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Principle of Finance 1. Fanny received a credit card with 18% nominal interest rate. With...

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Finance

Principle of Finance 1. Fanny received a credit card with 18% nominal interest rate. With the card she purchased a ticket to Angkor Wat for $ 2500. Minimum payment on the card is $49 per month. If she makes the minimum monthly payment (and makes no other payments), how long (months) before she pays off the $2,500? 2. Juanita Sister Inc, has DSO of 40 days with annual sale of $2.5 million. What is its Account receivable balance? There are 365 days in a year. 3. What is the Present Value of annuity due of $1,400 per year of 10 years at 10% with discounting occurring once a year? 4. Find the PV, for $1,500 due in 10 years at 6% (discounted annually). 5. Find the FV, for initial $1,500 compounded for 10 years at 6% (compounding annually). 6. Ogel has $2,000 in his bank account, and plans to add $5,000 at the end of each future years until it reaches $250,000. He expect to earn 7% annually on the account, How many months or years will it take to reach his goal? 7. Bank Zimba pays 5% interest computed annually on deposits, while Bank Mozam pays 4.75% computed daily. Which bank should you use based on ERA (calculation may have to be out of four decimal points)? Please show the necessary calculation.

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