Nine months ago, Muriel agreed to pay Aisha $1,900 and $801 on dates 6 and 12 months, respectively, from the date of theagreement. With each payment Muriel agreed to pay interest at the rate of 8 1/2% from the date of the agreement. Muriel failed tomake the first payment and now wishes to settle her obligations with a single payment four months from now.What payment should Aisha be willing to accept if money can earn 6 1/2 %? (Do not round intermediate calculations and roundyour final answer to 2 decimal places.)Payment$

Future value refers to the future value of future payments. It can be determined by compounding the…

Answered: Nine months ago, Muriel agreed to pay…

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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George and Peggy Fulwider bought a house from Sally Sinclair for $225,500. In lieu of a 10% down payment, Ms. Sinclair accepted 5% down at the time of the sale and a promissory note from the Fulwiders for the remaining 5%, due in four years. The Fulwiders also agreed to make monthly interest payments to Ms. Sinclair at 10% interest until the note expires. The Fulwiders obtained a loan from their bank for the remaining 90% of the purchase price. The bank in turn paid the sellers the remaining 90% of the purchase price, less a sales commission of 6% of the purchase price, paid to the sellers' and the buyers' real estate agents. (a) Find the Fulwiders' down payment.$ (b) Find the amount that the Fulwiders borrowed from their bank.$ (c) Find the amount that the Fulwiders borrowed from Ms. Sinclair.$
Gayle has a HELOC with MCAP Financial Corporation at an interest rate of prime +2.25%. Her current balance owing on November 1 is $13,750.00 and she is required to make interest-only payments on the first of every month. The prime rate is set at 4.25%. She makes one payment of $2,500.00 on January 19. Create three months of her repayment schedule. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "$149.63") (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Nov 1 Dec 1 6.5% Jan 1 6.5% Jan 19 6.5% Feb 1 6.5% Note: You can earn partial credit on this problem Preview My Answers Submit Answers Payment (+) or Advance (-) $2,500.00 Principal Balance after Amount Transaction $13,750.00 fore now version will be requested.
Tabitha had to pay her friend $900, 4 months ago and she has to pay $630 in 4 months. If her friend was charging her an interest rate of 1.00% per month, what single payment would settle both payments today?
took out a mortgage of $347,000 three years ago to buy an apartment. The terms of theloan stipulated that monthly repayments were to be made over 30 years, with the first payment onemonth after taking out the loan. She has just made her 36th payment. The interest rate was 5.147%p.a. compounded semi-annually. These conditions were locked for seven years. Should Marie want tobreak the contract she would have to pay a penalty equal to four months of payments.Interest rates have now dropped to 4.147% p.a. compounded semi-annually.a. Should Marie break the contract? Show all supporting calculation
Erin has a mortgage of $640,000 through the Tangerine Bank for a vacation property. The mortgage is repaid by end of month payments with an interest rate of 5.3% compounded monthly for a term of 5 years, amortized over 25 years. At the end of the 5-year term, Erin will renew the mortgage for another 5-year term at a new, lower interest rate of 4.4% compounded monthly. Round ALL answers to two decimal places if necessary. 1) What are the end of month payments before the renewal of the mortgage? P/Y = 12 I/Y = 0.4 P1 = 640,000 X x% P/Y = 12 2) What is the balance when the mortgage is renewed? I/Y = 0.03 C/Y = 12 PV = $ 640,000 x% PMT= $3,854.09 (enter the rounded value into the calculator) P2= 70,408.34 X 3) What will be the new end of month payments after the mortgage is renewed? C/Y = 12 PV = $5,69,591.66 X N = 300 PMT $3,572.84 FV = $0 BAL= $5,69,591.66 x Enter a positive value. N = 240 FV = $0
Marilyn was supposed to pay $1.620 to Bernice on March 18. Some time later Marilyn paid Bernice an equivalent payment of $1,67263. allowing fora time value of money of 24% compounded monthly. When did Marilyn make the payment? (Do not round your Irntermediate calculatlons and round your anewer to the neorest month.) Marylin mode the payment months later.
Ty received a separation payment of $25,000 from his former employer when he was thirty-five years old. He invested that sum of money at 5.5% compounded semi-annually. When he was sixty-five, he converted the balance into an ordinary annuity paying $6000 every three months with interest at 6% compounded quarterly. For how long will the annuity continue to pay him? The annuity will continue to pay him for quarterly periods. (Round up to the nearest whole number.)
Lily signed a personal loan for $7,500 with Joanne, her aunt, to pay her MBA tuition fees during the first year of her study. In the agreement, Lily promised to pay Joanne the principal plus 3.8% interest on this loan to compensate Joanne against the expected inflation on overall groceries and other costs Joanne has to cover per year based on the average rate of inflation observed in Canada since 1960 to 2021. Lily will start to make the first payment upon her graduation. a) Calculate the amount of annual interest for this loan. b) Calculate the amount of interest Lily saves if she pays back the loan six months upon graduating her MBA.
Jan sold her house on December 31 and took a $100,000 mortgage as part of the payment. The 20-year mortgage has a 2% nominal interest rate, but it calls for semiannual payments beginning next June 30. Next year Jan must report on Schedule B of her IRS Form 1040 the amount of interest that was included in the two payments she received during the year. How much interest must Jan report on Schedule B for the first year? O $2,000.00 $1979.54 $979.54 $1000.00
Lisa deposits $80,000 into an account that pays 6% interest per year, compounded annually.Scott deposits $80,000 into an account that also pays 6% per year. But it is simple interest. Find the interest Lisa and Scott earn during each of the first three years.Then decide who earns more interest for each year. Assume there are no withdrawals and no additional deposits.
Britta has been accepted into a 2-year Medical Assistant program at a career school. She has been awarded a $6,000 unsubsidized 10-year federal loan at 4.29%. She knows she has the option of beginning repayment of the loan in 2.5 years. She also knows that during this non-payment time, interest will accrue at 4.29%. Britta made her last monthly interest-only payment on May 5. Her next payment is due on June 5. What will be the amount of that interest-only payment? Round your answer to the nearest cent. *
Luoxana contributed $5,000.00 every year into an RRSP for 18 years. "What nominal annual rate of interest will the RRSP earn if the balance in Luoxana's account just after she made her last contribution was $195,000.00?

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