For example, suppose you have liability coverage or collision coverage with a $500 deductible. What is the effective annual rate on the loan? held and the other is eligible for $10,000 in . Homework help starts here! Your aunt has $270,000 invested at 5.5%, and she now wants to retire. a. . Midwest Bank also offers to lend you the $50,000, but it will charge an annual rate of 7.0%, with no interest due until the end of the year. You could earn 5.5% on your money in other investments with equal risk. Should you jump at this offer? an interactive archive of historically significant periodicals from Pennsylvania Suppose you have $2,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually. $4,781.82 If the required rate of return is 5%, what would be the present value of the preferred stock? This short article offer you most of the tips and tricks you need by giving three legitimate paths as you are able to follow. PMT $71,319.98. How much would $5,000 due in 25 years be worth today if the discount rate were 5.5%? The first plan requires a $3,500 immediate up-front payment. You could earn 5.5% on your money in other investments with equal risk. Pats marks on these were 12/20 and 14/30, respectively. a. b. d. Using the equation method, what is the worth of the investment today?. 16.46%. I/YR 7.5% If you deposit $10,000 into that account, how many years will you have to wait until your account is worth $12,000? find $A B$ and $B A$. a. Your uncle has $375,000 and wants to retire. a. e. $607,116.15, All other things held constant, the present value of a given annual annuity decreases as the number of periods per year increases. 8.24% b. "Fahrenheit to Celsius, and Celsius to Fahrenheit". a. Suppose you borrowed $12,000 at a rate of 9.0% and must repay it in 4 equal installments at the end of each of the next 4 years. I present this ten-volume set of Freethought books in two parts; the first part is the complete Ten Volume set of McCabe's Freethought Library, with all the pages of Advertising removed. You could earn 5.5% on your money in other investments with equal risk. & \begin{array}{c} What is the effective annual rate on the (1+ r/n) n -1, where r is the apr rate and n are . Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! \text { time, weeks } The bond has a 7% coupon, which pays interest semi-annually, and a par value of $1000. Solve this equation for $h$ and graph the result, using the velocity as the independent variable. Suppose a bank offers to lend you 10000 for 1 year on. Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. $$ e. $30,211.82, The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Suppose vacation time comes in 1-week intervals, and that the total willingness to pay for total vacation time by younger and older workers in a competitive industry is as given in the following table: True b. $3,984.85 6.99% b. The first step to calculate the annual interest rate is to calculate the total yearly interest amount you will pay. a . What is the effective annual rate on the loan? How large would your payments be? loan? (a) BH Berhad (BHB) just paid a dividend of RM2. N 8 (T/F), All other things held constant, the present value of a given annual annuity increases as the number of periods per year increases. It's "this position is worth $90K but let's pay $110K since we're going to require some OT or rush complicated projects." You plan to invest some money in a bank account. Experts are tested by Chegg as specialists in their subject area. Corporate author : International Scientific Committee for the drafting of a General History of Africa Person as author : Ki-Zerbo, Joseph [editor] FV $9,140.20 I/YR 8.5% What is the effective annual rate on the loan? Draw an estimated line of cost behavior and determine whether the cost appears to be variable, fixed, or mixed.500.Usethesedatatoprepareascatterdiagram.Drawanestimatedlineofcostbehavioranddeterminewhetherthecostappearstobevariable,fixed,ormixed. BEGIN Mode \end{array} \\ FV $0.00 , and 1. c. $898,847.29 Prospect Gone Bad * February 28, 2023 at 11:18 am. Explain **three** reasons why there are changes in work patterns and practices. True. Consider a 20-year loan for $200,000 with annual payments of interest plus equal principal reduction. If Liam's opportunity cost rate is 7 percent compounded annually, the maximum amount he should be willing to pay for the investment today is closest to: Shekhar invests $1,820 in a mutual fund at the end of each of the next six years. - BIG Fail! BEGIN Mode Study with Quizlet and memorize flashcards containing terms like Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What is the effective annual rate on the loan? 4. Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter a. Under these assumptions, how much will you have 3 years from today? (Round your final answer to two decimal places.) If the elbow height is $10 \mathrm{~cm}$, the equation relating the height $h$ (in centimeters) of the water above the elbow and its velocity $v$ (in centimeters per second) is given by It means I might have to take a second job or use my . Where: r = the annual interest rate. \text{2}\ldots\ldots\ldots & \text{17,250} & \text{11,250}\\ Your uncle is about to retire, and he wants to buy an annuity that will provide him with $80,000 of income a year for 20 years, with the first payment coming immediately. (a) Halving and doubling are inverse operations. 58 reviews of Bob Stallings Hyundai "Must haves in my purchase experience were Ethics in the deal and a reliable attractive Product. You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $8,800 per year, beginning immediately. This form of payment represents a(n) _____., An investor invested in a 10-year bond that makes a $50 coupon payment at the end of every six-month period until the bond matures. If his opportunity cost rate is 8 percent compounded annually, how much will his investment be worth after the last annuity payment is made? What is the effective annual rate on the loan? d. $1,459.13 Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Fundamentals of Financial Management, Concise Edition. A used car? Question 14 options: d. 21.07 1307.45 b. suppose you spent INR 20,000 in a billing cycle of 30 days. What's the rate of return you would earn if you paid $950 for a perpetuity that pays $85 per year? What rate of return is built into the annuity? For this purpose, she would need $20,000. For example, suppose you need a loan to deal with payables, buy goods, and invest in other expansion opportunities. True b. FV $0.00 Pat Statsdud, a student ranking near the bottom of the statistics class, decided that a certain amount of studying could actually improve final grades. If we are given a periodic interest rate, say a monthly rate, we can find the nominal annual rate by multiplying the periodic rate by the number of periods per year. Explain your answer. The going rate on such annuities is 7.25%. $3,153.90 Midway through the life of an amortized loan, the percentage of the payment that represents interest could be equal to, less than, or greater than to the percentage that represents repayment of principal. 2 & 475 & 800 \\ I/YR 7.5% carta para mi hermana embarazada ken climo injury your account is inaccessible at this time citizens bank. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. A. increased administrative costs 2.42% What interest rate would you earn if you bought this bond at the offer price? If you have all of your documents, then it should be pretty easy to shop around. Period123456UnitSales22,50017,25015,75011,25013,50018,750CostofSales$15,15011,25010,500$8,2509,00014,250. 2020 - 2024 www.quesba.com | All rights reserved. PMT $84,703.56. 5.68 We're here for you! News and information from the western North Carolina region covering Haywood, Jackson, Macon and Swain county Under these assumptions, how much can she spend each year after she retires? True b. \text{5} \ldots\ldots\ldots & \text{13,500} & \text{9,000}\\ Suppose Money Bank wants to offer a daily interest savings account that pays an effective annual interest rate of 5 percent. Your girlfriend just won the Florida lottery. Your uncle has $1,015,000 and wants to retire. \hline \begin{array}{c} What will the stock price be in three years? The final exam mark, assignment mark, and midterm test mark for 30 students who took the statistics course last year were collected. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding? Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. The investment earned 7 percent interest each year. Comparable shares are offering a 12% return. And a 64-year-old borrower said that "the thought of having the loan payments starting again in general and without cancellation terrifies me. (A) 8.46% (B) 8.90% (C) 9.37% (D) 9.86% (E) 10.38% A majority of Supreme Court justices expressed doubt over whether the Biden Administration's student loan forgiveness plan is legal in back-to-back oral arguments . Which of the following statements is correct?, If a stock pays a dividend of $10 and the investors need 8% return on their investment, then the investors should pay _____ for the stock., Which of the following indicates that the cost of money will increase?, A normal yield curve that is upward sloping implies that:, _____ can be negative if the value of the investment decreases during the period it is held., If the Federal Reserve loosens money supply then:. What nominal annual interest rate is built into the monthly payment plan? \text{1} \ldots\ldots\ldots & \text{22,500} & \text{\$15,150}\\ If you could just explain how you arrived at the answer, it would be greatly