A student bought a $75 used guitar and agreed to pa for it with a single $85
Question:
A student bought a $75 used guitar and agreed to pa for it with a single $85 payment at the end of 6 months Assuming semiannual (every 6 months) compounding, what is the nominal annual interest rate? What is the effective interest rate?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (16 reviews)
F P 1 i n 85 75 1 i 1 1 i 8575 1133 i ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
A student bought a $75 used guitar and agreed to pa: for it with a single $85 payment at the end of 6 months Assuming semiannual (every 6 months) compounding, what is the nominal annual interest...
-
What payment made at the end of every 6 months for 15 years will accumulate to $18000 if interest is 5% compounded semi-annually?
-
At the end of every three months, Sheila invested $375 into an account earning interest at 3% compounded monthly. What is the accumulated value in the account after eight years?
-
A stock is trading at $70. You believe there is a 70% chance the price of the stock will increase by 10% over the next 3 months. You believe there is a 10% chance the stock will drop by 10%, and you...
-
Let x represent the time (in seconds), and let y represent the distance (in feet) between you and a tree. Sketch a possible graph that shows how x and y are related when you are walking toward the...
-
Landry Radio Corporation is a subsidiary of Kandell Companies. Landry makes car radios that it sells to retail outlets. It purchases speakers for the radios from outside suppliers for $28 each....
-
What is the Euro Areas total for Groups A and B? Use the following balance of payments data for the Euro Area from the IMF to answer this problem. Assumptions (billion US$) 2000 2001 2002 2003 2004...
-
Which control procedure would be most effective in addressing the following problems? a. When entering a journal entry to record issuance of new debt, the treasurer inadvertently transposes two...
-
A retail company sells 100 units of Item A for $199.99 each; these items cost the company $69.95 per item to buy. The company also sells 1,000 units of Item B for $49.99 each; these items cost the...
-
Bonny Corp. has a defined benefit pension plan for its employees who have an average remaining service life of 10 years. The following information is available for 2013 and 2014 related to the...
-
To repay a $1000 loan, a man paid $91.70 at the end of each month for 12 months. Compute the nominal interest rate he paid.
-
A firm charges its credit customers 13/4%interest pe month. What is the effective interest rate?
-
A monopolist is operating at an output level where|| = 3. The government imposes a quantity tax of $6 per unit of output. If the demand curve facing the monopolist is linear, how much does the price...
-
Write the following functions in LISP: (sumpositive L) which only adds positive numbers in a given list: (1.5 pt) (sumpositive (1-2 3 4 -5)) 8 Answer: (multiplylists L1 L2) which takes elements from...
-
a) The following grammar is not suitable for a top-down predictive parser. Identify the problem and correct it by rewriting the grammar. Show that your new grammar satisfies the LL(1) condition. L Ra...
-
a) Top-down and bottom-up parsers build syntax trees in different orders. Write a pair of programs, TopDown and BottomUp, that take a syntax tree and print out the nodes in order of construction....
-
Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation: Events Affecting Year 1 1. Provided $26,920 of cleaning services on...
-
c) Rewrite program segment 1.3 using while statement. //Program segment 1.3 for (N=1; N
-
Describe the five Cs of credit and how they apply to a business loan.
-
An access route is being constructed across a field (Figure Q8). Apart from a relatively firm strip of ground alongside the field's longer side AB, the ground is generally marshy. The route can...
-
The following is an excerpt from the Federal Reserve web site, released September 21, 2016: ". . . the Committee decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent....
-
For Problem use a spreadsheet to (a) Determine the best D-E mix (b) Determine the best D-E mix if the cost of debt capital increases by 10% per year, for example, 13.0% increases to14.3%. Debt...
-
The cash flow plan associated with a debt financing transaction allowed a company to receive $2,800,000 now in lieu of future interest payments of $196,000 per year for 10 years plus a lump sum of...
-
A company that makes several different types of skateboards, Jennings Outdoors incurred interest expenses of $1,200,000 per year from various types of debt financing. The company borrowed $19,000,000...
-
Z Lo 11-4 11.59 Uncorrected Misstatements and Performance Materiality. During the conduct of an audit, auditors may identify misstatements as a result of the completion of their substantive...
-
Lionel is 52 years of age and is a single parent. He has two dependent children living with him, twin daughters, Clara and Joanne, aged 17 years. Clara has no income, but Joanne is in receipt of a...
-
Variety is often referred to as the: Question 16 options: 1) store's supply standard 2) complete retail offering 3) breadth of merchandise 4) retail mix 5) depth of merchandise
Study smarter with the SolutionInn App