4. X generator has a first cost of $20,000, AOC of $15,000, and 5 of $5000 after 4 years. Y generator has a first cost $40,000 with an AOC of $15,000 and 5 of $8000 after 6 years. Find AW of each if the interest rate is 12% per year: 5. A student wants to pay for her education in three years from now. She expects that the tuition fees will be $20000 in three years. Approximately, how much money should she put currently in her savings account if a bank pays 3% interest rate on that account? 6. Assume $100,000 is available for investment where MARR = 16% per year. If alternative X would earn 35% per year on investment of $40,000, and Y would earn 29% per year on investment of $65,000, the weighted averages are:

4. X generator has a first cost of $20,000, AOC of $15,000, and 5 of $5000 after 4 years. Y generator has a first cost $40,000 with an AOC of $15,000 and 5 of $8000 after 6 years. Find AW of each if the interest rate is 12% per year: 5. A student wants to pay for her education in three years from now. She expects that the tuition fees will be $20000 in three years. Approximately, how much money should she put currently in her savings account if a bank pays 3% interest rate on that account? 6. Assume $100,000 is available for investment where MARR = 16% per year. If alternative X would earn 35% per year on investment of $40,000, and Y would earn 29% per year on investment of $65,000, the weighted averages are:

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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. A student plans to enroll at the university and plans to continue there until earning a PhD degree (a total time of 9 years). If the tuition for the first 4 years will be $7,200 per year and it increases by 5% per year for the next 5 years, what is the present worth of the tuition cost at an interest rate of 8% per year?
My daughter wants to buy a new car. Here are the parameters. The car cost $12,000 with terms of 5% APR over five years. She has $3000 saved up and is ready to put down on the loan. 1. What is the actual annual percentage rate she will be charged if she pays all of the $3000 as a down payment for the five years? What will her monthly payments be? 2. Would it be better (cheaper) for her to pay $1000 down now, borrowing the rest, but in 1 year pay the other $2000 put towards principal? How will this affect the loan?
1. Exercise One: Jessica decides to take a $25,000 to help her cover her tuition expenses. The tenor of the loan is 10 years, and the interest rate is 6.75%. Repayments will be made on a monthly frequency. Based on the aforementioned information, and the material covered in class, (a) use the PMT function in Excel to find the fixed total payment, (b) verify your answer from (a) by programming the present value annuity formula as shown in class, (c) create an amortization schedule for this loan, (d) create a bar chart showing the Fixed Total Payment, Interest Paid, and Principal Paid.
An entrepreneurial student plans to borrow money now as much as 20. million, (a) how much is his obligation to pay for 10 years, if the payments are the same amount every year. (b) how much must be paid, if the payment is made in one payment at the end of the 10th year, the interest rate is 12%/year
You want to make 5 equal deposits into an account paying 7.5 percent so that your child can take out $14,000 per year for college expenses. Your deposits will be at t=1, t=2, t=3, t-4, and t-5. Your child will make withdrawals of $14,000 at t-7, t-8, t-9, and t-10. Assume no inflation of college expenses. How much will you need to deposit each of the next 5 years? t = 0 7 W W 1 8 2 9 DOD W W 3 10 D $14,000 $14,000 $14,000 $14,000 A. $7,483 B. $8,424 C. $7,510 D. $8,073 E. $7,910 4 D 5 D
mni.3 A student needs to borrow $7,000 to pay for college. She can get the loan at an APR of 10.75% to be paid off in monthly installments over the next 4 years.If she decides to pay the loan off in monthly installments over 3 years instead of 4 years at the given APR, how much money will she save altogether? Round your answer to the nearest cent.)
Rodriguez: Attempt 1 to have $120,000 in 15 years for their children's college education. How much should be paid. semiannually into an account paying 6.8% compounded semiannually? Problem: A newborn child receives a one time $20,000 gift toward college from her grandparents. How much will the $20,000 be worth in 17 years if it is invested at 7% compounded quarterly? Problem: If you buy a computer directly from the manufacturer for $2,500 and agree to repay it in 48 equal installments at 1.25% interest per month on the Q Search ly 1. A F 2. A=P 3. A- PA
You plan to graduate in 4 years, and then travel to Italy for 3 weeks. The trip will cost $1,500. If you can earn an annual interest rate of 8%, how much do you have to save right now to have enough money for your trip? Instead, the interest rate is 0.667% per month. How much do you need to save right now?
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Your younger sibling asks you to borrow $20. You, a smart financial professional, agree but also charge interest on the $20. You plan to collect $5 from your sibling each week for 8 weeks to repay the initial loan. What is the NPV of this project, assuming you invest the $5 at 12%? a. $4.84 b. $2.11 c. $0 d. $6.88
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