Can you please show your work and help me understand how to get the correct answers....
Can you please show your work and help me understand how to get the correct answers.
5. If the nominal rate of interest is 3.2%, then what is the quarterly periodic rate of interest? . Show 2 decimals in the percentage! Don't enter the % sign. For Example answer: 9.99
Answer: 0.8
7. A perpetuity has a discount rate of 6.7% and a payment of $421.22. What is the present value of this perpetuity?
Answer: 6,286.87
8. You borrow $76,810 to be repaid in annual payments over 6 years. The nominal interest rate on the loan is 9.2%. Based on the above how much should the annual payment should be? (Show pennies!) e.g. 99.99
Answer: 17,224.7
Homework Answers
Periodic Quarterly rate = Nominal rate/Number of quarters in a year
= 3.2%/4
= 0.8%
7.Present value of perpetuity = Annual payment/Discount rate
= 421.22/6.7%
= $6,286.87
8.Annual payment = Amount of Loan/PVAF(9.2%, 6 years)
= 76810/4.4593
= $17,224.7
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Can you please show your work and help me understand how to get
the correct answers....
I need help with solving this please show your formulas so, I can understand it. Thanks...
I need help with solving this please show your formulas so, I
can understand it.
Thanks
part 1 1,000.00 future value = periodic interest rate = number of compounding periods = 0.035 32.00 what is the present value (single payment)? part 2 periodic payment periodic interest rate = number of compounding periods = 32.00 0.035 32.00! What is the present value of this annuity? part 3 add part 1 and part 2 part 4 1,000.00 future value = periodic interest...
Show your work as much as possible below each question to get full credit (Le, you...
Show your work as much as possible below each question to get full credit (Le, you should provide information about PV: FV. PMT, I/Y, N ... before writing down your answer) 1. What is the present value of the following cash flow stream at a rate of 8.0%? Years: CFs: $2,450 $3,175 $4,400 2. You would like to travel in South America 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan...
Hi please can you solve this questions and explain how you get the answers? Thank you...
Hi please can you solve this questions and explain how you get the answers? Thank you Question 12 Franz has an investment worth 142,067 dollars. The investment will make a special payment of X to Franz in 3 quarters in addition to making regular quarterly payments to Franz forever. The first regular quarterly payment to Franz is expected to be 1,540 dollars and will be made in 3 months. All subsequent regular quarterly payments are expected to increase by 0.88...
please show all your work i am really trying to understand how to solve these a...
please show all your work i am really trying to understand how to
solve these
a woman, with her employers matching program, contributes $700
at the end of each month to her retirement account, which earns 9%
interest, compounded monthly. when she retires after 47 years, she
plans to make monthly withdrawals for 31 years. if her account
earns 7% interest, compounded monthly, then when she retires, what
is her macimum monthly withdrawal (without running out of
money)?
A woman...
Solve this with correct answer please. Don't used excel show me your work please. This is...
Solve this with correct answer please. Don't used excel show me
your work please. This is IEM class
6) (25 points) A $10,000, 10-year municipal bond is offered at a premium for $10,500. The bond rate is 8% per year compounded quarterly. If John wishes to earn 7.5% per year compounded quarterly on the bond investment, should he purchase the bond assuming he keeps the bond till it matures and then redeems it at face value? Explain. Show all work.
The answer is already given, I just don't understand how. Can you please show how each...
The answer is already given, I just don't understand how. Can
you please show how each value is caculated and label please!
2. Depreciation, taxes and source of finance. Compute the present value of a project with the following characteristics: Initial investment required 1 million dollars, 40% of it will be financed with a loan at 10% interest rate payable yearly in five years. Yearly savings for the first year of the project is $300,000, increasing by 50,000 year after...
PLEASE ANSWER THIS TWO QUESTION THANK YOU Different compounding periods, are used for different types of...
PLEASE ANSWER THIS TWO QUESTION
THANK YOU
Different compounding periods, are used for different types of investments. In order to properly compare investments or loans with different compounding periods, we need to put them on a common basis. In order to do this, you need to understand the difference between the nominal interest rate (INOM) and the effective annual rate (EAR). The nominal interest rate is quoted by borrowers and lenders, and it is also called the annual percentage rate...
can somebody help me with 37,38 and (most needed) 40 please??? 200 The theory of interest...
can somebody help me with 37,38 and (most needed) 40
please???
200 The theory of interest 36. A loan is being repaid with 10 payments. The first payment is 10, the second 9, d so forth with the tenth payment being 1. Show that the amount of interest in te sixth payment is 5- ag- 37. A loan is repaid with payments which start at $200 the first year and increase by $0 per year until a payment of $1000...
Please show your work with the formulas written out. Please answer as if you can only...
Please show your work with the formulas written out. Please answer as if you can only use a four function calculator (because that is how I have to learn it). Do not just put down the calculator keystrokes I need to see every step and number to learn how to do it. 9. If you paid $750 for an investment 25 years ago that is now worth $2000, what was your rate of return? 10. If you save $100 per...
I understand some of this, need help for it. Correct answers are shown, please show work....
I understand some of this, need help for it. Correct answers are
shown, please show work.
I. Between 2012 and 2013 a country's nominal GDP rose from $16.30 billion to $16.789 billion. At the same time the country's price index rose from 142.00 to 144.84 and its population rose from 500,000 to 502,500 people. Based on this data: Nominal GDP increased by 3 % The inflation rate was 2 % and the population grew by 25% RGDP per capita (measured...
I need help with solving this please show your formulas so, I
can understand it.
Thanks
part 1 1,000.00 future value = periodic interest rate = number of compounding periods = 0.035 32.00 what is the present value (single payment)? part 2 periodic payment periodic interest rate = number of compounding periods = 32.00 0.035 32.00! What is the present value of this annuity? part 3 add part 1 and part 2 part 4 1,000.00 future value = periodic interest...
Show your work as much as possible below each question to get full credit (Le, you should provide information about PV: FV. PMT, I/Y, N ... before writing down your answer) 1. What is the present value of the following cash flow stream at a rate of 8.0%? Years: CFs: $2,450 $3,175 $4,400 2. You would like to travel in South America 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan...
please show all your work i am really trying to understand how to
solve these
a woman, with her employers matching program, contributes $700
at the end of each month to her retirement account, which earns 9%
interest, compounded monthly. when she retires after 47 years, she
plans to make monthly withdrawals for 31 years. if her account
earns 7% interest, compounded monthly, then when she retires, what
is her macimum monthly withdrawal (without running out of
money)?
A woman...
Solve this with correct answer please. Don't used excel show me
your work please. This is IEM class
6) (25 points) A $10,000, 10-year municipal bond is offered at a premium for $10,500. The bond rate is 8% per year compounded quarterly. If John wishes to earn 7.5% per year compounded quarterly on the bond investment, should he purchase the bond assuming he keeps the bond till it matures and then redeems it at face value? Explain. Show all work.
The answer is already given, I just don't understand how. Can
you please show how each value is caculated and label please!
2. Depreciation, taxes and source of finance. Compute the present value of a project with the following characteristics: Initial investment required 1 million dollars, 40% of it will be financed with a loan at 10% interest rate payable yearly in five years. Yearly savings for the first year of the project is $300,000, increasing by 50,000 year after...
PLEASE ANSWER THIS TWO QUESTION
THANK YOU
Different compounding periods, are used for different types of investments. In order to properly compare investments or loans with different compounding periods, we need to put them on a common basis. In order to do this, you need to understand the difference between the nominal interest rate (INOM) and the effective annual rate (EAR). The nominal interest rate is quoted by borrowers and lenders, and it is also called the annual percentage rate...
can somebody help me with 37,38 and (most needed) 40
please???
200 The theory of interest 36. A loan is being repaid with 10 payments. The first payment is 10, the second 9, d so forth with the tenth payment being 1. Show that the amount of interest in te sixth payment is 5- ag- 37. A loan is repaid with payments which start at $200 the first year and increase by $0 per year until a payment of $1000...
I understand some of this, need help for it. Correct answers are
shown, please show work.
I. Between 2012 and 2013 a country's nominal GDP rose from $16.30 billion to $16.789 billion. At the same time the country's price index rose from 142.00 to 144.84 and its population rose from 500,000 to 502,500 people. Based on this data: Nominal GDP increased by 3 % The inflation rate was 2 % and the population grew by 25% RGDP per capita (measured...
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