Question

Given an interest rate of 12% per year compounded monthly, what
is the value at the date t = 0 of a growing perpetual stream of
$200 monthly payments that begin at the date t = 1 (1^{st}
month) and grows at 0.05% per month till perpetuity? (nearest
integer value)

Select one:

a. $20000

b. $2857

c. $21053

d. -$5000

Answer #1

Given an interest rate of 10.0 percent per year, what is the
value at date t = 7 of a perpetual stream of $900 payments
with the first payment at date t = 16?

A $10000 loan has an interest rate of 12% per year, compounded
monthly, and 30 equal monthly payments are required.
a) If payments begin at the end of the first month, what is the
value of each payment?
b) How much interest is in the 10th payment?
c) What would you enter into Excel to solve part b?
d) What is the unpaid balance immediately after the 10th
payment?
e) If the 30 loan payments are deferred and begin at...

Given an interest rate of 6.5 percent per year, what
is the value at year 10 of a perpetual stream of $3500 payments
that begin at year 20?

You open an investment account that pays 12% APR, compounded
monthly. Compute the present value of 10 monthly payments of $5000
(the first payment made 1 month from today).

An annuity has interest of 9% per annum compounded monthly. If
payments of $200 are made at the end of each month over 10 years,
find the future value of the annuity.

if you invested $5000 at 4% interest compounded monthly and
added $500 in month 12, 24, 36, and 48; how much would you have
after 10 years? Round to the nearest dollar.

6. Given a 6 percent discount rate compounded quarterly, what is
the present
value of a perpetuity of $100 per month if the first payment does
not begin until the end
of year five?
Could you explain the question in detail with formula plz! I
don't understand others poster answers.

Using a discount rate of 3.6% APR, compounded monthly, what is
the present value of a monthly perpetuity payment of $2,500 if: a)
The first payment is made today b) The first payment is made 12
months from now.

Problem 37.8 The interest rate on a 30 year mortgage is 12%
compounded monthly. Lauren is repaying the mortgage by paying
monthly payments of 700. Additionally, to pay o the loan early,
Lauren has made additional payments of 1,000 at the end of each
year. Calculate the outstanding balance at the end of 10 years.
Answer should be: $45,435.32

r=12% per year , compounded monthly, quarterly, seminaually, yearly
, 2 years
effective interest rate

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