Present value = Future value/(1+i)^n
i = interest rate per period
n= number of periods
=>
present value = 15000/(1+10.6%)
= 13562
Question 5 4 pts If a loan is to be repaid in one lump sum payment...
Question 16 4 pts Compute the APR of the following loan: I borrow two thousand dollars for 5 years from a lender who charges me 9% simple interest, but imposes a $80 loan origination fee. The loan will be repaid in one lump sum at the end of the five year period. APR = __% (enter as a percentage, one decimal point, no percentage sign)
REQUIRED LUMP SUM PAYMENT Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000.) Your uncle deposits an amount today in a bank paying 5% annual interest, which will provide the needed $5,000 payments. How large must the deposit be? Round your answer to the nearest cent. $ How much will be in the account immediately after you make the first withdrawal? Round your answer...
Suppose that a loan is being repaid with 20 annual payments with the first payment coming one year from now. The first 5 payments are for $220, the next 8 are $340 each, and the final 7 are $410 each. If the effective rate of interest is 6.1%, how much interest is in the 11th payment?
QUESTION 4 You are given two loans, with each loan to be repaid by a single payment in the future. Each payment includes both principal and interest. The first loan is repaid by a 3000 payment at the end of four years. The interest is accrued at an annual nominal rate of discount equal to 5% compounded semiannually. The second loan is repaid by a 4000 payment at the end of five years. The interest is accrued at an annual...
Question 4 You inherit $554,000. You can receive the $554,000 in one lump sum payment today or, alternatively, receive two amounts: $354,000 in 11 months and $220,000 in 21 months from today. If you can earn 5.7% per annum compounding monthly on your monies, what is the value of the option to receive two payments (in present day value)? (to nearest whole dollar,; don’t use $ sign or commas)
Question 1: a) A loan is to be repaid by a student The student has debts of $10,000 to be paid at the end of the first year, $5,000 to be paid in 18 months and $3,000 to be paid in the 24th month The student would prefer to pay the debts as follows. $1,000 now, followed by payments at the end of the 6th, 20th and 30th month. The payment at the end of the 6th month is half...
You borrow $150,000. The loan is structured as an amortized loan to repaid over 4 years with annual (end-of-period) payments of $41909.42 per year. The lender is charging you a rate of 4.6% APR. In the second year, how much interest is paid?
Question 3 1 pts A company borrows $7,000 to purchase a new piece of equipment. The loan will be repaid in one lump sum at the end of 5 years. The bank offers to loan the money at 0.5% per month, but the company prefers to repay the loan at 6% per year. If the company is successful at getting the bank to agree to its preferred terms, how much will the company save in interest on the loan? Express...
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Suppose that you desire to get a lump-sum payment of $100,000 two years from now. Instructions: Round your answer to the nearest dollar. How many current dollars will you have to invest today at 6 percent interest to accomplish your goal?
28-8: Future Value of an Ordinary Annuity Problem 28-24 Required Lump-Sum Payment To complete your last year in business school and then go through law school, you will need $5,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $5,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 7.08% interest a sum of money that is sufficient to provide the...