complete this activity on a sheet of paper and attach to this activity.elow, you may use either method when calculating the1.Study the information below and answer the questions that following questions.Capital amount:30 000Interest rate:10% p.aInstallments:R1 350Repayment period: 24 monthsCalculate interest payable for the full 2 year period using the simple methoca.b.Calculate the total interest payable for the first six month using the compound method.2. Study the information below and answer the questions that following questionsCapital amount:R25 00013% p.aInterest rate:R750Installments:Repayment period: 36 monthsCalculate interest payable for the full 36 month period using the simple methodCalculate the total interest payable for the first three months using the compound methora.b.3. Calculate the interest for the following loan using both simple and compound interest.R400 000anital amoụnt:

The present value is the value of the sum received at time 0 or the current period. It is the value…

Answered: use either method when calculating the…

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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please solve all part i need answers all Q3): Fill in the entire chart for the below annuities by filling in all the blanks. # Payment and frequency (PMT) Time in years (n) Interest rate and compound frequency (I/Y) Present Value (PV) Future Value (FV) a. $5,682.04 per quarter (end) 5 years 5% compounded quarterly ______________ Not Applicable b. $241.63 per month (end) 69 payments 6 ¼ % compounded monthly Not Applicable _______________ c. $____________ per quarter 7 years and 3 months 3 % compounded semi-annually $7,795.89 Not Applicable d. $445.30 per month __________years 7.45 % compounded quarterly Not Applicable $24,788.40 e. $2,000 beginningof every six months 12 ½ years _______compounded quarterly $37,708.30 Not Applicable f. $2,789.58 beginning of every 3 months 60 months 2.75% compounded quarterly Not Applicable…
DIRECTION: ENCIRCLE THE BEST ANSWER. 4.) This refers to the interest rate per conversion period A Compound interest C Rate of interest B Periodic rate D. Simple interest 5) Thuis nefers to the amount paid or eames for the use of money A Conversion period C. Principal B. Interest D Rate 6) 30 months is equivalent to A 25 years B 2.75 years C 3 years D 3.25 years 1) How much is the simple interest on this financial transaction. P = .000 00. - * 6°.. and / 2 years AP120.00 B P600.00 CP1.300 00 D P6.000.00 6) What is the total number of conversion periods when a certain amount is borrowed are 10°. coupomded mouthly for 5 years? A.12 B 50 C 24 D. 60 How unch was the interest if Sophia borrowed P45.000 90 and paid a total of PS5.500.00 ar the end of the tem A PI0.500 00 CP11.500.00 B P45,000.00 D. P100.500.00 10.) What is the interest rate per conversion period if 125.900 00 was tvested at 3.4. compounded oruually for 4 years and 6 months 0033 C 0.110 B 0.330 D. 0 160 11. Jolu borowed…
Two alternative courses of action have the following schedules of disbursements. If the MARR is 6% which alternative should be selected? Use present worth analysis. Show your calculations in your working document. Also note that in periods 4 and 5, the values for option B should be - 400 and - 500 respectively. Year 0 1 2345 2 3 A B -$1,300 0 0 0 0 0 $1,300 - $100 -200 -300 400 500 $1,500
For each of the following situations involving annulties, solve for the unknown. Assume that interest is compounded annually and that all annulty amounts are received at the end of each period. (/= Interest rate, and n = number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. 5. Present Value 248, 196 442,750 650,000 175,000 Annuity Amount $ 5,000 80,000 60,000 155,040 8% 11% 10% n = 5 4 10 4
Suppose that you need an amount of money which equals to $10000000. It is possible to find it from bank A at an annual interest rate of 18% under 12 equal payment. If the first payment will be 1 month later the day you used the loan. Find the CF (Cash Flow), the equal payments and prepare the amortization table.
Given a loan amount P, an annual interest rate r, and the length of the loan in years, find the monthly payment R necessary to pay off the loan by completing parts a through c. Represent the number of monthly payments by n. Amount Rate Time $50,000 5% 20 years Question content area bottom Part 1 a. Calculate P1+r12n and call this number A. A=enter your response here (Round to two decimal places as needed.) Part 2 b. Calculate 1+r12n−1r12 and call this number B. B=enter your response here (Round to two decimal places as needed.) Part 3 c. Let R = AB. The monthly payment necessary to pay off the loan is R=$enter your response here. (Round up to the nearest cent.)
If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4 years. The amount of the annual payment is: Select one: а. $1169.85 b. $1400 c. $1313.9 d. $1240
Suppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79
Show all calculations please don’t use excel need written answer. A $10 000 loan is to be repaid with semi-annual payments of $ 2500 for as long as necessary. If interest is at j12 = 12%, create a complete amortization schedule.
Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $80,000 for 3 years at 9% compounded annually Period Payment Interest Balance Reduction Unpaid Balance $80,000 %24 2 24 %$4 $0.00 Need Help? Read it 3.
Give typing answer with explanation and conclusion A 10-year loan of L is prepaid by the amortization method with payments of $1,000 at the end of each year. The annual effective interest rate is i. The total amount of interest repaid during the life of the loan is also equal to L. Calculate the amount of interest paid during the first year. (show formula and step by step solution)
Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Payment $ 5,600 10,600 4,600 Annual Rate Interest Compounded Semiannually 9.0% 10.0% Quarterly 11.0% Annually Period Invested 3 years 2 years 5 years Present Value of Annuity

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