Homework Answers
Calculate the cash value of savings using excel as follows:
The values will appear as follows:
Therefore, the cash value of savings is $41.77.
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Problem 4: Suppose that as a young small business entrepreneur you are eligible for a 3-year,...
Problem 4: Suppose that as a young small business entrepreneur you are eligible for a 3-year,...
Problem 4: Suppose that as a young small business entrepreneur you are eligible for a 3-year, $1,000 loan at a government-subsidized below-market interest rate of 4% per year when the current market interest rate for this loan will be 10%. What would be the cash value of your savings if you take the government-subsidized loan, to be repaid in equal year-end payments over the loan term?
Problem 4: Suppose that as a young small business entrepreneur you are eligible for a 3-year,...
Problem 4: Suppose that as a young small business entrepreneur you are eligible for a 3-year, $1,000 loan at a government-subsidized below-market interest rate of 4% per year when the current market interest rate for this loan will be 10%. What would be the cash value of your savings if you take the government-subsidized loan, to be repaid in equal year-end payments over the loan term?
Problem 4: Suppose that as a young small business entrepreneur you are eligible for a 3-year,...
Problem 4: Suppose that as a young small business entrepreneur you are eligible for a 3-year, $1,000 loan at a government-subsidized below-market interest rate of 4% per year when the current market interest rate for this loan will be 10%. What would be the cash value of your savings if you take the government-subsidized loan, to be repaid in equal year-end payments over the loan term?
9 of 10 (0 complete) T... You just took out a $12,000 loan for your small business. The loan has a four year term...
9 of 10 (0 complete) T... You just took out a $12,000 loan for your small business. The loan has a four year term and repayment is in the form of four equal end of -year payments. The interest rate on the loan is 11.5%. Consider the final loan payment. How much principal do you pay in the final payment? O A. $3,506.09 O B. $2,820.16 O C. $3,144.48 O D. $2,529.29 O E. $3,909.29 10 of 10 (0 complete)...
6. Suppose that you purchase a 2 year coupon bond at the time it is issued...
6. Suppose that you purchase a 2 year coupon bond at the time it is issued for $1100. The face value of the bond is $1000, with annual coupon payments of $80. a. What is the bond's "coupon rate"? b. What is the bond's "current yield"? C. What is the bond's (nominal) "yield to maturity"? d. If you hold the bond for 1 year and sell it for $1035 (after collecting the first coupon payment), what is your "holding period...
I need the payments, interest in payments, principal repaid, prinicipal owing at end of year for both year 1 and 2....
I need the payments, interest in payments, principal repaid,
prinicipal owing at end of year for both
year 1 and 2.
Hep You borrow $400,000 to buy a house over a 25-year term. The loan is structured as an amorrtized loan with anmual payments and an interest rate of 11% Complete the cells in the amortization schedule, below Interest in Principal Principal Owing at End of Year ($) Year Payment (S) Repaid (5) Payment () 1 Principal Repaid () Interest...
The owner of a business expects to make a net profit of $21,000 in the end...
The owner of a business expects to make a net profit of $21,000 in the end of each year over the next five years and to be able to sell the business at the end of the fifth year for $120,000. The owner of the business also believes that the appropriate annual discount rate is 7%. Calculate the (present) value of the business. B) A small company received a $80,000 loan at a 7% annual interest rate and the loan...
would like both problems done or at most #3 ! 2. Suppose you take a $300,000...
would like both problems done or at most #3 !
2. Suppose you take a $300,000 thirty year fixed-rate mortgage at 5.75% two discount points, monthly payments. At the end of the second year you inherit $20,000 from your now-favorite aunt. You decide to apply this $20,000 to the principal balance of your loan A. (1 pt) How many monthly payments are remaining after the extra lump sum payment is made? B. (1 pt) What is your net interest savings...
Suppose you take a 30-year mortgage of $300000. the annual interest rate is 4%, and the...
Suppose you take a 30-year mortgage of $300000. the annual interest rate is 4%, and the annual ... Question: Suppose you take a 30-year mortgage of $300000. The annual interest rate is 4%, and the annual AP... (2 bookmarks) Suppose you take a 30-year mortgage of $300000. The annual interest rate is 4%, and the annual APR is 5.00%. Loan payments are made annually. Calculate the amortized fees and expenses for this loan (in dollars, provide your answer with $1...
A balloon payment is a loan where you pay small amounts of the loan first and...
A balloon payment is a loan where you pay small amounts of the loan first and then, at the end of the loan, you pay a BIG portion of the acquired debt to liquidate it. Many times, in this type of loan, you pay the interest of the loan first and then, in the last installment, you pay the last part of the interest and the principal. You and your business partners are contemplating the purchase of a commercial building....
Problem 4: Suppose that as a young small business entrepreneur you are eligible for a 3-year, $1,000 loan at a government-subsidized below-market interest rate of 4% per year when the current market interest rate for this loan will be 10%. What would be the cash value of your savings if you take the government-subsidized loan, to be repaid in equal year-end payments over the loan term?
Problem 4: Suppose that as a young small business entrepreneur you are eligible for a 3-year, $1,000 loan at a government-subsidized below-market interest rate of 4% per year when the current market interest rate for this loan will be 10%. What would be the cash value of your savings if you take the government-subsidized loan, to be repaid in equal year-end payments over the loan term?
Problem 4: Suppose that as a young small business entrepreneur you are eligible for a 3-year, $1,000 loan at a government-subsidized below-market interest rate of 4% per year when the current market interest rate for this loan will be 10%. What would be the cash value of your savings if you take the government-subsidized loan, to be repaid in equal year-end payments over the loan term?
9 of 10 (0 complete) T... You just took out a $12,000 loan for your small business. The loan has a four year term and repayment is in the form of four equal end of -year payments. The interest rate on the loan is 11.5%. Consider the final loan payment. How much principal do you pay in the final payment? O A. $3,506.09 O B. $2,820.16 O C. $3,144.48 O D. $2,529.29 O E. $3,909.29 10 of 10 (0 complete)...
6. Suppose that you purchase a 2 year coupon bond at the time it is issued for $1100. The face value of the bond is $1000, with annual coupon payments of $80. a. What is the bond's "coupon rate"? b. What is the bond's "current yield"? C. What is the bond's (nominal) "yield to maturity"? d. If you hold the bond for 1 year and sell it for $1035 (after collecting the first coupon payment), what is your "holding period...
I need the payments, interest in payments, principal repaid,
prinicipal owing at end of year for both
year 1 and 2.
Hep You borrow $400,000 to buy a house over a 25-year term. The loan is structured as an amorrtized loan with anmual payments and an interest rate of 11% Complete the cells in the amortization schedule, below Interest in Principal Principal Owing at End of Year ($) Year Payment (S) Repaid (5) Payment () 1 Principal Repaid () Interest...
would like both problems done or at most #3 !
2. Suppose you take a $300,000 thirty year fixed-rate mortgage at 5.75% two discount points, monthly payments. At the end of the second year you inherit $20,000 from your now-favorite aunt. You decide to apply this $20,000 to the principal balance of your loan A. (1 pt) How many monthly payments are remaining after the extra lump sum payment is made? B. (1 pt) What is your net interest savings...
A balloon payment is a loan where you pay small amounts of the loan first and then, at the end of the loan, you pay a BIG portion of the acquired debt to liquidate it. Many times, in this type of loan, you pay the interest of the loan first and then, in the last installment, you pay the last part of the interest and the principal. You and your business partners are contemplating the purchase of a commercial building....
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