To buy a new car, you decided to take a loan of$100,000 to be repaid inquarterly installments for 12 years at 10%interest compounded monthly. If the generalinflationrate is 8% compounded monthly, find the actualand constant dollar value of the 18th paymentof this loan.A) A18 = $3,982.62, AO18 = $2,798.17B) A18 = $3,997.65, AO18 = $2,792.40C) A18 = $4,068.63, AO18 = $2,841.98D) non of the above%3D%3D%3D

The actual value of payment is calculated using the given interest rate. The constant dollar value…

Answered: To buy a new car, you decided to take a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose you get a student loan for $8,000, and your payments are deferred until after you graduate, 2 years from now. Then, you will make 15 yearly payments (starting 2 years from now). What are your payments? The interest rate is 8%/year. a. $845 b. $ 934 c. $ 976 d. $1,009
You have just taken out a $24,000car loan with a 4%APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest?(Note: Be careful not to round any intermediate steps less than six decimal places.) When you make your first payment,$.... will go toward the principal of the loan and $......will go toward the interest. (Round to the nearest cent.)
You have your choice of two investment accounts. Investment A is a 6-year annuity that features end-of-month $3,000 payments and has an interest rate of 8 percent compounded monthly. Investment B is an annually compounded lump-sum investment with an interest rate of 10 percent, also good for 6 years. How much money would you need to invest in B today for it to be worth as much as Investment A 6 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
A bank makes a loan with the following characteristics: monthly payments for 10 years, with an APR of 6%. The amount loaned is $200,000. What is the duration of the loan? What is the expected change in loan value if the interest rate decreases by 1 percentage point immediately after approving the loan. Choose the closest answer below. 5.32 years; -$10,037 3.21 years; $6,056 4.55 years; -$8,577 6.74 years; $12,716
et's calculate how much you borrowed to buy your classic Ford Bronco assuming you made payments of $6000.00 at the end of every six months for twelve years. If interest on the loan is 8% compounded quarterly, what was the principal of the loan? Question 10 options: $23 433.19 $201 323.86 $91 108.28 $19 108.28
We assume that we have a secured a loan of $10,000 from a bank which will be paid in one year. The bank has offered you $850 monthly installments, which equates to a 3.67% annualized interest rate. The monthly interest rate of 0.31% is the annual rate divided by 12. You know that the interest is paid at the end of the period, so you can multiply the opening balance by the monthly interest rate to get the interest paid. What is the interest rate to be paid for the month of October? Month Payment Interest Principal Opening Balance Closing Balance January $850.00 $10,000.00 February $850.00 March $850.00 April $850.00 May $850.00 June $850.00 July $850.00 August $850.00 September $850.00 October $850.00 November $850.00 December $850.00 Monthly Rate 0.31% Annual Rate 3.67% Total Interest Paid Group of answer choices…
Suppose that you borrow $11,000 for four years at 6%toward the purchase of a car. Find the monthly payments and the total interest for the loan.
Suppose that you are about to borrow $10,000 from a bank. Suppose you will be repaying using end-of-year annual payments. What will be your annual uniform payment over 8 years with 10% nominal interest compounded monthly? What will be your annual uniform payment over 7 years with 10% nominal interest compounded continuously?
You are borrowing $300,000 for 20 years at 4%. Payments will be made monthly. What is the total amount of interest you will pay if you pay the loan as agreed over the 20 years? a. $114,786 b. $124,340 c. $136,306 d. $164,120 e. $196,342
(Annuity interest rate) You've been offered a loan of $40,000, which you will have to repay in 7 equal annual payments of $8,000, with the first payment due one year from now. What interest rate would you pay on that loan? The interest rate you would pay on the loan is%. (Round to two decimal places.)
Assume you graduate from college with $31,000 in student loans. If your interest rate is fixed at 4.90% APR with monthly compounding and you repay the loans over a 10-year period, what will be your monthly payment?
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