The value of a 7 year lease that requires payments of $500 made at the beginning...

Question

Question

Answer 1

Answer #1

Nper = 7 * 12 = 84
PMT = 500
PV = 39800

Nominal interest rate can be calculated by using the following excel formula:
=RATE(nper,pmt,pv,fv)*12
=RATE(84,-500,39800,0,1)*12
= 1.57%

Nominal interest rate = 1.57%

Answer 2

Similar Homework Help Questions

Question 4 The value of a 7 year lease that requires payments of $750 made at...

Question 4 The value of a 7 year lease that requires payments of $750 made at the beginning of every month is $60,800. What is the nominal interest rate compounded monthly? % Round to two decimal places You invested $8,500 at the end of each quarter for 6 years in an investment fund. At the end of year 6, if the balance in the fund was $224,000, what was the nominal interest rate compounded quarterly? Round to two decimal places
2. a) b) The value of a 8 year lease that requires payments of $850 made...

2. a) b) The value of a 8 year lease that requires payments of $850 made at the beginning of every quarter is $25,000. What is the nominal interest rate compounded quarterly? % Round to two decimal places How much did Mitchell deposit every month in his savings account if he had $11,000 after 12 month-end deposits? The money in his savings account was growing at 2.12% compounded monthly. Round to the nearest cent
Question 12 of 15 The present value of a 8 year lease that requires payments of...

Question 12 of 15 The present value of a 8 year lease that requires payments of $850 at the beginning of every month is $78,800. What is the nominal interest rate compounded monthly charged on the lease? Round to two decimal places

collegelink/#/course-resource/section/7304/assignment/12549 Question 7 of 7 A contract requires lease payments of $500 at the beginning of...

collegelink/#/course-resource/section/7304/assignment/12549 Question 7 of 7 A contract requires lease payments of $500 at the beginning of every month for 6 years. a. What is the present value of the contract if the lease rate is 5.40% compounded annually? $0.00 Round to the nearest cent b. What is the present value of the contract if the lease rate is 5.40% compounded daily? Round to the nearest cent Review Incomplete Questions Submit Assignment
A car lease requires payments of $465 at the beginning of each month for 7 years....

A car lease requires payments of $465 at the beginning of each month for 7 years. If the lease rate is 4.40% compounded monthly, what should be the selling price of the car if you can purchase the car at the end of the lease for $13,000.
Question 2 of 5 A contract requires lease payments of $800 at the beginning of every...

Question 2 of 5 A contract requires lease payments of $800 at the beginning of every month for 10 years. a. What is the present value of the contract if the lease rate is 5.94% compounded annually? $0.00 Round to the nearest cent b. What is the present value of the contract if the lease rate is 5.94% compounded daily? Round to the nearest cent Submit Question Next Question

Question 4 of 13 A car lease requires payments of $505 at the beginning of each...

Question 4 of 13 A car lease requires payments of $505 at the beginning of each month for 7 years. If the lease rate is 4.80% compounded monthly, what should be the selling price of the car if you can purchase the car at the end of the lease for $15,000. Round to the nearest cent
A car lease requires payments of $515 at the beginning of each month for 6 years....

A car lease requires payments of $515 at the beginning of each month for 6 years. If the lease rate is 4.70% compounded monthly, what should be the selling price of the car if you can purchase the car at the end of the lease for $10,500.
1. Find the accumulated value of an annuity due of $500 payable at the beginning of...

1. Find the accumulated value of an annuity due of $500 payable at the beginning of every month for nine years at 8% compounded monthly. 2. Lily purchased a boat valued at $19 000 on an installment plan requiring equal monthly payment for four years. If the first payment is due on the date of purchase and interest is 6.2% compounded monthly, what is the size of the monthly payment? 3. A car can be purchased by paying $27 000...

Compute the interest rate at which $500 per month payments should grow to accumulate savings of...

Compute the interest rate at which $500 per month payments should grow to accumulate savings of $50,000 in 3 years. Payments are made at the end of each month. (Note: Round your answer to two decimal places.) EFFECT DISC RATE NOMINAL A B 1 Data Description 2 NPER 3 x 12 = 36 3 PMT 500 4 PV 0 5 FV 50,000 6 [Type] 0 7 Interest Rate = 8 = % Compute the stated interest rate on a...