A total of $66,000 is borrowed and repaid with 48 monthly payments, with the first payment occurring one month after receipt of the $66,000. The stated interest rate is 5.00% compounded quarterly. Part a % What is the intereste rate per cash flow period (month)? Round entry to six decimal places. Tolerance is +0.0005. B.) What monthly payment is required?

A total of $66,000 is borrowed and repaid with 48 monthly payments, with the first payment occurring one month after receipt of the $66,000. The stated interest rate is 5.00% compounded quarterly. Part a % What is the intereste rate per cash flow period (month)? Round entry to six decimal places. Tolerance is +0.0005. B.) What monthly payment is required?

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

See similar textbooks

Similar questions

Prepare an amortization schedule for a three-year loan of $84,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Note: Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Year 1 2 3 Beginning Balance Total Payment Total interest Interest Payment Principal Payment Ending Balance
Month-end payments of $1,450 are made to settle a loan of $123,700 in 8 years. What is the effective interest rate? % Round to two decimal places
A deposit of 100 is made into an account that earns interest as follows: Time 0-3 constant force of interest of 4% Time 3-8 annual effective interest rate of 4% Time 8-10 simple interest rate of 4% What nominal rate of interest, compounded quarterly, is earned over the first ten years?
A $30,000 loan with an interest rate of 9% compounded monthly was repaid, after a period of deferral, by monthly payments of $450 for 10 years. What was the time interval between the date of the loan and the first payment? (round up to the nearest month; i.e. 14.34 will round to 15)
A loan of $4100 is to be repaid in three equal installments due 110, 197, and 311 days respectively after the date of the loan. If the focal date is the date of the loan and interest is 6.89% p.a., find the size of the installments. Answer to the nearest cent.
Find the monthly payment on the loan. Assume that the term of the loan is 10 years. $6300 at 7.8% interest; student graduates 2 years and 6 months after loan is acquired; payments deferred for 6 months after graduation. The monthly payment on this loan is $ necessary. Round to two decimal places, if S Oo 8:
Find the interest rate for a $9000 deposit accumulating to $11,517.62, compounded quarterly for 9 years. The interest rate is %. (Round to two decimal places as needed.)
M9.
Compute the size of the final payment for the following loan. Principal $ Periodic Payment $ Payment Period Payment Made at: Interest Rate % Compounding Period 8100 520 3 months beginning 8 quarterly The size of the final payment is $_ .?
K Your bank is offering you an account that will pay 23% interest (an effective two-year rate) in total for a two-year deposit. Determine the equivalent discount rate for the following periods: a. Six months b. One year c. One month (Note: Be careful not to round any intermediate steps less than six decimal places.) a. Six months The equivalent discount rate for a period length of six months is%. (Round to two decimal places.)
am. 109.
The interest rate on a $55,000 loan is 8.2% compounded semiannually. Quarterly payments will pay off the loan in fourteen years. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. Calculate the interest component of Payment 12. Interest $ b. Calculate the principal component of Payment 49. Principal $ c. Calculate the total interest in Payments 39 to 50 inclusive. Total interest $ d. Calculate the reduction of principal in Year 4. Principal reduction $

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS