Paul and Sandy Moede signed an $8,100 note at Citizen's Bank. Citizen's charges a 6.4% discount rate. Assume the loan is for 260days.a. Find the proceeds.Note: Use 360 days a year. Round your intermediate calculations and final answer to the nearest cent.Proceedsb. Find the effective rate charged by the bank.Note: Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest tenth percent.Effective rate%

A note is a debt instrument where the borrowing party promises to pay back the face value of the…

Answered: Paul and Sandy Moede signed an $8,100…

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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Ms. Dory asks Axis Bank to lend her Rs. 100 today. She says she will not be able to pay anything at the end of the first & second years but will pay the entire loan amount due at the end of 3rd year. Tenor Borrowing/Lending Rates 1 yr 3.5% 2 yr 5.5% 3 yr 7.5% What combination of products would enable Ms. Dory to ascertain the amount that should be repaid at the end of 3 years? Skip
Bank A offers you a loan at 5.76% compounded 2 times a year. Bank B offers to loan you the same amount at 0.10% less than the rate offered by Bank A but compounded twice as often as the Bank A rate is. Which bank's loan should you accept? As your answer, enter the effective rate (in percent, to two decimal places at least) offered by the bank whose loan you should accept.
You buy a home for $177,831 and put $11,459 down. You borrow the remainder. The mortgage company also charges a 3% loan and closing fee which you must also borrow. The interest rate is 6.5% for 30 years. Fill in the following to find the total cost of credit. Assume you make the monthly payments for the full number of years. Round to the nearest cent (2 decimal places). Do NOT put $ in your answer. After the down payment, you will need to borrow $ Including the loan and closing fee, the total amount financed will be $ Your monthly payment will be $ You will pay back $ total over the course of the loan. The total cost of credit will be $
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Alexa takes out a loan of 94,000 at an annual effective discount rate of 6%. The loan is to be repaid with annual payments of 10,000. The first payment is due 4 years after the loan is taken out. Calculate the amount of the drop payment. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answwer.
Nelson Co. issued a $80,000, 90-day, discounted note to Community Bank. The discount rate is 5%. At maturity, assuming a 360-day year, the borrower will pay how much?
A finance company uses the discount method of calculating interest. The loan principal is $5,000, the interest rate is 10%, and repayment is expected in two years. You will receive
Edwards company just hired another employee Jane, the Edwards company provides supplemental retirement benefits to its employees realizing the insufficiency of the Social Security benefits or comfortable retirement life Edwards has asked you to perform the necessary computations pertaining to the retirement benefit for Gene. Jane’s current salary is $40,000. Jane will be entitled to the supplementary retirement benefits after 20 years of work the start of the 21st year The retirement plan will last for 25 years per company practices Jane will be granted with a year and salary increase of 2% per year effective January 1 of each year that she works the amount of annual retirement benefit is going to be 45% of James salary right before the start of the retirement and will be paid at the start of each year. Any invested funds for pension will earn 4% compounded annually, compute Jane’s annual retirement benefit. Assume James’s retirement benefit is $32,000 what amount must be on deposit…
Bank A offers you a loan at 8.52% compounded 5 times a year. Bank B offers to loan you the same amount at 0.10% less than the rate offered by Bank A but compounded twice as often as the Bank A rate is. Which bank's loan should you accept? As your answer, enter the effective rate (in percent, to two decimal places at least) offered by the bank whose loan you should accept.
Question 5. Attached is a similar question answered
Paul and Sandy Moede signed an $7,500 note at Citizen’s Bank. Citizen’s charges a 5.4% discount rate. Assume the loan is for 270 days.a. Find the proceeds. (Use 360 days a year. Round your intermediate calculations and final answer to the nearest cent.) Proceeds b. Find the effective rate charged by the bank. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest tenth percent.) Effective Rate

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