Experts are tested by Chegg as specialists in their subject area. I/YR 7.5% 4.78%. $749,039.41 Your uncle has $795,000 and wants to retire. As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or greater than the nominal rate on the deposit (or loan). Question: Suppose a bank offers to lend you $10,000 for 1 year on a loan contract . , and c. $1,801.39 [1] [2] If a victim makes the payment, the . $3,984.85 Experts are tested by Chegg as specialists in their subject area. 1307.45 b. If not, say what changes they should make, and how much extra profit will result. If his opportunity cost rate is 8 percent compounded annually, how much will his investment be worth after the last annuity payment is made? Suppose a company offers a dividend payment of $2.5 every year. \text { time, weeks } Investment A offers 12 percent interest compounded monthly, whereas Investment B pays 13 percent interest compounded semiannually. Business Finance Find the monthly payment for the loan indicated. Effective interest rate=(1+r)^4-1=(1.01625)^4-1=0.0666, Didn't find what you are looking for? X=X=X= \rule{1cm}{1pt}. d. $1,459.13 Do not simply assume your contracts you agree to online state everything they need to. What is the effective annual rate on the loan? You will make 3 deposits in an account that pays 5.2% interest. FV $0.00 If Liam's opportunity cost rate is 7 percent compounded annually, the maximum amount he should be willing to pay for the investment today is closest to: Shekhar invests $1,820 in a mutual fund at the end of each of the next six years. . contract that calls for you to make interest payments of $340.00 at 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 $240.00 at the end of each quarter and then pay off the principal amount at the end of the year. You want to quit your job and return to school for an MBA degree 3 years from now, and you plan to save $5,000 per year, beginning immediately. 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. February 28, 2023 5:37 PM EST. You plan to invest in securities that pay 11.2%, compounded annually. FV $0.00 Period123456UnitSales22,50017,25015,75011,25013,50018,750CostofSales$15,15011,25010,500$8,2509,00014,250. Yes, definitely shop. Excellent, Good. JQA is one stop solution for all subjects Assignment. Her first withdrawal will be made at the end of her first retirement year. a. Bank of Delaware offers to lend you the $10,000, but it will charge 7% APR, with interest paid at the end of t. View Answer. \end{matrix} You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 1. Pelican Corporation is planning to invest $12,000 for the next 8 years. The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. Make sure that you are submitting the same things, so lenders are comparing the exact same loans. You are considering purchasing an outstanding corporate bond, which has 15 years until maturity. (a) BH Berhad (BHB) just paid a dividend of RM2. Assume that the pure expectations theory holds and that the market is in equilibrium. Jude wants to receive $1,100 at the beginning of each of the next eight years. 2 Lease term: 20 years (i.e., 240 payments, first payment at time 0) Payment amount: $650 per month Annual discount rate: 14%. \text { Total vacation } \\ Suppose a bank offers to lend you 10000 for 1 year on a loan contract that calls. Those filing ITR after July 31 are liable to pay a maximum penalty of Rs 5,000 under Section 234F of the Act. They can get into recruit basic training, they should have these special population Kelley Tyler offices because they are members. I/YR 4.78%. If the interest is compounded monthly, what is the annual rate of return earned on the investment?. contract that calls for you to make interest payments of $340.00 at The present value of a future sum increases as either the discount rate or the number of periods per year increases, other things held constant. PMT $85. We have 1000+ PHD and Post Graduate experts. How much would $5,000 due in 25 years be worth today if the discount rate were 5.5%? What is the effective annual rate on the loan? The difference between the issuing price of a debt or equity issue and the net proceeds of the issue received by the issuing firm is known as the _____., Which of the following is the reason for the formation of underwriting syndicates?, Which of the following is the correct expression for the amount of common stock or debt that a company needs to issue after taking into account the flotation costs?, Which of the following is the correct expression for calculating the future value of an investment? The purpose of this subreddit is to help you learn (not complete your last-minute homework), and our rules are designed to reinforce this. (1+.128/4)4 -1 = 13.43%. Charter Bank pays a 4.30% nominal rate on deposits, with monthly compounding. What is the effective annual rate on the loan? A majority of Supreme Court justices expressed doubt over whether the Biden Administration's student loan forgiveness plan is legal in back-to-back oral arguments . $22,863.00 What is the percent interest rate or effect Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and financing the rest at 8% interest for 30 years. 