Problem 2-17 Margin Interest (LO3, CFA2) Suppose you take out a margin loan for $75,000. The rate you pay is an effective rate of 8.9 percent. If you repay the loan in six months, or 180 days, how much interest will you pay? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Interest S 3,266.37

Problem 2-17 Margin Interest (LO3, CFA2) Suppose you take out a margin loan for $75,000. The rate you pay is an effective rate of 8.9 percent. If you repay the loan in six months, or 180 days, how much interest will you pay? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Interest S 3,266.37

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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Problem 4-20 Spreadsheet Problem: Solving for Rates (LG4-7) What annual rate of return is implied on a $2,500 loan taken next year when $6,000 must be repaid in year 6? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual rate of return %
Problem 5-63 Effective Interest Rate (LO4) Assume you take out a car loan of $7,700 that calls for 60 monthly payments of $210 each. a. What is the APR of the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel. Annual percentage rate % b. What is the effective annual interest rate on the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Effective annual rate %
P: $430,000 Question 2 R: 5.4% Time: 15 years 20 What will your monthly mortgage payment be? Do not round any intermediate computations, and round your answer to the nearest cent. Assuming you take the full term of the mortgage, how much total interest will you have paid? Do not round any intermediate computations, and round your answer to the nearest cent.
QUESTION 13 You are looking to buy a car. You can afford $610 in monthly payments for five years. In addition to the loan, you can make a $710 down payment. If interest rates are 9.00 percent APR, what price of car can you afford (loan plus down payment)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PRESENT VALUE
Question 9 Assume that Sean and Catherine only pay the minimum payment on Credit Card #2 (balance $6,500). The minimum balance is 3% of the total balance. What is their minimum monthly payment? $195 Question 10 Using the BankRate calculator and the minimum payment you calculated above, if Sean and Catherine pay the minimum payment plus an additional $25, how many months would it take them to pay off their credit card loan based on a 15.9% APR?
17 Problem 5-39 Loan Payments (LG5-9) You wish to buy a $20,500 car. The dealer offers you a 5-year loan with a 9 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer is complete and correct. Payment $ 425.55 per month Payment How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.) 4 per month
Q 2 To borrow $750, you are offered an add on interest loan at 9.1 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) EQUAL PAYMENTS? Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.) EAR?
q 3 Say that you purchase a house for $284,000 by getting a mortgage for $250,000 and paying a $34,000 down payment. If you get a 30-year mortgage with an interest rate of 8 percent, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment? What would the loan balance be in ten years? (Round the payment amount to the nearest cent but do not round any other interim calculations. Round your final answer to 2 decimal places.) Loan balance? If the house appreciates at 4 percent per year, what will be the value of the house in ten years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value? How much of this value is your equity? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Equity?
2. Problem 5.17 (Effective Interest Rate) еВook You borrow $225,000; the annual loan payments are $30,017.40 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. %
Question 4 Suppose you want to have $400,000 for retirement in 20 years. Your account earns 6% interest. How much would you need to deposit in the account each month? Enter an integer or decimal number
Question 7 A loan is offered with monthly payments and a 15.25 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Effective annual rate %
> Question 7 After making 19 payments on a 60-month, $10,000 car loan with APR of 4%, what is the outstanding balance on the loan? Round your answer to the nearest cent (one-hundredth). Do not include the dollar sign, $.

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