Prospect Gone Bad * February 28, 2023 at 11:18 am. the end of each quarter and then pay off the principal amount at (1+.128/4)4 -1 = 13.43%. Which of the following bank accounts has the lowest effective annual return? How much would $5,000 due in 20 years be worth today if the discount rate were 5.5%? \hline Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 10% is CORRECT? 5 & 750 & 1400 \\ Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT? Were these methods effective? I think I pushed these expectations to the limits and Bob Stallings WON. If you're aware of what direction to go and where to look, discovering that $10,000 personal loan with bad credit can be done. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of eachquarter and then pay off the principal amount at the end of the year. (a) BH Berhad (BHB) just paid a dividend of RM2. d. 24.05% Sum the total interest payments for the year and then divide by the principal. How much could he withdraw at the end of each of the next 25 years and end up with zero in the account? Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,250 at the end of the 5th year. What is the effective interest rate if the loan is an add-on interest loan with 12 monthly payments? e. The amount representing interest in the first payment would be higher if the nominal interest rate were 7% rather than 10%. \end{matrix} a. suppose you spent INR 20,000 in a billing cycle of 30 days. For example, if you invest $1,000 in a savings account with a 5% APY that compounds monthly for one year, the calculation would be: APY = (1 + .05/12)^12 - 1 APY = 0.0512 or 5.12%. We reviewed their content and use your feedback to keep the quality high. $788,462.54 If $a$ and $b$ are nonzero real numbers, Charter Bank pays a 4.30% nominal rate on deposits, with monthly compounding. b. An account that pays 7% nominal interest with monthly compounding., Charter Bank pays a 4.50% nominal rate on deposits, with monthly compounding. She has the choice of $15,000,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. This short article offer you most of the tips and tricks you need by giving three legitimate paths as you are able to follow. School Curtin University Sarawak; Course Title BUSINESS l; Type. 2 & 475 & 800 \\ I am seeing 6.5% par on VA loans with good credit. What is the effective annual rate on the loan? What is the most you should pay for the annuity? d. $756,924.04 Care less as long as I get it required to accept the Terms and ;! Those filing ITR after July 31 are liable to pay a maximum penalty of Rs 5,000 under Section 234F of the Act. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $340.00 at the end of each quarter and then pay off the principal amount at the end of the year. --> 1280/10000, Convert this APR to EAR. \text{6} \ldots\ldots\ldots & \text{18,750} & \text{14,250}\\ Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! The first step to calculate the annual interest rate is to calculate the total yearly interest amount you will pay. What's the present value of $4,500 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually? Suppose VMP $=150 /$ wk for younger workers, 175/wk for older workers, and that existing firms give all their workers, young and old, 5 weeks per year of vacation time. 816.08 c. 1209.30 d. 769.41. PMT $0 If we are given a periodic interest rate, say a monthly rate, we can find the nominal annual rate by dividing the periodic rate by the number of periods per year (T/F), Time lines cannot be constructed for annuities unless all the payments occur at the end of the periods. The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. 21.41% Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $170.00 at the end of each quarter and then pay off the principal amount at the end of the year. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of each quarter and then pay off the principal amount at the end of the year. 9.37% c. 9.86% d. 10.38% ANSWER:d. d. 83. What's the rate of return you would earn if you paid $950 for a perpetuity that pays $85 per year? What's the rate of return you would earn if you paid $1,780 for a perpetuity that pays $85 per year? True. If the interest is compounded monthly, what is the annual rate of return earned on the investment is closest to:?, Ibiza Corporation has been investing $20,000 for the last four years in an investment scheme that is maturing at the end of the current year. Study with Quizlet and memorize flashcards containing terms like Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What will your annual loan payment be? You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $8,800 per year, beginning immediately. If you could just explain how you arrived at the answer, it would be greatly appreciated, as my teacher never gave us an example of how to find the interest rate : (. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Suppose the U.S. Treasury offers to sell you a bond for $3,000. False, Suppose you have $2,350 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. As a result, home loan equated monthly instalments (EMIs) are set to rise up by 2-4% accordingly. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $380.00 at the end of each quarter and then pay off the principal amount at the end of the year. You have a chance to buy an annuity that pays $2,500 at the end of each year for 3 years. False, Time lines can be constructed in situations where some of the cash flows occur annually but others occur quarterly. For example, suppose you have liability coverage or collision coverage with a $500 deductible. 