A leasing contract calls for an immediate payment of $110,000 and nine subsequent$110,000 semiannual payments at six-month intervals. What is the PV of these payments ifthe annual discount rate is 8%? (Hint: First find the semiannual rate that is equivalent to theannual rate.)Note: Do not round intermediate calculations. Round your answer to 2 decimal places.Present value

PV(rate, nper, pmt, fv) function in excel is used to compute the required present value. Where;rate…

A leasing contract calls for an immediate payment of $110,000 and nine subsequent $110,000 semiannual payments at six-month intervals. What is the PV of these payments i the annual discount rate is 8% ? (Hint: First find the semiannual rate that is equivalent to th annual rate.) Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Present value L

A leasing contract calls for an immediate payment of $110,000 and nine subsequent $110,000 semiannual payments at six-month intervals. What is the PV of these payments i the annual discount rate is 8% ? (Hint: First find the semiannual rate that is equivalent to th annual rate.) Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Present value L

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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Similar questions

A payment of $2798.6 due 9 months ago and payment of $2925.6 due in 4 months are to be repaid by a single equivalent pay today. Given the interest rate charged is 2.91%, what is the size of the single equivalent payment? (Hint: use "today") as the focal date)
16. You borrow $27,000 to purchase a plane. The loan will be paid in monthly installments over one year at 30% interest annually. The first payment is due one month from today. What is the amount of each monthly payment? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
A loan payment of $1100.00 was due 10 days ago and another payment of $800.00 is due 40 days from now. What single payment 90 days from now will pay off the two obligations if interest is to be 3% and the agreed focal date is 90 days from now? The value of the payment is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
You are looking at a one-year loan of $10,000. The interest rate on a one-year loan is quoted as 13 percent plus 3 points. What is the EAR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual rate Is your answer affected by the loan amount? O Affected 16.79 % Not affected
Payment of $942 due 1 months ago and $439 due today are to be repaid by a payment of $400 one month from today and the balance in 9 months from now. If money is worth 4% compounded monthly, and the agreed focal date is 9 months from today. What is the size of the final payment? Please express your answer to the nearest dollar. Sample input: 2456 for $2456.
A loan is to be repaid over 30 years, with month-end repayments of 5,000. If the interest rate is 3.7% p.a. compounded monthly. Calculate the interest paid for year 10. Correct your answer to the nearest cent without any units. (Do not use "$" or "," in your answer. e.g. 12345.67)
Please step by step solltion
Which results in a lower total interest charge, borrowing $1 comma 520 to be repaid 12 months later as a single-payment loan or borrowing $1 comma 520 to be repaid as a 12-month installment loan? Assume a simple interest method of calculation at 11.50 percent interest. Defend your answer. Note: Round intermediate computations to at least five (5) decimal places. Click on the table icon to view the Monthly Installment Loan Payment Factor (MILPF) table: LOADING.... Question content area bottom Part 1 The amount of interest on the single-payment loan is $ enter your response here. (Round to the nearest cent.)
Suppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79
Round to the nearest cent as needed.
Scheduled payments of $890 due today, $525 due in 15 months, and $555 due in 33 months are to be replaced by a single equivalent amount paid at the focal date of 6 months from today. Money earns 11.1% compounded quarterly. Using P/Y=C/Y=4 and PMT=0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $890 due today to the focal date: A PV = N= A FV= Moving $525 due in 15 months to the focal date: N = A/ PV = Moving $555 due in 33 months to the focal date: N = A/ PV = The single amount at the focal date is = A FV= A FV = A/ A A/
A loan is offered with monthly payments and a 16.50 percent APR. What's the loan's effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Effective annual rate %

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