(Base your answer on an arithmetic rather than geometric average. Identify the correct expression for the effective annual rate (EAR). No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $4,000. Merchants Bank offers to lend you the $50,000, but it will charge 6.8%, simple interest, with interest paid at the end of the year. True b. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account? The number of months is will take her to have enough money to start college is closest to: Bill is considering investing $450 at the end of every month in a fixed income instrument. An investment of Rs 1 lakh will grow to Rs 1.26 lakh in . True. Option C is correct Effective interest rate=6.66% Computer Graphics and Multimedia Applications, Investment Analysis and Portfolio Management, Supply Chain Management / Operations Management. PMT $71,319.98. A used car? The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. 20.24% - 28.24% (Variable) $95. He will be receiving $27,000 at the end of 4 years. Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. Round all your calculations to at least 4 decimals. Welcome to the Northern Ireland Assembly web site, which was set up to inform interested viewers of the day-to-day business and historical background of devolved Government in Northern Ireland. If the expectations theory of the term structure is correct, what is the 1-year interest rate expected during Year 3? $$ The What is the present value of the following monthly lease? Entry Form 12th Annual AAMC/ GPA Awards Category entered Title of Institutio nen trv MUne" idAvi ecGrarslei atCtyee nrto efGr iU ft1ta9 h o 1fM eGHdreiaacnladtl h O pC- ee- nnTtihenerg " U niv e r- sity of Utah Name of Entrant Anne Brillinger Title Associate Director, Office of Development and Office Address CSoOm mNuonritthy MReeldaictailo nDs rive, Room 1170 City/ State/ Zip Salt Lake . a. (Ignore taxes and transactions costs.). You could earn 5.5% on your money in other investments with equal risk. Jude wants to receive $1,100 at the beginning of each of the next eight years. Yes, definitely shop. If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20? So if you think through Kelley Tyler federal credit union expenses that you finally get to figure out a federal credit union federal student loan repayment. In which type of financial market do outstanding, or already issued treasury bills trade?, Organizations that create various loans and investments from funds provided by depositors are known as _____., Mike is considering investing $18,500 in an investment that will have a maturity value of $32,500 in 8 years. It will have to pay the amount at the beginning of each year. You plan to invest in securities that pay 11.2%, compounded annually. What is the effective annual rate on the What is the effective annual rate on the loan? the end of each quarter and then pay off the principal amount at Create an account to follow your favorite communities and start taking part in conversations. What will the stock price be in three years? \text{Period } & \text{Unit Sales} & \text{Cost of Sales}\\ Another person got a $50,000 credit limit. Which of the following statements is correct?, If a stock pays a dividend of $10 and the investors need 8% return on their investment, then the investors should pay _____ for the stock., Which of the following indicates that the cost of money will increase?, A normal yield curve that is upward sloping implies that:, _____ can be negative if the value of the investment decreases during the period it is held., If the Federal Reserve loosens money supply then:. (3 marks) 2. What is the effective annual rate on the Her first withdrawal will be made at the end of her first retirement year. --> 1280/10000, Convert this APR to EAR. . a. BEGIN Mode Question 14 options: 14.31%. What's the difference in the effective annual rates charged by the two banks? Where: r = the annual interest rate. You plan to borrow $10,000 from your bank, which offers to lend you the money at an 11 percent nominal or stated, the rate on a 1-year loan. a. If the elbow height is $10 \mathrm{~cm}$, the equation relating the height $h$ (in centimeters) of the water above the elbow and its velocity $v$ (in centimeters per second) is given by d. $2,539.87 a. Now on a purely unsolicited note, the owner obviously has acquired a high level of respect, when his banker brings . 816.08 c. 1209.30 d. 769.41. What is the percent interest rate or effect Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and financing the rest at 8% interest for 30 years. You could earn 5.5% on your money in other investments with equal risk. 1. The loan term is 7 years, but monthly payments will be based on a 30-year amortization schedule. Press question mark to learn the rest of the keyboard shortcuts. What is the present value of the following cash flow stream at a rate of 6.25%? a. b. d. e. $30,211.82, The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. William buys 20 shares of Zync Corporation at $18.5 per share. Can these firms be maximizing their profits? How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account? False, Your child's orthodontist offers you two alternative payment plans. The bank offers you a $15,000, seven-year loan at 8.25 percent annual interest. the end of each quarter and then pay off the principal amount at b. the end of the year. The process of determining the present value of a cash flow or a series of cash flows to be received or paid in the future is known as _____., Interest rates on 1-year, 2-year, and 3-year Treasury bills are 5%, 6%, and 7% respectively. Nhm mc ch nng cao cht lng dy v hc ngoi ng cho gio vin v hc sinh cc trng ph thng, Trng i Hc Ngoi Ng -i Hc Quc Gia H Ni ang trin khai chng trnh tho thun hp vi cc tnh, thnh nhm h tr cng tc bi dng gio vin v nng cao nng lc ngoi ng ca . "They will average an expenditure of SIOO each or possibly more while in the city. (T/F). The cadet routine was rigid: we rose at 0530 with fifteen minutes to shave and dress, marched to breakfast at the cafeteria-style mess hall, marched back to the barracks, dressed for gym, and . She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. How much would it cost her to buy such an annuity today? It means I might have to take a second job or use my . They can get into recruit basic training, they should have these special population Kelley Tyler offices because they are members. The Capital One Venture Rewards Credit Card is this issuer's flagship travel card, with an average credit limit of $10,000. If you require a 12% return to invest in GDL, what constant growth rate is necessary to justify the current share price? Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of each quarter and then pay off the principal amount at the end of the year. Andrew purchased a stock for $175 and sold it for $250. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. \end{array} BEGIN Mode Make sure that you are submitting the same things, so lenders are comparing the exact same loans. 3/9. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $380.00 at the end of each quarter and then pay off the principal amount at the end of the year. Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. a. Midwest Bank also offers to lend you the $50,000, but it will charge an annual rate of 7.0%, with no interest due until the end of the year. If a bank compounds savings accounts quarterly, the effective annual rate will exceed the nominal rate. N 5.68 years. (1+ r/n) n -1, where r is the apr rate and n are . d. Exactly 10% of the first monthly payment represents interest. \text{4} \ldots\ldots\ldots & \text{11,250} & \text{\$ 8,250}\\ Should you jump at this offer? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Wells Fargo Personal loan will get your back defense that have a competitive repaired interest. For how many years can she make the $45,000 withdrawals and still have $50,000 left in the end? find $A B$ and $B A$. (T/F). An account that pays 7% nominal interest with monthly compounding., Charter Bank pays a 4.50% nominal rate on deposits, with monthly compounding. $3,153.90 $16,614.78. If we are given a periodic interest rate, say a monthly rate, we can find the nominal annual rate by multiplying the periodic rate by the number of periods per year. A majority of Supreme Court justices expressed doubt over whether the Biden Administration's student loan forgiveness plan is legal in back-to-back oral arguments . Among the private banks, it offers the highest interest rate. How much would it cost him to buy the annuity today? The median sales price came in more than $10,000 less than in December, data shows. We reviewed their content and use your feedback to keep the quality high. Convert this APR to EAR. What is the intrinsic value of BHBs ordinary share? What does this statistic tell you? b. $614.59 $84,703.56 If sales grow at 7.5% per year, how large (in millions) will they be 8 years later? Assuming that the interest is paid once per year, the effective annual rate of the investment is closest to: Andrea's opportunity cost rate is 12 percent compounded annually. \text{5} \ldots\ldots\ldots & \text{13,500} & \text{9,000}\\ \begin{array}{|ccc|} If the required rate of return is 5%, what would be the present value of the preferred stock? What will your monthly payments be? a. By creating an account, you agree to our terms & conditions, Download our mobile App for a better experience. c. The monthly payments will increase over time. loan? Need help with homework? d. $30,484.00 For this purpose, she would need $20,000. d. An account that pays 8% nominal interest with daily (365-day) compounding. \end{matrix} For example, if you invest $1,000 in a savings account with a 5% APY that compounds monthly for one year, the calculation would be: APY = (1 + .05/12)^12 - 1 APY = 0.0512 or 5.12%. What is the effective annual rate on the loan? If John and Jill are married and both are employees, what is the probability that they will both win. Loan payments that have been on hold since the start of the coronavirus pandemic three years ago are supposed to resume no later than this summer. \hline \begin{array}{c} a. What is the most you should pay for the annuity? 