(Related to Checkpoint 6.1) (Annuity payments) A firm borrows $20,000 from the bank at 13 percent compounded annually to purchase some new machinery This loan is to be repaid in equal annoinstaliments at the end of each year over the next 13 years. How much will each annual payment be?The amount of each annual payment will be $ (Round to the nearest cont)

Annual payment refers to an amount that is paid on yearly basis for the repayment of loan amount…

Answered: (Related to Checkpoint 6.1) (Annuity…

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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A $3,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. A. present valueB.sinking fund C.present value of an annuityD.amortizationE.ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.)
An annuity purchased for $175,000 pays $4,000 at the end of every quarter. How long will the payments continue if the funds earn 4% compounded semiannually? (Do not round intermediate calculations and round up the number of payments, n, to the next whole number.) It will be years months
A $6,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. ordinary annuity sinking fund amortization present value of an annuity present value (b) Answer the question. (Round your answer to the nearest cent.)
1) A 20-year loan of $1,100 at an effective annual interest rate of 7% is repaid with payments at the end of each year. Each of the first ten payments equals 150% of the amount of interest due. Immediately after the tenth payment, you take out a 10 year loan with payments $100 at the end of each year and effective annual interest rate of i and use this loan to pay off your original loan. Find i.
What is the size of the payments that must be deposited at the beginning of each 6-month period in an account that pays 8.6%, compounded semiannually, so that the account will have a future value of $170,000 at the end of 20 years? (Round your answer to the nearest cent.)$_____
Lorena's Cart took out a loan from the bank today for $245,800.00. The loan requires Lorena's Cart to make a special payment of $82,400.00 to the bank in 3 years and also make regular, fixed payments of X to the bank each year forever. The interest rate on the loan is 9.60 percent per year and the first regular, fixed annual payment of X will be made to the bank in 1 year. What is X, the amount of the regular, fixed annual payment? O $15,686.40 (plus or minus 3 dollars) O $62,588.64 (plus or minus 3 dollars) O $17,588.29 (plus or minus 3 dollars) O $23,596.80 (plus or minus 3 dollars) O none of the answers are within 3 dollars of the correct answer
A 15-payment annual annuity has its first payment in nine years. If the payment amount is $1,400 and the interest rate is 7 percent, what is the most you should be willing to pay today for this investment?A) $5,825.11B) $12,751.08C) $6,416.67D) $7,421.24E) $6,935.74
A bank pays 6% interest compounded semiannually. Use appropriate formula to find out how much should be deposited in $ now to yield an annuity payment of $900 at the beginning of each 6 months for 12 years
An annuity with a cash value of $13,500 earns 5% compounded semi-annually. End-of-period semi-annual payments are deferred for six years, and then continue for nine years. How much is the amount of each payment? Give typing answer with explanation and conclusion
Determine the amount of money that must be invested now (time 0) at 5% nominal interest, compounded monthly, to provide an annuity of $7,000 per year for 12 years, starting eight years from now. The interest rate remains constant over this entire period of time. *** The amount of money that must be invested now is $. (Round to the nearest dollar.)

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