« previous next »

Author Question: Lockbox arrangement benefits include A) increased cash flows from delays in uncollectible check ... (Read 83 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?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Everyone has one nostril that is larger than the other.

Invasive species in Canada include (a) zebra mussels, Dreissena polymorpha, (b) sea lamprey, Petromy Invasive species in Canada include (a) zebra mussels, Dreissena polymorpha, (b) sea lamprey, Petromy
Key anatomical features of Homo habilis include reduced facial size, a parabolic palate, and some br Key anatomical features of Homo habilis include reduced facial size, a parabolic palate, and some br
In 1839 Mary Cragin, at the age of twenty-nine, became a convert to John Humphrey Noyes’s “communism In 1839 Mary Cragin, at the age of twenty-nine, became a convert to John Humphrey Noyes’s “communism
The tools necessary to adjust the valves on an engine with adjustable rocker arms include basic hand ... The tools necessary to adjust the valves on an engine with adjustable rocker arms include basic hand ...
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.
Changing Patterns of Climate increased drought Changing Patterns of Climate increased drought
Video: Griffith's experiments

For a complete list of videos, visit our video library