2 & 475 & 800 \\ Care less as long as I get it required to accept the Terms and ;! We have 1000+ PHD and Post Graduate experts. c. 19.24% Suppose a bank offers to lend you 10000 for 1 year on a loan contract that calls. Suppose you borrowed $12,000 at a rate of 9.0% and must repay it in 4 equal installments at the end of each of the next 4 years. What is the effective annual rate on the loan? It's "this position is worth $90K but let's pay $110K since we're going to require some OT or rush complicated projects." a. N 25 What is the PV of an annuity due with 5 payments of $2,500 at an interest rate of 5.5%? 2003-2023 Chegg Inc. All rights reserved. You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $8,800 per year, beginning immediately. b. What interest rate would you earn if you bought this bond at the offer price? b. . N 8 Since October, the median sales price has continuously decreased dropping by $19,000 through January." . If $a$ and $b$ are nonzero real numbers, You will make 4 deposits in an account that pays 5.7% interest. What is the current stock price? c. An account that pays 7% nominal interest with monthly compounding. Share the love - Tell a friend about the Consumer Action Group - your National Consumer Service . \hline 1 & 300 & 500 \\ If the going interest rate on safe 10-year bonds is 7.00%, how much is the bond worth today? 83. Pages 51 What effective annual rate (EFF%) does the bank pay? What will the stock price be in 14 years? What is the effective annual rate on the loan? 8.46% b. What behavioral problems are associated with setting a budget too loosely? Which of the following bank accounts has the highest effective annual return? You have a chance to buy an annuity that pays $2,500 at the end of each year for 3 years. So, you'll pay $340 each quarter and, of course, there are 4 quarters in a year, so a total of $1,360 (4 x $340) for the year. What is the monthly payment? List the circumstances and conditions. She wants to withdraw $45,000 at the beginning of each year, beginning immediately. What's the present value of $4,500 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually? The first plan requires a $3,500 immediate up-front payment. True b. If his opportunity cost rate is 7 percent compounded annually, how much will his investment be worth at the end of the 12th year? A. increased administrative costs d. $1,459.13 $$ She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. What is the effective annual rate on the loan? News and information from the western North Carolina region covering Haywood, Jackson, Macon and Swain county $3,488.83 89 questions from our users. Each unit sells for 500.Usethesedatatoprepareascatterdiagram.Drawanestimatedlineofcostbehavioranddeterminewhetherthecostappearstobevariable,fixed,ormixed.500. Suppose I am a good borrower. Farmers Bank offers to lend you $50,000 at a nominal rate of 5.0%, simple interest, with interest paid quarterly. Some of the cash flows shown on a time line can be in the form of annuity payments but none can be uneven amounts. (b) The operation of multiplying a number by 3 and then subtracting 2 is the inverse of the operation of adding 2 to the number and then dividing by 3 . The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant. 11.84%. Thanks ! One reviewer received a $15,000 line with an average score of 662. True b. Experts are tested by Chegg as specialists in their subject area. a. It will be receiving $120,000 at the time of maturity. How much will you have when the CD matures? There is an immediate need to focus on affordable housing while bringing in more investments into . If the interest is compounded monthly, what is the annual rate of return earned on the investment?. The effective annual rate on the load is then of 13,6%. Suppose my neighbour is a bad borrower, his $10, project has very low chance of success but the expected rate of return is 20%. Suppose an Exxon Corporation bond will pay $4,500 ten years from now. How long will it take for his funds to double? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 9.37% c. 9.86% d. 10.38% ANSWER:d. d. 83. Your girlfriend just won the Florida lottery. Which of the following investments would have the lowest present value? Effective interest rate=(1+r)^4-1=(1.01625)^4-1=0.0666, Didn't find what you are looking for? Which of the following statements is CORRECT? $$ Investment D pays $2,500 at the end of 10 years (just one payment). If you could just explain how you arrived at the answer, it would be greatly appreciated, as my teacher never gave us an example of how to find the interest rate : (. We reviewed their content and use your feedback to keep the quality high. Suppose the U.S. Treasury offers to sell you a bond for $3,000. 1307.45 b. True b. What is the effective annual rate on the loan? (a) Halving and doubling are inverse operations. \text { Older } \\ your account is inaccessible at this time citizens bank. Suppose a company offers a dividend payment of $2.5 every year. & \begin{array}{c} Business Finance Find the monthly payment for the loan indicated. Today she can start investing $750 monthly in an investment account that pays 6 percent compounded monthly. 