Pearson Reviewer 10

In one instance, a financial institution loaned you $60,000 for two years at an APR of 5.75% for which you must make monthly payments. In a second instance, you loaned a financial institution $60,000 for two years at an APR of 5.75% compounded monthly. What is the difference in the amount of interest paid? (Round your answer to the nearest cent.)

5. You receive payments of $10,000 per year from a family trust, but you don't need that money right now. Find FV Annuity: If you deposit your annual payments into an account earning 2% per year, what will be the account balance in 10 years? C= 10,000 r = 0.02 t = 10 (1 = i)^n FV = C =? Find FV Annuity: If you deposit your annual payments into an account earning 2% per year, what will be the account balance in 5 years?

Note: The answer should be typed.

To make CDs look more attractive as an investment than they really are, some banks advertise that their rates are higher than their competitors' rates; however, the fine print says that the rate is based on simple interest. If you were to deposit $16,000 at 10.00% per year simple interest in a CD, what compound interest rate would yield the same amount of money in 3 years? (Round the final answer to three decimal places.) The compound interest rate that would yield the same amount of money in 3 years is % per year.

Problem #1: Gwen just bought solar panels to power ventilation at her chicken farm. The panels cost $2000 and will reduce her electricity bills by $40 per month. How long will it take her to recoup her investment in the panels if she can warn 12% interest, compounded monthly, on her money? (Hint: You can use either the Capital Recovery Factor formula or the Series Present Worth Factor formula, or you can use linear interpolation!)

Would love the help.

1.6

(3) Suppose we invested $20,000 at an annual rate of 5% where interest is compounded continuously. (a) Write down an IVP that describes the amount of money y(t) that you will have in your account after t years. Then, solve the IVP and compute how much money you expect to have in your account after 10 years. (b) Now suppose you want to have $100,000 in your account after those 10 years. In order to accomplish that, you will make yearly deposits of D dollars. Find D, so that y(10) = $100,000. Note that we still have y(0) = $20,000.

Question 5 Part B: You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6. Then after leaving the money in the account for several years, you plan to withdraw everything 15 years from today. How much is available to withdraw at the end of year 15 if the account pays a nominal annual rate of 8% compounded monthly? Question 5 Part B: Identify the correct Function Notation for this scenario. O F= 200(F/A,8.3%, 8) (F/p, 8.3%, 7) O F= 200(F/A,27%,16) (F/p, 27%, 14) O F= 200(F/A,4.07%, 16) (F/p, 4.07%, 14) O F= 200(F/A,4.07%,8) (P/F, 4.07%, 7)

please help, thank you !

You borrowed $10,000 from a local bank, with the agreement that you will pay back the loan according to a graduated payment plan. If your first payment is set at $1,500, what would the remaining payment look like at a borrowing rate of 7% over five years? (the value of G approximately is...) $10,000 0 $1.500 20 30 4G

A cash flow at time zero (now) of $7,386 is equivalent to another cash flow that is an EOY annuity of $2,100 over five years (starting at year 1). Each of these two cash-flow series is equivalent to a third series, which is a uniform gradient series. What is the value of G for this third series over the same five-year time interval? Assume that the cash flow at the end of year one is zero. Choose the correct answer below. A. $1,050 B. $702 OC. $949 OD. $1,195 OE. Not enough information given.

A cash flow at time zero (now) of $14,551 is equivalent to another cash flow that is an EOY annuity of $2,700 over seven years (starting at year 1). Each of these two cash-flow series is equivalent to a third series, which is a uniform gradient series. What is the value of G for this third series over the same seven-year time interval? Assume that the cash flow at the end of year one is zero. ..... Choose the correct answer below. A. $989 B. $785 C. $392 D. $1,450 O E. Not enough information given.

8.)

( Solve the following problems. Draw the cash flow diagram for each problem and use the interest rate with five decimal places. Box your final answer and upload the picture of your complete solution. ) 1. An electronic device is available that will reduce this year’s labor cost by$10,000.The equipment is expected to last for eight years. If labor cost increase at an average rate of 7% per year at interest rate is 12% compounded bimonthly a. What is the maximum amount that we could justify spending for the device?b. What is the uniform annual equivalent value (A) of labor costs over the eight year period?

You have just purchased 200 shares of General Electric stock at $15 per share. You will sell the stock when its market price doubles. If you expect the stock price to increase 12% per year, how long do you expect to wait before selling the stock? (See Figure.)

