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Unformatted text preview: be 12.088% 12.09%. c. Installment loan: PMT = ($1,500,000 + $33,750)/3 = $511,250. INPUT N = 3, PV = 1500000, PMT = 511250, FV = 0. OUTPUT = I = 1.121% per month. Nominal annual rate = 12(1.121%) = 13.45%. 2710 a. Malones current accounts payable balance represents 60 days purchases. Daily purchases can be calculated as 60 500 $ = $8.33. If Malone takes discounts then the accounts payable balance would include only 10 days purchases, so the A/P balance would be $8.33 10 = $83.33. If Malone doesnt take discounts but pays in 30 days, its A/P balance would be $8.33 30 = $250. Answers and Solutions: 27  10...
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This note was uploaded on 07/13/2011 for the course FIN 4414 taught by Professor Staff during the Spring '08 term at University of Florida.
 Spring '08
 Staff
 Effective Interest Rate, Interest, Interest Rate

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