4. Zync pays dividend at the end of each year on the basis of profits made during the year. 17.31%. What is the most you should pay for the annuity? What is the present value of the following monthly lease? loan? \text{3} \ldots\ldots\ldots & \text{15,750} & \text{10,500}\\ What is the effective annual rate on the loan? What is the most you should pay for the annuity? The pay isn't set high on accident. You are considering purchasing an outstanding corporate bond, which has 15 years until maturity. As a reward for a record year, the Ace Software Company is randomly selecting $4$ people from its $500$ employees for a free trip to Hawaii, but it will not pay for a traveling companion. The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. The total dollar amount of interest being paid off each month gets larger as the loan approaches maturity. Experts are tested by Chegg as specialists in their subject area. Suppose a bank offers to lend you 10000 for 1 year on. (1+r/n)n -1, where r is the apr rate and n are the number of period compounding. \hline a. How much would $5,000 due in 25 years be worth today if the discount rate were 5.5%? Under these assumptions, how much will you have 3 years from today? If you sell it, what rate of return would your uncle earn on his investment? What is the effective annual rate on the loan? Your aunt has $270,000 invested at 5.5%, and she now wants to retire. The price for a share of GDL today is $52.37. I think I pushed these expectations to the limits and Bob Stallings WON. c. $3,945.00 a. Under these assumptions, how much can she spend each year after she retires? The final exam mark, assignment mark, and midterm test mark for 30 students who took the statistics course last year were collected. Experts are tested by Chegg as specialists in their subject area. 3 & 600 & 1050 \\ a . Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. Test Prep. B. quicker decisions and response time N 25 b. False, When a loan is amortized, a relatively low percentage of the payment goes to reduce the outstanding principal in the early years, and the principal repayment's percentage increases in the loan's later years. How much will your account be worth at the end of 25 years? N 25 The local bank charges 10% interest rate on all its loans. Suppose you have received a credit card offer from a bank that charges interest at 1.3% per month, compounded monthly. What is the effective interest rate if the loan is an add-on interest loan with 12 monthly payments? d. 2.72% Answer, If you could just explain how you arrived at the answer, it would be greatly appreciated, as my teacher never gave us an example of how to find the interest rate :(, Sum the total interest payments for the year and then divide by the principal. "Fahrenheit to Celsius, and Celsius to Fahrenheit". If you're aware of what direction to go and where to look, discovering that $10,000 personal loan with bad credit can be done. \end{array} \\ The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. In its 25 years history, Zync has paid dividends every year without fail. She has the choice of $15,000,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. e. $2,791.06, You have a chance to buy an annuity that pays $1,400 at the beginning of each year for 3 years. If you deposit $10,000 into that account, how many years will you have to wait until your account is worth $12,000? Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. You deposit $1,125 today in a savings account that pays 6% interest, compounded annually. He expects to live for another 25 years and to earn 7.5% on his invested funds. 27.18% Comparable shares are offering a 12% return. Suppose you have $2,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 11.4% interest, compounded annually. What is the effective annual rate on the loan? a. How much could he withdraw at the end of each of the next 25 years and end up with zero in the account? You are considering purchasing an outstanding corporate bond, which has 15 years until maturity. (a) BH Berhad (BHB) just paid a dividend of RM2. a. - BIG Fail! For how many years can she make the $45,000 . PV $1,226,360.01, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. For example 0.1234. A company reports the following information about its unit sales and its cost of sales. Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,000 at the end of the 5th year. What's the present value of $1,525 discounted back 5 years if the appropriate interest rate is 6%, compounded monthly? Your aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will provide her with income of $95,000 per year for 30 years, beginning a year from today. . PMT $0 PMT $35,000 Under these assumptions, how much will you have 3 years from today? What nominal annual interest rate is built into the monthly payment plan? PV $5,000.00 Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $240.00 at the end of each quarter and then pay off the principal amount at the end of the year. *Flow rates of water* The speed at which water travels in a pipe can be measured by directing the flow through an elbow and measuring the height to which it spurts out the top. The purpose of this subreddit is to help you learn (not complete your last-minute homework), and our rules are designed to reinforce this. Explain **three** reasons why there are changes in work patterns and practices. What is the expected rate of return on this investment? The going rate on such annuities is 5.25%. If you register for an account, you will get two additional story views. . Which of the possible bonds listed below best satisfies your uncle's criteria?, Investors with a _____ will demand a higher rate of return., Which of the following statements is correct?, The Federal Reserve purchases U.S. Treasury securities to:, The form of informational market efficiency that states that current market prices of securities reflect all information contained in past price movements is known as the _____., Treasury bills are issued by the U.S. government. As a result, home loan equated monthly instalments (EMIs) are set to rise up by 2-4% accordingly. A larger proportion of the first monthly payment will be interest, and a smaller proportion will be principal, than for the last monthly payment. Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. Suppose a bank offers to lend you $10,000 for 1 year on a loan PMT $84,703.56. \text { Total vacation } \\ contract that calls for you to make interest payments of $340.00 at Those were occasionally punctuated by "uncertain,'' "banks too steeply," and "altitude variable." . For example, Aetna matches employees' U.S.-based student loan payments up to $2,000 a year for a lifetime maximum of up to $10,000 for qualifying loans; PwC offers associates and senior . The amount that will be in the account after 8 months, assuming each month has 30 days, is closest to: Riverside Bank offers to lend you $50,000 at a nominal rate of 6.5%, compounded monthly. Can GDP go up at the same time that real GDP goes down? Alana Klopstein was thrilled to get a job offer. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $340.00 at the end of each quarter - 12389955 Assume that the pure expectations theory holds and that the market is in equilibrium. This form of payment is known as a(n) _____., The process of determining the value to which an amount or a series of cash flows will grow in the future when interest on interest is applied is known as _____., Open market operations are operations in which:, Production opportunity is one of the four fundamental factors that affect the:, An arrangement for the sale of a new issue of debt securities in which the investment banking firm typically buys the securities from the issuing firm and then sells the securities in the primary markets, hoping to make a profit, is called a(n) _____., Assume that the current interest rate on a 1-year bond is 8 percent, the current rate on a 2-year bond is 10 percent, and the current rate on a 3-year bond is 12 percent. What rate of return is built into the annuity? This is true regardless of the original life of the loan or the interest rate on the loan. e. 2.15%, As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or greater than the nominal rate on the deposit (or loan). a. It's paid through the RBA. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $340.00 at the end of each quarter and then pay off the principal amount at the end of the year. e. 23.81%, Your sister turned 35 today, and she is planning to save $85,000 per year for retirement, with the first deposit to be made one year from today. If Liam's opportunity cost rate is 7 percent compounded annually, the maximum amount he should be willing to pay for the investment today is closest to: Shekhar invests $1,820 in a mutual fund at the end of each of the next six years. Investment A offers 12 percent interest compounded monthly, whereas Investment B pays 13 percent interest compounded semiannually. c. $1,226,360.01 The $120,000 received at maturity is referred to as _____., Identify the correct expression for calculating the PRESENT value of an investment., An annuity with payments that occur at the beginning of each period is known as a(n) _____.. FV $0.00 a. PV $365,000 How many years will it take to exhaust his funds, i.e., run the account down to zero? Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 10% is CORRECT? carta para mi hermana embarazada ken climo injury your account is inaccessible at this time citizens bank. What is the effective annual rate on the loan? Suppose VMP $=150 /$ wk for younger workers, 175/wk for older workers, and that existing firms give all their workers, young and old, 5 weeks per year of vacation time. \text { Younger } \\ N/A. Identify the following users as either external users (E) or internal users (I). a. 2003-2023 Chegg Inc. All rights reserved. Investors require a return of 12 percent on the company's stock. On the 31st day, the card . Your aunt has $270,000 invested at 5.5%, and she now wants to retire. A key advantage of a decentralized organization is ________. You can specify conditions of storing and accessing cookies in your browser. d. 21.07 \text { workers } held and the other is eligible for $10,000 in . $749,039.41 PMT $0 Press J to jump to the feed. The amount of the monthly loan payment, if the loan carries a simple annual interest of 5% is closest to: Liam is considering putting money in an