First simple bank pays 6.4 percent simple interest on its investment accounts. If first complex bank pays pays interest on its accounts compounded annually, what rate should the bank set if it wants to match First simple bank over an investment horizon of 10 years?

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A: Following details are given in the question : Deposit today (Present value) = $100 Time period = 15…

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A: Note: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…

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A: Annuity:   An annuity is the series of payments which is received or paid for a fixed period of…

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A: Future Value = Present value ( 1 + i )n

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A: In this we need to calculate present value factor and from that you will get monthly payment.

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Q: A company wants to have $40,000 at the beginning of each 6-month period for the next 4.5 years. If…

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A: Given, Number of years 12.

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A: Present Value = $1,800 Time = 1 year Rate = 3%

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A: Annual Deposit = 10,000 Interest Rate = 12% Future Value Required = 1,000,000

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A: The problem relates to ANNUITY DUE. Annuity due is an annuity whose payment is due immediately at…

Q: How large must each annual payment be if the loan is for $50, 000? Assume that the interest rate…

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Q: What is the internal rate of return on a $3,000 loan to be repaid as $3,500 twoyears from now?

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Q: What is the monthly payment for a $525,000 loan at 7.0% interest for 25 years with monthly payments?

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A: Here,

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A: Computation:

Calculating the Return On A Loan