QUESTION 12 At any moment t, a continuously-varying 5 year annuity makes payments at the rate of t² per year at moment t. The force of interest is 6%. Find the present value of this annuity. 31.0 O 32.7 33.3 36.0 37.7

QUESTION 12 At any moment t, a continuously-varying 5 year annuity makes payments at the rate of t² per year at moment t. The force of interest is 6%. Find the present value of this annuity. 31.0 O 32.7 33.3 36.0 37.7

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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13Assume you plan to borrow $400,000 from your bank to buy a home. The bank offers: • a 5-year fixed rate of 6.05%, compounded monthly. • a 3-year fixed rate of 5.75%, compounded monthly. If you choose to repay the borrowing in equal installments monthly over a 20 years, what would be the difference between your monthly payments at the two different APRs? a. $89.32 b. $68.94 c. $26.98 d. $154.58 14You expect that the interest rate will decrease in the near future, therefore you eventually choose the 3-year fixed rate. Then, what will be your mortgage balance after 3 years? a. $321,598.59 b. $452,321.21 c. $365,056.12 d. $379,325.89 15Three years passed, it's time to renew your mortgage. Upon your renewal, your bank is now offering a new 3-year fixed rate of 4.5%, what would be your monthly repayment amount after renewal? a. 2825.32 b. 2598.54 c. 1965.21 d. 2563.60
QUESTION SIX a) Find the Future Value of an annuity for$1000 paid at the end of each year for 3 years assuming interest is compounded annually at 7%? b) Julie Miller will receive the set of cash flows below. What is the Present Value at a discount rate of 10%. Year one 500, year two 500, year three 300, year four 300 and year five 150. c) Perpetuity has no time limit. The present value of $100 perpetuity discounted at 15% is?
5
Question 19 The amount of annuity that is payable for 5 years at 12% compounded monthly is Php25,000. How much is the monthly payment? Php3,935.24 Php306.11 Php930.39 Php1,896.70 19
Chapter 10 Discussion Q2 A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is the present value (PV) at time 0, given that the interest rate is 11%? Show your steps. A) $2695 B) $4312 C) $5390 D) $3234
Question 8.04 A 10 -year annuity-immediate makes monthly payments at a rate of $60 per year in the first year, $120 per year in the second year, $180 per year in the third year, and so on. The nominal annual interest rate is 6% compounded monthly. Calculate the accumulated value of the annuity at the end of 10 years. A 2,256 B 2,267 C 3,884 D 3,993 E 4,105 Please solve by hand. The answer should be 4,105.
QUESTION 15 What is the effective semi-annual interest rate considering an APR of 8% compounded continuously? 5.127% 4.081% 3.872% 4.603% QUESTION 16 In case you deposit $5,000 every year for 20 years in a savings account that earns 9% compounded yearly. What is the future value of this series at year 20? Suppose the payments are made at the begining of the period. O$255,800.60 $278,822.65 $505,365.21 $472,303.93
QUESTION 14 What’s the interest rate of a 8-year, annual $3,500 annuity with present value of $20,000? (Use a time value of money calculator or a spreadsheet. Round your answer to 2 decimal places.) ANNUITY INTEREST RATE %
QUESTION 14 Suppose you have a credit card balance of $15,000 and you want to pay it off in two years. What will the monthly loan payment be if the APR on the credit card is 24%?
Question 33 Growing Annuity Problem: Set Calculator to BEGIN for this problem.i.e., we are assuming Payments are at beginning of year (Annuity Due). Assume you save $7500 at the beginning of each year AND you increase this amount by 3.5% each year. How much will you have in 40 years if your expected return = 8% per year. [NOTE: I have %3D rounded the answer to whole dollars.) O $3.245,998 $3,197,747 $2,503,625 $1,228,358 O $802,622 Question 34 Growing Annuity Problem: Set Calculator to BEGIN for this problem.ie, we are assuming Payments are at beginning of year (Annuity Due). Assume you have just retired and you currently have $2,500,000 in ch vear for
Question 17 What is the amount of an annuity that is payable for 2 years at 6% compounded monthly if the monthly payment is Php2,575? Php5,304.50 Php65,487.28 Php10,772.84 Php21,714.56
HCCumuialeu Valuc 13 TLLU,UUU. 10. How much is the periodic payment payable monthly of a general ordinary annuity whose present value is P400,000.00 for 15 years if money is worth 8.1% compounded annually?

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