Suppose a ten-year bond with a $10,000 face value pays a 5.0% annual coupon (at the end of the year), has 2 years left to maturity, and has a discount rate of 6.5%. Which of thé following would give you the present value - i.e. the price – of the bond? Select one: a. Present Value = Price = $10,500/(1.065)² %3D %3D b. Present Value = Price = [$500/(1.065)] + [$500/(1.065)²] + ... + [$500/(1.065)NI, where N=00 c. Present Value = Price = [$500/(1.065)] + [$500/(1.065)²] +I$10,000/(1.065)²] %3D d. Present Value = Price = [$500/(1.065)] + [$500/(1.065)²]

Draw the cash flow diagrams corresponding to the formulas given below. Specify the interest rates and the period in which the X value is calculated. (Note: You are not expected to calculate the X value!)   a. X = [300(F/A; %6; 4) - 100 (F/P; %6; 2)1(A/P; %6; 2)   b. X = [300(F/A, %10,3)-200(F/G, %10,3)](F/P,%10,1) + [300(F/A,%10,3) + 200(F/G,%10,3)|(P/F,%10,3)

Please answer everything in the photos including the graph.

Lorenz curves also can be used to provide a relative measure of the distribution of the total assets of a country. Using data in a report by the economic committee of a certain country, an economist produced the following Lorenz curves for the distribution of total assets in the country in 1963 and 1983, shown below. f(x) = x10 Lorenz curve for 1963 g(x) = x13 Lorenz curve for 1983 Find the Gini index of income concentration for each Lorenz curve and interpret the results. .... What is the Gini index for 1963? (Round to three decimal places as needed.) What is the Gini index for 1983? (Round to three decimal places as needed.) Interpret your results. O A. Total assets were more equally distributed in 1963 O B. Total assets were more equally distributed in 1983 O c. Total assets were distributed the same in 1963 as in 1983.

Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded monthly. The credit card company says your minimum monthly payment is $20.00. a. If you make only this minimum payment, how long will it take for you to repay the $1,100 balance (assuming no more charges are made)? b. If you make the minimum payment plus $10.62 extra each month (for a total of $30.62), how long will it take to repay the $1,100 balance? c. Compare the total interest paid in Part (a) with the total interest paid in Part (b). a. It will take b. It will take (...) months for you to repay the initial balance. (Round to the nearest whole number.) months for you to repay the initial balance. (Round to the nearest whole number.) c. The difference in the total interest paid in Part (a) and Part (b) is $ (Round to the nearest dollar.)

What is the amount of interest earned on $5,000 for eight years at 10% simple interest per year?   If you open a savings account that earns 7.5% simple interest per year, what is the minimum number of years you must wait to double your balance? Suppose you open another account that earns 7% interest compounded yearly. How many years will it take now to double your balance? Compare the interest earned by $10,000 for five years at 10% simple interest with that earned by the same amount for five years at 10% compounded annually.

Suppose that you have Php 10,000 cash today and invest it at an interest rate of 10% compounded quarterly. How many years will it take you to become a millionaire? Answer: n = Blank 1 years

An equation of the form y=7000 (1.09)* provides an example of interest compounded annually. This means that the full 9% of interest is added to the account at the end of one year. This doesn't sound very fair to someone that invests their money for 11 months-they get no interest at all. This became a competitive disadvantage for financial institutions, and some began to divide the annual interest into periodic shares, so that (for example) you could get 1/12th of that 9% each month. When this happens, we say that interest is compounded monthly. Interest can also be compounded weekly (52 times per year), quarterly (4 times per year), daily (365 times per year), or really any other period you could think of. If interest is compounded monthly, what growth factor would be needed to provide 1/12th of 9% interest each month? (Think about the difference between interest rate and growth factor.) The growth factor would be X S

You purchased a bond with a face value of $5,000 five years ago for $4,750. The bond pays a coupon rate of 4%, paid every 2 months (6 times a year). If you want an annual yield of 6% from the bond, how much should you sell the bond for now?  Question 6 Part B: Identify the correct Function Notation for this scenario.

2. How long will an investment double itself if interest is earned at a compounded rate of: a. 3% per quarter? b. 0.25% per week (assumption: 1 year = 52 weeks)?

On January 1, 2005, a person’s savings account was worth $200,000. Every month thereafter, this person makes a cash contribution of $676 to the account. If the fund was expected to be worth $400,000 on January 1, 2010, a) what monthly rate of interest was being earned on this fund? Answer is Blank 1 b) what is the nominal rate compounded monthly? Answer is Blank 2 c) What is the equivalent effective interest rate per year? Answer is Blank 3