Jeremy has been asked by his manager to begin drafting a report on last year’s sales figures. When he’s midway through the repor
1 answer:
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Answer:
7.68%
Explanation:
Data provided in the question
Present value = $1,891
Future value or Face value = $2,000
PMT = 2,000 × 7.1% ÷ 2 = $71
NPER = 17 years × 2 = 34 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, The pretax cost of debt is 7.68% (3.84% × 2)
Answer:
$1,256,000
Explanation:
Data provided in the question:
Number of semiannual payments received = 16
Amount of each payment = $100,000
Annual interest rate = 6%
Thus,
Semiannual interest rate = = 3% = 0.03
Now,
Payment = Amount ×
or
Payment = $100,000 ×
Payment = $100,000 × 12.56
or
Payment = $1,256,000