Your child's orthodontist offers you two alternative payment plans. The first plan requires a $3,900 immediate up-front payment. The second plan requires you to make monthly payments of $129.56, payable at the end of each month for 3 years. What nominal annual interest rate is built into the monthly payment plan?   a. 9.51%     b. 12.75%     c. 6.15%     d. 12.01%     e. 21.05%

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A: Rate of return = ( amount received at the end - amount invested) ÷ amount invested.

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Q: Your child's orthodontist offers you two alternative payment plans. The first plan requires a $3,900…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

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A: Introduction: Installment: Its a method of payment paying monthly , semi annually , annually etc.

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A: Given:FV = $25,390P = $360r (monthly interest rate)n=12 (compounded monthly)

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A: Real rate of interest refers to the rate of return that does not include inflation and taxes. It is…

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A: Monthly Payment = $3,000 Time period = 30 Years Interest rate of 5/1 ARM = 4.6%

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A: NPV refers to net present value. It is the sum of present values of all cash flows involved in a…

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A: a-1Present value = Cash flow/(1+interest)^number of years that is present value=

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A: Here,ParticularsValuesPurchase price of home $   5,05,000.00Percentage of down payment20.00%Number…

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A: Monthly Payment: It is the amount that is paid at the end of each month to the lender of the bond by…

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A: The time value of money technique explains the concept that the rupee received today is worth more…

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A: Future Value = Annuity * PVA of $1

Q: You loan a friend $200 and are repaid $120 at the end of the first month and $30 at the end of each…

A: Initial value = $200 Total payment = 120 + 30 + 30 + 30 = $210