Using a discount rate of 9.6% APR, compounded monthly, calculate the present value of a monthly...
Using a discount rate of 9.6% APR, compounded monthly, calculate the present value of a monthly perpetuity consisting of $5200 payments if: (a) the first payment is made today (2 pts.),
(b) the first payment is made one month from now (2 pts.), and (c) the first payment is made 42 months from now (2 pts.).
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Using a discount rate of 9.6% APR, compounded monthly, calculate
the present value of a monthly...
The annually compounded discount rate is 8.0%. You are asked to calculate the present value of...
The annually compounded discount rate is 8.0%. You are asked to calculate the present value of a 16-year annuity with payments of $50,700 per year. a. Calculate the PV if the annuity payments arrive at one-year intervals. The first payment arrives one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value ? b. Calculate the PV if the first payment arrives in six months. Following payments arrive at one-year intervals (i.e., at...
2. (10 pts) You borrow $40,000 from the local bank at 5% APR, compounded monthly on...
2. (10 pts) You borrow $40,000 from the local bank at 5% APR, compounded monthly on a 6-year loan but you want to pay for the loan with payments every four months. (a) What is your effective interest on your 4-month payment? (b) What is your payment made every four months? (c) What is the APY for your loan with your payments??
What is the present value of a $500 perpetuity if the interest rate is 6%? If...
What is the present value of a $500 perpetuity if the interest rate is 6%? If interest rates doubled to 12%, what would its present value be? Round your answers to the nearest cent. Present value at 6%: $ Present value at 12%: $ You borrow $85,000; the annual loan payments are $11,339.91 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. You have saved $5,000 for a down payment on...
Question 4 3 pts At a discount rate of 3.47% compounded monthly, the present value of...
Question 4 3 pts At a discount rate of 3.47% compounded monthly, the present value of the cash flow stream below is $10,121.2063. End of Year 1 2. 3 4 Cash Flow $1,216/? $3,110 $2,367 What is the value of the Year 2 cash flow rounded to the nearest dollar? $4,376 O $3,486 $3,506 $4,083
2. A 3 -month $25,000 treasury bill with a simple annual discount rate of 0.24% was...
2. A 3 -month $25,000 treasury bill with a simple annual discount rate of 0.24% was sold in 2016. Assume 365 days in a year. (a) Find the price of the treasury bill (T-bill). (b) Find the actual interest rate paid by the Treasury. 3.Find the compound amount for the deposit and the amount of interest earned $19,000 at 3% compounded monthly for 18 years. The compound amount after 18 years is $____ 4.Find the interest rate for a $6000 deposit...
7. You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25% APR compounded monthly. After 5 years the interest rate drops to 4.75% APR compounded month...
7. You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25% APR compounded monthly. After 5 years the interest rate drops to 4.75% APR compounded monthly. The bank is charging 2 points to originate the new loan. How many months do you need to stay in the house after the refinance to make the refinance a benefit? (10 Pts) a. 18 months b. 20 months C. 30 months 36 months...
1. You will receive $100 per year for 10 years. The discount rate is 10%. What...
1. You will receive $100 per year for 10 years. The discount rate is 10%. What is the present value of this stream? 2. Using the previous information, assume now the 100 will increase at a 5% per year from year 1. What is the new present value? 3. Now assume compute the present value for the same information using a perpetuity without and with growth. Compare the 4 present values. What would you rank those? 4. You look at...
14. What is the interest rate of a 4-year, annual $1,000 annuity with present value of...
14. What is the interest rate of a 4-year, annual $1,000 annuity with present value of $3,500? A. 3.85 percent B. 5.56 percent C. 8.84 percent D. 9.70 percent 15. You wish to buy a $15,000 car. The dealer offers you a 4-year loan with a 9 percent APR What are the monthly payments? A. $260.78 B. $312.50 C. $373.28 D. $3,820.56 16. You are planning to make monthly deposits of $330 into a retirement account that pays 8 percent...
Calculate the size of the monthly lease payments for 11 years using a lease rate of...
Calculate the size of the monthly lease payments for 11 years using a lease rate of 4.45% compounded monthly for equipment worth $28,000 that will be owned outright at the end of the lease with no further payment. Note: Lease payments are made at the þeginning of each month.
Please complete parts A and B using Excel (see template below in pic 2), explaining the...
Please complete parts A and B using Excel (see template below in
pic 2), explaining the steps and writing out the Excel
formulas.
You just won a prize of $5,000 at the local talent show. You can receive the money all up front (t=0), or get a series of monthly or weekly payments as described below. In all cases, your discount rate is 5% APR (annual percentage rate). You may choose to get 39 monthly payments, with the first payment...
What is the present value of a $500 perpetuity if the interest rate is 6%? If interest rates doubled to 12%, what would its present value be? Round your answers to the nearest cent. Present value at 6%: $ Present value at 12%: $ You borrow $85,000; the annual loan payments are $11,339.91 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. You have saved $5,000 for a down payment on...
Question 4 3 pts At a discount rate of 3.47% compounded monthly, the present value of the cash flow stream below is $10,121.2063. End of Year 1 2. 3 4 Cash Flow $1,216/? $3,110 $2,367 What is the value of the Year 2 cash flow rounded to the nearest dollar? $4,376 O $3,486 $3,506 $4,083
7. You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25% APR compounded monthly. After 5 years the interest rate drops to 4.75% APR compounded monthly. The bank is charging 2 points to originate the new loan. How many months do you need to stay in the house after the refinance to make the refinance a benefit? (10 Pts) a. 18 months b. 20 months C. 30 months 36 months...
14. What is the interest rate of a 4-year, annual $1,000 annuity with present value of $3,500? A. 3.85 percent B. 5.56 percent C. 8.84 percent D. 9.70 percent 15. You wish to buy a $15,000 car. The dealer offers you a 4-year loan with a 9 percent APR What are the monthly payments? A. $260.78 B. $312.50 C. $373.28 D. $3,820.56 16. You are planning to make monthly deposits of $330 into a retirement account that pays 8 percent...
Calculate the size of the monthly lease payments for 11 years using a lease rate of 4.45% compounded monthly for equipment worth $28,000 that will be owned outright at the end of the lease with no further payment. Note: Lease payments are made at the þeginning of each month.
Please complete parts A and B using Excel (see template below in
pic 2), explaining the steps and writing out the Excel
formulas.
You just won a prize of $5,000 at the local talent show. You can receive the money all up front (t=0), or get a series of monthly or weekly payments as described below. In all cases, your discount rate is 5% APR (annual percentage rate). You may choose to get 39 monthly payments, with the first payment...
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