If you borrow $15,500 with a 5 percent interest rate to be repaid in seven equal payments at the end of the next seven years, what would be the amount of each payment? Use Exhibit 1 - D. (Round your PVA factor to 3 decimal places and final answer to 2 decimal places.)
Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 4%…
A: Future value of an annuity: The worth of a sum of money that will be paid on a specified date in…
Q: Use graphical approximation techniques or an equation solver to approximate the desired interest…
A: Nominal rate:The nominal rate, in the realm of finance, refers to the stated or advertised interest…
Q: What is the present value of a cash payment of $1.2 that you will receive in 5.3 years if the…
A: STEP 1 Given a certain rate of return, present value (PV) is the current value of a future financial…
Q: (Annuity interest rate) You've been offered a loan of $25,000, which you will have to repay in 5…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: You want to invest in an annuity that will pay you $2,300 per quarter for the first 8 years and…
A: A series of regular payments in regular periods may be starting from day one or an interval is known…
Q: You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with…
A: loan amount (p)=$10,000 n=11 payment m=4 pmt=$360.02 r=5.9%
Q: Calculate the future value of the following annuities, assuming each annuity payment is made at the…
A: Annuity paymentsAnnual ratesInterest compoundedPeriod invested1$3,700.007.00%Semi-annually9…
Q: Suppose you want to borrow $90,000 and you find a bank offering a 20-year term for a loan of that…
A: Compound = Monthly = 12Present Value = pv = $90,000Time = t = 20 * 12 = 240Interest rate = r = 7 /…
Q: Suppose an annuity will pay $14,000 at the beginning of each year for the next 5 years. How much…
A: Annual payment (P) = $14,000 Interest rate (r) = 6.5% Period (n) = 5 Years
Q: You are considering taking out a loan of $14,000.00 that will be paid back over 8 years with monthly…
A: Equity in a home refers to how much of that home's value a person has already invested in it.
Q: What is the size of eight equal annual payments to repay a loan of $1,000? The first payment is due…
A: Equated Monthly Installments are one part of the equally divided monthly outgoes to clear off an…
Q: You are considering taking out a loan of $10,000.00 that will be paid back over 6 years with monthly…
A: Unpaid balance can be calculated by using loan amortization formula mention below. Unpaid loan(Loan…
Q: ou can assume that all payments are made at the beginning of the period and use "1" for the "type"…
A: a. Future value$ 81,102.53b. Future value$ 85,289.85c. Future value$ 444,644.11Explanation:The above…
Q: 1. If you receive $29 each quarter for 19 years and the discount rate is 0.05, what is the present…
A: In this Question we are required to compute the Present Value of Cash flows received every quarter…
Q: You will receive a cash payment of $7072 in 7 years. If the relevant interest rate is 19.89%, how…
A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…
Q: Use the formula for computing future value using compound interest to determine the value of an…
A: Principal =13000 interest rate =5% quarterly interest =1.25 Period 8 years =32 quarters
Q: Calculate the present value of the following annuities, assuming each annuity payment is made at the…
A: Using Excel function: =PV(rate,nper,pmt,fv,type)Option 1) =PV(9%/2,3*2,-5600)= 28,884.09Rate= 9%/2 =…
Q: What's the future value of $20,000 after 8 years if the appropriate interest rate is 5.75%,…
A: The formula to compute future value at compounded interest as follows:
Q: Derive an equation to find the end-of-year future sum F that is equivalent to a series of n…
A: F=B1+R1+B1+R2+B1+R3+⋯+B1+RN=B×1+RN-1R×1+R
Q: Suppose an investment will pay $7,000 in 44 years from now. If you can earn 6.15% interest…
A: Formulas: Present value = Future value / (1+rate)^years
Q: Suppose you want to borrow $90,000 and you find a bank offering a 20-year loan with an APR of 5%. a.…
A: The term annual percentage rate (APR) describes the annual interest that is produced by a payment…
Q: What is the future value (at the end of 8 years) of an annuity that pays $700 a quarter over 8 years…
A: Future value is an estimate of future cash values that may be received at a future date,…
Q: You will receive a cash payment of $7554 in 8 years. If the relevant interest rate is 15.34%, how…
A: In the given case, we have given the cash payment to be received in 8 years is $7554. And, the…
Q: What will be the balance at the end of the tenth year on a monthly payment $130,000 loan with a…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: If you put $1,000 in a savings account that pays interest at the rate of 3 percent, compounded…
A: Present Value = pv = $1000Interest Rate = r = 3%Time = t = 7 Years
Q: Enterprises borrows $2 semiar today and will repay this amount by making payments. Payments begin in…
A: Loans are paid by the equal periodic payment and these payments carry the payment for interest and…
Q: Suppose you take out a margin loan for $71,000. The rate you pay is an effective rate of 5.6…
A: Effective annual rate refers to the metric which represents the actual return earned by the investor…
Q: What is the present value of 500 received at the beginning of each year for 15 years? (Assume the…
A: Given: Present value = 500 Years = 15 Discount rate = 10%
Q: Suppose you take out a margin loan for $65,000. The rate you pay is an effective rate of 8.7…
A: Interest: It implies to the monitory charges that is paid by the borrower to the lender on the…
Q: Suppose you are going to invest $11,000 per year for six years. The appropriate interest rate is 9…
A: Annuity refers to a series of regular payments being made for a defined period. When the payments…
![If you borrow $15,500 with a 5 percent interest rate to be repaid in seven equal payments at
the end of the next seven years, what would be the amount of each payment? Use Exhibit 1 -
D. (Round your PVA factor to 3 decimal places and final answer to 2 decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9e3d82e-ae00-4f0e-b1fc-73966dfb30c4%2F1f52eeea-fb82-4a28-a440-30a4efa58c2c%2F0y34g3c_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 1 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- If you borrow $12,500 with an interest rate of 4 percent, to be repaid in five equal yearly payments at the end of the next five years, what would be the amount of each payment? Use the appropriate factor(s) from the tables provided (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D)If you put $1,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in 7 years? Round the answer to the nearest cent. Round FV-factor to three decimal places or use the Appendix A . (Hint: Use the future value formula.) $ How much interest will you earn during the 7 years? Round the answer to the nearest cent. $ If you put $1,000 at the end of each year into a savings account that pays interest at the rate of 3 percent a year, how much would you have after 7 years? Use the Appendix B . Round the answer to the nearest cent. Round FV-factor to three decimal places. $You are considering taking out a loan of $10,000.00 that will be paid back over 6 years with monthly payments of $158.74. If the interest rate is 4.5% compounded monthly, what would the unpaid balance be immediately after the sixth payment? What is the equity after the sixth payment? The unpaid balance would be $. (Round to 2 decimal places.) The equity would be $. (Round to 2 decimal places.) Tvm formula
- Use the formula for computing future value using compound interest to determine the value of an account at the end of 8 years if a principal amount of $13,000 is deposited in an account at an annual interest rate of 5% and the interest is compounded quarterly. The amount after 8 years will be $ (Round to the nearest cent as needed.) Enter your answer in the answer box and then click Check Answer. All narts showing javascript:doExercise(9); Clear All Check Answer sy Po a 99+Derive an equation to find the end-of-year future sum F that is equivalent to a series of n beginning-of-year payments B at interest rate i. Then use the equation to determine the future sum F equivalent to six B payments of $100 at 8% interest.You will receive a cash payment of $7554 in 8 years. If the relevant interest rate is 15.34%, how much is it worth today? Round to 2 decimal places. Include dollar signs ($) and percents (%) as appropriate.
- Percentages need to be entered in decimal format, for instance 3% would be entered as .03 in cell B12.) Set up an amortization schedule for a $60,000 loan to be repaid in equal installments at the end of each of the next 20 years at an interest rate of 20%. What is the annual payment? After you input the data for each scenario, click on the Graph tab (second tab on the worksheet) and look at the Principal and Interest portions of the payments throughout the years. What do you notice about the amount of Principal and Interest over the years (which amount is higher in the early years, and which amount is higher in the later years) of the loan? What do you notice about the difference in Principal and Interest in the 10% scenarios compared to 20% scenarios?Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1, EVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. Annuity Payment $ 3,700 Annual Rate Interest Period Compounded Invested Future Value of Annuity 7.0% Semiannually 9 years 2. 6,700 8.0% Quarterly 5 years 3. 5,700 12.0% Annually 6 yearsYou want to invest in an annuity that will pay you $2,300 per quarter for the first 8 years and $1,200 per month for the last 5 years. If the annuity earns 4.35% compounded quarterly for the first 8 years and 5.85% compounded monthly for the remaining 5 years, what would be the amount of your initial investment? Enter the appropriate values in the blanks below, round answers to two decimal places. Initial Balance ||<---- I 5 years A/ N = A/ P/Y= A/ PV = A/ PMT= A/ FV = Final Balance A/ E E
- For each of the following situations involving annulties, solve for the unknown. Assume that interest is compounded annually and that all annulty amounts are received at the end of each period. (/= Interest rate, and n = number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. 5. Present Value 248, 196 442,750 650,000 175,000 Annuity Amount $ 5,000 80,000 60,000 155,040 8% 11% 10% n = 5 4 10 4For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (/= interest rate, and n= number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) 1. $ 2 3 4. 15 Present Value Answer is complete but not entirely correct. Annuity Amount 2.200 145,000 190,000 72.523 45,787 8,784 558,865 480,945 520,000 240,000 8% 1.0% 9% 2.5% 10% n= 5 4 30 8 4Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Payment $ 5,600 10,600 4,600 Annual Rate Interest Compounded Semiannually 9.0% 10.0% Quarterly 11.0% Annually Period Invested 3 years 2 years 5 years Present Value of Annuity