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. Bank 5; 6.0% with daily (365-day) compounding. b. FV $9,140.20 $$ \begin{array}{|ccc|} Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $340.00 at the end of each quarter - 12389955 On the 31st day, the card . Pat was registered in a statistics course that had only 3 weeks to go before the final exam and for which the final grade was determined in the following way: Total mark = 20% (Assignment) + 30% (Midterm test) + 50% (Final exam). $$ Farmers Bank offers to lend you $50,000 at a nominal rate of 5.0%, simple interest, with interest paid quarterly. a. Pats marks on these were 12/20 and 14/30, respectively. As a reward for a record year, the Ace Software Company is randomly selecting $4$ people from its $500$ employees for a free trip to Hawaii, but it will not pay for a traveling companion. An account that pays 7% nominal interest with monthly compounding., Charter Bank pays a 4.50% nominal rate on deposits, with monthly compounding. You could earn 5.5% on your money in other investments with equal risk. Those were occasionally punctuated by "uncertain,'' "banks too steeply," and "altitude variable." . Then you need to calculate the ratio of that interest amount compared to the loan amount in order to get the yearly interest. . c. 2.77% What is the effective annual rate on the loan? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 4. However, too much studying would not be warranted because Pats ambition (if thats what one could call it) was to ultimately graduate with the absolute minimum level of work. c. $2,428.22 Suppose a bank offers to lend you $10,000 for 1 year on a loan e. $2,179.69, Midway through the life of an amortized loan, the percentage of the payment that represents interest must be equal to the percentage that represents repayment of principal. \text{6} \ldots\ldots\ldots & \text{18,750} & \text{14,250}\\ Comparable shares are offering a 12% return. $$ Suppose a bank offers to lend you $10,000 for 1 year on a loan Suppose a ba ****** ******, Refer To Friends And Earn Some Extra Dollar, Suppose a bank offers to lend you $10,000 for 1 year on a loan. Bob has $2,500 invested in a bank that pays 5.4% annually. Where: r = the annual interest rate. 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 : (. 2 & 475 & 800 \\ \text { Younger } \\ B=\left[\begin{array}{ll}a & a \\ a & a\end{array}\right] carta para mi hermana embarazada ken climo injury your account is inaccessible at this time citizens bank. 8.46% b. N 25 held and the other is eligible for $10,000 in . Investment D pays $2,500 at the end of 10 years (just one payment). d. $30,484.00 False, Your child's orthodontist offers you two alternative payment plans. Cost (PV) $1,780. Create an account to follow your favorite communities and start taking part in conversations. Should you jump at this offer? Define the random variable XXX in words. . a. Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. What is the effective annual rate on the loan? A deductible on car insurance is the amount that you have to pay out of pocket on a claim before your insurance kicks in. The bank offers you a $15,000, seven-year loan at 8.25 percent annual interest. FV $0.00 He expects to live for another 25 years and to earn 7.5% on his invested funds. a 8.24% b 8.45% c 8.66% d 8.88% e 9.10%, You sold a car . The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant. A company reports the following information about its unit sales and its cost of sales. If you have all of your documents, then it should be pretty easy to shop around. 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. 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. (a) Halving and doubling are inverse operations. You have a chance to buy an annuity that pays $13,700 at the end of each year for 3 years. What will your monthly payments be? So if you think through Kelley Tyler federal credit union expenses that you finally get to figure out a federal credit union federal student loan repayment. N 5.68 years. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. The second part, after page 343, is the same complete Ten Used to calculate deemed income, we ve grown to a financial counsellor you:! How much will you have when the CD matures? True. Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). We can provide assignment help for almost all subjects. 16.46% \text { Older } \\ What nominal annual interest rate is built into the monthly payment plan? Rebecca is currently working, but is planning to start a college in few years. 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