Question 1 (10 marks) wan
A business arranges an overdraft facility for K10,000 with their bank. They use the
facility regularly for the first 6 months of the year and on average have an overdraft
of K6, 000 each month. The interest rate on the overdraft is set at 10%.
(A) How much interest does the business pay over that 6 month period? (Use
simple interest formula). SIK
(B) As a result of a change in the interest rate set by the Bank of PNG, i. e. the
Kina Facility rate (KFR) the business is informed by its bank that the interest
rate on its overdraft will rise to 12%. What effect does this have on the cost of
servicing the overdraft if the business uses the overdraft in the same way for
the next six months? SIR
Question 2 (5 marks)
You wish to borrow K50, 000 from a bank for working capital requirements. You
have received the following quotes from various financial institutions. Institution A:
12% per annum, compounding monthly; Institution B: 11.5% per annum
compounded weekly; and Institution C: 11.3% per annum, compounded daily.
(A) Other things being equal, which bank would you select? (Note: Use the
effective annual rate formula). (3 marks) Chower interest Rate)
(B) Define "Effective Annual Rate. (2 marks)​

What are 3 ways through which you might obtain employment experiences

Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations. issued 2,900 shares of $0.01 par value common stock to investors for cash at $29 per share. borrowed $68,000 from the bank to provide additional funding to begin operations; the note is due in two years. paid $1,000 for the current month's rent of a warehouse and another $1,000 for next month's rent. paid $1,440 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). purchased furniture and fixtures for the warehouse for $16,000, paying $3,200 cash and the rest on account. the amount is due within 30 days. purchased for $2,800 cash the university of pennsylvania, notre dame, the university of texas at austin, and michigan state university baseball caps as inventory to sell online. placed advertisements on google for a total of $340 cash. sold caps totaling $1,900, half of which was charged on account. the cost of the caps sold was $1,100. (hint: make two entries.) made full payment for the furniture and fixtures purchased on account in (e). received $280 from a customer on account.

Amanda rice has just arranged to purchase a $640,000 vacation home in the bahamas with a 20 percent down payment. the mortgage has a 7 percent apr compounded monthly and calls for equal monthly payments over the next 30 years. her first payment will be due one month from now. however, the mortgage has an eight-year balloon payment, meaning that the balance of the loan must be paid off at the end of year 8. there were no other transaction costs or finance charges. how much will amanda’s balloon payment be in eight years