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- Subject - advanced math Frank's loan pay off is to be made in two installments: $2500 in a year, and $3500 in 3 ½year. After talking to his loan officer, it was decided that he could pay both installments in 20months. How much would he pay if his loan is processed at 7 ¼ simple interest. Draw a timelineto illustrate your solution.Ans for part DCapital Compound Amount Factor Compound Amount Factor Sinking Fund Factor me nearest dollar.) Present Worth Factor Recovery Factor Present Worth Factor To Find P To Find A To Find A To Find F Given P F/P To Find P Given F To Find F Given A FIA Given A Given F Given P N. P/F PIA A/F A/P 1.0300 0.9709 1.0000 0.9709 1.0000 1.0300 1.9135 0.4926 0.5226 2.0300 3.0909 4.1836 1.0609 0.9426 1.0927 0.9151 2.8286 0.3235 0.3535 4 1.1255 0.8885 3.7171 0.2390 0.2690 1.1593 0.8626 5.3091 4.5797 0.1884 0.2184 6 1.1941 0.8375 6.4684 5.4172 0.1546 0.1846 1.2299 0.8131 7.6625 6.2303 0.1305 0.1605 8 1.2668 0.7894 8.8923 7.0197 0.1125 0.1425 7.7861 8.5302 9.2526 9 1.3048 0.7664 10.1591 0.0984 0.1284 10 1.3439 0.7441 11.4639 0.0872 0.1172 11 1.3842 0.7224 12.8078 0.0781 0.1081 12 1.4258 0.7014 14.1920 9.9540 0.0705 0.1005 13 1.4685 0.6810 15.6178 17.0863 10.6350 0.0640 0.0585 0.0538 0.0940 14 1.5126 0.6611 11.2961 0.0885 0.0838 15 1.5580 0.6419 18.5989 11.9379 16 1.6047 0.6232 20.1569 12.5611 0.0496 0.0460…
- Write the 4 Formulas for Uniform Annuity Series Find F/A Find P/A Find A/P Fina A/F P (Present Value) for PerpetuityGive detailed solutiinOrdinary annuity payment. Fill in the missing annuity in the following table for an ordinary annuity stream: Number of Payments or Years 6 21 33 15 Annual Interest Rate 9% 4% 6% 10% Future Value $0.00 $24,000.00 $0.00 $98,433.34 Annuity (Round to the nearest cent.) $ (Round to the nearest cent.) $(Round to the nearest cent.) (Round to the nearest cent.) Present Value $24,000.00 $0.00 $150,000.00 $0.00
- A highway bridge is being considered for replacement. The new bridge would cost SX and would last for 20 years. Annual maintenance costs for the new bridge are estimated to be $23,000. People will be charged a toll of $0.29 per car to use the new bridge. Annual car traffic is estimated at 360,000 cars. The cost of collecting the toll consists of annual salaries for five collectors at $8,000 per collector. The existing bridge can be refurbished for $1,400,000 and would need to be replaced in 20 years. There would be additional refurbishing costs of $60,000 every five years and regular annual maintenance costs of $21,000 for the existing bridge. There would be no toll to use the refurbished bridge. If MARR is 10% per year, what is the maximum acceptable cost (X) of the new bridge? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Choose the correct answer below. O A. The maximum acceptable cost of the new bridge is $1,931,249.…4 You need to value a MBS. The underlying mortgages have an average interest rate of 4.57%, a maturity of 6 years, and a par value of $2,000,000. The coupon rate is 3.82%. Payments are annual. There are 0.75% fees for servicing the MBS. The market rate for similar investments is 5.25%. If you were to purchase the entire MBS, how much would you pay the issuer? You don’t expect any prepayments. A. 2,265,635 B. 2,559,365 C. 2,256,369 D. 1,965,896 E. 1,909,380It refers to annuity that doesn’t start until some time in the future. a Late Annuity b Regular Annuity c Deferred Annuity d Gradient Annuity
- 2 A company plans to buy a new delivery truck for pizza delivery for $30,000 which will generate $5,000 in added revenue per year. The truck comes with four years of prepaid maintenance and then maintenance will start in year five and will be $500 every six months. Insurance will be $600 per year increasing by 10% per year. The plan is to sell the vehicle at the end of 10 years and receive 20% of the purchase price for it. Show the cash flow diagram.Increase/decrease/remain unchangedou decided to go and apply for a credit card at your local financial institution.The Prime rate currently announced on June 1 was 3.25%. You have goodcredit history and a FICO score of 700. The lowest rate that they can offer toindividuals is a 18.99% APR for a credit card that gives cashback on purchasesand rewards. You were offered 21.99% APR for the credit card. How did thelender determine or calculate what rate they should offer you?
