annual simple interest for the first 90 days‚ plus 3% simple interest per month (or any part of a month) on the unpaid balance after 90 days. Together‚ the washer and dryer cost $699 plus the 8.25% sales tax. Sara knew that her tax refund from the IRS would be $1‚000 so she bought the washer and dryer confident that she could pay off the balance within the 90 days. 2. If Sara bought the washer and dryer on December 15‚ using the exact interest‚ what is her deadline for paying no interest in a non-leap
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you have to wait if your savings earn an interest of 12 percent p.a.? 3. Suppose a firm borrows Rs 10‚00‚000 at an interest rate of 15 percent and the loan is repayable in equal instalments at the end of each yr for next 5 yrs. Prepare the loan amortization schedule. 4. Find the present value of Rs 10000 to be received at the end of 4 yrs if discount rate is 12% p.a. and discounting is done quarterly. 5. If you invest Rs 5000 today at a compound interest of 9 % what will be its future value after
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Chapter 5 Risk Analysis Case 5.3: Fly-By-Night International Group: Can This Company Be Saved? I. Objectives A. Illustrate the impact on the financial statements of a continually changing corporate strategy. B. C. II. II. Assess the likelihood of survival of a firm experiencing severe profitability and cash flow problems. Address ethical questions about the dealings of a majority shareholder of a publicly held corporation who also is CEO (chief executive officer) and chair of the board of directors
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Refinancing is the process of getting a loan with a lower interest rate to clear an existing loan. Student refinance loans are usually preferred because they help reduce the monthly student loan repayments. There are various ways to achieve this through student loan consolidation programs through financial institution or programs through the federal government. If you are planning to refinance your student loan there are several things that you need to consider. If you have both private student loans
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Managing Interest Rate Risk Interest Rate Risk The potential loss from unexpected changes in interest rates which can significantly alter a bank’s profitability and market value of equity. When a bank’s assets and liabilities do not reprice at the same time‚ the result is a change in net interest income. The change in the value of assets and the change in the value of liabilities will also differ‚ causing a change in the value of stockholder’s equity Banks typically focus on either: Net
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uncertainty of financial loss” (Raghavan 2003). With increasing pressure on banks from shareholders in addition to globalisation and conglomeration this risk is on the rise. This essay will analyse three main types of risk (credit risk‚ liquidity risk‚ interest rate risk) and how the sound management of them is crucial to the banks’ performance. Risk: The first risk to be analysed is credit risk. According to the Basle committee on banking supervision‚ credit risk‚ is defined ‘the potential that a bank
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beginning of the prior year‚ and $10‚000 at the end of the prior year. The interest expense on the income statement for the year is $1‚560. Interest has to be paid on any loan. The gift shop could elect to use money in savings to pay the balance of the loan. This would eliminate the interest expense and contribute to the shop’s savings. Conversely‚ the shop could find another bank with a lower interest rate for this. Paying interest on a loan seems unlikely for a not-for-profit organization; however‚
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MOST IMPORTANT TERMS AND CONDITIONS 1. Purpose for which the loan can be availed: The loan will be sanctioned for extending financial assistance to deserving / meritorious students for pursuing higher education in India and abroad. 2. Courses Eligible: a. Studies in India: Graduation‚ Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc Regular Degree/ Diploma Courses conducted by
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collateral security or may grant such advance on the personal security of the borrower. The customer is permitted to withdraw the amount as and when he needs it and to repay it by means of deposit in his account as and when it is feasible for him. Interest is charged on the exact amount overdrawn by the customer and for the period of its actual utilization. Generally an overdraft facility is given by a bank on the basis of a written application and a promissory note signed by the customer. In such
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would have been the value of the fund in 1990? 2. Here is a series of cash flows with an interest rate of 8% per period: End of period 1-5 6-10 Project X $1000 2000 Project Y $2‚000 1‚000 a. Find the equivalent present values of the two projects. b. Find the equivalent values of the two projects at the end of 10 periods. c. Find the equivalent uniform series of the two projects. 3. Assuming an (effective) interest rate of 10% per annum: a. How much must be invested today in order to provide an annuity
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