Calculate the effective interest rate

Reference no: EM1353370

1. If a company's inventory turnover ratio is 24, how long is the firm's inventory conversion period if you use a 360-day year?

2. To finish college, you need $18,000 per year for 4 years, starting next year (that is, you will need to withdraw $18,000 one year from today). A relative offers to pay the expense by depositing in a bank time deposit paying 5 percent interest a sum of money that is sufficient to provide the four payments of $18,000 each. How much money do you have in the account after the first withdrawal?

3. A credit union offers a savings account with the interest rate of 10% compounded daily. What is the effective interest rate if you use 360-day year?

4. As a lottery winner you are going to receive $10,000 every year forever, starting one year from today. If the appropriate discount rate is 10%, what is the present value of the award cash flows?

Reference no: EM1353370

Questions Cloud

Explain the manager of a multinational firm operating : Explain the manager of a multinational firm operating in a developing country noticed that local employees had at length recently met their physiological and safety needs

Problem encountered in statements in predicate logic : How the problem would be encountered in attempting to represent the following statements in Predicate logic. it should be possible to: John only likes to see French movies.

Determine the accounts receivable turnover : A corporation's 2000 sales were $8,954,238. Sales were $5 million ten years earlier. To the nearest percentage point, at what rate have sales been growing?

Compute imiotek''s weighted average cost of capital : Compute Imiotek's weighted average cost of capital. Calculate the net present value if Innotek was to continue production of the SMR HDD locally.

Calculate the effective interest rate : A credit union offers a savings account with the interest rate of 10 percent compounded daily. Calculate the effective interest rate if you use 360-day year?

Few techniques to incorporate to site : Did you know that you do not have to start from scratch if your site is not accessible? There are a few techniques you may incorporate to your site.

Explain how marginal analysis affects goods and services : Explain how marginal analysis affects goods and services, efficiency, equity, and the market economy.

Illustrate wow about if full over the last month : full over the last month, are you optimizing. Illustrate wow about if it is 75% full at 9 am.

Power to change your organization : The third is motivation where ultimately workers have to want to make the change, and fourth, institutional politics.

User Account

All Pages