They decide to make annual deposits into their account of $25,000,000 at the end of the period for all 6 years prior to the start of their film. If they need to save $231,000,000, what is the interest rate they should seek (XX.X%)
They decide to make annual deposits into their account of $25,000,000 at the end of the period for all 6 years prior to the start of their film. If they need to save $231,000,000, what is the interest rate they should seek (XX.X%)
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. They decide to make annual deposits into their account of $25,000,000 at the end of the period for all 6 years prior to the start of their film. If they need to save $231,000,000, what is the interest rate they should seek (XX.X%)?
2. Apple has chosen to invest in an orphanage for misplaced foundlings like Stevie Wonder, and he took out a loan for $13,000,000 to do so. He plans to pay off the loan in 8 years. He makes payments of $3,900,000 on the loan in years 2, 4, and 6. If the loan has an interest rate of 3.5%, how much will his final payment be in year 8 when he pays off the remainder of the loan? (Round to the nearest dollar)
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