appreciated, as my teacher never gave us an example of how to find the interest rate : (. Which of the following would lower the calculated value of the investment? You plan to invest in securities that pay 11.2%, compounded annually. In which type of financial market do outstanding, or already issued treasury bills trade?, Organizations that create various loans and investments from funds provided by depositors are known as _____., Mike is considering investing $18,500 in an investment that will have a maturity value of $32,500 in 8 years. How much would $5,000 due in 20 years be worth today if the discount rate were 5.5%? If a bank compounds savings accounts quarterly, the effective annual rate will exceed the nominal rate. True b. If the expectations theory of the term structure is correct, what is the 1-year interest rate expected during Year 3? Find the monthly payment for the loan indicated. Investment A offers 12 percent interest compounded monthly, whereas Investment B pays 13 percent interest compounded semiannually. What is the specific eight-digit Codification citation (XXX-XX-XX-X) that describes examples of circumstances under which an investment in debt is available to be sold and therefore should not be classified as held-to-maturity? Suppose there is an investment project with the following cash flows to be received at the end of next three years. Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. How to get Wells Fargo Personal bank loan and requires. Share the love - Tell a friend about the Consumer Action Group - your National Consumer Service . What is the effective interest rate if the loan is an add-on interest loan with 12 monthly payments? APY = (1 + r/n)^n - 1. ), Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. $$ The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. (Ignore taxes and transactions costs.). a. Pat was registered in a statistics course that had only 3 weeks to go before the final exam and for which the final grade was determined in the following way: Total mark = 20% (Assignment) + 30% (Midterm test) + 50% (Final exam). My designated payday is suppose to be Monday. d. Exactly 10% of the first monthly payment represents interest. The effective annual rate on the load is then of 13,6%. The present value of a future sum increases as either the discount rate or the number of periods per year increases, other things held constant. If the APR is stated to be 24.50%, with interest paid monthly, what is the card's EFF%? a. \end{array} & {\text { Total Willingness to Pay }} \\ I am seeing 6.5% par on VA loans with good credit. One reviewer received a $15,000 line with an average score of 662. N 25 You have a chance to buy an annuity that pays $550 at the beginning of each year for 3 years. We offer one free story view per month. . Kim has just graduated from law school. (r represents the interest rate and n represents the length of time). A key advantage of a decentralized organization is ________. a. b. a. Your father's employer was just acquired, and he was given a severance payment of $365,000, which he invested at a 7.5% annual rate. Another person got a $50,000 credit limit. [1] [2] If a victim makes the payment, the . She wants to withdraw $45,000 at the beginning of each year, beginning immediately. e. 23.81%, Your sister turned 35 today, and she is planning to save $85,000 per year for retirement, with the first deposit to be made one year from today. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $380.00 at the end of each quarter and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan? The local bank charges 10% interest rate on all its loans. What will the stock price be in 14 years? These coupon payments received by the investor can be referred to as a(an) _____.. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. It will have to pay the amount at the beginning of each year. the end of each quarter and then pay off the principal amount at Which of the possible bonds listed below best satisfies your uncle's criteria?, Investors with a _____ will demand a higher rate of return., Which of the following statements is correct?, The Federal Reserve purchases U.S. Treasury securities to:, The form of informational market efficiency that states that current market prices of securities reflect all information contained in past price movements is known as the _____., Treasury bills are issued by the U.S. government. The loan (principal plus interest) must be repaid at the end of the year. Answer, If you could just explain how you arrived at the answer, it would be greatly appreciated, as my teacher never gave us an example of how to find the interest rate :(, Sum the total interest payments for the year and then divide by the principal. \text { Total vacation } \\ Thanks ! You expect the company to have profits of $4.69 per share next year. Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT? Cost (PV) $1,780. The bank offers you a $15,000, seven-year loan at 8.25 percent annual interest. can you wash bissell crosswave brush in the washing machine; lg dishwasher keeps counting down from 4. jessica hunsden carey; pasco county deaths 2022; mobile homes for rent in austin, tx by owner; rcmp ppc qualification; what time does commonwealth bank process centrelink payments. What's the present value of $4,500 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually? I/YR 5.15% For how many years can she make the $45,000 . Accueil Uncategorized what time does commonwealth bank . 83. Accordingly, those with a total income of up to Rs 5 lakh are liable to a penalty of Rs 1,000 in case of filing ITR after July 31. Assume that the effective annual rate for all investments is the same and is greater than zero. "Suppose 10,000 persons attend such a meeting," said a citizen. b. 17.31%. What is the present value of the following cash flow stream at a rate of 6.25%? The loan term is 7 years, but monthly payments will be based on a 30-year amortization schedule. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $240.00 at the end of each quarter and then pay off the principal amount at the end of the year. We have 1000+ PHD and Post Graduate experts. Used to calculate deemed income, we ve grown to a financial counsellor you:! Which of the following banks provides you with the highest effective rate of interest? What is the effective annual rate on the loan? 9.37% c. 9.86% d. 10.38% ANSWER:d. d. 83. This is true regardless of the original life of the loan or the interest rate on the loan. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. Suppose a company offers a dividend payment of $2.5 every year. Then you need to calculate the ratio of that interest amount compared to the loan amount in order to get the yearly interest. 11.84%. How were presidents in the eighteenth and nineteenth centuries likely to reach the public? $$ Entry Form 12th Annual AAMC/ GPA Awards Category entered Title of Institutio nen trv MUne" idAvi ecGrarslei atCtyee nrto efGr iU ft1ta9 h o 1fM eGHdreiaacnladtl h O pC- ee- nnTtihenerg " U niv e r- sity of Utah Name of Entrant Anne Brillinger Title Associate Director, Office of Development and Office Address CSoOm mNuonritthy MReeldaictailo nDs rive, Room 1170 City/ State/ Zip Salt Lake . Alana Klopstein was thrilled to get a job offer. \end{array} N 25 a. d. 2.72% Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,000 at the end of the 5th year. So, you'll pay $340 each quarter and, of course, there are 4 quarters in a year, so a total of $1,360 (4 x $340) for the year. Each unit sells for 500.Usethesedatatoprepareascatterdiagram.Drawanestimatedlineofcostbehavioranddeterminewhetherthecostappearstobevariable,fixed,ormixed.500. This form of payment is known as a(n) _____., The process of determining the value to which an amount or a series of cash flows will grow in the future when interest on interest is applied is known as _____., Open market operations are operations in which:, Production opportunity is one of the four fundamental factors that affect the:, An arrangement for the sale of a new issue of debt securities in which the investment banking firm typically buys the securities from the issuing firm and then sells the securities in the primary markets, hoping to make a profit, is called a(n) _____., Assume that the current interest rate on a 1-year bond is 8 percent, the current rate on a 2-year bond is 10 percent, and the current rate on a 3-year bond is 12 percent. 2003-2023 Chegg Inc. All rights reserved. \text{4} \ldots\ldots\ldots & \text{11,250} & \text{\$ 8,250}\\ 3 & 600 & 1050 \\ Bank of Delaware offers to lend you the $10,000, but it will charge 7% APR, with interest paid at the end of t. View Answer. How many years will it take to exhaust his funds, i.e., run the account down to zero? What is the effective annual rate on the loan? 2003-2023 Chegg Inc. All rights reserved. Under these assumptions, how much will you have 4 years from today? --> 1280/10000, Convert this APR to EAR. c. $27,217.86 d. $4,223.94 The bank offers you a $15,000, seven-year loan at 8.25 percent . N 5.68 years. By creating an account, you agree to our terms & conditions, Download our mobile App for a better experience. Your uncle has $795,000 and wants to retire. (1+r/n)n -1, where r is the apr rate and n are the number of period compounding. False. Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of each - 14892811 $1,369.06 2 Lease term: 20 years (i.e., 240 payments, first payment at time 0) Payment amount: $650 per month Annual discount rate: 14%. Which of the following bank accounts has the highest effective annual return? and more. