What is the equivalent AW of a one-year contract that pays $6,000 in the first month and increases by $700 for each month thereafter?MARR = 9% compounded monthly.Click the icon to view the interest and annuity table for discrete compounding when the MARR is 0.75% per month.Choose the correct answer below.OA. The AW is $75,608.OB. The AW is $123,339.Oc. The AW is $200,736.OD. The AW is $122,420.OE. The AW is $47,730.

AW is the annual equivalent value of a contract and that would be the future value of all monthly…

Answered: What is the equivalent AW of a one-year…

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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You plan to borrow $32,200 at an 8.2% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? Oa. $5,755.17 Ob. $2,346.29 $2,384.99 Od. $2,640.40 O$6,227.10
1. If you borrow $2,400 and agree to repay the loan in four equal annual payments at an interest rate of 10%, what will your payment be? (Do not round intermediate calculations. Round your enswer to 2 decimal places.) Amount of payment b. What if you make the first payment on the loan immediately instead of at the end of the first year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Repayment amount %24 %24
Find the amortization table for a $8,000 loan amortized in five annual payments if the interest rate is 4.3% per year compounded annually. (Round your answers to the nearest cent.) End ofPeriod RepaymentMade InterestCharged PaymentTowardPrincipal Outstanding principle 0 8,000 1 2 3 4 5
Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $200,000 at 6%, paid out monthly for 11 years PMT = $ Need Help? Read It Watch It
Suppose you take a 3/1 interest-only ARM for $100,000, monthly payments, 30-year term. The initial contract rate is 4.00% and the contract rate for year 4 is 6.50%. What is the balance of the loan at the end of year 4? 94,892.15 98,591.88 96,483.13 95,347.22
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