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.
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.
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
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
Slick Sam has a special relationship with his banker. The nature of the relationship is as follows: • The bank owes Sam $100 per year forever. The 1st payment is due in 1 year. • The bank will borrow or lend money to Sam at a constant effective rate of i per year. Today, Sam calculated the present value of the payments that are due to him as X. Sam can receive his first 16 payments at the end of year 16 in a lump sum. If he does that, then the total value of the lump sum and future payments at the end of the sixteenth year is X + 2,000. Calculate X. A B с D E 3,330 3,350 3,400 3,450 3,500
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. Jacob needed money for some unexpected expenses, so he borrowed $2,138.41 from a friend and agreed to repay the loan in three equal installments of $800 at the end of each year. The agreement is offering an implied interest rate of . Jacob’s friend, Devan, wants to go to business school. While his father will share some of the expenses, Devan still needs to put in the rest on his own. But Devan has no money saved for it yet. According to his calculations, it will cost him $31,897 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $3,800 at the end of every year in a mutual fund, from which he expects to earn a fixed 6% rate of return. It will take approximately for Devan to save enough money to go to business school.
Wade Ellis buys a new car for $16,882.14. He puts 10% down and obtains a simple interest amortized loan for the rest at the nearest cent.) (a) Find his monthly payment. X (b) Find the total interest. (c) Prepare an amortization schedule for the first two months of the loan. Payment Number Principal Portion Total Payment 0 1 2 LA पण Interest Portion पण A X X पण $ LA Balance 111% interest for four years. (Round your answers to
Explain well with proper answer.
Nona purchased a new car earlier today for $33,000. She financed the entire amount with a six-year loan that has a 6 percent interest rate (compounded monthly). a. Compute the monthly payments for the loan. Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ b. How much will Nona owe on the loan after she makes payments for 3 years (i.e., after 36 payments)? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ tA
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