You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 9%. If the bond initially costs $3,000, what is the payment every year? The payment at the end of each year is $ (Round to the nearest dollar.)

Q: Suppose you take out a 30 year mortgage for $ 200000 at 8.5% interest. The monthly payments on this…

A: Here,

Q: Your broker is offering 1.2 percent compounded daily on its money market account. If you deposit…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Interest rates are 10%. Suppose you deposit the PV (present value) of a 7 year, $5000 annuity in the…

A: An annuity is a cash flow that occurs in each period and the amount is fixed or constant.   In this…

Q: You would like to have ​$   59,000 in   15 years.  To accumulate this​ amount, you plan to…

A: The concept of time value of money tells us that worth of money keeps on changing with passage of…

Q: You borrow $235,000; the annual loan payments are $31,351.50 for 30 years. What interest rate are…

A: Given information: Loan amount borrowed is $235,000 Annual loan payment is $31,351.50 Number of…

Q: If you borrow $2800 and agree to repay the loan in 5 equal annual payments at an interest rate of…

A: Using excel PMT function to calculate the yearly payment

Q: Suppose you currently have $20,000 and plan to purchase a 8-year certificate of deposit (CD) that…

A: Using the Future value and NPER function in excel

Q: An investor wants to save money to purchase real estate. He buys an annuity with quarterly payments…

A: Here, Quarterly Payment is $163 Interest Rate (r) is 5.5% Compounding Period (m) is Quarterly i.e 4…

Q: You want to take out a $179,000 mortgage (home loan). The interest rate on the loan is 4.1 %, and…

A: After making payments for 15 years, you will still owe approximately $116,143 on your mortgage.…

Q: Suppose you owe $600 on your credit card and are paying 14 percent interest. If you pay off the debt…

A: Interest is the amount paid for the usage of the principal borrowed.

Q: You are considering investing $1,000 in a bank term deposit for 6 years. The term deposit will pay…

A: Solution: An amount invested somewhere, earns interest on it.  The amount initially deposited is…

Q: ou are offered an annuity that will pay R17,000 per year for 7 years (the first payment will be made…

A: Given: Annuity amount = R17,000 Year = 7 Discount rate = 11%

Q: You borrow $110,000; the annual loan payments are $16,753.02 for 30 years. What interest rate are…

A: Borrowed amount = $110,000Annual loan payment = $16,753.02Number of years = 30 years

Q: For the next two questions, assume the interest rate is 6% compounded annually. Use the online…

A: Present value refers to the current value of the future cash flow. Present value can be determined…

Q: ou borrow $210,000; the annual loan payments are $18,653.76 for 30 years. What interest rate are you…

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv],…

Q: You borrow $175,000; the annual loan payments are $10,120.27 for 30 years. What interest rate are…

A: Interest on a loan is the additional amount of money that a borrower has to pay back to the lender…

Q: You are a loan officer trying to structure a 5/25 ARM mortgage. The interest rate in the first 5…

A: A mortgage refers to a loan used for the purchase of real estate. The loan is covered by the real…

Q: You purchase a 10-year annuity that pays you \$ 30000 / v * ear . The first payment will begin in…

A:

Q: what is the present value

A: The time value of money means that the amount of money received in the present period will have…

Q: You borrow $90,000; the annual loan payments are $12,852.25 for 30 years. What interest rate are you…

A: Interest :  It is the total amount payment on loan taken or fund borrowed by any person . it may be…

Q: Suppose you take out a 30-year mortgage for $ 275000 at 8.5% interest. The monthly payments on this…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: Suppose you take out a 30 year mortgage for $ 150000 at 6.75% interest. The monthly payments on this…

A: Time period with new monthly payments will be calculated by excel function NPER. Total interest on…

Q: Boomer Co. offers a financial security that pays $200 annually for 5 years and the market rate is…

A: Payment = p = $200Time = t = 5 YearsMarket Rate = r = 5%

Q: You need to have $33,500 in 14 years. You can earn an annual interest rate of 5 percent for the…

A: The deposit amount today is calculated as the present value of required amount in future. Present…

Q: Your bank will pay you an interest rate of 0.102% per week. You want to have $22, 500 in 10 years.…

A: Future value=$22500Interest rate=0.102%Period=n=10 years=10 x 52=520 weeks

Q: It is now the beginning of the year. Assume that, starting at the end of the year, you will make…

A: The future value of annuity is calculated using following equation Future value = P×(1+r)n-1r Where,…

Q: Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6…

A: Present Value of Annuity=Annuity×1-11+ratetimerate

Q: You Save Bank has aunique account. If you deposit $9,000 today, the bank will pay you an annual…

A: FV = A*(1+r)nwhereFV = future valueA = amount investedr = interest raten =time period

Q: Suppose you take out a 30 year mortgage for $ 150000 at 4% interest. The monthly payments on this…

A: Here, Mortgage Amount is $150,000 Time Period of Mortgage is 30 years Interest Rate is 4% Monthly…

Q: You would like to have $78,000 in 12 years. To accumulate this amount, you plan to deposit an equal…

A:

Q: Suppose you take out a 30 year mortgage for $ 250000 at 6.75% interest. The monthly payments on this…

A: GIVEN, PMT = $1621.50 LOAN AMOUNT (P) =$ 250,000 N = 30 YEARS R = 6.75% IF YOU PAY 40% EXTRA YOUR…

Q: n the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: In this we need to calculate monthly payment required for one million future value.

Q: You need to have $30,750 in 11 years. You can earn an annual interest rate of 6 percent for the…

A: To calculate the deposit amount we will use the below formula   Deposit amount =…

Q: 21. You buy a house for $400,000. You pay off the loan with monthly payments over 30 years at a…

A: Time has been precious in all perspectives, however in terms of finance; the time has a monetary…

Q: You borrow $250,000; the annual loan payments are $35,700.70 for 30 years. What interest rate are…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: Your insurance company offered you an annuity that pays you $100 at the end of each year. The life…

A: PV computes the existing value of future benefits by discounting future cash flows with a given…