To calculate the maturity of this note,
we use a simple formula first to get the interest which is:
I = Principal (amount owed) X Interest Rate (%) X Time (length of loan)
The days is only divided by only 360 days instead of 365 days. This is because commercial loans often use 360-day calendar years instead of 365-day calendar years. But not all banks used this as their calendar year,
I = Prt
= ($80000) (0.05) (120/360)
= ($80000) (0.01666666666)
I = $ 1,333.33
To get the maturity value, the formula is: M = Interest + Principal
M = I + P
= $1,333.33 + $80,000
= $81,333.33 or $81,333, letter C
Answer:
58.81% annual
or 3.93% monthly
Explanation:
Using a financial calculator, we can determine the internal rate of return of this investment. The initial outlay is -$110,000, and the 60 $4,800 cash flows follow. The IRR is 3.93 per month. In order to determine the effective annual rate, we can use the following formula:
effective annual rate = (1 + 3.93%)¹² - 1 = 58.81%
<span>Who is better off: a person using credit cards or a person refraining from any loans? A person using credit cards is better off </span>from a person refraining from any loans. A person using credit can often purchase more and have more flexibility with their money over someone who only uses cash. There are items and services that do not take cash as a form of payment, so without a credit card the person can not make the purchase.
Answer:
$876,205.93
Explanation:
Calculation for the value of the Treasury note
FV= 1,000,000
N=3*2
N=6
PMT=3%*1,000,000/2
PMT=30,000/2
PMT= 15,000
I/Y=7.7/2
I/Y= 3.85
Using financial calculator to find the present value of the treasury note
Present Value = $876,205.93
Therefore the present value of the treasury note will be $876,205.93