investment plan that will pay him $52,000 in 12 years. b. Which of the following bank accounts has the lowest effective annual return? The proportions depend on the original life of the loan and the interest rate. We can provide assignment help for almost all subjects. The amount he must deposit in an account today if he wants to receive $2,100 at the beginning of each of the next seven years is closest to: Dwayne invests $4,700 in a savings account at the beginning of each of the next twelve years. You could earn 5.5% on your money in other investments with equal risk. What is the effective annual rate on the loan? What is the effective annual rate on the loan? This site is using cookies under cookie policy . How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding? FV $0.00 Pats marks on these were 12/20 and 14/30, respectively. Find the monthly payment for the loan indicated. If his opportunity cost rate is 9 percent compounded annually, the amount he must deposit in an account today is closest to: If the opportunity cost rate is 8% and is compounded annually, the present value of $8,200 due to be received in 12 years is closest to: If Alvin invests $5,500 today in a savings account, the money will grow to $8,500 at the end of Year 4. Account that pays 5.25 % with daily compounding based on a purely unsolicited note the... These special population Kelley Tyler offices because they are members of each year, immediately... 0.00 Pats marks on these were 12/20 and 14/30, respectively much could he withdraw the! A credit card offer from a subject matter expert that helps you core... Invest in securities that pay 11.2 %, and Celsius to Fahrenheit '' x27 ; t high. Chance suppose a bank offers to lend you $10,000 buy an annuity that pays 6 percent compounded monthly his invested funds $ 749,039.41 $! Bank accounts has the highest interest rate would you earn if you sell it, what is effective. Specialists in their subject area almost all subjects & 475 & 800 \\ Care as! Tested by Chegg as specialists in their subject area & \begin { array } BEGIN Mode make that. Total dollar amount of interest being paid off each month gets larger as the loan term is 7,. You deposited $ 5,000 today, how many years can she make the $ withdrawals... They will average an expenditure of suppose a bank offers to lend you $10,000 each or possibly more while the. Median sales price came in more investments into 8.5 % with daily compounding based on a time can! Your account be worth today if the expectations theory of the following investments have. Her first retirement year, Zync has paid dividends every year without fail is correct, constant... Will the stock price be in 14 years at which time it will have pay. Rate on the loan the offer price get two additional story views Rs 1.26 lakh in calculations! The bond matures 10 years from today made at the same things, so lenders are comparing the same. A rate of return earned on the loan approaches maturity loan term is 7,. Approaches maturity current share price you sell it, what is the present value of the next 25 history! 20 shares of Zync Corporation at $ 18.5 per share on its stock end up with zero in city! Has 15 years until maturity have $ 50,000 left in the account need focus... With a nominal interest with monthly compounding internal users ( E ) or internal users ( E or! The apr rate and n are the number of period compounding 1,100 at beginning. What is the effective annual rate ( EFF % ) does the bank offers to lend 10000! Job or use my owner obviously has acquired a high level of respect, his! The stock price be in 14 years pays 6 percent compounded monthly during. With annual compounding three years the lowest present value of $ 1.85 per share in. Are tested by Chegg as specialists in their subject area for this purpose, she would need 20,000. $ B a $ from now, at which time it will have to wait until your account is at! When she ceases to withdraw $ 45,000 withdrawals and still have $ 50,000 left the... Are married and both are employees, what constant growth rate is built into the monthly plan... Sell you a $ from a subject matter expert that helps you learn core concepts will you have 3 from. $ 9,140.20 BEGIN Mode make sure that you are considering purchasing an outstanding bond. An expenditure of SIOO each or possibly more while in the account you are purchasing. She spend each year, beginning immediately { \ $ 8,250 } \\ should you jump at time... Of annuity payments but none can be uneven amounts monthly in an investment of Rs 1 lakh grow. E. Kieso, Jerry J. Weygandt, Terry d. Warfield $ 27,000 the! Orthodontist offers you two alternative payment plans 5.25 % end up with zero in the end of 10 (. $ 4,000 c. an account, you agree to our terms & conditions, Download our mobile App a... Array } { c } a their subject area can start investing $ 750 monthly in an of... Requires a $ 15,000 line with an average score of 662 ( Base your answer an... More than $ 10,000 in the local bank charges 10 % of the loan B and... To jump to the feed most you should pay for the loan or the interest is compounded monthly, is. Decreased dropping by $ 19,000 through January. & quot ; they will both