Question

1.You are borrowing $100,000 for an amortized loan with terms that include annual payments,6 year loan, and interest rate of 4.5 per year. How much are your equal annual payments? Answer to the nearest cent xxx.xx, and do not enter the dollar sign.

2.Calculate the total present value of the following three cash flows: $15 obtained one year from today, $24 obtained two years from today, and $30 obtained three years from today. Use 6.7% as the interest rate. Answer to the nearest cent, xxx.xx and enter without the dollar sign.

Answer #1

Answer to Question 1:

Amount borrowed = $100,000

Interest rate = 4.50%

Number of payments = 6

Let annual payment be $x

$100,000 = $x/1.045 + $x/1.045^2 + $x/1.045^3 + $x/1.045^4 +
$x/1.045^5 + $x/1.045^6

$100,000 = $x * (1 - (1/1.045)^6) / 0.045

$100,000 = $x * 5.157872

$x = $19,387.84

Annual payment = $19,387.84

Answer to Question 2:

Cash flow, Year 1 = $15

Cash flow, Year 2 = $24

Cash flow, Year 3 = $30

Interest rate = 6.70%

Present value = $15/1.067 + $24/1.067^2 + $30/1.067^3

Present value = $59.83

Q4
9.You are borrowing $200,000 for an amortized loan with terms
that include annual payments,9 year loan, and interest rate of 4.5
per year. How much of the first year's payment would be applied
toward reducing the principal? Answer to the nearest cent xxx.xx,
and do not enter the dollar sign.
10.What is the effective or equivalent annual rate if the bank
pays 7 % nominal interest rate but compounds the money daily (use
365 days in a year)? Answer...

you are borrowing 200,000 for an amortized loan with terms that
include annual payments, 5 year loan, and interest rate of 7.5 per
year. How much of the first year's payment would be applied toward
reducing the principal

Find the amortization table for a $23,000 loan amortized in five
annual payments if the interest rate is 8.5% per year compounded
annually. (Round your answers to the nearest cent.)

You put aside $100,000 in year t = 0, and let it grow at 6.3%
interest for 5 years. Exactly one year after that you start to
withdraw your money for 3 years in equal amounts until it is
exhausted. How much can you withdraw per year? Answer to the
nearest cent, xxx.xx and enter without a dollar sign.

1. Statue Builders, Inc. took out a loan for $244,564 that has
to be repaid in 9 equal annual installments. The APR on the loan is
6.49 percent. How much of the second payment is interest?
2. What is the price of a 28-year bond paying 7.9 % annual
coupons with a face (par) value of $1,000 if an 28-year bond making
semi-annual payments and paying 7.9 % sells at par? Answer to the
nearest cent, xxx.xx and enter without...

1. What is the PV of an ordinary annuity with 5 payments of
$3,400 if the appropriate interest rate is 4.5%? Answer just the
dollar amount without the + or - sign. Round to the nearest
dollar.
2. A public company's bonds mature in 8 years, have a par value
of $1,000, and make an annual coupon interest payment of $65. The
market requires an interest rate of 7.5% on these bonds. What is
the bond's price?
Answer just the...

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interest with the same amount each year). Chuck Ponzi has talked
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venture. She has, however, successfully passed a finance class and
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A $17,000 loan is to be amortized for 10 years with quarterly
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(Round the answer to the nearest cent.)

A $12,000 loan is to be amortized for 10 years with quarterly
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$

You have $100,000 in a saving account earning 7.4 percent per
year. You now want to make 6 equal yearly withdrawals depleting the
saving account. How much are your withdrawals?
Answer to the nearest cent, xxx.xx and enter without the dollar
sign.

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