What is the actual rate is charging on his loans

Assignment Help Financial Management
Reference no: EM131867742

1. Mr. Miser loans money at an annual rate of 18 percent. Interest is compounded daily. What is the actual rate Mr. Miser is charging on his loans?

2. Your parents are giving you $300 a month for 6 years while you are in college. At a 7 percent discount rate, what are these payments worth to you when you first start college?

3. Today, you deposit $2,500 in a bank account that pays 3.6% interest per year. Of the interest that you earned during those 7 years, how much of it was from compounding? (We know that the total interest for this account is $702.27) Please show work.

Reference no: EM131867742

Questions Cloud

Relationship between data mining-information technologies : What is data mining? How might it be used in logistics? What is the relationship between data mining and information technologies (IT)?
About replacing an old equipment with new one : Alpha ltd. Is planning about replacing an old equipment with new one.
Assume the company has other profitable projects : You have been hired as a consultant for Pristine Urban-Tech Zither plc. (PUTZ), manufacturers of fine zithers. Assume the company has other profitable projects.
Common stock value-variable growth : Common Stock Value - Variable Growth. Find the market value of? Lawrence's shares when dividends are expected to grow at 25?% annually for 3? years,
What is the actual rate is charging on his loans : Mr. Miser loans money at an annual rate of 18 percent. Interest is compounded daily. What is the actual rate Mr. Miser is charging on his loans?
Effective annual interest rate earned for this investment : What is the effective annual interest rate earned for this investment, assuming annual compounding?
Unequal cash flows that go on for finite period of time : Annuities are unequal cash flows that go on for a finite period of time.
High net worth clients has just received inheritance : One of your high net worth clients (Jessica William-Matthew) has just received an inheritance of $50,000,000.
Investors expect computech to begin paying dividends : However, investors expect Computech to begin paying dividends, beginning with a dividend of $0.50 coming 3 years from today.

Reviews

Write a Review

Financial Management Questions & Answers

  What is yield to maturity for these bonds

Each bond has a face value of $1,000 payable at maturity in 20 years. What is the yield to maturity for these bonds?

  Stock redemptions

Adams, Inc. is a family-owned business that has one class of stock. There are 600 shares allocated equally to Al Adams, Bev Adams, Curt Adams, Derek Adams, Elroy Adams and Fred Murray. Would this transaction meet the three IRS change in stock ownersh..

  What strategy would you recommend to jenkins

What strategy would you recommend to Jenkins if it wants to protect itself against increases in the value of the yen over the next 90 days?

  What is the current value of this bond

Assume annual coupon payments. what is the current value of this bond?

  What is the overhead efficiency ratio

What is the overhead efficiency ratio? What is the spread?

  What are the effects on cash flow

A project currently generates sales of $7 million, variable costs equal 60% of sales, and fixed costs are $1.4 million. The firm’s tax rate is 40%. Assume all sales and expenses are cash items. What are the effects on cash flow, if sales increase fro..

  Contrast how the weighted average cost of capital

Compare and contrast how the weighted average cost of capital (WACC) can be viewed from both an average cost and a marginal cost perspective

  Result in increasing operating efficiency

Which of the following will result in increasing operating efficiency?

  What is the total cost at time zero of accepting

Your firm is considering a new product development. an outlay of $90,000 is required for equipment, and an additional net working capital of $5000 is required. the project is expected to have a 4 year life, and the equipment will be depreciated on a ..

  Another unit of measure for evaluating risk

Another unit of measure for evaluating risk and is used to provide a more meaningful basis for comparing expected returns when the two investments differ is the

  Current ratio times what is the quick ratio

SDJ, Inc., has net working capital of $3,710, current liabilities of $5,500, and inventory of $4,440. What is the current ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Current ratio times What is..

  What would be the depreciation per mile

If a dump truck for hauling coal has an estimated net cost of $ 87,000 and is expected to give service for 200,000 miles, resulting in a salvage value of $9,000, what would be the depreciation per mile. Compute the allowed depreciation amount for the..

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