a. Use the appropriate formula to determine the periodic deposit.b. How much of the financial goal comes from deposits and how much comes from interest?Periodic DepositRateTime$? at the end of each year5% compounded annually14 yearsFinancial Goal$130,000Click the icon to view some finance formulas.a. The periodic deposit is $ ☐.(Do not round until the final answer. Then round up to the nearest dollar as needed.)b. Sof the $130,000 comes from deposits and $comes from interest.(Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.)

A: The formula for periodic deposit is: P = FV*r/(1+r)^n-1 Where P is the amount of periodic…

Answered: a. Use the appropriate formula to…

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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Find the total amount that must be repaid on the following note described. $8,593 borrowed at 18.5% simple interest What is the total amount to be repaid 3 years, 125 days later? (Round your answer to the nearest cent.) $ 13906.53 Need Help? Read It
Find the following. (Round your answers to the nearest cent.) FinanceCharge Number ofPayments Frequency Amount Number ofPayments Left $9.10 12 Monthly $15 5 (b) the amount needed to pay off the loan
Based on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? How do I round time value factor and final answers to 2 decimal places? What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment?
What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts shown in the cash flow diagram if the interest rate is 6% compounded quarterly? Q 6% Compounded quarterly $2,500 $1,600 Quarters 0 1 2 3 4 5 6 7 8 The amount of the quarterly deposits A should be $ (Round to the nearest dollar.) (Deposit)
You have just been hired as a loan officer at a national bank. Your first assignment is to calculate the amount of the periodic payment (in $) required to amortize (pay off) the following loan being considered by the bank (use Table 12-2). (Round your answer to the nearest cent.) LoanPayment PaymentPeriod Term ofLoan (years) NominalRate (%) Present Value(Amount of Loan) $ every month 1 1 4 6 $30,000
3. If you receive $98 each month for 12 months and the discount rate is 0.07, what is the present value? (show the process and can use financial calculator)
For each case, provide the missing information. Assume payments occur at the end of each period. (Use the present value and future value tables, the formula method, financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places X.XXXXX. Round all final answers to the nearest cent, $X.XX, and round the loan maturity date to the nearest whole year.) (Click the icon to view the cases.) Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Cases Amount borrowed Interest rate Number of periodic payments per year Maturity (in years) Periodic payment (1) (a) 4% 4 10 $ 10,354.90 (2) $ 675,000 $ 4% 2 10 (b) S CO (3) 456,000 6 % 1 (c) 81.685.59 (4) $ 750.000 12 % T (d) I X
Write TRUE if the statement is true and FALSE if otherwise. 1. Compounding refers to the earning of interest on interest. 2. Discounting refers to the process of bringing the future back to the present. 3. The more frequently interest is compounded, the larger will be the final or terminal amount. 4. It takes longer than 8 years to retire a $24,000 loan at 8% if the annual payment is $3,000. 5. An annuity of $100 for 10 years is currently lessvaluable if interest rates are 10% instead of 12%. 6. If a person buys a stock for $10 and sells it after 10years for $20, the annual compound return is 10%. 7. Higher rates of interest are associated with greater present values. 8. If interest rates are 9 percent, an annuity of $100 for 10 years is to be preferred to $1,000 after 10 years. 9. If a bank pays 5 percent compounded semi-annually, the true rate of interest is less than 5 percent annually.
pls refer to the image attached, 1. suppose that you have the capacity to pay, would you rather borrow a loan that is amortized monthly, or one that is amortized quarterly? 2. what is your considerations when availing a loan? (quantitative or qualitative considerations) Discuss.
Urgent, please answer the question below.This is how you answer the problem,(a) Identify the given (b)Identify the unknown or what is being asked in the problem(c)Solution, include the formula used to solve the problem(d)box the final answer
You have just been hired as a loan officer at a national bank. Your first assignment is to calculate the amount of the periodic payment (in $) required to amortize (pay off) the following loan being considered by the bank (use Table 12-2). (Round your answer to the nearest cent.) LoanPayment PaymentPeriod Term ofLoan (years) NominalRate (%) Present Value(Amount of Loan) $ every month 1 3 4 6 $40,000
b) suppose that the market interest rate is 5%. Calculate the present value of the following. Show how your answer is obtained. Calculation using a formula, not using excel. i) A fixed payment loan with annual payments of $163 that matures in three years.

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