You can earn $41 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless of the length of the investment, how much interest will you earn on a $1,000 deposit for: a. 8 months. b. 1 year. c. 1.3 years. a. 8-months. For a 8-month, $1,000 deposit you will earn $ (Round to the nearest cent).

You can earn $41 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless of the length of the investment, how much interest will you earn on a $1,000 deposit for: a. 8 months. b. 1 year. c. 1.3 years. a. 8-months. For a 8-month, $1,000 deposit you will earn $ (Round to the nearest cent).

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 can earn $ 44 in interest on a $ 1 comma 000 deposit for eight months. If the EAR is the same regardless of the length of the investment, how much interest will you earn on a $ 1 comma 000 deposit for: a. 3 months. b. 1 year. c. 1.9 years. Question content area bottom Part 1 a. 3 -months. For a 3 -month, $ 1 comma 000 deposit you will earn $enter your response here . (Round to the nearest cent). Part 2 b. 1-year. For a 1-year, $ 1 comma 000 deposit you will earn $enter your response here . (Round to the nearest cent). Part 3 c. 1.9 -years. For a 1.9 -year, $ 1 comma 000 deposit you will earn $enter your response here . (Round to the nearest cent).
A bank lends you $250,000 (loan amount is $250,000) at a 7.25% nominal interest rate. The loan requires monthly interest-only payments for 6 months, followed by equal monthly payments of principal and interest based on a 25 year amortization schedule. The loan matures in 5 years and a balloon payment is due at that time. What is the total interest dollar amount paid by the end of month 60? Round all dollar calculations and your final answer to the nearest penny.
If you want to earn 7% annual simple interest on an investment, how much should you pay for a note that will be worth $6,700.00 in 10 months
An investment of $3,100 is made for 4 months at an annual simple interest rate of 3.75%. What is the future value of the investment (in dollars)?
An investment of $2,500 is made for 8 months at an annual simple interest rate of 2.25%. What is the future value of the investment (in dollars)?
You have found three investment choices for a one-year deposit: 11% APR compounded monthly, 9% APR compounded annually, and 10% APR compounded daily Compute the EAR for each me choice. (Assume that there are 365 days in the year) CEED For the case of 11% APR compounded monthly the EAR is% (Round to three decimal places) For the case of 9% APR compounded annually the EAR is (Round to three decimal places) For the case of 10% APR compounded daily the EAR is % (Round to three decimal places)
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.)
Suppose you borrowed $ 15 000 at 8% monthly interest to repay it in monthly installments over 4 years. At the end of the first year (after 12 payments), you want to negotiate with the bank to pay off the remainder of the loan as in the following plan: The next payment will be made in the sixth month of the 2nd year in the amount G and will continue to increase linearly in the amount G every 3 months. Then what is G?
a) Assume that you deposit 1,000 TL in an account earning 13% annual interest for 3 months. What is the interest earned at the end of the 3rd month? b) Assume that you deposit 1,000 TL in an account earning 20% annual interest for 2 years. What is the accumulated interest at the end of the 2nd year? c) Please calculate how large deposit of 10,000 TL today will become at a compound annual interest rate of 10% for 5 years? d) Assume that you need 1,000 TL in 2 years. How much would you need to deposit today at a interest rate of 7% compounded annually? e) You can make an investment that will pay you 50 TL every year starting at the end of this year for the next five years and 1,000 TL at the end of the five years. If you require a 12% return, how much should you be willing to pay for this investment?
If you want to earn 8% annual simple interest on an investment, how much should you pay for a note that will be worth $11,100.00 in 2 months. You should pay $
What equal monthly investment is required over a 50-year period to achieve a balance of $1,900,000 in an investment account that pays monthly interest of 3/4% ? $ per month. Round your answer to the nearest dollar. The tolerance is ± 5.
Assume that you take out a $2000 loan for 30 months at 9% APR. What is the monthly payment? (Round your answer to the nearest cent.)

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