A credit union's Rate-Climber GIC pays rates of 21%, 26%, and 3.1% compounded semiannually in successive years of a three-year term. What will be the maturity value of $13,000 invested in this GIC? (Do not round Intermedlate calculations and round your final answer to 2 decimal places.) Maturity value $4

A credit union's Rate-Climber GIC pays rates of 21%, 26%, and 3.1% compounded semiannually in successive years of a three-year term. What will be the maturity value of $13,000 invested in this GIC? (Do not round Intermedlate calculations and round your final answer to 2 decimal places.) Maturity value $4

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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Suppose you take a 3/1 interest-only ARM for $100,000, monthly payments, 30-year term. The initial contract rate is 4.00% and the contract rate for year 4 is 6.50%. What is the balance of the loan at the end of year 4? 94,892.15 98,591.88 96,483.13 95,347.22
What annual interest rate is earned by a 17-week T-bill with a maturity value of $1,700 that sells for $1,680.88? ... The annual interest rate is %. (Type an integer or decimal rounded to three decimal places as needed.)
To repay a $400,000 loan you are required to make sixteen equal-sized repayments every six months. If the loan's interest rate is 5% p.a. compounded half-yearly, how much interest is paid in the first period? Group of answer choices $30,639.60 $20,639.60 $10,000.00 $20,000.00
The interest rate on a $15,300 loan is 9.7% compounded semiannually. Semiannual payments will pay off the loan in nine years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.) a. Calculate the interest component of Payment 12. $ b. Calculate the principal component of Payment 5. Principal c. Calculate the interest paid in Year 8. Interest paid d. How much do Payments 5 to 8 inclusive reduce the principal balance? Principal reduction Interest
If you borrow $7,300 at $800 interest for one year, what is your effective interest rate for the following payment plans? Note: Input your answers as a percent rounded to 2 decimal places. a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % % %
A leasing contract calls for an immediate payment of $108,000 and nine subsequent $108,000 semiannual payments at six-month intervals. What is the PV of these payments if the annual discount rate is 12%? (Hint: First find the semiannual rate that is equivalent to the annual rate.) Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
A $32,000 loan at 8% compounded quarterly is to be repaid by equal quarterly payments over a seven-year term. (a) What will be the principal component of the sixth payment? (Round your answer to 2 decimal places.) (b) What will be the interest portion of the twenty-second payment? (Round your answer to 2 decimal places.) (c) How much will the loan’s balance be reduced by Payments 10 to 15 inclusive? (Round your answer to 2 decimal places.) (d) How much interest will be paid in the second year? (Round your answer to 2 decimal places.)
basic ARM is made for $220,000 at an initial interest rate of 6 percent for 30 years with an annual resetdate. The borrower believes that the interest rate at the beginning of year (BOY) 2 will increase to 7 percent. Required:a. Assuming that a fully amortizing loan is made, what will the monthly payments be during year 1? b. Based on (a) what will the loan balance be at the end of year (EOY) 1? c. Given that the interest rate is expected to be 7 percent at the beginning of year 2, what will the monthlypayments be during year 2? d. What will be the loan balance at the EOY 2 ? e. What would be the monthly payments in year 1 if they are to be interest only?
Monthly payments are required on a $45,000 loan at 6.0% compounded monthly. The loan has an amortization period of 15 years (Round your answers to 2 decimal places.) a. Calculate the interest component of Payment 137. Interest component $1 b. Calculate the principal component of Payment 76. Principal component c. Calculate the interest paid in Year 1. Interest paid d. Calculate the interest paid in Year 14. Interest paid

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