Suppose you borrowed $20,000 at a rate of 9.2% and must repay it in 5 equal installments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you have made the first payment? O a $16,000.00 O b. $17,106.89 O c. $14,831.44 O d. $16.671.44 O e $15,266.89

Suppose you borrowed $20,000 at a rate of 9.2% and must repay it in 5 equal installments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you have made the first payment? O a $16,000.00 O b. $17,106.89 O c. $14,831.44 O d. $16.671.44 O e $15,266.89

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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1.What is the future value of $2,000 after 3 years if the interest rate is 8%, compounded semiannually?Select one:a. $2,854.13b. 2,781.45c. $2,324.89d. $2,530.64$2. Bilsl borrowed $100,000 today that he must repay in 10 annual end-of-year installments of $14,902. What annual interest rate is Bill paying on his loan?a.8.0%b. 7.5%c. 4.9%d. 5.4%3.ABC Company has $100 million in total assets and its corporate tax rate is 40%. The company recently reported that its basic earning power ratio (EBIT/Total Asset) was 15% and its return on assets (Net Income/ Total Assets) was 9%. What was the company’s interest expense?a. $15,000,000b. $ 0c. $2,000,000d. $ 6,000,0004.Marry has $500,000 and wants to retire. He expects to live for another 20 years, and to be able to earn 8% on his invested funds. How much could he withdraw at the end of each of the next 20 years?a. $53,431.83b. $50,926.10c. $55,119.76d. $54,764.405.How much would you pay for a stock that is expected to make a $1.50 dividend in…
a) If a person deposits $10,000 at 10% per year simple interest, what compound interest rate would yield the same amount of money in 3 years?
9. I wish to borrow $400,000 to buy a house. If the current interest rate on the loan is 4.8% per annum, then my monthly repayment at the end of every month for the next 30 years is: Select one: a. $2,908.66 b. $2,098.66 c. $2,090.30 d. $1,111.11
13) Would enjoy the help.
Suppose you borrowed $35,000 at a rate of 8.1% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be? O a. $7,755.76 O'b. $11,585.00 O c. $11,948,43 O d. $9,797.19 O e. $10,590.76
Suppose that you borrow $125,000 using a 15-year loan with an annual interest rate of 4% with monthly payments and monthly compounding. What will the balance be for this loan at the end of the 6th year? $75,000 $83,744 $58,428 $83,593
You have in your account today $10000 and the bank offered you a 5% interest rate compounded annually. Calculate the amount you will have after 5 years. * $15860 $13350 $14270 O $12763
Assume that you borrow 50,000 JPY under the system of 5% yearly compound interest. (1) If you repay annually in the plan of principal equal payment and pay off at the 10th repayment, calculate the total amount of all 10 repayments. (2) If you repay annually 8,000 in the plan of total (principal and interest) equal payment, you will pay off at 8th payment. How much is your final (8th) payment ? (1) (2)
You borrow $145,000 and must make annual loan payments of $11,635.18 for 20 years, starting at the end of the year. What interest rate are you being charged? a. 5% b. 7% c. 8% d. 9% e. 6%
4f
1.5 Suppose you would like to retire in 15 years. To save for retirement, you deposit an amount A into the bank at the beginning of the next 180 months. After that period, you would like to withdraw $1,000 at the beginning of the following 300 months. Assume a nominal yearly rate of 7.5% compounded monthly. What amount does A have to be?
Suppose you borrowed $25, 000 at a rate of 9.0% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be? Select the correct answer. a. $7, 703.52 b. $7, 729.92 c. $7, 716.72 d. $7, 736.52 e. $7,723.32

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