Annuity due. Reginald is about to lease an apartment for 30 months. The landlord wants him to make the leasepayments at the start of the month. The monthly payments are $1,300 per month. The landlord says he will allow Regto prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is$33,886. What is the implied monthly discount rate for the rent? If Reg is earning 1.5% on his savings monthly, shouldhe pay by month or make the one-time payment?What is the implied monthly discount rate for the rent?% (Round to two decimal places.)

When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Annuity due. Reginald is about to lease an apartment for 30 months. The landlord payments at the start of the month. The monthly payments are $1,300 per month. T to prepay the rent for the entire lease with a discount. The one-time payment due at $33,886. What is the implied monthly discount rate for the rent? If Reg is earning 1.5 he pay by month or make the one-time payment? What is the implied monthly discount rate for the rent? % (Round to two decimal places.)

Annuity due. Reginald is about to lease an apartment for 30 months. The landlord payments at the start of the month. The monthly payments are $1,300 per month. T to prepay the rent for the entire lease with a discount. The one-time payment due at $33,886. What is the implied monthly discount rate for the rent? If Reg is earning 1.5 he pay by month or make the one-time payment? What is the implied monthly discount rate for the rent? % (Round to two decimal places.)

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

Your friend tells you he has a very simple trick for taking one-third off the time it takes to repay your mortgage: Use your Christmas bonus to make an extra payment on January 1 of each year ( that is, pay your monthly payment due on that day twice). If you take out your mortgage on July 1, so your first monthly payment is due August 1, and you make an extra payment every January 1, how long (in years) will it take to pay off he mortgage? Assume that the mortgage has an original term of 30 years and an APR of 10.2%. (Hint: The original balance does not matter in this problem, so you can pick any number you want. In this case we will use $100,000 as the principal balance.) Round to three decimal places.
Your lease calls for payments of $500 at the end of each month for the next 12 months. Now your landlord offers you a new 1-year lease which calls for zero rent for 3 months, then rental payments of $700 at the end of each month for the next 9 months. You keep your money in a bank time deposit that pays a simple annual rate of 5 percent. By what amount would your net worth change if you accept the new lease? (Hint: Your return per month is 5%/12 = 0.4166667%.) Group of answer choices +$509.81 −$509.81 +$253.62 −$253.62 +$125.30
A couple borrows 275000.00 for a mortgage that requires fixed monthly payments over 25 consecutive years. The first monthly payment is due in one month. If the interest rate on the mortgage is 4.00%, which of the following comes closest to the monthly payment?
Kk.197.
Alan's monthly payments of $600 will pay off his mortgage loan in 7 years and 5 months. The interest rate on his mortgage is 6.6% compounded monthly. What is the current balance of the loan?
Nancy takes out a $500,000 loan for 25 years at 4% monthly. a) What is the monthly payment?b) What is the final payment? TVM FORMULA
Angie wants to obtain a $500,000 mortgage, amortized over 25 years. Interest rates are currently 8%, compounded twice a year. What is the Effective Annual Interest Rate? What is the monthly payment on the mortgage? What is the balance outstanding after 60 months? What is the total value of interest paid over the life of the mortgage?How much would Angie pay per week if she decided to change her mortgage payments to weekly instead of monthly?
Todd Foley is applying for a $290,000 mortgage. He can get a $2,030 monthly payment for principal and interest and no points, or a $1,827 monthly payment with 4 points? How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?
Paying rent and insurance premiums are examples of an annuity due. Suppose you have to pay a monthly rents of $1,800 for an apartment studio in LA at the beginning of every month. The annual interest rate is 4%. What comes closest to the present value of the monthly rents if you intend to live there for 24 months and the rent is not expected to change? 28540 45050 43000 41600 000
At the age of 30, to save for retirement, you decide to deposit $70 at the end of each month in an IRA that pays 4% compounded monthly. a. Use the following formula to determine how much you will have in the IRA when you retire at age 65. P[(1+r)²-1] A = A: or (7) b. Find the interest. ID a. You will have approximately $ in the IRA when you retire. (Do not round until the final answer. Then round to the nearest dollar as needed.) b. The interest is approximately $ (Use the answer from part a to find this answer. Round to the nearest dollar as needed.)
John Mayer Inc. purchases a house for $500,000. On January 1, He makes a 20 percent down-payment and gets a 30 year fixed mortgage with a 3.6 percent annual interest rate (i.e., he borrows 400,000). What are his monthly mortgage payments on the house if the first mortgage payment happens on January 31? Hint, this means interest compounds monthly.
Andy Reid wants to buy a new home that costs $375,000. He can borrow money from the bank at an interest rate of 6.8% compounded monthly. The mortgage is for 30 years and requires monthly payments. What is Andy's monthly mortgage payment? Multiple Choice O $2,811.43 $2.44472 $1,041.67

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