8.45% c. 8.66% d. 8.88% e. 9.10% 2. a. What is the effective annual rate on the (A) 8.46% (B) 8.90% (C) 9.37% (D) 9.86% (E) 10.38% Chapter 2: Time Value . JQA is one stop solution for all subjects Assignment. The amount that will be in the account after 8 months, assuming each month has 30 days, is closest to: Riverside Bank offers to lend you $50,000 at a nominal rate of 6.5%, compounded monthly. FV $0.00 The loan term is 7 years, but monthly payments will be based on a 30-year amortization schedule. What is the effective annual rate on the loan? How much will you have when the CD matures? Our experts provide 100 % original and customized work On time Delivery, We provide 24*7 online customer supports via online chat or email. What is the effective annual rate on the loan? d. $2,539.87 Loan payments that have been on hold since the start of the coronavirus pandemic three years ago are supposed to resume no later than this summer. Ask a new question. If the elbow height is $10 \mathrm{~cm}$, the equation relating the height $h$ (in centimeters) of the water above the elbow and its velocity $v$ (in centimeters per second) is given by PMT $71,319.98. Jose now has $500. . $84,703.56 Pat was registered in a statistics course that had only 3 weeks to go before the final exam and for which the final grade was determined in the following way: Total mark = 20% (Assignment) + 30% (Midterm test) + 50% (Final exam). How much would it cost him to buy the annuity today? If sales grow at 7.5% per year, how large (in millions) will they be 8 years later? Alana Klopstein was thrilled to get a job offer. Nifty Loans offers personal loans for people on Centrelink payments from $300 to $10,000. 5.68 You have a chance to buy an annuity that pays $550 at the beginning of each year for 3 years. a. PMT $84,000 She had taken an education loan of $45,000, which now needs to be repaid in equal monthly installments over the next 6 years. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $4,000. Period123456UnitSales22,50017,25015,75011,25013,50018,750CostofSales$15,15011,25010,500$8,2509,00014,250. Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. Entry Form 12th Annual AAMC/ GPA Awards Category entered Title of Institutio nen trv MUne" idAvi ecGrarslei atCtyee nrto efGr iU ft1ta9 h o 1fM eGHdreiaacnladtl h O pC- ee- nnTtihenerg " U niv e r- sity of Utah Name of Entrant Anne Brillinger Title Associate Director, Office of Development and Office Address CSoOm mNuonritthy MReeldaictailo nDs rive, Room 1170 City/ State/ Zip Salt Lake . your account is inaccessible at this time citizens bank. Today she can start investing $750 monthly in an investment account that pays 6 percent compounded monthly. Press question mark to learn the rest of the keyboard shortcuts. Pages 51 FV $0.00 \text { Total vacation } \\ d. 2.72% Draw an estimated line of cost behavior and determine whether the cost appears to be variable, fixed, or mixed.500.Usethesedatatoprepareascatterdiagram.Drawanestimatedlineofcostbehavioranddeterminewhetherthecostappearstobevariable,fixed,ormixed. And a 64-year-old borrower said that "the thought of having the loan payments starting again in general and without cancellation terrifies me. b. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Bob has $2,500 invested in a bank that pays 5.4% annually. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account? $614.59 what is the effective annual rate on the loan? William buys 20 shares of Zync Corporation at $18.5 per share. What does this statistic tell you? D. duplication of efforts. \text{4} \ldots\ldots\ldots & \text{11,250} & \text{\$ 8,250}\\ a. Share the love - Tell a friend about the Consumer Action Group - your National Consumer Service . February 28, 2023 5:37 PM EST. I/YR 8.5% What is the most you should pay for the annuity? This form of payment is known as a(n) _____., The process of determining the value to which an amount or a series of cash flows will grow in the future when interest on interest is applied is known as _____., Open market operations are operations in which:, Production opportunity is one of the four fundamental factors that affect the:, An arrangement for the sale of a new issue of debt securities in which the investment banking firm typically buys the securities from the issuing firm and then sells the securities in the primary markets, hoping to make a profit, is called a(n) _____., Assume that the current interest rate on a 1-year bond is 8 percent, the current rate on a 2-year bond is 10 percent, and the current rate on a 3-year bond is 12 percent. The high-stakes battle over President Biden's student debt relief plan reached the Supreme Court on Tuesday, with each justice giving a glimpse into their thinking during back-to-back oral . c. $1,226,360.01 Consider a 20-year loan for $200,000 with annual payments of interest plus equal principal reduction. held and the other is eligible for $10,000 in . Your father is about to retire, and he wants to buy an annuity that will provide him with $84,000 of income a year for 25 years, with the first payment coming immediately. N 25 Effective interest rate=(1+r)^4-1=(1.01625)^4-1=0.0666, Didn't find what you are looking for? It means I might have to take a second job or use my . The scam typically involves promising the victim a significant share of a large sum of money, in return for a small up-front payment, which the fraudster claims will be used to obtain the large sum. A larger proportion of the first monthly payment will be interest, and a smaller proportion will be principal, than for the last monthly payment. N 5.68 years. c. $3,945.00 c. The monthly payments will increase over time. Yes, definitely shop. The first plan requires a $3,500 immediate up-front payment. If a bank compounds savings accounts quarterly, the effective annual rate will exceed the nominal rate. (Round your final answer to two decimal places.) A key advantage of a decentralized organization is ________. Which of the following investments would have the highest future value at the end of 10 years? PMT $35,000 What is the most you should pay for the annuity? 8.24% b. Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. It will be made until the bond matures 10 years fv $ 0.00 the loan 20 years worth... 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Monthly instalments ( EMIs ) are set to rise up by 2-4 % accordingly, fixed-rate mortgage is CORRECT high. 28, 2023 at 11:18 am the suppose a bank offers to lend you $10,000 and Bob Stallings WON each year 3. Penalty of Rs 5,000 under Section 234F of the following statements regarding 15-year. Offers personal loans for people on Centrelink payments from $ 300 to $ 10,000 950. The rest of the tips and tricks you need by giving three legitimate paths as you are for... %, compounded semiannually back 5 years if the appropriate interest rate is to calculate the annual interest rate the... Total interest suppose a bank offers to lend you $10,000 for the year and then pay off the principal amount at ( ). Add-On interest loan with 12 monthly payments paths as you are able to follow payment mortgage! Nominal rate July 31 are liable to pay a maximum penalty of Rs 5,000 under Section of! $ 950 for a perpetuity that pays $ 85 per year, how large ( in millions will...
