If you borrow $46,000 at 9.5% annual compound interest and pay it back with 11 equal annual payments, what will be the size of each payment if the first payment occurs 1 year after borrowing the $46,000? $ Round your answer to 2 decimal places. The tolerance is ±1.
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- You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Imagine that you have $8,000 to invest for 19 years. How much more interest will you earn if you choose an account that pays 7% compounded annually (j1) instead of an account that pays a simple interest rate of 7% per annum? Round you answer to 2 decimal places. Your Answer:
- Imagine that you have $8,000 to invest for 19 years. How much more interest will you earn if you choose an account that pays 7% compounded annually (j,) instead of an account that pays a simple interest rate of 7% per annum? Round you answer to 2 decimal places. Your Answer: AnswerSuppose you take out a margin loan for $65,000. The rate you pay is an effective rate of 8.7 percent. If you repay the loan in six months, how much interest will you pay? (Do not round intermediate calculations. Round your answer to 2 decimal places.) InterestSuppose you take out a margin loan for $71,000. The rate you pay is an effective rate of 5.6 percent. If you repay the loan in six months, how much interest will you pay? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- Imagine that you have $7,000 to invest for 9 years. How much more interest will you earn if you choose an account that pays 7% compounded annually (j1) instead of an account that pays a simple interest rate of 7% per annum? Round you answer to 2 decimal places. Your Answer: AnswerYou borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two weeks) payments for 25 years. What will your payments be? Note: remember to round interest rates to four positive decimal places, and to round factors to four decimal places. That is our convention in the course. Solution: A=1,000,000(A/P,ibw= (1+.03/2)2/26-1=.001146,N=25*26=650)=1,000,000(.0022)=2200 Note: if you don't round the factor your solution will be 2183. 2. Im N= 25 ya a6 = 650 A = lm (Ale, i, 25 xa6) = 2200 650 -(+ 受)-) = .0o146 %3DYou borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two weeks) payments for 25 years. What will your payments be? Note: remember to round interest rates to four positive decimal places, and to round factors to four decimal places. That is our convention in the course. Solution: A=1,000,000(A/P,ibw= (1+.03/2)2/26-1=.001146,N=25*26=650)=1,000,000(.0022)=2200 Note: if you don't round the factor your solution will be 2183.
- What is the size of eight equal annual payments to repay a loan of $1,000? The first payment is due one year after receiving the loan? The interest rate is 10% per year. Hint (at_Page 21) The constant amount or payment (PMT) per interest period is calculated using the formula: PV(RATE(1+ RATE)NPER (1+ RATE)NPER – 1 PMT = RATE = effective interest rate per interest period NPER = number of compounding (interest) periods %3D PV = present value or principle or initial amount at the startSuppose you deposit $10 every week into an account that earns 4% interest compounded weekly. How much money (to the nearest cent) will you have in the account after 5 years? Summarize the information provided, stating the interest rate in a decimal form. d = r = N = k = Solve the problem and give your answer hereYou are considering taking out a loan of $7,000.00 that will be paid back over 12 years with every 2 months payments of $149.54. If the interest rate is 7.7% compounded every 2 months, what would the unpaid balance be immediately after the fifteenth payment? Round answers to 2 decimal places.
