as if it were compounded once per year is called the _____ rate.
a. stated interest
b....

...received any aid on this examination.________________
HELPFUL FORMULAS , , , , 1 , 1 , , 1 1 , , , , 1 1 , 1 1 1 1 1
1
1
2 ,
1. Given an interest rate of 7.3 percent per year, what is the value at date t = 7 of a perpetual stream of $2,100 annual payments that begins at date t = 15?
2100 0.073
1 1.073
17,567.03
2. You’ve just joined the investment banking firm of Dewey, Cheatum, Howe. They’ve...

...washer, dryer, etc.) in your apartment. You face the following choices: (i) Purchase all appliances at the store using a bank loan. There is no down payment as the bank can take your appliances if you default on the loan. The loan is at the annual market rate of 5%, and the loan amount is $6,000 to be repaid monthly over 4 years.(ii) Rent-to-buy from the same store. The monthly rental is $125 for 48 months and then you pay $1,000 to own all the appliances. What is...

...An Essay
on
Interest Rate Behavior and Lending in Microfinance
Abstract: This essay analyzes factors which affect interest rate behavior and its subsequent impact on lending in microfinance. Here we have used regression model for our analysis. Furthermore comparison has been drawn among the different sources of loans outside Bangladesh. Here the experience of microfinance outside Bangladesh like India, South and South-East Asia, Latin America has been fully...

...for obliging the ‘TERM PAPER’.
Sir,
With due respect, beg to focus your kind attention with the following fact that as requirement of the BBA Programme I had visited many clients of some MFIs to collect the information regarding their interest rates of microfinance activities. Also I have collected a huge amount of secondary data, including videos & documentaries to understand whether the effective interest of the MFIs in Bangladesh are rational enough to provide the...