You have purchased a guaranteed investment contract (GIC) from an insurance firm that promises to pay you a 5% compound rate of return per year for 6 years. If you pay $20,000 for the GIC today and receive no interest along the way, you will get __________ in 6 years (to the nearest dollar). (Round your answer to the nearest whole dollar).

Q: You want to buy a house valued at $200,000.  AFter a down payment, you can finance the house with a…

A: The annual percentage rate is the rate earned on the investment or paid on loan over the period of…

Q: Your high school classmate is offering you an investment opportunity which requires you to make…

A: Your classmate's investment offers an opportunity to build a significant sum over time. Here's why:…

Q: Suppose you are buying your first condo for $250,000, and you will make a $7,500 down payment. You…

A: Monthly Payment  = P * r * [(1+ r)n/({1 + r}n -1)] Where, P = Principal borrowed =Asset value -…

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Q: You are purchasing a house and you are considering getting a fixed-rate mortgage (FRM) for $750,000.…

A: Required monthly payments for the mortgage is calculated using excel PMT function Required monthly…

Q: You want to buy a house, and a local bank will lend you $100,000. The loan will be fully amortized…

A: Monthly loan payment: It is the amount of money that is given to the lender by the borrower on the…

Q: A life insurance co. is trying to sell you an investment policy that will pay you and your heirs…

A: Perpetuity refers to a financial concept where a stream of cash flows continues indefinitely. It is…

Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

Q: You are considering purchasing a new home. You will need to borrow AED 4,000,000 to purchase the…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

Q: You have just received a windfall from an investment you made in a friend's business. She will be…

A: The Present Value refers to a concept that states the discounted value or say value at today's time…

Q: You just bought a house for $334, 000 with a 12% down payment. The remainder is financed by a fully…

A: Cost of the house = $334,000Down payment = $334,000 x 12% = $ 40,080Loan amount = cost of the house…

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 are buying a house and will borrow $280,000 on a 30-year fixed rate mortgage with monthly…

A: Amount Borrowed $     2,80,000.00Tenure, years30APR4.15%If buy downInterest rate3.75%

Q: Big Dom's Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like…

A: When we take a loan from banks they charge us interest on that loan. Similarly when we borrow money…

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: You want to purchase a house valued at $200,000.  After a downpayment, you can finance the house…

A: Value of the house = $200,000 Number of years of mortgage = 20 Number of periods (n) = 20*12 = 240…

Q: The Solvent Insurance Co. will pay you $4,750 a year for 15 years in exchange for $45,000 today.…

A: in this you have to find out present value FACTOR and from that you can get interest rate.

Q: You need a 15-year, fixed - rate mortgage to buy a new home for $230,000. Your mortgage bank will…

A: A balloon payment is a significant, lump-sum amount due at the conclusion of a loan term, following…

Q: You need a 25-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend…

A: The lum sump that has to be paid at the end of the mortgage period for settling the loan at given…

Q: Suppose you are buying your first condo for $280,000, and you will make a $15,000 down payment. You…

A: The objective of this question is to calculate the monthly mortgage payment for a condo purchase.…

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: Suppose you are buying your first condo for $240,000, and you will make a $15,000 down payment. You…

A: Monthly payment refers to the fixed amount of money that is due each month as part of a loan or…

Q: What is the annual percentage rate ( APR) of the loan?

A: The annual percentage rate is an annual interest rate used to represent the cost of borrowing. It…

Q: You would Ilike to have $59,000 in 5 years for the down payment on a new house following graduation…

A: Note: No intermediate rounding is done, only the answer is rounded off to nearest whole number.a)…

Q: You bought a house worth ​$326,000. You paid​ 25% of the purchase price in cash and arranged a ​30…

A: A mortgage loan is a type of secured loan that you can avail of by keeping an immovable asset as a…

Q: Suppose you are buying your first condo for $300,000, and you will make a $15,000 down payment. You…

A: The objective of this question is to calculate the monthly mortgage payment for a condo purchase.…

Q: Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You…

A: Formula for Calculating Future Value = PMT [(1+i)n - 1] / i Here, PMT = 1600              i    =…

Q: The Galley purchased a property two years ago at a cost of $19,800, and the firm uses a three-year…

A: Initial cost = i = $19,800Time = t = 3 YearsSelling Price = s = $13,500

Q: Your friend tells you he has a very simple trick for taking one-third of the time it takes to repay…

A: Mortgage amount = $100,000Interest rate = 12%Loan term = 30 yearsTo find: a. Number of years it…

Q: Suppose you are buying your first condo for $190,000, and you will make a $10,000 down payment. You…

A: Monthly payments refer to the amount that is being in every month including the principal and…

Q: Retirement Investment Advisors, Incorporated, has just offered you an annual Interest rate of 4.9…

A: Future value refers to the value of cash flows or annuity at defined future date. It can be…

Q: You are buying a house and the mortgage company offers to let you pay a "point" (1% of the total…

A: Mortgage amount = $400,000 Time period = 30 years Interest rate = 6.50%  Additional Payment = 1% of…

Q: You need a 30-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend…

A: Present value of annuity is computed as follows:-PV= A*wherePV= Present value of annuityA= periodic…

Q: Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You…

A: purchasing price = $144,000 down payment = $17,000 loan amount = $144,000 - 17,000…