Question Two:You agreed to pay your parents back for the $5000 loan they extended you for your.education. You and your parents agree that a fair effective annual rate of interest is 12%percent.Required:If you will repay the loan in a single lump sum, how much do you need to repay at theend of:a. 1 yearb. 5 yearsc. 10 yearsd. 20 years

A concept through which it is studied that the current worth of money is higher than its future…

Answered: Question Two: You agreed to pay 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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5. Single-payment loan repayment Personal Finance Problem A person borrows $100 that he must repay in a lump sum no more than 10 years from now. The interest rate is 8.9% annually compounded. The borrower can repay the loan at the end of any earlier year with no prepayment penalty. a. What amount will be due if the borrower repays the loan after 2 year? b. How much would the borrower have to repay after 3 years? c. What amount is due at the end of the tenth year? a. The amount due if the loan is repaid at the end of year 2 is $ b. The repayment at the end of year 3 is $ c. The amount due at the end of the tenth year is $ (Round to the nearest cent.) (Round to the nearest cent.) (Round to the nearest cent.)
Question 11 Find the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly payment? $840.12
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Question Tom wishes to purchase a property that has been valued at $300,000. He has $30,000 available as require a mortgage for the remaining amount. The bank offers him a 25-year mortgage at 2% inter monthly payment. 7 Round your answer to the nearest cent. Do NOT round until you have calculated the final answer. Provide your answer below: $1476 8 5 9 6 X X X y X 30 i H *D
Question 11 Find the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly payment? $840.12
Question 11 Find the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly payment? $840.12
You agreed to pay your parents back for the $5000 loan they extended you for your education. You and your parents agree that a fair effective annual rate of interest is 12% percent. Required: If you will repay the loan in a single lump sum, how much do you need to repay at the end of: a. 1 year b. 5 years c. 10 years d. 20 years
Question 1 To pay the remainder of his student loan, Tran borrows $3500 from his at an interest of 3.5% per year, compounded semi-annually. His parents would like the lone to be paid in full in 3 years. How much interest will Tran pay to his parents? Question 1 options: a) $350.00 b) $383.96 c) $410.00 d) $400.00
Question 11 Find the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly payment? $840.12
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Question Two ii. ii. Ms. Duke is borrowing 12,000 at a compound annual interest rate of 17%. Determine the annual payment to amortize the loan, if she is offered 7 years. At 8% compounded annually, how long will it take 750 to double? A friend plans to buy a big-screen TV/entertainment system and can afford to set aside 1,320 toward the purchase today. If your friend can earn 15%, compounded yearly, how much can your friend spend in four years on the purchase? What would you pay to own a guaranteed income of C1500 per year to be received forever, if interest rates are 14%? At what rate must 500 be compounded annually for it to grow to ¢716.40 in 5 years? Explain the concept of time value of money in line with the financial manager" corporate objective S

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