PTER 5 Time Valkus of Money 255 nat Finance Problem P5-23 Calculating the number of periods You want to borow $600,000 to buy an apart- ment, and you can only afford $4,000 a month to repay the loan. Suppose the bank charges you a fixed interest rate of 4% with monthly compounding, How long will it take you to pay off the loan? Personal Finance Problem P5-24 Funding your

PTER 5 Time Valkus of Money 255 nat Finance Problem P5-23 Calculating the number of periods You want to borow $600,000 to buy an apart- ment, and you can only afford $4,000 a month to repay the loan. Suppose the bank charges you a fixed interest rate of 4% with monthly compounding, How long will it take you to pay off the loan? Personal Finance Problem P5-24 Funding your

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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Loan rates of interest Personal Finance Problem John Flemming has been shopping for a loan to finance the purchase of a used car. He has found three possibilities that seem attractive and wishes to select the one with the lowest interest rate. The information available with respect to each of the three $9,000 loans is shown in the following table, Each loan requires John to make one payment at the end of each year. a. Determine the interest rate associated with each of the loans. b. Which loan should John take? Data table (Click on the icon here into a spreadsheet.) in order to copy the contents of the data table below Loan Principal Annual payment Term (years) A $9,000 $3,492.43 B $9,000 $2,901.35 C $9,000 $2,136.75 5 345 Print Done O empts
help 10,11,12
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2.1 Explain the difference between a nominal interest rate and an effective interest rate. 2.2 A bank has quoted the interest rate on a loan at 15% compounded quarterly. Calculate the effective rate. 2.3 You need R70 000 in 6 years’ time in order to afford a new car. If you are able to earn interest at 8% compounded annually, how much do you need to invest today in order to afford the car? 2.4 If you had R30 000 today, at what annual interest rate would you need to invest your money in order to have the required R70 000 in 6 years’ time
Business Math Worksheet 8.2: Installment loans-Amount Financed Name Background: An installment loan is repaid in several equal payments over a specified period of time. Usually, you make a down payment to cover a portion of the cash price of the item. The amount you finance is the portion of the cash price that you owe after making the down payment. Amount Financed = Cash Price - Down Payment Down Payment = Cash Price x Percent 1. Flora Quinton is buying a new air compressor for her auto repair shop. It sells for $1,299. She makes a down payment of $199 and finances the remainder. How much does she finance? 2. Beatriz Ruiz is buying new office furniture. It sells for a cash price of $2,358.60. The down payment is $200.00. What is the amount financed 3. An office remodeling project costs $15,880. If you pay $3,680 towards the project, how much do you finance?
Loan A B с Principal $7,000 $7,000 $7,000 Annual payment $2,914.24 $2,256.61 $1,846.48 Term (years) 3 345 4
A 1. pla help intrest rates
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< CO T R E # 3 Problem Set 1: Finance Progr Score: 19.8/50 8/20 answered Question 15 You want to be able to withdraw $35,000 from your account each year for 25 years after you retire. You expect to retire in 15 years. If your account earns 6% interest, how much will you need to deposit each year until retirement to achieve your retirement goals? 24 Question Help: D Video Submit Question MacBook Air 08 F3 DD F2 F4 F5 F8 & $ 2 5. M
H M 9Ro-a s re raa troese db ato a6411 6alo 5a,1908ecrcase 6. Lonnie needs extra money to buy a truck to start up a delivery service. He takes out a simple interest loan for $6000.00 for 5 months at a rate of 6.25%. (a) How much interest must he pay? (b) What is the future value of the loan? (Round to the nearest penny - hundredth place. For example $123.46) (9)1 08h Nam 909 PXRXT Ttr stPrice x 12 ute as a deumut Y time Cyeus 2 b00 0040.0635 x 0.41666- 600 01t 0.068 X 7. G156 250125 2100 GISG 6) 15 6,as must pay uuc i5,7suinaret A= Lunnc Intre t roid (Is6.as furd ed to nurd retks pie e la ce
T %24 Suppose you want to buy a $153,000 home. You found a bank that offers a 30-year loan at 4.5% APR. What will be your monthly payment? (Round to the nearest cent.) ŞI 775.23 How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) $279,082.27 Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) Ş 850.42 How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) 24 How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.) Question Help: D Video Submit Question MacBook Air 08 F3 DD F1 F2 F4 F5 F8 %23 2$ 2 3. 5. R S H. D.

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