« previous next »

Author Question: Lockbox arrangement benefits include A) increased cash flows from delays in uncollectible check ... (Read 65 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?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Sterility check strips. Sterility check strips.
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 ...
To check to see if the electric fuel pump can be operated from the relay contacts, use a fused ... To check to see if the electric fuel pump can be operated from the relay contacts, use a fused ...
This Toyota cap has a warning—the check engine light will come on if not tightened until one ... This Toyota cap has a warning—the check engine light will come on if not tightened until one ...
Prepare upper back for hot application. Undrape upper back. Check tissues visually and through ... Prepare upper back for hot application. Undrape upper back. Check tissues visually and through ...
Benefits and Drawbacks of Aquaculture "فوائد وعيوب تربية الأحياء" Benefits and Drawbacks of Aquaculture "فوائد وعيوب تربية الأحياء"
Video: Digestive System Animation

For a complete list of videos, visit our video library