An is considering to take out a loan of $10,000 to fund this promotion service. Option 1: Ella needs tomake daily payment of $67.2 from 1 January 2024 to 31 May 2024 (inclusive). (Assume that there are 365days in a year.). Find the implied effective annual rate charged by the bank? use excel Which one isbetter?

Assuming the loan amount is the same for both options, we can calculate the total cost of borrowing…

Answered: An is considering to take out a loan of…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 27M

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(Use Calulator or Formula Approach) You want to receive $5,000 per month in retirement. If you can earn 0.75% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement?
Everything is the same as in Question 5, but the annuity you buy has COLA's of 2% per annum. (That is, the payments increase every year by 2%). What is the initial value of the income you receive from the annuity on 1st January 2050? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $97,929.30 b $97,929.31 c $97,929.32 d $97,929.33
Check My Work еВook Starting next year, you will need $20,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $20,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $20,000 payments. a. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent. $
Please explain how to do this in Excel. Please explain how you did it and what the results mean.You plan to buy a house in December 2023. The sale price is $650,000. You need to pay 20% down payments and borrow the additional 80% from Bank of America with a 30-year, 7.2% fixed-rate mortgage loan. You need to pay an equal MONTHLY payment starting from January 1, 2024, for a total of 30 years. (1) Calculate your expected monthly mortgage payment. (2) Develop the full amortization table for your mortgage loan. (3) When you prepare your 2024 tax filing, what is the total mortgage interest payment that you can consider for the tax deduction?
Need only handwritten solution only (not typed one).
magine you borrow $500 from your roommate, agreeing to pay her back $500 plus 12 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 5.94 percent. What is the total dollar amount you will have to pay her back in a year? What approximate percentage of the interest payment is the result of the real rate of interest? Use the simplified Fisher equation. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 17.54.)Excel Template(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you’ve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Total dollar amount $enter a dollar amount rounded to 2 decimal places Approximate…
Imagine you borrow $490 from your roommate, agreeing to pay her back $490 plus 7 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.49 percent. What is the total dollar amount you will have to pay her back in year? What percentage of the interest payment is the result of the real rate of interest? (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 17.54 or 17.54%.)
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
Check my work Carrie Tune will receive $27750 for the next 5 years as a payment for a new song she has written. Use Apnendix D for an approximate answer, but calculate your final answer using the formula and financial caiculator methods o. What is the present value of these payments if the discount rate is 7 percent? (Do not round intermediate calculations. Round your final onswer to 2 decimal places.) 17. Present value b. Should she be willing to sell out her future rights now for $161.000? O Yes O No

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