As a settlement for an insurance claim, Craig was offered one of two choices. He could...
As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept a lump-sum amount of $6991 now, or accept monthly payments of $166 for the next four years. If the money is placed into a trust fund earning 5.34% compounded semi-annually, which is the better option and by how much?
The _(lump sum or monthly payments)_ option is better by $_____?
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Homework Answers
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
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As a settlement for an insurance claim, Craig was offered one of two choices. He could...
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answer for e and f
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As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept a lump-sum amount of $3609 now, or accept quarterly payments of $202 for the next five years. If the money is placed into a trust fund earning 6.28% compounded annually, which is the better option and by how much? The V option is better by $ . (Round the final answer to the nearest cent as needed. Round all intermediate values to...
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A demand loan of $8000.00 is repaid by payments of $4000.00 after two years, $4000.00 after four years, and a final payment after six years. Interest is 5% compounded quarterly for the first two years, 6% compounded monthly for the next two years, and 6% compounded semi-annually thereafter. What is the size of the final payment? The final payment is $ 1. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places...
A demand loan of $8000.00 is repaid by payments of $4000.00 after two years, $4000.00 after four years, and a final payment after seven years. Interest is 9% compounded monthly for the first two years, 10% compounded quarterly for the next two years, and 10% compounded semi-annually thereafter. What is the size of the final payment? The final payment is $ . (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places...
answer for e and f
written show steps please
QuestIuI120 pm Enter the complete solution for each part in the space provided below. Highlight in BOLD your final answer for each part. Note for Part a, b, c, d, and e the solutions only require the financial calculator. For Part f you will need to use some algebra to solve the question. A $200,000 mortgage is to be amortized over 25 years with monthly payments at an interest rate of...
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Hi, i just need the highlighted ones. Thank you!
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