through a commercial loan and by issuing corporate bonds. Here is some of the information regarding the APRs offered by two well-known commercial banks. Bank APR Number of Times Compounded National First Prime Rate + 6.75% Semiannually Regions Best 13.17 Monthly Assuming that AirJet Parts‚ Inc. is considering loans from National First and Regions Best‚ what are the EARs for these two banks? Hint for National Bank: Go to the St. Louis Federal Reserve Board’s website (http://research
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NOT lending money to you. 5) Which of the following statements is FALSE? A) The APR can be referred to as a promised annual percentage rate. B) Although an APR is quoted on an annual basis‚ interest can be paid quarterly. C) The period in which interest is applied or the frequency of times interest is added to an account each year is called the compounding period or compounding periods per year. D) Although an APR is quoted on an annual basis‚ interest can be paid monthly but never daily. Answer:
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FIN 502 – Personal Financial Planning Chapter 1 – Module 2 Time value of money * How to compare monetary amounts you pay or receive at different times * The arithmetic with which we convert money between periods‚ or calculate what rate of return is implied by a given set of cash flows Single Period – Rate of Return * N = amount of years * I% = x (what we’re trying to find) * PV = How much it’s worth today * FV = How much it’s worth at maturity date
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Problem Set 1 Solutions 1. Calculating Taxes. The Herrera Co. had $246‚000 in taxable income. Using the rates from Table 2.3 in the chapter calculate the company’s income taxes. What is the average tax rate? What is the marginal tax rate? The total amount of income tax is 0.15($50‚000 = $7‚500 + 0.25(($75‚000 – 50‚000) = $6‚250 + 0.34(($100‚000 – 75‚000) = $8‚500 + 0.39(($246‚000 – 100‚000) = $56‚940 Total = $79‚190 The average tax rate is the total amount of tax
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Randazzo Mrs. Livingston English 11- G Period May 1‚ 2013 Hall‚ Mitchell K. "Napalm: Vietnam War." World at War: Understanding Conflict and Society. ABC-CLIO‚ 2013. Web. 29 Apr. 2013. . Root‚ John D. "Cambodian Invasion: Vietnam War." World at War: Understanding Conflict and Society. ABC-CLIO‚ 2013. Web. 29 Apr. 2013. . There were many brutal effects caused by the weapons used in the Vietnam War. One weapon that was used were napalm bombs. It was the U.S. military’s most primary weapon
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132-133) Answer: $70‚000 = C x (1-1/1.12^30)/.12 = C x (1-0.0334)/.12 = C x 8.0552 C = $70‚000 / 8.0552 = $8‚690 Points Received: 3 of 3 Comments: 2. Question : (TCO 3) First Choice Bank pays 9% APR compounded quarterly on its business loans. National Emerald Bank pays 19% APR
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PV(1+r/m)n*m To find interest rate: FV = PV (1+r(?))n (FV and PV are given) APR (Annual Present Rate) = r * Total days in a year/given days In Excel: =RATE(n‚pmt‚PV) EAR (Effective Annual Rate) OR EAY (Effective Annual Yield): EAR/EAY = [1+r/m]m – 1 (m = no. of periods) In Excel: =EFFECT(r‚n) Continuous Compounding (to find FV) = Co * er*t Co = initial investment e = 2.718 (constant) r = APR (rate of interest) t = No. of years (periods) Continuous Compounding (to find
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1．A firm has net working capital of $640. Long-term debt is $4‚180‚ total assets are e $6‚230‚ and fixed assets are $3‚910. What is the amount of the total liabilities? Current assets: 6230-3910=2320 Current liabilities: 6230-39102320-640=1680 Total liabilities: 1680+4180=5860 2. Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net new equity is $500. The tax rate is 35 percent. Sales are $15‚900 and depreciation is
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no more. Assumingmonthly compounding‚ what is the highest APR you can afford on a 60-month loan? (Ross‚ Stephen A.. Corporate Finance‚ 8th Edition. Irwin/McGraw-Hill‚ 112006. 4.8). 41. EAR versus APR You have just purchased a new warehouse. To finance the purchase‚ you’ve arranged for a 30-year mortgage for 80 percent of the $1‚600‚000 purchase price. The monthly payment on this loan will be $10‚000. What is the APR on this loan? The EAR? (Ross‚ Stephen A.. Corporate Finance‚ 8th Edition. Irwin/McGraw-Hill
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Financial Management Lecture 1- Introduction and Context 1Dr. Tarik Driouchi - tarik.driouchi@kcl.ac.uk Senior Lecturer- Financial & Mgt. studies Office Hours [WBW4.15]: Thursdays 4-6pm A few words on the AAFM MSc… Themes: Accounting Theory‚ Financial Accounting‚ Valuation‚ Corporate Governance‚ Financial Management & Markets‚ Behavioural Finance Structure: Taught modules (term 1 & 2) + Dissertation (term 3) KCL Keats‚ KCL e-resources and Q&As 2 Learning Objectives • Main objectives
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