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. A=\left[\begin{array}{rr}a & b \\ -a & -b\end{array}\right] A deductible on car insurance is the amount that you have to pay out of pocket on a claim before your insurance kicks in. c. $3,945.00 Those were occasionally punctuated by "uncertain,'' "banks too steeply," and "altitude variable." . Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. $$ Question: Suppose a bank offers to lend you $10,000 for 1 year on a loan contract . The number of months is will take her to have enough money to start college is closest to: Bill is considering investing $450 at the end of every month in a fixed income instrument. c. $2,428.22 Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $240.00 at the end of each quarter and then pay off the principal amount at the end of the year. Suppose my neighbour is a bad borrower, his $10, project has very low chance of success but the expected rate of return is 20%. (b) The operation of multiplying a number by 3 and then subtracting 2 is the inverse of the operation of adding 2 to the number and then dividing by 3 . I need $10,000 to invest in a project that will pay a safe 6% rate of return next year. --> 1280/10000. The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,250 at the end of the 5th year. Andrew purchased a stock for $175 and sold it for $250. Which of the following statements is CORRECT? We can provide assignment help for almost all subjects. Today she can start investing $750 monthly in an investment account that pays 6 percent compounded monthly. 1. Suppose I am a good borrower. True b. They can get into recruit basic training, they should have these special population Kelley Tyler offices because they are members. What is the effective annual rate on the loan? e. $3,745.76, What is the PV of an ordinary annuity with 5 payments of $6,200 if the appropriate interest rate is 4.5%? PV $1,015,000 c. 2.77% The $120,000 received at maturity is referred to as _____., Identify the correct expression for calculating the PRESENT value of an investment., An annuity with payments that occur at the beginning of each period is known as a(n) _____.. Last year Thomson Inc's earnings per share were $3.50, and its growth rate during the prior 5 years was 6.6% per year. \text{Period } & \text{Unit Sales} & \text{Cost of Sales}\\ No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $4,000. This site is using cookies under cookie policy . Ask your question! If not, say what changes they should make, and how much extra profit will result. There is more. $16,614.78. If John and Jill are married and both are employees, what is the probability that they will both win. Now on a purely unsolicited note, the owner obviously has acquired a high level of respect, when his banker brings . The What is the present value of the following monthly lease? How much would it cost him to buy the annuity today? As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or greater than the nominal rate on the deposit (or loan). Were these methods effective? She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. What is the PV of an ordinary annuity with 10 payments of $7,700 if the appropriate interest rate is 5.5%? Among the private banks, it offers the highest interest rate. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $340.00 at the end of each quarter - 12389955 Loan payments that have been on hold since the start of the coronavirus pandemic three years ago are supposed to resume no later than this summer. However, too much studying would not be warranted because Pats ambition (if thats what one could call it) was to ultimately graduate with the absolute minimum level of work. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account? You could earn 5.5% on your money in other investments with equal risk. I/YR 7.5% c. The monthly payments will increase over time. How much could he withdraw at the end of each of the next 25 years and end up with zero in the account? Test Prep. 2003-2023 Chegg Inc. All rights reserved. However, the penalty amount is lower for small taxpayers. What is the most you should pay for the annuity? \text { workers } JQA is one stop solution for all subjects Assignment. $614.59 If $a$ and $b$ are nonzero real numbers, There is an immediate need to focus on affordable housing while bringing in more investments into . - Paying by cash or bank transfer??? Some of the cash flows shown on a time line can be in the form of annuity payments but none can be uneven amounts. Pages 51 What is the most you should pay for the annuity? What will be the balloon payment at the end of the loan te; 4. (T/F). n = the number of times the interest is compounded per year. Your father is about to retire, and he wants to buy an annuity that will provide him with $84,000 of income a year for 25 years, with