10. Robin has just graduated with a master's degree in introspective journalism from a prestigiousuniversity and $185,000 of student loan debt. Robin has found a job as a wine and cheese blogger inNew York that pays $34,000 per year, and wants to purchase a 250 square foot apartment in Manhattanfor $300,000.Robin has taken out a loan for $485,000 from Mammon Financial, Inc. that provides the funds needed topay off the student loan debt and purchase the apartment. The loan has an annual interest rate of12.59%, with annual end of year payments required. Robin can choose the size of the payment, subjectto the requirement that a minimum payment of at least $62,854 be made at the end of each year.Robin is comfortable with these loan terms because there is an option to fully pay off the loan balanceat any time, and Robin is counting on being a beneficiary of the estate of an extremely wealthy greatuncle, thrice removed, who, according to actuarial tables, has approximately 9 months to live.If Robin does not receive any money from the great uncle's estate, how long will it take Robin to pay offthe loan by making the minimum payment each year?

in this problem we have to find out present value FACTOR and from that we can find out period…

Robin has taken out a loan for $485,000 from Mammon Financial, Inc. that provides pay off the student loan debt and purchase the apartment. The loan has an annual 12.59%, with annual end of year payments required. Robin can choose the size of th to the requirement that a minimum payment of at least $62,854 be made at the en Robin is comfortable with these loan terms because there is an option to fully pay o at any time, and Robin is counting on being a beneficiary of the estate of an extrem uncle, thrice removed, who, according to actuarial tables, has approximately 9 mon

Robin has taken out a loan for $485,000 from Mammon Financial, Inc. that provides pay off the student loan debt and purchase the apartment. The loan has an annual 12.59%, with annual end of year payments required. Robin can choose the size of th to the requirement that a minimum payment of at least $62,854 be made at the en Robin is comfortable with these loan terms because there is an option to fully pay o at any time, and Robin is counting on being a beneficiary of the estate of an extrem uncle, thrice removed, who, according to actuarial tables, has approximately 9 mon

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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I need the answer of the question attached. Please provide all possible answers. Thank you!
Theodora received an 8 year PLUS Loan of $17, 000 to attend law school for her last 2 years. If the current interest rate is 8.62% and she starts her repayments 1 year after graduation, what are her monthly payments (in dollars)? (See Example 5 in this section. Assume the loan has a deferred payment plan.
Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $20,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $20,000 with an annual interest rate of 11% over the next 5 years. Determine the cash flow to the woman under a discount loan, in which Ponzi will have a lump-sum payment at the end of the contract. What is the amount of payment that the woman will receive at the end of years 1 through 4? $ (Round to the nearest cent.)
Douglas needs to borrow $15,600 today for his tuition bill. He agrees to pay back the loan in a lump-sum payment five years from now, after he is out of college. He bank states that the payment will need to be $19, 683. If Douglas borrows the $15,600 from the bank, what interest rate is he paying on his loan?
Jefferson qualifies for an income-adjusted monthly payment of $475. If Jefferson has a subsidized student loan of $48,000 at an annual interest rate of 4% (compounded monthly), how many months are required to repay the loan? (Round your answer up to the nearest month.)
Jeffery Wei received a 7-year non-subsidized student loan of $31,000 at an annual interest rate of 5.9%. What are Jeffery's monthly loan payments for this loan after he graduates in 4 years? (Round your answer to the nearest cent.)
Lacy has a $49,500.00 student loan when she graduates on May 4, and the prime rate is set at 4.5%. She has decided at the end of the grace period to convert the interest to principal, and she sets her fixed monthly payment at $950.00. She opts for the variable rate on her student loan. Create the first four repayments of her repayment schedule. Calculate the total interest charged for both the grace period and the four payments combined. Assume February does not involve a leap year. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance (-) Principal Amount Balance after Transaction June 1 $49,500.00 Nov 30 7% (inclusive) ☐ ☐ Dec 31 7% Jan 31 7% Feb 28 7% Mar 31 7% Total combined interest…
Jamie is going to buy furniture with a single-payment loan that is discounted. The loan will be for $5,000 for 2 years at 10% interest. Calculate the annual percentage rate (APR) on this loan. (Show all work.)
Rob asks his good friend Ted to borrow $5,000 and says he will pay it back to him in 6 months with 8% interest, meaning Rob will owe Ted $5,200 if he pays it back at that time. Ted asks Rob to "make" a promissory note payable to Ted stating these terms. Rob does prepare the "note" and signs and gives it to Ted and at the same time Ted gives Rob the $5,000. Ted in need of money unexpectedly, because he loses his job, contacts his buddy Gullible, and asks him if he will buy the note at a discount of $4,800. Gullible accepts and stands to make a nice profit when the note owed by Rob comes due. When Gullible gives Ted the $4,800, Ted writes on the note "Without Recourse" and signs his name and tenders the note to Gullible. Gullible does see Ted write this on the note, but is not sophisticated with regard to legal lingo, and thinks nothing of it. He therefater gets nervous and thinks maybe he should sell the note himself right away. He calls his aunt Saviour who says she will buy the…
Interest-only loan (regular interest payments each year and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $25,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $25,000 with an annual interest rate of 10% over the next 5 years. Determine the cash flow to the woman under an interest-only loan, in which Ponzi will pay the annual interest expense each year and pay the principal back at the end of the contract. What is the amount of payment that the woman will receive at the end of years 1 through 4? (Round to the nearest dollar.)
Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $45,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $45,000 with an annual interest rate of 11% over the next 5 years. Determine the cash flow to the woman under a discount loan, in which Ponzi will have a lump-sum payment at the end of the contract. What is the amount of payment that the woman will receive at the end of years 1 through 4? $nothing (Round to the nearest cent.)
Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed with a 15 year mortgage at 8% and 4 discount points. Kari made a deposit of $20,000 (applied to the down payment) when the sales contract was signed. Kari also has these expenses: credit report, $70; appraisal fee, $110; title insurance premium, 1% of amount financed; title search, $200; and attorney's fees, $500. Find the closing costs (in $). $ ____________________

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