ou recently received a patent related to a medical device that is used to test for the presence of airborne viruses. A health care private equity firm is interested in the technology and has offered to purchase the patent and all rights to the technology for $300 million, payable in 60 monthly payments of $5 million starting exactly one month from today. If the interest rate implicit in the agreement is 6% APR, compounded monthly, what is the present value of the payments you will receive?

Q: You have just taken out a 30-year mortgage on your new home for $120,000. This mortgage is to be…

A: Use financial calculator:The present value of mortgage = 120,000The future value when all the loan…

Q: ustomers buy this product on their 65th birthday when they retire. The annuity will make 20 annual…

A: There is need of proper planning for retirement so if done properly on time than will have good…

Q: Your business associate who owes you $8000 offers to pay you either $6640 now or else to pay you 5…

A: Yearly installment (A) = $1600 n = 5 years r = 5.8% compounded continuously

Q: ou want to buy a property in the city of Vancouver and the purchase price is $700,000. You will be…

A: Mortgage loans make buying a home easy because loans are paid in monthly installments that carry…

Q: An investor has purchased an investment which offers him 30 annual payments of dollar 1,200 per…

A: To find the present value of the investment, we will first define where the payments are made. We…

Q: Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage from the local savings and…

A: A loan is a sum of money that is borrowed, typically from a financial institution, and is expected…

Q: You have a 30-Year mortgage loan for $300,000 with an interest rate of 6%  If you want to pay off…

A: Mortgage refers to the loan availed against the purchase of the real estate. Mortgage repayment…

Q: Big Dom's Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like…

A: When we take a loan from banks they charge us interest on that loan. Similarly when we borrow money…

Q: How much would you have at the end of 5 years if you choose to take the $ 6640 offer now, and you…

A: N = 5 years Investment = 6640 Interest rate = 5.8% compounded continuously

Q: You've decided to buy a house that is valued at $1 million. You have $250,000 to use as a down…

A: Since you have asked multiple questions, we will solve the first one for you. If you want any…

Q: Suppose you loan $10,000 for 1 year to an individual who agrees to pay you interest at a compound…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: Assuming interest rates are at 6%, what is the fair value of this offer?

A: Fair value or present value can be calculated using the present value concept.  1. Find the value of…

Q: You are a loan officer trying to structure a 5/25 ARM mortgage. The interest rate in the first 5…

A: A mortgage refers to a loan used for the purchase of real estate. The loan is covered by the real…

Q: A house is being purchased for $138,000.00. The 30-year mortgage has a 10% down payment, an interest…

A: The cost of financing the house will include the total cost of interest for the period of loan is…

Q: A 10-year annuity pays $C to the owner on July 1 of each year, starting from 2023. Using a discount…

A: Value of the annuity as on Jan 1, 2022 = $100 Value of the annuity as on July 1, 2022 is calculated…

Q: As a result of winning the Gates Energy Innovation​ Award, you are awarded a growing perpetuity. The…

A: In the financial system, perpetuity refers to a situation in which a stream of cash flow payments…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 25-year…

A: Annual percentage rate refers to the cost which is charged on the loan amount by the lender from the…

Q: For $150,000, Continental Life Insurance Co. will sell a 20-year annuity paying $1200 at the end of…

A: An annuity is usually used in the retirement funds where fixed future amounts are paid in exchange…

Q: The discount rate is _ % per month. (Round to five decimal places.) The monthly mortgage payment is…

A: A mortgage payment is a regular commitment that a borrower makes to a lender in order to pay back a…

Q: Assume that you will borrow $400, 000 from a bank that charges 4.5 percent interest compounded…

A: Hi there, As per the Q&A honor code, It must be answered the first question when multiple…

Q: Midwest Bank is offering a 25-year mortgage with an APR of 6% based on monthly compounding. With…

A: A mortgage may be a sort of credit utilized to buy genuine bequest, ordinarily a domestic. It…

Q: You plan to obtain a $10000 loan from a furniture dealer at 10% annual interest rate that you will…

A: Annual loan payment is the repayment of loan annually for the period of loan, that includes interest…

Q: A borrower has secured a 30 year, $131.000 loan at 8% with monthly payments. Fifteen years later,…

A: Loan Amount = $131,000 Time period = 30 Years  Interest rate = 8%

Q: payments with the first payment being made at the end of this year. If the payments are to grow by…

A: This is present value of growing of annuity problem can be solved using formula.Loan…

Q: The Joneses are interested in purchasing a house listed at $580,000 in Thunder Bay. They are…

A: Amortization refers to the systematic periodic repayment of mortgage amount spread over the…

Q: Today is 1 July 2021. You are looking to purchase an investment property today (after months of…

A: Note: This question contains two parts. The first has been solved below. There is a reference to L12…

Q: You’ve decided to buy a house that is valued at $1 million. You have $250,000 to use as a down…

A: The question is based on the concept of amortization of loan in equal periodic installment.by…

Q: You are investigating an investment opportunity. The security requires you to make monthly payments…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: You owe your parents $23,000 (in present day dollars) and want to repay them in equal amounts the…

A: Present value factor of 8.9% compounded monthly for 4 years will be = 1/(1+8.9%/12)12 x4..=…

Q: You have $25,000 available for a down payment on your new home. You have determined that you can…

A: Down Payment = 25,000 Monthly Payment = 1,250 Rate = 4%/12  per month Time Period (N) = 360 months…

Q: You need a 30-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend…

A: Present value of annuity is computed as follows:-PV= A*wherePV= Present value of annuityA= periodic…

Q: what is the rate of interest?

A: Interest rate is the amount which is due in connection with the loan amount or deposit. It is the…

Q: A borrower has secured a 30 year, $131,000 loan at 8% with monthly payments. Fifteen years later,…

A: Loan Amount is $131,000 Time Period of Loan is 30 years Interest Rate is 8% Compounding Period is…

Q: An insurance company is offering to sell an annuity for $20,000 cash. In return the firm will…

A: given, present value of annuity = $20,000 first payment =$1100

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.