Audrey_Pickle_Ch 12 Assignment

Question 1: Part A.  The current 10 year treasury note is approaching the important threshold of: a) 2.75% b) 2.95% c) 3.25% d) 2.0%   Part B.  In a real estate investment, you may want to obtain a mortgage. In so doing, which year would you expect to see the highest amount of principal pay-down (in a payment mix of principal and interest)? a) year 15 b) year 20 c) year 10 d) year 25Part C.  In a Fast Market, you would rather sell a stock using a: a) Market Order b) Market On Close Order c) Limit Order d) Market On Open OrderPart D. Given that equity markets are asymmetric in their respective moves, markets are said to take________________________  a) the slow grind higher into perpetuity b) the stairs down and the elevator up c) the stairs up and your mom home d) the stairs up and the elevator down     Part E. It is said that traders have come to employ the use of technical analysis potentially for all of the following reasons except:…

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Finding the Interest Rate: Concept Connection Example 6-3 (page 237) 18. What interest rates are implied by the following lending arrangements? a. You borrow $500 and repay $555 in one year. b. You lend $1,850 and are repaid $2,078.66 in two years. c. You lend $750 and are repaid $1,114.46 in five years with quarterly compounding. d. You borrow $12,500 and repay $21,364.24 in three years under monthly compounding. (Note. In parts c and d, be sure to give your answer as the annual nominal rate.) Lasher, William R.. Practical Financial Management (Page 276). South-Western College Pub. Kindle Edition.

Evaluating alternative notes A borrower has two alternatives for a loan: (1) issue a $510,000, 120-day, 9% note or (2) issue a $510,000, 120-day note that the creditor discounts at 9%. Assume a 360-day year. a. Compute the amount of the interest expense for each option. for each alternative. b. Determine the proceeds received by the borrower in each situation. (1) $510,000, 120-day, 9% Interest-bearing note (2) $510,000, 120-day note discounted at 9% c. Alternative. ) is more favorable to the borrower because the borrower

Evaluating Alternative Notes A borrower has two alternatives for a loan: (1) issue a $660,000, 120-day, 6% note or (2) issue a $660,000, 120-day note that the creditor discounts at 6%. Assume a 360-day year. a.  Calculate the amount of the interest expense for each option.$fill in the blank 1 for each alternative. b.  Determine the proceeds received by the borrower in each situation. (1) $660,000, 120-day, 6% interest-bearing note $fill in the blank 2 (2) $660,000, 120-day note discounted at 6% $fill in the blank 3 c.  Alternative   is more favorable to the borrower because the borrower   .

Question content area top Part 1 Calculate the monthly payments of a 3030​-year ​fixed-rate mortgage at 6.006.00 percent for ​$136 comma 200136,200. How much interest is paid over the life of the​ loan?   ​Note: Round intermediate computations to at least five​ (5) decimal places. Click on the table icon to view the Monthly Installment Loan Payment Factor​ (MILPF) table: LOADING... .       Question content area bottom Part 1 The monthly payments of a 3030​-year ​fixed-rate mortgage at 6.006.00​% for ​$136 comma 200136,200 is ​$817.2817.2. ​(Round to the nearest​ cent.) Part 2 The amount of interest paid over the life of the loan is ​$enter your response here. ​(Round to the nearest​ cent.)

Q: Which Is the better option to consolidate debt? Option 1: You have a loan at $21,000 at 16.24% (APR) 3 year term, Making the minimum payment monthly. Option 2: You have two loans; 1: $10, 700 at 8.99% (APR), 3 year term, Making the minimum payment monlthy. 2: $ 10,300 at 12.24% (APR), 3 year Term, Making the minimum payment monthly. Which option saves the most in interest, which is the better option to save the most money?

Evaluating Alternative Notes A borrower has two alternatives for a loan: (1) issue a $360,000, 60-day, 5% note or (2) issue a $360,000, 60-day note that the creditor discounts at 5%. Assume a 360-day year. a.  Calculate the amount of the interest expense for each option. $fill in the blank 1 for each alternative. b.  Determine the proceeds received by the borrower in each situation. (1) $360,000, 60-day, 5% simple-interest $fill in the blank 2 (2) $360,000, 60-day note discounted at 5% $fill in the blank 3 c.  Alternative    is more favorable to the borrower since the effective interest rate on alternative 1 is     and the effective rate on alternative 2 is    .

9. Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Matthew needed money for some unexpected expenses, so he borrowed $3,900.55 from a friend and agreed to repay the loan in four equal installments of $1,100 at the end of each year. The agreement is offering an implied 5% -5.90% 4.35% interest rate of 6.75% Matthew's friend, Gregory, has hired a financial planner for advice on retirement. Considering Gregory's current expenses and expected future lifestyle changes, the financial planner has stated that once Gregory crosses a threshold of $4,136,860 in savings, he will have enough money for retirement. Gregory has nothing saved for his retirement yet, so he plans to start depositing $40,000 in a retirement fund at a fixed rate of 5.00% at the end of for Gregory to reach his retirement goal. each year. It will take 137.30yes 50.36 yes 46.63 yes 31.71 yes

1. A contract calls for a lump-sum payment of $15,000. Find the present value of the contract assuming. When making these calculations, you need to use a present value factor that is carried to three decimal places to get the correct answers. a. The payment is due in five years, and the current interest rate is 9 percent. Your answer should contain a dollar sign.b. The payment is due in ten years and the current interest rate is 5 percent. Your answer should contain a dollar sign.c. Between the two calculations, A and B, which option is the best option for the person receiving the payment? State in a full sentence why you chose this option.