« previous next »

Author Question: Lockbox arrangement benefits include A) increased cash flows from delays in uncollectible check ... (Read 81 times)

karateprodigy

  • Hero Member
  • *****
  • Posts: 550
on: Jul 10, 2018
Lockbox arrangement benefits include
 
  A) increased cash flows from delays in uncollectible check processing.
  B) elimination of bank charges for handling and audit functions.
  C) increased working capital from shorter receivables/cash transformation time.
  D) all of the above are benefits from this arrangement.

Question 2

You put 20 down on a home with a purchase price of 150,000, or 30,000. The remaining balance will be 120,000. A bank will loan you this remaining balance at 4.375 APR.
 
  You will make monthly payments with a 20-year payment schedule. What is the monthly annuity payment under this schedule?
  A) 751.11
  B) 830.53
  C) 910.12
  D) 5,250.18


1_Step_At_ATime

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jul 10, 2018
Answer to Question 1

C

Answer to Question 2

Answer: A
Explanation: A) The bank loan of 120,000 is the PV.
The PVIFA using r = = 0.36458 and n = 20  12 = 240 periods is 159.7643.
The monthly annuity payment = PMT = = = 751.11.
MODE = END
INPUT 240 4.375/12 -120,000 ? 0
KEY N I/Y PV PMT FV
CPT 751.11


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Increased exposure to cupric oxide bulk particles (BPs) and nanoparticles (NPs) by radish plants Increased exposure to cupric oxide bulk particles (BPs) and nanoparticles (NPs) by radish plants
The arrangement of cross bridges between filaments interact The arrangement of cross bridges between filaments interact
Sterility check strips. Sterility check strips.
Air flows through the PCV valve during acceleration and when the engine is under a heavy load. Air flows through the PCV valve during acceleration and when the engine is under a heavy load.
The arrangement of water molecules in (a) solid ice, and (b) liquid water. The arrangement of water molecules in (a) solid ice, and (b) liquid water.
Cell arrangement in the floral meristem Cell arrangement in the floral meristem
Video: ACTH/Cortisol (glycogenolysis, protein catabolism, lipolysis and gluconeogenesis)

For a complete list of videos, visit our video library