Question

In
your answers, you should properly show your work by writing down
your entries into the calculator. For instance, if you use the TVM
worksheet of your financial calculator to compute how long it takes
to double your account balance given 5% annual interest rate, you
should write down your entries as: I/Y=5, PV=-1, PMT=0, FV=2, CPT
N=? --- the question mark here stands for your answer to the
question.

Question 6 – PV, Ordinary Annuity, Compounding [2 points]:
Find the present value of the following ordinary annuities:

a) PV of $300 each six months for five years at a simple rate
of 12 percent, compounded semiannually

b) PV of $150 each three months for five years at a simple
rate of 12 percent, compounded quarterly

Question 7 – TVM, Compounding, Finding PMT [2 points]: Sue
wants to buy a car that costs $20,000. She has arranged to borrow
the total purchase price of the car from her credit union at a
simple interest rate equal to 12 percent. The loan requires
quarterly payments for a period of five years. If the first payment
is due in three months (one quarter) after purchasing the car, what
will be the amount of Sue’s quarterly payments on the loan?

Question 8 – TVM, Finding N [2 points]: While Steve Bouchard
was a student at the University of Florida, he borrowed $20,000 in
student loans at an annual interest rate of 6.4 percent. If Steve
repays $1,800 per year, how long, to the nearest year, will it take
him to repay the loan?

Question 9 – rEAR versus rSIMPLE [2 points]: The First City
Bank pays 6.6 percent interest, compounded annually, on time
deposits. The Second City Bank pays 6.5 percent interest,
compounded monthly. Based on effective interest rates, in which
bank would you prefer to deposit your money?

Question 10 – rEAR versus rSIMPLE [2 points]: Krystal Magee
invested $150,000 18 months ago. Currently, the investment is worth
$179,422. Krystal knows the investment has paid interest every
month, but she doesn’t know what the yield on her investment is.
Help Krystal. Compute both the annual percentage rate (APR),
rSIMPLE, and the effective annual rate (EAR), rEAR.

Answer #1

6)

In your answers, you should properly show your work by writing
down your entries into the calculator. For instance, if you use the
TVM worksheet of your financial calculator to compute how long it
takes to double your account balance given 5% annual interest rate,
you should write down your entries as: I/Y=5, PV=-1, PMT=0, FV=2,
CPT N=? --- the question mark here stands for your answer to the
question.
Question 1 - Basic Setting [2 points] Change the number...

Please Solve with using BA2Plus Financial calculator. Show
step by step.
Question 6 – PV, Ordinary Annuity, Compounding [2 points]:
Find the present value of the following ordinary annuities:
a) PV of $300 each six months for five years at a simple rate
of 12 percent, compounded semiannually
b) PV of $150 each three months for five years at a simple
rate of 12 percent, compounded quarterly

n.
Suppose someone offered to sell you a note that calls for a $1,000
payment 15 months from today. The person offers to sell the note
for $850. You have $850 in a bank time deposit (savings instrument)
that pays a 6.76649%simple rate with daily compounding, which is a
7%effective annual interest rate; and you plan to leave this money
in the bank unless you buy the note. The note is not risky—that is,
you are sure it will be...

9-16 Find the present values of the following ordinary
annuities:
a. PV of $400 each six months for five years at a simple rate of
12 percent, compounded semiannually
b. PV of $200 each three months for five years at a simple rate
of 12 percent, compounded quarterly
c. The annuities described in parts (a) and (b) have the same
amount of money paid into them during the five-year period and both
earn interest at the same simple rate, yet...

Please use Excel
to answer the following TVM questions. You can use this spreadsheet
to set up your calculations if you so desire. Unless indicated
otherwise, assume that all of the problems are ordinary annuities
(payment made at the end of the
period).
Part 3
I am going to
buy a car. I will finance the whole purchase (no down payment) with
a new car loan that has a 6-year term. My monthly payments will be
$392/mth and the annual...

Hi please can you check my work and show me the right answers
and how you get to the answers? thank you
Question1
Penny bought a new truck today from Middlefield Motors. She will
receive a cash rebate of 5,000 dollars from Middlefield Motors
today, pay 16,400 dollars to Middlefield Motors in 3 year(s),
receive a cash rebate of 6,400 dollars from Middlefield Motors in 4
year(s), and pay 16,200 dollars to Middlefield Motors in 7 year(s).
If the discount...

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...

You have saved 120,000€ and you want
to know which is the better option for your money,
It is better to spend the money today or invested and receive
122,000 in 3 years with annual simple interest rate of 10%?
(25
points)
The bank offers you some options, however, you can't withdraw
it for 5 years:
8% simple interest (15 points)
6% compounded semiannual (15
points)
5.5% compounded monthly (15
points)
Which is the best
option of the bank?...

Assume that you are nearing graduation and have applied for a
job with a local bank. As part of the bank’s evaluation process,
you have been asked to take an examination that covers several
financial analysis techniques. The first section of the test
addresses discounted cash flow analysis. See how you would do by
answering the following questions. a. Draw time lines for (1) a
$100 lump sum cash flow at the end of Year 2, (2) an ordinary
annuity...

Suppose the opportunity cost of capital is 5% and you have just
won a $750,000 lottery that entitles you to
$75,000 at the end of each year for the next 10 years.
What is the minimum lump sum cash payment you would be willing
to take now in lieu of the IO-year annuity?
What is the minimum lump sum you would be willing to accept at
the end of the 10 years in lieu of the annuity?
Using the appropriate...

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