Homework Answers
| a) | Annuity immediate | ||||||||||
| Payment at the end of period | |||||||||||
| Rate | Annual Effective Interest Rate | 6% | |||||||||
| Nper | Number of payment | 10 | |||||||||
| Pmt | Amount of each payment | $20 | |||||||||
| Type | Payment at the end of period | 0 | |||||||||
| FV | Accumulated Value | $263.62 | (Using FV function of excel with Rate =6%, Nper=10, Pmt=-20,Type=0) | ||||||||
| b) | Annuity due | ||||||||||
| Payment at the beginning of period | |||||||||||
| Rate | Annual Effective Interest Rate | 6% | |||||||||
| Nper | Number of payment | 20 | |||||||||
| Pmt | Amount of each payment | $10 | |||||||||
| Type | Payment at the beginning of period | 1 | |||||||||
| FV | Accumulated Value | $389.93 | (Using FV function of excel with Rate =6%, Nper=20, Pmt=-10,Type=1) | ||||||||
| c) | Loan amount | $200 | |||||||||
| Pv | Loan value after one year with interest | $212.00 | (200*1.06) | ||||||||
| Rate | Interest Rate | 6% | |||||||||
| Nper | Number of Payment | 20 | |||||||||
| Type | Payment at the end of period | 0 | |||||||||
| PMT | PAYMENT SIZE | $18.48 | (Using PMT function of excel with Rate =6%, Nper=20, Pv=-212,Type=0) | ||||||||
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Problem 3 /15 For this problem, no justification is required and no partial credit will be...
Problem 2.7 A loan of $8,000 must be repaid with 6 year-end level payments (i.e., constant...
Problem 2.7 A loan of $8,000 must be repaid with 6 year-end level payments (i.e., constant pay- ments). The effective annual loan rate is 11%. What is the annual payment? Problem 2.8 You make a deposit now into an account earning 6% annually in return for a payment of 250 at the end of each of the next 8 years. What should you deposit today? Problem 2.9 An annuity immediate has semi-annual payments of 1,000 for 25 years at a...
Please show the work/formulas. Problem 26.30 | 3.570 At an annual effective interest rate of i,...
Please show the work/formulas.
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Find the present value of an annuity immediate such that payments start at 10 and increase...
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(1 point) An annuity-immediate makes payments of 200 per year payable quarterly for 8 years at...
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Please show the work/formulas.
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Problem 3 A) Pierluigi is trying to get a loan for $10,000 to start a business as a financial advisor and is trying to decide between several options. (15 points) i) A $10,000 loan that needs to be paid back after 5 years with a 5% nominal annual interest rate, compounded monthly interest ) A $10,000 loan that needs to be paid back after 6 years, the first 2 years there is no and after the annual effective interest rate...
PLEASE PROVIDE THERE ARE 3 QUESTIONS. NEED HELP WITH
ALL 3 QUESTIONS.
Princess Leia borrows 500,000 for 20 years at a 6% annual effective interest rate. Her annual payments are 15,000 for the first 10 years and P for the second 10 years. 1. a. Find the outstanding balance at time 10 (hint: you don't need P to calculate this value) What is the special term used to describe the interest over the first 10 years demonstrated in the problem?...
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