If a lender makes a simple loan of $400 for 5 years and charges 7​%, then the amount that the lender receive at maturity is $.​(Round your response to the nearest two decimal​ place) Part 2 If a lender makes a simple loan of ​$500 for one year and charges $70 ​interest, then the simple interest rate on that loan is ​%.​(Round your response to the nearest whole​ number) Part 3 If a borrower must repay​ $106.50 one year from today in order to receive a simple loan of​ $100 today, the simple interest on this loan is

Q: Problem 3 An investor bought a discount bond with face value of $1,000 at the price of $870. The…

A: Given  FV = 1,000 Price = 870

Q: 1. Find the interest paid on a loan of $2000 for 1 year at a simple interest rate of 7% per year.

A: Simple interest is a straightforward method of calculating how much you owe on a loan. The concept…

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A: Hi! thanks for the question but as per the guidelines, we answer only one question at one time.…

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Q: Extra #2. A loan is repaid with 24 monthly installments at the end of every month. The first payment…

A: Loan repayment is the process of paying back the money borrowed from a lender, along with the…

Q: Sam promises to pay Sandy $2,000 in four years and another $3,000 four years later for a loan of…

A: Interest rate: The real interest rate is the rate of interest that is being calculated in an economy…

Q: 1a. Suppose $100 is withdrawn at the end of 2022, emptying an account that earns 5% interest,…

A:

Q: An annuity-due has 26 payments of $200 per period. The effective rate of interest per period is 8%…

A: Annuity payment = 200 n = 26 effective rate for 12 years = 8% effective rate for 14 years = 4%

Q: Use the compound interest formulas A=P [1+r/n] and A=Pe^rt to solve the problem given. Round answers…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

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A: Future value can be calculated as follows. Monthly interest rate (i) is 0.0033. Time period is 360.…

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A: If: F = Face value P = Current price C = Annual coupon N = Years to maturity and Y = YTM,  Then Y =…

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A: Present Value Of Annuity: An annuity is a regular cash inflow that happens at the end of each period…

Q: If a lender gives you a loan for $500,000 today. You promise to pay $X a year for the next 30 years.…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Explain Methods of Calculating Interest?

A: Answer -  Interest = It is the extra amount of money a lender which charge to a borrowers.  there…

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Q: What is the yield to maturity on a simple loan of $35,000 that requires a repayment of $40,000 in 3…

A: Yield to maturity refers to the total interest payment that will have to paid at the time of the…

Q: 2. You owe your best friend P2,000. Because you are short on cash, you offer to repay the loan over…

A: The amount that a lender adds to the principle to compensate a borrower for using assets is known as…

Q: Suppose you were promised $400 three years from now and $600 at the end of five years. How much is…

A: Here, we calculate the worth at 12% interest as follow;

Q: Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar…

A: The objective of the question is to calculate the present value of two different loans. The present…

Q: Showing your working out, compute the price of all four bonds:     Face Value Maturity (years)…

A: The bond price is the present value of the future cash flow of the bond.  Bond price = present value…

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A: The future value of total interest represents the amount of interest that will accumulate on a…