Suppose the interest rate is 9.8 % APR with monthly compounding. What is the present value of an annuity that pays $ 80 every three months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places.)
The present value of the annuity is? (Round to the nearest cent.
APR = 9.8%
3-Month compounding rate = 9.8%*(3/12) = 2.45%
Number of compoundings = (5*12)/3 = 60/3 = 20
Payment every 3 months = $80
I = 2.45%; N = 20; PMT = 80, solve for PV.
PV = 1,253.04
Suppose the interest rate is 9.8 % APR with monthly compounding. What is the present value...
Suppose the interest rate is 6.8% APR with monthly compounding. What is the present value of an annuity that pays $80 every three months for seven years? (Note: Be careful not to round any intermediate steps less than six decimal places.)
Suppose the interest rate is 6.8% APR with monthly compounding. What is the present value of an annuity that pays $95 every three months for six years? (Note: Be careful not to round any intermediate steps less than six decimal places.) The present value of the annuity is $____. (Round to the nearest cent).
Suppose the interest rate is 7.7% APR with monthly compounding. What is the present value of an annuity that pays $110 every six months for five years?
Suppose the interest rate is 9% APR with monthly compounding. What is the present value of an annuity that pays $250 every three months for the next five years closest to? Convert APR to EAR and then use Texas Instruments BA II to solve using: N: I/Y: PV: PMT: FV: The present value of an annuity that pays $250 every three months for the next five years is closest to A) $2280 B) $3985 C) $3990 D) $3995
Please show how to enter this on a
financial calculator, specifically the HP10BII+
P 5-10 (similar to) :5 Question Help Suppose the interest rate is 9.2% APR with monthly compounding. What is the present value of an annuity that pays $105 every six months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places.) The present value of the annuity is $ . (Round to the nearest cent.)
Suppose the interest rate is 8% APR with monthly compounding. What is the present value o an annuity that pays $90 every 6 months for 5 years?
You make monthly payments on your car loan. It has a quoted APR of 7.7 %(monthly compounding). What percentage of the outstanding principal do you pay in interest each month? (Note: Be careful not to round any intermediate steps less than six decimal places.)
3. You have found three investment choices for a one-year deposit:10.0 % APR compounded monthly, 10.0% APR compounded annually, and 9.0% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) (Note: Be careful not to round any intermediate steps less than six decimal places.) 4. Suppose Capital One is advertising a 60-month, 5.99 %APR motorcycle loan. If you need to borrow$8,000to purchase your dream Harley-Davidson, what will be your monthly...
Suppose Capital One is advertising a 60-month, 5.05% APR motorcycle loan. If you need to borrow $7,600 to purchase your dream Harley-Davidson, what will be your monthly payment? (Note: Be careful not to round any intermediate steps less than six decimal places.) Your monthly payment will be $ . (Round to the nearest cent.)
You have just taken out a $26,000 car loan with a 5% APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest? (Note: Be careful not to round any intermediate steps less than six decimal places) When you make your first payment will go toward the principal of the loan and will...