In return for a promise to receive $500 at the end of 8 years, a person...
A company borrows $160000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay semi-annually interest payments at the nominal annual rate of 10% compounded semi-annually. At the same time the company sets up a sinking fund in order to repay the loan at the end of 5 years. The sinking fund pays interest at an annual nominal interest rate of 4% compounded semi-annually. Find the total amount...
Brown will receive $1,000 at the end of 10 years. In return, he will pay $200 now and another payment in 5 years. At a 9% discount rate, what should the size of Brown's second payment be?
To receive $1,400 at the end of every six months for 12 years from a $15,500 investment, what nominal rate of interest, compounded semi-annually must you earn? % Round to two decimal places
Additional Problems: 1. An annuity immediate pays 500 every year for 10 years. Calculate the present value at the following rates of interest: a. Annual effective interest rate of 6% b. Nominal interest rate convertible monthly of 8% C. Nominal rate of discount convertible once every two years of 4%
Find the interest rate (or rates of return) in each of the following situations. Do not round intermediate calculations. Round your answers to the nearest whole number. You borrow $650 and promise to pay back $676 at the end of 1 year. % You lend $650 and receive a promise to be paid $676 at the end of 1 year. % You borrow $60,000 and promise to pay back $289,075 at the end of 12 years. % You borrow $16,000...
(1 point) A company borrows $200000, which will be paid back to the lender in one payment at the end of 12 years. The company agrees to pay monthly interest payments at the nominal annual rate of 8% compounded monthly. At the same time the company sets up a sinking fund in order to repay the loan at the end of 12 years. The sinking fund pays interest at an annual nominal interest rate of 4% compounded monthly. Find the...
A bank agrees to lend you $1,000 today in return for your promise to pay back $2,773 nine years from today. What rate of interest is the bank charging you?
Find the accumulated value of $4000 at the end of 5 years if the nominal rate of interest is 4% compounded quarterly for first 1.5 years, the effective (annual) rate of discount is 7% for the next 9 months, the nominal rate of discount is 6% compounded monthly for the next year, and the annual effective interest rate is 5% for the last 21 months. 1. Ir.c 1. A payment of SX three years from now along with a payment...
if you are offered to receive $250, $300,$400,$500 and $650 at end of each year. the first payment of 4250 is 2 years from now. if your money can earn 8% annual rate. how much you should pay for this deal?
Jared borrowed $20,000 with a promise to repay the loan in 6 years with a uniform monthly payment and a single payment of $2,000 at the end of six years at a nominal interest rate of 12% per year.A) What is the amount of each payment? B) What is the amount of interest paid in the first payment? C) What will be the loan balance immediately after the 48th payment? D) What is semi annually effective interest rate?