Compute the nominal annual rate of interest compounded quarterly (and the effective annual interest rate) at which $390 paid at the end of every three months for six years accumulates to $12,813.00. Do not include the percent sign in your answers. Hint: You have no formula for finding the nominal annual interest rate. Use either the BA II Plus preprogrammed financial package, or use Microsoft Excel. Once you know the nominal annual rate use (10.3) or the BA II Plus to find the effective rate. Nominal annual rate compounded quarterly = 10.25 X % (Should be only 1 decimal needed.) Effective annual rate = 78.9659 X % (Correct to exactly 4 decimal places.) Check

Compute the nominal annual rate of interest compounded quarterly (and the effective annual interest rate) at which $390 paid at the end of every three months for six years accumulates to $12,813.00. Do not include the percent sign in your answers. Hint: You have no formula for finding the nominal annual interest rate. Use either the BA II Plus preprogrammed financial package, or use Microsoft Excel. Once you know the nominal annual rate use (10.3) or the BA II Plus to find the effective rate. Nominal annual rate compounded quarterly = 10.25 X % (Should be only 1 decimal needed.) Effective annual rate = 78.9659 X % (Correct to exactly 4 decimal places.) Check

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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A consumer loan requires monthly payments, in equal amounts, $700.00. The next payment is due in one month. Assume that the appropriate discount rate is 21% (APR). What is the effective annual rate? (show them in excel spreadsheet, write your own present value formulas, don't use Excel built-in functions.
Alexa takes out a loan of 94,000 at an annual effective discount rate of 6%. The loan is to be repaid with annual payments of 10,000. The first payment is due 4 years after the loan is taken out. Calculate the amount of the drop payment. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answwer.
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
Use the TVM Calculator to solve the following compound interest problem. Round your result to two decimal places as needed. Chris invests $14,000$14,000 in an account. The interest is compounded monthly at an annual rate of 9.2%9.2%. The ending account balance will be $24,262.99$24,262.99. How many years was the investment accruing interest?The investment was accruing interest for years.
You just bought a new TV for $2,559.72 on your credit card; assume no other purchases The APR is 18% and monthly payments. What is your monthly payment if you seek to pay off the balance at the end of 5 years from now? Round to the nearest whole number and use the $ symbol ($98 would be the form of a correct answer)
You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 1.8 percent per year, compounded monthly for the first six months, increasing thereafter to 17 percent compounded monthly. Assuming you transfer the $6,900 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of the first year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Use future value and present value calculations (an online calculator, app, financial calculator, or spreadsheet software) to determine the following: Use Exhibit 1-A, Exhibit 1-B and Exhibit 1-C. a. The future value of a $710 savings deposit after nine years at an annual interest rate of 8 percent. Note: Round FV factor to 3 decimal places and final answer to nearest whole dollar. b. The future value of saving $3,200 a year for three years at an annual interest rate of 7 percent. Note: Round discount factor to 3 decimal places and final answer to nearest whole dollar. c. The present value of a $3,400 savings account that will earn 4 percent interest for six years. Note: Round PV factor to 3 decimal places and final answer to nearest whole dollar. a. Future value b. Future value c. Present value
With the given information please confirm if my calculations for how many years it will take to pay off this loan are correct. I need to use excel formulas. Amoutn of loan: 50,000 annual payment 10,000 interest rate: 8% I used the NPER function on excell and my answer was 6.64 years, is this correct?
Need hood explanation, don’t use excel please. Tsinoor takes out a loan of $6800. He will repay the loan over 5-years with semi-annual payments of $816 (first payment due in 6-months). Using linear interpolation, what rate of interest, j2 is being charged on the loan?
Your education loan balance is currently $1800. It is charging you interest at 5.4% compoundedmonthly. Assuming you make no payments on it, how long will it take for the balance to reach$1900? (Please help on how to solve in TI-84 plus calculator)
Solve the following problems without using any software, do everything in digital format, explain the formulas, substitutions and result 3. A person has available the amount of $ 1,250,000 he wants to use to ensure a fixed monthly income for the next three years. For this purpose, deposit that amount in a revolving bank account every 30 days and a monthly interest rate of 0.8% (9.6% per year). Assuming the interest rate was held constant, what amount should you withdraw each month so that by the end of the three years the amount initially deposited would have been completely used up?
PLEASE Use the correct function on EXCEL

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