A small construction company is considering the purchase of a used bulldozer for 100,000 SR. They don't have enough cash now to pay this amount and decided to pay equal amounts for the coming 7 years, starting from the end of the first year. How much to pay annually if the interest rate is 5%. O a. 16455 O b. 13826 O c. 14217 O d. 18341 e. 15781

A small construction company is considering the purchase of a used bulldozer for 100,000 SR. They don't have enough cash now to pay this amount and decided to pay equal amounts for the coming 7 years, starting from the end of the first year. How much to pay annually if the interest rate is 5%. O a. 16455 O b. 13826 O c. 14217 O d. 18341 e. 15781

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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"Paul wants to accumulate P150,000 in order to make the down payment for a new car. He plans to invest P25,000 every start of the year, how would it take him to have enough money to make the down payment if the interest rate is 8%?" 23.28 years 5.09 years 4.78 years answer not given
6. Homes-R-Us is offering free credit on a new $200,000 home. You pay $40,000 down and then $16,000 a year for the next 10 years. We-Build'em-Better does not offer free credit but will give you $40,000 off the list price. a. If the discount rate is 5% per year, which company is offering the better deal? b. If the discount rate is 8% per year, which company is offering the better deal? Compare your answers to (a) and (b). Why do you think you are getting those results? c.
Jack wants to buy a boat today today but has realised that if he takes out a loan he can only repay $500 quarterly, with payments made at the beginning of each quarter, over the next 10 years. How much can he spend on his boat today if the interest rate is 12.9% per annum compounded quarterly? Question Answer a. $3075.40 b. $2724.00 c. $11507.84 d. $11148.31
Problem 04.045 - Effort to save money for early retirement In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $1300 per month, starting one month from now, into a fixed rate account that pays 8% per year compounded annually. How much will be in the account at the end of 16.00 years? At the end of 16.00 years, the account will be $ 500068
A small business has determined that the machinery they currently use will wear out in 17 years. To replace the new machine when it wears out, the company wants to establish a savings account today. If the interest rate on the account is 1.1 percent per quarter and the cost of the machinery will be $255,000, how much will the company have to deposit today?
3
10. Loan amortization and capital recovery After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $45,000-with no ($0) down payment. She a to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 10% year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan. Calculate the annual payment and complete the following loan amortization table: Year Beginning Amount 1 2 3 4 $45,000.00 Payment Interest Paid Principal Paid Ending Balance -$0.02
Ten years ago, you deposited P5400 per month. You made the deposit for 6 years and then stopped 4 years later, you established a belts and nuts factory, and start withdrawing P2.300 every month for advertisement. Money is worth 6% compounded monthly. How many months can you withdraw before the money is exhausted? What is the present worth of the withdrawal?(please give the real real not the copied one)
1. You borrow 7,000 dollars to help pay your college expenses. You agree to repay the loan at the end of 4 years at 8% interest compounded quarterly. What is the maturity value of the loan? 2. If inflation causes the cost of automobiles to increase by 2.5% each year. What should a car cost today if it cost 21,000 dollars 5 years ago? 3. Assume you are thinking of buying a house currently priced at 169,000 dollars. If housing prices rise at an annual inflation rate of 3% , estimate the purchase price of a similar house if you wait 4 years before committing yourself to buying one. 4. Suppose when you are 52 years old, the yearly statement you get from the Social Security Administration estimates that your monthly payment at age 66 will be 620 dollars. If inflation stays constant at 2% , what will be the purchasing power of that 620 dollars.

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