How much will the second and third payments be

Assignment Help Accounting Basics
Reference no: EM133116046

Questions -

Q1. The K-Mart store has been charging 2.55% per month on its credit card. In response to lower prevailing interest rates, the board of directors has agreed to reduce the card's effective interest rate by 3%. To the nearest 0.01%, what will be the new periodic interest rate (per month)?

Q2. Justin borrowed $4000 from Dylan at an interest rate of 5% compounded semiannually. Justin agreed to pay his loan by three payments. The first payment, $1000, is due 2 years after the date of the loan. The second and third payments are due 3 and 5 years, respectively, after the initial loan. How much will the second and third payments be if the loan agreement requires that those two payments be equal in amount?

Reference no: EM133116046

Questions Cloud

Explain the conflict between shareholders and managers : 1. Discuss why the financial objective of a firm is to maximise shareholders wealth and not to maximise the profit.
Team roles : Reflect on a time when you were part of a team working to reach a common goal. This may be during your professional or educational career.
Discuss the meaning of the beta : Discuss the meaning of the beta and how it is measured, and explain why a stock's beta is more important than its standard deviation
Calculate the hpr and hpy on your investment : Question - Assume you have received a settlement in the amount of J$900,000.00. Calculate the HPR and HPY on your investment
How much will the second and third payments be : The second and third payments are due 3 and 5 years, respectively, after the initial loan. How much will the second and third payments be
Strong form of the efficient market hypothesis : (a) Distinguish between the weak form, the semi-strong form and the strong form of the efficient market hypothesis and explain the relationship between the thre
Generalizations about entrepreneurial traits or characterist : While one must be careful to avoid too many generalizations about entrepreneurial traits or characteristics
How many fish balls that he can sell to bep : At the end of the day, he will set aside P500 as his compensation. How many fish balls that he can sell to BEP, if the price of each fish ball is P1.25
How much is you quarterly payment : They charge 2% per quarter and the loan period is 3 years. How much is you quarterly payment?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd