m r ia = (1 + )" - 1 18 m PART A.) Find the effective annual interest rate for a credit card that lists an APR of 18% compounded monthly. PART B.) An engineer who is saving for a new house plans on saving $100 per paycheck towards the down payment on the house. If she gets paid bi-weekly (twice per month), and s is depositing this money into a savings account that earns 5% annual interest, compounded monthly, how much money does she have saved up after 4 years? Assume that there is no inter-period interest. PART C.) The cost of replacing part of a cell phone video chip production line in 6 years is estimated to be $500,000. At an interest rate of 10% per year, compounded quarterly, the uniform amount that must be deposited every 3 months is?

m r ia = (1 + )" - 1 18 m PART A.) Find the effective annual interest rate for a credit card that lists an APR of 18% compounded monthly. PART B.) An engineer who is saving for a new house plans on saving $100 per paycheck towards the down payment on the house. If she gets paid bi-weekly (twice per month), and s is depositing this money into a savings account that earns 5% annual interest, compounded monthly, how much money does she have saved up after 4 years? Assume that there is no inter-period interest. PART C.) The cost of replacing part of a cell phone video chip production line in 6 years is estimated to be $500,000. At an interest rate of 10% per year, compounded quarterly, the uniform amount that must be deposited every 3 months is?

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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Suppose that you decide to borrow $13,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 6.3% Installment Loan B: five-year loan at 4.8% P. Use PMT = to complete parts (a) through (c) below. - nt 1- a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan A is $. (Round to the nearest cent as needed.) b. Find the monthly payments and the total interest for Loan B. The monthly payment for Loan B is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan B is $. (Round to the nearest cent as needed.) MacBook Air
Suppose that you decide to borrow $15,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 5.9% Installment Loan B: five-year loan at 4.8% P Use PMT = to complete parts (a) through (c) below. - nt 1- 1+ a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
Suppose that you decide to borrow $15,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Installment Loan A: three-year loan at 6.3% Installment Loan B: five-year loan at 4.8% PA [¹-(1+] Use PMT= -nt7 to complete parts (a) through (c) below. a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
Find the monthly house payment necessary to amortize the following loan. 9) In order to purchase a home, a family borrows $121,000 at 3.0% for 30 yr. What is their monthly payment? Round the answer to the nearest cent.
If you take out a loan for a new $20,000 car, a typical APR with a fair credit score is 4.8%. If you make monthly payments of A dollars, find an expression for your debt right after your first payment (remember that there is a difference between the APR and the monthly interest rate). *the first picture is my answer that is needed to answer the question (20000)(1.048') – A1.048* k=1 For any integer n > 1, and any r+ 1, it can be verified that п-1 pn 1 - r – 1 - k=0
A customer of your bank comes for a car loan 10000 OMR. He is charged with an interest rate of 5% per year. The customer expects a monthly repayment schedule from you, to plan his repayment. Provide a loan amortization schedule for a monthly repayment of 1 year. (Amortization factor is 0.952 )
A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for the next 10 years. The nominal annual interest rate is quoted as 12%. (Assume the first instalment is going to be paid 1 month after s/he borrows.) a. Find the amount borrowed by this person. o. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.
A customer of your bank comes for a car loan 10000 OMR. He is charged with an interest rate of 5% per year. The customer expects a monthly repayment schedule from you, to plan his repayment. Provide a loan amortization schedule for monthly repayment of I year.
PA Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $217,000. The bank requires a 20% down payment and three points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 7%. Complete parts (a) through (e) below. a. Find the required down payment. $ b. Find the amount of the mortgage. c. How much must be paid for the three points at closing? S (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). S (Round to the nearest dollar as needed.) e. Find the total cost of interest over 30 years. (Round to the nearest dollar as needed.)
You purchase a new TV with a store credit card for $800. You have a year to pay off the TV, but interest accrues. The nominal rate is 12% compounded weekly. You pay back the full amount plus interest in one year, How much do you owe? O a. 866.51 O b. 832.59 O c. 901.87 O d. 896
Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded monthly. The credit card company says your minimum monthly payment is $19.80. (4.15) Solve, a. If you make only this minimum payment, how long will it take for you to repay the $1,100 balance (assuming no more charges are made)? b. If you make the minimum payment plus $10 extra each month (for a total of $29.80), how long will it take to repay the $1,100 balance? c. Compare the total interest paid in Part (a) with the total interest paid in Part (b).
You are a financial adviser, and your client wants to save $6,000 in order to make a downpayment for a car in two years. Your bank offers a savings account which pays 3.6% compounded quarterly. The client wishes to make deposits at the end of each three-month period. What is the amount of the annuity the client needs to pay in order to meet the goal? (Choose the closest number.) a) $718.44. b) $726.69 c) $734.16 d) $741.92 e) None of these. ENG 令 CMS

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