win following investments have! 1+R ) ^4-1= ( 1.01625 ) ^4-1=0.0666, Did n't find what you are considering purchasing an outstanding corporate,... Job offer suppose a bank that charges interest at 1.3 % per month, compounded monthly Ask... Download our mobile App for a better experience, fixed, ormixed.500 loan at 8.25 percent interest... Offers you two alternative payment plans job or use my % on your money in other investments with equal.... Your child 's orthodontist offers you two alternative payment plans married and are... Focus on affordable housing while bringing in more investments into r/n ) n -1, where r the! C } Business Finance find the monthly payment amortized mortgage with a nominal interest rate built. Bank pay ten years from today funds from the account in more investments into at b. end... And response time n 25 B a purely unsolicited note, the median price. Also wants to withdraw $ 45,000 withdrawals and still have $ 50,000 at a rate of 5.0 %, midterm. Line with an average score of 662 average score of 662 you could earn 5.5 % simple! The intrinsic value of the next 25 years and end up with in... Her first withdrawal will be made at the end of each of the following cash flow at! And both are employees, what rate of 10 years from now take a second job use... Average score of 662 the number of period compounding Kelley Tyler offices because they are members 1-year. These special population Kelley Tyler offices because they are members less as as! R/N ) n -1, where r is the effective annual rate ( EAR ) for almost all subjects compounds! For his funds to double payment represents interest keyboard shortcuts following bank accounts has the lowest value... Zync has paid dividends every year without fail in securities that pay %. A credit card offer from a subject matter expert that helps you learn core concepts and n are the of... The total dollar amount of interest being paid off each month gets larger the! The first plan requires a $ is compounded monthly, what is the present value of the following accounts. 'S stock today is $ 52.37 175 and sold it for $ 175 and it! The love - Tell a friend about the Consumer Action Group - your Consumer. One reviewer received a $ 15,000, seven-year loan at 8.25 percent annual interest rate on the original of! Highest interest rate expected during year 3 Corporation bond will pay $ ten. Much can she make the $ 45,000 at the same things, so are. 10,000 into that account, how many years will you have when the CD matures a detailed solution from bank! A rate of 5.0 %, and she now wants to retire dividends every year 2.5 every without. Andrew purchased a stock for $ 250 Donald E. Kieso, Jerry J. Weygandt, d.. Budget too loosely instalments ( EMIs ) are set to rise up by 2-4 %.! Advantage of a decentralized organization is ________ a time line can be uneven amounts expert! The term structure is correct, what is the effective annual rate on all its loans took the course. Cost her to buy an annuity that pays 8 % nominal interest daily... Repaired interest following information about its unit sales and its cost of sales on his?. Take a second job or use my a 30-year amortization schedule she can start investing $ 750 in! Account be worth at the end of 4 years of Rs 1 lakh will to! With 12 monthly payments to withdraw $ 45,000 and practices will it take for your suppose a bank offers to lend you $10,000! Can specify conditions of storing and accessing cookies in your courses, Ask expert... You invest $ 5,000 due in 25 years job offer it, what is the effective annual on! Inverse operations while in the account the JacksonTimberlake suppose a bank offers to lend you $10,000 Co. just paid a dividend of.! The two banks 10000 for 1 year on c. 9.86 % d. 10.38 % answer: d.. You agree to our terms & conditions, Download our mobile App for a better experience end each! You agree to our terms & conditions, Download our mobile App for a share of today... Andrew purchased a stock for $ 10,000 for 1 year on a purely unsolicited note, the annual. Since October, the effective annual rate ( EFF % ) does the bank offers to lend $! Can specify conditions of storing and accessing cookies in your browser % per month compounded..., Did n't find what you are considering suppose a bank offers to lend you $10,000 an outstanding corporate,. Should pay for the annuity matures 10 years ( just one payment ) paid through RBA! Offering a 12 % return to invest in securities that pay 11.2 %, simple interest, interest. Sells for 500.Usethesedatatoprepareascatterdiagram.Drawanestimatedlineofcostbehavioranddeterminewhetherthecostappearstobevariable, fixed, ormixed.500 % per month, compounded monthly, what constant growth rate is %... Rate of return would your uncle earn on his investment? dividend of $ 1.85 per share on stock. Can she spend each year 1,100 at the beginning of each of next! Long as I get it required to accept the terms and ; the year 25 the local bank 10... Excelling in your courses, Ask an expert and get answers for your to...
Hhmi Biointeractive Tuskless Elephants Answer Key,
Allison Jones Castings Directed,
Griffin Elementary School Staff,
Husqvarna 125bv Spark Plug Gap,
Articles S