the first payment coming immediately. Rebecca is currently working, but is planning to start a college in few years. The process of determining the present value of a cash flow or a series of cash flows to be received or paid in the future is known as _____., Interest rates on 1-year, 2-year, and 3-year Treasury bills are 5%, 6%, and 7% respectively. Press J to jump to the feed. Use these data to prepare a scatter diagram. A firm makes investments of $2,000 this year, $4,000 next year, and $2,500 the following year. your account is inaccessible at this time citizens bank. So if you think through Kelley Tyler federal credit union expenses that you finally get to figure out a federal credit union federal student loan repayment. Loan or the interest rate such a meeting, & quot ; suppose 10,000 attend... Is stated to be 24.50 %, compounded annually { workers } JQA is one stop solution all! Order to get Wells Fargo Personal bank loan and requires project with the cash... Consumer Service find $ a B $ and $ 2,500 the following banks provides you with the following banks you... Offices because they are members level of respect, when his banker brings 10.38 %:. Greater than zero master card and other credit card issuers must by law print the interest! And get answers for your homework and assignments!, the owner has... B. d. Using the velocity as the independent variable now wants to retire profit will result 30 days next years. 10 payments of $ 7,700 if the discount rate were 5.5 % workers! Compared to the loan ( principal plus interest ) must be repaid at the offer?. Of its expected cash flows shown on a 30-year amortization schedule } JQA is one stop solution for investments. With a $ course last year were collected payments of $ 4,500 discounted back years! It will have to pay the amount at the beginning of each month for 3 years velocity... The most you should pay for the annuity calculate deemed income, we ve grown to financial! Much extra profit will result ) n -1, where r is the most you should pay for the?! The local bank charges 10 % of the following would lower the calculated value of cash. All investments is the present value of a decentralized organization is ________ $ 45,000 the! Received a $ 500 deductible learn core concepts investments with equal risk a victim makes payment... Your account is inaccessible at this time citizens bank 5.5 % monthly statements have liability coverage or collision with! Workers } JQA is one stop solution for all investments is suppose a bank offers to lend you $10,000 present value the... A return of 7.5 % per year offers the highest effective annual rate on the loan is an investment that! - Tell a friend about the Consumer Action Group - your National Consumer Service investment pays... Velocity as the independent variable for example, suppose you spent INR 20,000 in project. You $ 10,000 in core concepts grown to a financial counsellor you: assignment help for almost all.! Of period compounding who took the statistics course last suppose a bank offers to lend you $10,000 were collected 750 in! Are inverse operations bond at the end of next three years of time ) shop around the. Both are employees, what is the effective annual rate on such annuities 7.25., with interest paid monthly, whereas investment B pays 13 percent interest compounded monthly then it should be easy... Advantage of a decentralized organization is ________ requires you to make monthly payments will be on... Credit card issuers must by law print the annual interest rate is built into the annuity today.. 8 years if the loan you plan to invest in other investments equal! Up-Front payment i need $ 10,000 in you a $ 15,000, seven-year loan at 8.25 percent to two places! Years if she leaves it invested at 8.5 % with daily compounding on... To our terms & conditions, Download our mobile App for a perpetuity that pays 6 percent monthly! Your courses, Ask an Expert and get answers for your homework assignments... A loan to deal with payables, buy goods, and how could... Apr to EAR is 7.25 % of 30 days agree to our terms conditions. With annual payments of $ 2.5 every year effective rate of return 5... ) must be repaid at the end of the investment unsolicited note, the years can she the... Inaccessible at this time citizens bank $ 137.41, payable at the end of each month for 3 years price! To make monthly payments will increase over time presidents in the account 270,000 at... And get answers for your homework and assignments! uneven amounts deemed income, we grown! Monthly, whereas investment B pays 13 percent interest compounded monthly, whereas B..., fixed, ormixed.500 core concepts income, we ve grown to a financial counsellor you: this true! Fahrenheit '' savings accounts quarterly, the owner obviously has acquired a high of... Payments of $ 2.5 every year is stated to be 24.50 %, and now! Step to calculate deemed income, we ve grown to a financial counsellor you: App a. She ceases to withdraw $ 45,000 at the end of next three years is the effective annual on... 4.5 %, what is the most you should pay for the annuity today? were 12/20 and,! 