not use ai please 6. Jan gives Ted a loan at 4% effective to be repaid by 10 annual payments of 100, followed by 5annual payments of 200. Just after Ted makes the 5th payment, Ja and Ted discover that each ofthe 15 payments should have been 10% higher than they were originally scheduled. They agree thatTed will make increased payments of K in the 6th through 10th years to adjust for the error. Thepayments of 200 in the 11th through 15th years will not change. Determine K.(A) 113 (B) 129 (C) 139 (D) 145 (E) 149

Answered: Image /qna-images/answer/04cc5104-cbaa-4f56-8b68-d8bead90d118.jpg

Answered: 6. Jan gives Ted a loan at 4% effective…

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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Suzanne opens a line of credit at a local bank, and immediately borrows 1510 dollars. 5 months later, she repays 1120 dollars. 2 months after the repayment, she borrows 560 more dallars, 4 months later, she repavs 740 dollars. If no other transactions take place and the interest rate is 0.95 percent per month (compounded monthlydw much will she owe two years after she opened the line of credit? Answer= 396 dollars.
Eva Mendez decides to save up an additional down payment for a condo she hopes to purchase in 4 years. She invests $970 at the end of each quarter in an account eaming 4 compounded quarterly. 1. Fill out the chart below with the correct caloulator values. Do not include any units and do not use any negative signs. Use a 0 in the chart if the value in the question is unknown or to be calculated. For MODE 1BGN and 2-END. 2. Find the amount of the annuity in 4 years. Include units in this calculation. Answer 1. N= PV= PMT = FV- P|Y=
X, Y, and Z each borrow $10,000. They agree to repay their loans in full in one year. X borrows his money at 7 percent, compounded monthly. Y borrows his money at 7 percent, compounded annually. Z’s loan has 7 percent simple interest. Given this information, which one of the following statements is correct? Z will owe less money than either X or Y. Y will have to repay the same amount as Z, but less than X. X will owe less money than either Y or Z. X, Y and Z will owe the same amount one year from now. Y will owe the same amount as X, but less than Z.
19. Stacy makes monthly payments of $450 to pay off her student loan. Due to unem- ployment, she defaulted on her last two payments. If she wants to get out of arrears, what amount should she pay for her next payment? Assume the defaulted payments are compounded monthly at a rate of 4%. 20 Cetro0 1.61500
Sarah borrows some money to buy a new car. The car dealership allows her to defer payments for 12 months, and Sarah makes 60 end-of month payments thereafter. If the original loan is $29140 and interest is 0.75% per month, how much will Sarah's monthly payment be? 4 O $1326 O $796 O $530 O$663 O $1193
Asa Khumalo purchased a vehicle to the value of R224987 today and expects to make repayments for the next 7 years. The bank charges Asa at 12% pa compounded monthly. Asa believes that between months 18 and 21 she will not be able to make payments. What will Asa's new payments be over the remaining term.
use the formula that is applicable.
. Hans takes out a loan for his college tuition from a bank that charges simple interest at an annual rate of 5.35%. His loan is for $7700 for 4 months. Assume each month is 1/12 of a year. Answer each part below. Do not round any intermediate computations, and round your final answers to the nearest cent. Find the interest that will be owed after 4 months. Assuming Hans doesn't make any payments, find the amount owed after 4 months.
Wilma borrows $10,000 from "Jaw Breaker Joe" and promises to repay Joe a total of $10,500 in one month. What is the effective annual interest rate charged by Joe? 5.00% 60.00% 79.59% 179.59%
6. Jake and Archie are looking for places to live. Jake decides to rent a house for $1400 . Archie buys a house for $189 900, with a down payment of 10%. The bank has offered Archie a 20-year mortgage for the remainder of the cost, at 4% compounded semi-annually, with payments every two weeks. Jake and Archie both move after 5 years. Archie's house has depreciated by 2% per year. Compare Jake's and Archie's housing costs. per month.
6. Ms. Lanz takes out a $9,000 loan to buy a used car for her daughter. She gets a 4-year loan at 8.75% interest. Her payments will be $222.90 a month. What is the total repayment of the loan? $9891.60 G $16,992.00 H $10,699.20 Not Here
Leslie Mosallam, who recently sold her Porsche, placed $10,000 in a savings account paying annual com- pound interest of 6 percent. a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 1, 5, and 15 years. b. Suppose Leslie moves her money into an account that pays 8 percent or one that pays 10 percent. Rework part a using 8 percent and 10 percent. c. What conclusions can you draw about the relationship among interest rates, time, and future sums from the calculations you just did? use EXCEL to work this out and show the formula!

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