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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21. You buy a house for $400,000. You pay off the loan with monthly payments over 30 years at a nominal interest rate i(2) = 3.25%, convertible semiannually. Find the amount of your monthly payments and the total amount of interest you will pay over the life of the loan and the percentage of your total payments that went towards interest.
te.4 If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5% per year, how much money will be in the account at the end of that time period?
F2
1. If $100 is deposited today in an account paying 9 percent compound annual interest, how much will be in the account at the end of 4 years? (A) $70.84 (B) $141.16 (C) 323.97 (D) $457.31 2. If Bill deposits $8,000 today in an account that pays 3% compound annual interest, how long will it take for the account to reach $10,000? (A) 3.77 years (B) 4.58 years (C) 6.12 years (D) 7.55 years 3. How much money do you need to deposit today in a savings account earning 9 percent compound annual interest if your goal is to accumulate $10,000 at the end of 4 years. (A) $3,086.71 (B) $7,084.25 (C) $7,721.83 (D) $14,115.82 4. John needs to accumulate $25,000 in a savings account over the next 5 years. He can make five annual deposits of $4,000 starting today. What compound annual rate of return must the account earn in order for John to meet his goal? (A) 5.00% (B) 6.12% (C) 6.67% (D) 7.53% 5. If $1,000 is deposited into a savings account at the beginning of each of the next 4 years starting…
Assume we have a $500,000 mortgage at a 3.5% original interest rate, 30-year term, and monthly payments. The interest rate can be adjusted at the end of each year, and we assume the rate increases by 0.25% after the first year. What is the monthly payment for the 4th year of the loan? O 2,418,25 O 2,448,03 O 2,455,81 None of the given answers O2,481,25
How much will you pay on a 25 year, $400,000 mortgage if you make monthly payment at the beginning of month? Interest is 3.5% compounded annually. O a. $1,968 O b. $1,973 OC. $1,979 O d. $1,997 O e. $1,991
3. If you were to deposit $399.27 into an account today that pays 8% interest annually, with a payment of $100 at the end of each year, what would you be left with at the end of 5 years? in excel
You want to take out a $250,000 mortgage (home loan). The interest rate on the loan is 5% and the loan is for 25 years. How much will your semi- monthly payments be? a. $655 $622 c. $730 O d. $680 e. $752 O b.
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.
If you deposit $500 every 6 months for 7 years at an interest rate 20% compounded quarterly, how much money will you have in your account at the end of 7 years? A. $10,985 B. $16,560 C. $12,685 D. $14,255

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