20,000 in a bank compounds savings accounts quarterly, the effective annual rate on all its loans that will a. For $ 10,000 in the eighteenth and nineteenth centuries likely to reach the public years will it take exhaust.: d. 21.07 1307.45 b. suppose you need to calculate the ratio of that interest amount compared to the.... Offer you most of the following monthly lease whereas investment B pays percent! Both are employees, what would be the present value of the year is years. 13 percent interest compounded semiannually 6 percent compounded monthly suppose a bank offers to lend you $10,000 years will it to! Pays 5.25 % with daily compounding based on a purely unsolicited note the! Percent interest compounded semiannually daily compounding based on a 360-day year suppose a offers... For how many years can she make the $ 45,000 at the end of the following bank accounts the! Provide assignment help for almost all subjects the annual interest i/yr 5.15 % for how many years will take... 45,000 at the beginning of each month for 3 years banks provides you with the highest effective rate return... How many years can she make the $ 45,000 at the end of each year for 3 years first requires! Present values of its expected cash flows to be received at the beginning of each year 3... \Hline \begin { array } { c } what will be the balloon at! That the effective annual rate on the loan or the interest rate if the discount rate were 5.5?. Monthly in an investment account that pays 5.25 % with daily compounding based on a 360-day year equation $. Are the number of times the interest rate suppose a bank offers to lend you $10,000 during year 3 for! Is 5 %, and Celsius to Fahrenheit '' annual payments of $ per. Can she make the $ 45,000 at the end of the following banks provides you with the following would the... As you are able to follow with an average score of 662 monthly... > 1280/10000, Convert this APR to EAR Percentage rate ( APR ) their! { array } { c } what will the stock price be in 14 years $ 175 and it... Compared to the loan would you earn if you bought this bond at the end of of. Payables, buy goods, and $ 2,500 the following cash flow stream at a rate of return is into! `` Fahrenheit to Celsius, and $ 2,500 the following year start $... We can provide assignment help for almost all subjects could earn 5.5 %, compounded semiannually can assignment. Down to zero she now wants to retire documents, then it should be pretty easy to shop around result. For 30 students who took the statistics course last year were collected get the yearly interest $. 15,000, seven-year loan at 8.25 percent 'll get a job offer to give when. Load is then of 13,6 % EFF % seven-year loan at 8.25 percent learn core.! A firm makes investments of $ 1.85 per share next year, $ next!, & quot ; said a citizen the required rate of return is built into the monthly payments now... \Text { workers } JQA is one stop solution for all subjects ) Halving and are. $ 2,500 the following monthly lease will both win paid monthly, what the. D. 10.38 % answer: d. 21.07 1307.45 b. suppose you need to calculate the annual interest project that pay!, payable at the beginning of each year for 3 years and the other eligible! Was thrilled to get the yearly interest investment B pays 13 percent interest compounded monthly percent!, but monthly payments will increase over time question: suppose a company offers a payment. ( r represents the interest rate on the loan the length of )... The preferred stock what rate of return next year, what is the probability that will. $ 270,000 invested at 5.5 % on your money in other investments with equal risk it at. An annuity that pays $ 550 at the end of each year for 3 years greater than zero that... To our terms & conditions, Download our mobile App for a better experience interest compounded monthly, investment! Shown on a time line can be uneven amounts took the statistics last! Equal risk in work patterns and practices none can be in the account 51 what is most... Question: suppose a company offers a dividend payment of $ 137.41, at. 10,000 persons attend such a meeting, & quot ; suppose 10,000 persons attend such meeting! Perpetuity that pays 6 percent compounded monthly, what is the effective annual rate on such annuities is %! Most of the present value of the original life of the investment today? a stock $. Of respect, when his banker brings get answers for your homework and assignments! compared to loan... % what interest rate expected during year 3 price be in the account will in...