GCB has offered to grant you GHC50,000 loan with an annual interest of 24%compounded monthly to buy a house, What would be the monthly payment on the loan ifthe mortgage would be fully amortized in 20 years?b)Find the future and present value of a 5 year GHC1,000.00 annuity if the rate of interestis 12% and the first monthly payment is made now.c)Dividend of a share is forecasted to grow -6% next year, grow super-normally at 30% thenext 3 years, and at a constant rate of 7.5% thereafter. What is the value of the stock inquestion if dividend paid this year is GHC4.50share and the required return is 13%.d)Calkulate the value of a 10-year, 10% S1,00.00 semisannual coupon bond if theprevailing market interest rate is 8%.

Because you have posted multiple questions we will answer the first question only, for the remaining…

Answered: GCB has offered to grant you GHC50,000…

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

If you could solve Option 2 with formulas that would be great! Option 2: Borrow $5,000,000 from a bank quoted an annual interest rate of 3.8%, do monthly payments during the payback period of 6 years. Find periodic and annual payments, also cumulative interest and cumulative principal.
Your bank is offering you a mortgage loan for $100,000. It is a fixed rate loan at 4% per annum (APR). It has a 30 year tenor and requires monthly payments. What is your monthly payment? Round to the nearest $ and use the $ symbol.
What will be the balance at the end of the tenth year on a monthly payment $130,000 loan with a 30-year amortization period at an interest rate of 5.75 percent per year? please show how to solve on financial calculator ba2plus.
C) What is the present value of $7,500 per year, at a discount rate of 8.5 percent, if the first payment is received 10 years from now and the last payment is received 25 years from now?You have signed up for your 401k and will deposit $750 into your 401k when you are paid at the end of each month. If you earn a compound annual rate of return of 6%, how much will you have in 15 years?What would your monthly car payment be if you financed a $35,000 car for 3 years at a rate of 6%?The appropriate discount rate for the following cash flows is 12 percent compounded quarterly. What is the present value of the cash flows? Year 1 CF=700, Year 2 CF=600, Year 3 CF=0, Year 4 CF=1000
If Your bank _offers to lend y~u $100,000 at_ an 8.5% annual interest rate to start your new business. The terms reqwre you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2?
A lender has offered to finance the purchase at the following terms: 60% Loan-to-Value 5% Interest Rate, Interest-only payments for 10 years What is your Year 1 Cash-on-Cash Return?
Future value (with changing years). Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has $6,000 for his CD investment. If the bank is offering a 5.5% interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a a. two-year investment period? b. five-year investment period? c. eight-year investment period? d. twenty-year investment period? a. How much will the $6,000 CD investment at 5.5% interest rate be worth at maturity if Jonathan picks a 2-year investment period? $4 (Round to the nearest cent.) %24
You have been assigned to estimate the interest rates that your company may have to pay when borrowing money in the near future. The following information is available.kPR = 2%MR = 0.1% for a 1 year loan increasing by 0.1% for each additional yearLR = 0.05% for a 1 year loan increasing by 0.05% for each additional yearDR = 0 for a 1 year loan, 0.2% for a 2-year loan, increasing 0.1% for each additional yearExpected Inflation Rates Year 1 = 7% Year 2 = 5% Year 3 and thereafter = 3% a. Calculate the inflation adjustment (INFL) for a 5-year loan. b. Calculate the appropriate interest rate for a 5-year loan.
A firm borrows $2,000,000 at 12% annual interest and wishes to pay it back with payments that increase by $50,000 per year over the 10-year life of the loan. How much would their first payment be?
you are analyzing a GPM. the terms are $60,000 loan amount, 9% note rate, 30 years, monthly payments, OFV, payments in year one based based upon 7%, and payment in year two based on 8%. how much will you owe on this loan at the end of the second year? Please assist, using HP 10bII+.
A borrower has secured a 30 year, $154,00O loan at 7% with monthly payments. Fifteen years later, the borrower has the opportunity to refinance with a fifteen year mortgage at 6%. However, the new loan requiers the borrower to pay 2 points at chopsing. What is the return on investment if the borrower expects to remain in the home for the next fifteen years? Please input your answer as an annual interest rate (i.e. 8.32% would be input as 8.32).
You have a chance to buy an annuity that pays $25,000 at the beginning of each year for 10 years. You could earn 8.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $346,484.41 O $177,976.57 O $164,033.70

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