You are planning on starting your own business in 18 months and you intend to purchase a new home. You have looked carefully at your budget and have determined that you can afford a PITI of $900 per month. Your banker has told you that you can easily qualify for a PITI of $1,150 per month. Which of the following is the most reasonable explanation for this discrepancy?

What is effective annual return friendlys earns : Friendly’s Quick Loans, Inc., offers you $7.25 today but you must repay $9.25 when you get your paycheck in one week (or else) 1)What is the effective annual return Friendly’s earns on this lending business? 2) If you were brave enough to ask, what A.. |

Most reasonable explanation for discrepancy : You are planning on starting your own business in 18 months and you intend to purchase a new home. You have looked carefully at your budget and have determined that you can afford a PITI of $900 per month. Your banker has told you that you can easily.. |

Thinking about buying a house : Hector a Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi-national corporation with offices around the world. She has been told by her company that she will be transferred.. |

Fixed-rate mortgage is harder to budget : A fixed-rate mortgage is harder to budget for than an adjustable rate mortgage. The rate cap on an ARM sets a dollar limit on how much your monthly payment can increase during any adjustment period. The rate cap on an ARM protects the borrower. |

The most reasonable explanation for this discrepancy : You are planning on starting your own business in 18 months and you intend to purchase a new home. You have looked carefully at your budget and have determined that you can afford a PITI of $900 per month. Your banker has told you that you can easily.. |

The international fisher effect holds : Assume that the U.S. one-year interest rate is 5% and the one-year interest rate on euros is 8%. You have $100,000 to invest and you believe that the international Fisher effect (IFE) holds. The euro's spot exchange rate is $1.40. What will be the yi.. |

The spot exchange rate of an australian dollar : Assume that the U.S. one-year interest rate is 3% and the one-year interest rate on Australian dollars is 6%. The U.S. expected annual inflation is 5%, while the Australian inflation is expected to be 7%. You have $100,000 to invest for one year and .. |

After supply and demand for the japanese yen : The inflation rate in the U.S. is 4%, while the inflation rate in Japan is 1.5%. The current exchange rate for the Japanese yen (¥) is $0.0080. After supply and demand for the Japanese yen has adjusted according to purchasing power parity, the new ex.. |

What is its net interest margin : Suppose a bank earns $325 million in interest revenue but pays $279 million in interest expense. It also has $624 million in earning assets. What is its net interest margin? |

## Identify how the currently used benchmarks alignExplain this organisation's benchmarking efforts (or lack thereof). If benchmarking is employed, identify how the currently used benchmarks align with or address international standards. |

## Effective interest rate of loan and the stated interest rateExplain the difference, if any, between the effective interest rate of a loan and the stated interest rate. How do lenders safeguard against loans secured by accounts receivable? What are some of the common methods for banks to increase their return .. |

## EAR and Annuities-plan for retirementYou are helping your friend plan for her retirement. if interest rates are 12 percent per year, compounded quarterly, how much must she deposit into her retirement fund at the end of each month (in equal amounts per month) over the next 25 years, in .. |

## Compact fluorescent lamps-break-even cost per kilowatt-hourCompact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $0.55 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs $.. |

## What is the customer expected returnA broker wants to sell a customer an investment costing $100 with an expected payoff in one year of $104. The customer indicates that a 7% return is not very attractive. The broker responds by suggesting the customer borrow $80 for one year at 3% int.. |

## Analysis of the company financialFind or create their financials. Provide an analysis of the company's financial. With that information in mind, recommend a portfolio of investment instruments with specific names of each invest and explain why you are making the recommendations. |

## What interest rate did she obtain on her investmentA woman made ten annual end-of-the-year purchases of $1000 of common stock. At the end of the tenth year, she sold all the stock for $12000. What interest rate did she obtain on her investment? |

## Compute the milners child and dependent care creditBud and Katie Milner file a joint return. During the year, they paid $11,000 to their nanny to look after their three children, ages 2, 9, and 11. Bud and Katie both work and earned $24,000 and $31,000, respectively. Compute the Milners' child and de.. |

## Determinants of interest ratesSuppose you and most other investors expect the inflation rate to be 7% next year, to fall to 5% during the following year, and then to remain at a rate of 3% thereafter. Calculate the interest rate on 2-year Treasury securities. Calculate the intere.. |

## Weight of each stock in the minimum variance portfolioConsider two stocks, Stock D, with an expected return of 16 percent and a standard deviation of 31 percent, and Stock I, an international company, with an expected return of 9 percent and a standard deviation of 19 percent. The correlation between th.. |

## Calculate accumulated depreciationGenetic Insights Co. purchases an asset for $15,884. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, r.. |

## Describe the active portfolio management processDescribe the active portfolio management process. Assuming you are a portfolio manager with similar portfolio allocation decisions as in the case, but today, in the current market conditions. Which stock you consider adding to your portfolio? |

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