Ted will receive a cash settlement of $195,000 in 9 months. A finance company hasindicated that they would provide cash today based upon a simple discount rate of 26%.How much would Ted receive now if he agrees to these terms?$144,300.00$156,975.00$185,113.50O $189,930.00

To determine how much Ted would receive now, we need to use the formula for simple…

Answered: Ted will receive a cash settlement of…

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

See similar textbooks

Similar questions

your aunt plans to give you the following amounts on cash $1,100 six months from today, $3000 one year from today, $2,300 eighteen months from today, $1,800 twenty four months from today and $1900 thirty months from today. how much money will you have in total after the last cash payment if you invest these cash payments at a rate of 7%
Your friend signs a promissory note for $2,000 for 30 days with a rate of 2.25% attached. After fifteen days, you realize you need the money and sell the promissory to another friend to yield you 3.00%. How much interest did your friend earn in interest (dollar amount) for holding the promissory note for the last fifteen days?
You will be earning $1,200 in salary every month, if you decide to put half of that in your savings account that pays you 6% in interest, how much will you have saved up after 11 years? Select one: a.$290,860.98 b.$111,793.58 O c.$231,793.58 d.$463,587.15
Your bank offers to lend you $120,000 at an 6.5% annual interest rate to start your new business. The terms require you to amortize the loan with 10 equal end-of- year payments. How much interest would you be paying in Year 2? $16,692.56 O $19,068.53 O $10,428.81 O $18,161.67 O $17,254.82
A friend wants to borrow a sum of money from you today and will repay R20 000 in 3 years' time. How much are you willing to lend if the interest rate is 8%?
Your bank offers to lend you $120, 000 at an 8.25% annual interest rate to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2? a. $5,904.06. b. $8,487.08 0 c. $6,642.06• d. $7,011.07. e. $9224.68
< A friend asks to borrow $51 from you and in return will pay you $54 in one year. If your bank is offering a 6.2% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $51 instead? b. How much money could you borrow today if you pay the bank $54 in one year? c. Should you loan the money to your friend or deposit it in the bank?
You want to buy a $160,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 4.65% interest for the rest. The bank will charge 2 points on the amount financed. a) What is the amount of the down payment? b) How much is the loan amount going to be? $ c) What will be the amount charged for 2 points? d) Find the amount of the monthly payment. $
please answer without image
A friend asks to borrow $48 from you and return will pay you $51 in one year. If your bank is offering a 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $48 instead? b. How much money could you borrow today if you pay the bank $51 in one year? c. Should you loan the money to your friend or deposit it in the bank? D
Your bank pays 6.50% interest. You have two planned outlays in the future. You need $5,800 in five years, and $6,300 in eight years. How much must you deposit today in order to makes these two withdrawals? $7,311.20 $8,831.56 $13,306.11 $8,039.97
You want to buy a $160,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 4.5% interest for the rest. The bank will charge 3.5 points on the amount financed.a) What is the amount of the down payment?b) How much is the loan amount going to be?c) What will be the amount charged for 3.5 points?d) Find the amount of the monthly payment.

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Ted will receive a cash settlement of $195,000 in 9 months. A finance company has indicated that they would provide cash today based upon a simple discount rate of 26%. How much would Ted receive now if he agrees to these terms? $144,300.00 $156,975.00 $185,113.50 O $189,930.00