Screenshot 2024-02-09 at 12.18.41 PM

png

School

Wilfrid Laurier University *

*We aren’t endorsed by this school

Course

170

Subject

Economics

Date

Feb 20, 2024

Type

png

Pages

Uploaded by a_v1234

Problem 10. (1 point) Axel has a promissory note for $1950 dated April 1, 2013. The note is due in 225 days with interest at 4%. If Axel sells the note to a bank on November 3, 2013 for $1989.57, what rate of interest will he realize on his investment? Answer: % Correct Answers: e 3.42866 Problem 11. (1 point) An original debt required payments of $3000 due in 6 months as well as $5000 due in 11 months. Instead, it is agreed that a payment of X dollars, made in 5 months, followed by a payment of $4000 in 12 months, will replace the original set of debt pay- ments. Using 11 months as the focal date, what is X if the simple interest rate on the loan isr =12 Answer: $ Correct Answers: e 3952.46 Problem 12. (1 point) Justin owes $859 in 3 months and $423 in 7 months. The lender agrees to allow Justin to pay off these two debts with a single pay- ment. What single payment a) due now and b) due in six months will pay of both debts completely. Assume simple interest is 3%. a) Assuming focal date is now: $ b) Assuming focal date is in 6 months: $ Correct Answers: e 1268.33027478189 e 1287.38763715711 Problem 13. (1 point) Lebron has two options to pay off a loan. i) He can pay $949 at the end 4 months and another $438 at the end of 8 months OR ii) He can pay $ X at the end 2 months and $ 3X at the end of 6 months. Determine X if the interest is 7% and the focal date is 6 months so that the options are equivalent. Answer: $ Correct Answers: e 346.23544221039

Discover more documents: Sign up today!

Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

BBA2401UnitIIEssay.docx

BBA2501UnitVIIFinalProject.docx

BBA2401UnitVIIAssignment.docx

BBA2401UnitVIIIFinalProject.docx

BBA2401UnitVIAssignment.docx

BBA2501UnitVAssignment.docx

Class Quiz 4.4 .pdf

Statistics Assessment.xlsx

Question 20.docx

Quiz31.docx

U.S. Public Land Survey System.docx

Chapter 2 Study Guide Multiple Choice (1).docx

Recommended textbooks for you

Microeconomics A Contemporary Intro

Economics

ISBN:9781285635101

Author:MCEACHERN

Publisher:Cengage

Microeconomics: Private and Public Choice (MindTa...

Economics

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:Cengage Learning

Economics: Private and Public Choice (MindTap Cou...

Economics

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Cengage Learning

Managerial Economics: Applications, Strategies an...

Economics

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:Cengage Learning

ECON MICRO

Economics

ISBN:9781337000536

Author:William A. McEachern

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Microeconomics A Contemporary Intro
Economics
ISBN:9781285635101
Author:MCEACHERN
Publisher:Cengage
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
ECON MICRO
Economics
ISBN:9781337000536
Author:William A. McEachern
Publisher:Cengage Learning