Question

How much is your loan amount today if you are going to repay
using 8 equal quarterly

payments of $200 with annual interest of 12 percent but
assuming quarterly compounding?

$1403.93

Bob has $5,000. He expects to earn 7.5% on his invested funds.
How much could he withdraw at the end of each of the next 10 years
and end up with zero in the account?

$728.43

Answer #1

Your Uncle Bob has arranged a loan at the Bank for $1,000 which
he will repay in 10 equal annual payments at a 10% interest rate.
Immediately after his 3rd payment, he calls the banker to enquire
about borrowing another $500. He tells the banker that he can’t
afford for the payment to go up too dramatically and he offers to
let him repay the remaining debt on the original loan plus the new
$500 loan in 12 equal annual...

Your uncle has $1,375,000 and wants to retire. He expects to
live for another 25 years and to earn 5.5% on his invested funds.
How much could he withdraw at the end of each of the next 25 years
and end up with zero in the account?
please show me the work and how to solve it by BAII plus
thank you

You borrow $100,000 today. You will repay the loan with 20 equal
annual payments starting in year 3 If the interest rate on the loan
is 5% APR, compounded annually, how big is each payment?

1. Julia purchased an investment grade gold coin today for
$375,000. She expects it to increase in value at a rate of 4.5%
compounded annually for the next 6 years. How much
will the coin be worth at the end of the sixth year?
N
I/Y
PV
PMT
FV
2. Moon has been investing $2,500 quarterly for the past 10
years in an equity mutual fund. How much is the fund worth now
assuming she has earned 8.5% compounded...

A) Justin finished paying his parents back the $30,400 he
borrowed on September 17, 2012. they had agreed upon an interest
rate of 3.20% and that he would make payments every month. how
large were his payments?
B) abby's retirement account has $112,500 and it earned 5.2%.
how many years ago did she open the account if she's been investing
$554 every month since then?
C) Olivia intends to retire on september 17, 2042. Olivia is
committed to set aside...

1.) Sarah invested
$5,000 in an account she expects will earn 8% annually.
Approximately how many years will it take for the account to double
in value?
Question 10 options:
8
9
10
11
2.) Elena invested $5,000 thirty years ago. If she earned 8%
annually, what is it worth today?
Question 11 options:
$17,000
$36,400
$50,313
$123,023
3.) Fred needs to accumulate $40,000 for his son’s first year
college tuition in 10 years.
How much does Fred need to...

2. Suppose you borrow $20,000 at an 18 percent simple interest
but must repay your loan in 12 equal monthly payments.
a. Find the APR for this loan.
b. What is the corresponding EAR?
3. Suppose you deposit $20,000 in a savings account. After 210
days, you withdraw your funds. If the bank paid you $340 in
interest for the 210-day period, what is your APY?
4. Suppose that the house of your dreams costs $1,200,000. You
manage to scrap...

1. Chris Spear invested $50,000 today in a fund that earns 8%
compounded semiannually. To what amount will the investment grow in
3 years?
2. Sally Medavoy will invest $10,000 a year for 3 years in a
fund that will earn 6% annual interest. If the first payment into
the fund occurs today, what amount will be in the fund in 3
years?
3. John Fillmore's lifelong dream is to own his own fishing boat
to use in his retirement....

Today is January 1, 2017. Your friend Pat has just signed a
contract to play for a professional football team. He will receive
$2,500,000 for 2017, $3,500,000 for 2018, $3,700,000 for 2019, and
$4,200,000 for 2020. All payments are made at the end of the year.
Assume a 5% annual interest rate (EAR). a) What is the present
value of his contract? b) Instead of receiving annual payments, Ted
wants to receive equal-dollar-amount-quarterly cheques (first
cheque today, last cheque at...

You raise some money today from your friend. He agrees to loan
you the money you need, if you make payments of $40 a month for the
next one year. In keeping with his reputation, he requires that the
first payment be paid today. He also charges you 2 percent interest
per month. How much money are you borrowing?
ADue PV =

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