More compound interest. Assume that a 24- month CD purchased for $7000 pays an APY of 4.25% (and of course interest is compounded). How much do you have at maturity? (Enter your answer to the nearest cent.)

Q: The market’s 1 year interest rate is 6% while the 2-year interest rate is 7%. b) If a company needs…

A: IR1​ is the 1-year interest rate, which is 6%, IR2​ is the 2-year interest rate, which is 7%, and n…

Q: Suppose a $18,186 loan has an annual compound interest rate of 2.2% with semi-annual compounding…

A: In this question we need to calculate the Future value of the loan from details given as follows:…

Q: 1. Using the APR table, how much interest would be charged for a $10,000 loan at 12.5% for 3 years?…

A: Since, there is no information regarding the loan is compounded as annually or monthly is mentioned,…

Q: A company has a loan of 80,000 to be paid in 20 level annual payments. The interest and the…

A: Loans are paid by annual payments that carry the interest and loan amount but annual payments are…

Q: 2. What is the size of 8 equal annual payments to repay a loan of $1,000? The first payment is due…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: The following loan is a simple interest amortized loan with monthly payments. (Round your answers to…

A: Using excel PMT function

Q: Find the simple interest on $31,200 at 5.25% for 107 days. Assume 360 days in a year and 30 days in…

A: Simple interest is a method of calculating interest where the principal remains the same for each…

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: Simple interest is defined as an easy as well as quick method for the calculation of an interest on…

Q: How much time will it take for an amount of 450 to yield 81 as interest at 4.5% per annum of simple…

A: Interest is an extra amount which is received above the invested amount for the period. It increase…

Q: Use the formula A=P(1+rt) to calculate the maturity value of the simple interest loan when…

A: formula: A=P(1+rt) where, p=principal r=rate  t=time in years

Q: Find the initial monthly payment on a 3/20 ARM of $178,802 if the interest rate is 5.35%. How long…

A: 3/20 means 3% discount you will get if you pay with in 20 days , if you not pay with in 20 days you…

Q: Find the amount of interest and the maturity value of the following loan. Use the formula MV = P+ I…

A: Rate = 7% + (1/4)% Rate = 7% + 0.25% Rate = 7.25% ----------------------- Years = 4 + (1/2) Years =…

Q: se MV=P(1+RT) to find the maturity value (in$) of the loan.  principal: $730,000 rate: 13.35%…

A: Maturity value means the value which is received on the maturity of the investment or end of its…

Q: P | כ Use [ to determine the regular payment amount, rounded to the nearest dollar. Consider the…

A: Total cost of mortgage is the total amount which is paid for availing the mortgage amount. It…

Q: Which results in a lower total interest​ charge, borrowing ​$900900 to be repaid 12 months later as…

A: The objective of the question is to determine which loan type, a single-payment loan or a 12-month…

Q: [+] to determine the regular payment amount, rounded to the nearest dollar. Conside lowing pair of…

A: A loan to a borrower given by the bank/ financial institution which helpful to the borrower in…

Q: Suppose you have borrowed $50 from a foreign lending institution. The loan requires a payment of 6…

A: Loan Amount  $                                   50.00 Time Period (Days) 6 Periodic Payment  $…

Q: The price of T.V set is worth 20,000.00 that needs to be paid in 20 installment of 1000.00 each. If…

A: The installments method will require to borrower to pay the amount borrowed over the period of time.…

Q: What is the maturity value on a 6-year loan for S7, 585 if the annual simple interest rate is 6.1%?…

A: Principal = $7,585Interest rate = 6.1%Time= 6 yearsMaturity value=?

Q: You've borrowed $6,903.71 and agreed to pay back the loan with monthly payments of $270. Assume the…

A: Compound = Monthly = 12Present Value = pv = $6903.71Monthly Payment = p = $270Interest Rate = r = 15…

Q: Calculate the amount of interest that will be charged on $6290 borrowed for 2 months at 10.1%.…

A: Amount Borrowed (P)=$6290Interest Rate (R)=10.1%Time in months (T)=2 monthsRequired:Simple Interest…

Q: Find the maturity value on a loan of $2,500 at 11.5% interest, for 72 months. Use the formula MV = P…

A: 1. MV = P + I where , MV = maturity value of loan P = amount of loan I = Interest amount on loan…

Q: What annual interest rate is earned by a 20​-week T-bill with a maturity value of $2,900 that sells…

A: The time value of money states that the money we have today has more worth than the money we are…

Q: If you bought a 4-week T-bill for Tk.887 and receive Tk.1,200 4 weeks later, what is the effective…

A: The Effective Annual Interest Rate (EAR) is the interest rate that is adjusted for compounding over…

Q: Assume that you take out a $3000 loan for 47 months at 6.5% APR. How much total interest will you…

A: Loan amount = $ 3000 Period = 47 Months APR = 6.5%   To Find: Total Interest paid

Q: 4) You have a $3000 amortized loan that you will make monthly payments of $1200 to pay off (the last…

A: Loan amount = $3000Yearly payment = $1200Interest rate = 7.1%Period = 3 years

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: The simple interest is computed on the loan amount for the time period the loan was due. It does not…

Q: The following loan is a simple interest amortized loan with monthly payments. $5000, 9%, 4 years (a)…

A: Given, The loan amount is $5,000 Rate is 9.50% Term of loan is 4 years

Q: PA Use to determine the regular payment amount, rounded to the nearest dollar. Consider the…

A: The repayment of a loan: A long-term fixed mortgage on a house is usually repaid with equal monthly…

Q: Suppose that you need an amount of money which equals to $10000000. It is possible to find it from…

A: To find equal monthly payments we have to calculate present value FACTOR and find equated monthly…

Q: (Q) A borrower takes out an interest - only loan at 7% for $1,000,000 with a 10-year term. What is…

A: Loan amortization refers to the systematic repayment of a loan over a specific period of time. It…

Q: Give typing answer with explanation and conclusion If the annual payment mortgage constant for an…

A: Given: Loan Amount = $25,000,000 Mortgage Constant = 10.6% or 0.106 (decimal form)

Q: What is the yield to maturity (YTM) on a simple loan for $1,500 that requires a repayment of $4,500…

A: Final Value (FV) = $4,500Present Value (PV) = $1,500Number of years (n) = 5

Q: Consider a borrowing of $400,000, with monthly payments to be made over 15 years with a 15% add-on…

A: Borrowing = $400,000Number of years for which monthly payments are to be made = 15 yearsAdd- on…

Q: What is the simple interest rate if Rogine paid an interest of P2,100 after 2 years and 6 months on…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.