1. Charlie Chaplin borrowed P100,000.00 on October 31, 2019 from Mr. Beans and the loan has an interest rate of 6% per year until full payment. How much should Chaplin pay Bean on March 10, 2020 in order to fully satisfy the obligation?
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- A Store makes a $10,500 investment at a Bank Ltd on January 1, 2019. At the end of December 31, 2023, the Store is expected to accumulate an amount of $17166.25? i. Calculate the interest rate needed to procure this investment? ii. How long will it take for the initial amount invested to be doubled, given that interest is compounded annually at the rate?In 1915, Albert Epstein allegedly borrowed $7,000 from a large New York bank on the condition that he would repay 7% of the loan every three months, until a total of 50 payments had been made. At the time of the 50th payment, the $7,000 loan would be completely repaid. Albert computed his annual interest rate to be [0.07($7,000) × 4]/$7,000 = 0.28 (28%). Solve, (a) What true effective annual interest rate did Albert pay? (b) What, if anything, was wrong with his calculation?Suppose you purchased a corporate bond with a 10-year maturity. a $1,000par value, a 10% coupon rate, and semiannual interest payments. What all this means that you receive $50 interest payment at the end of each six-month period for 10 years (20 times). Then, when the bond matures, you will receive the principal amount (the face value) in a lump sum. Three years after the bonds were purchased, the going rate of interest (coupon rate) on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (3 years after the purchase)?
- Find the spot rate for a theoretical 2 year zero coupon bond using the following information: 6 month T-bill rate = .5% 1 year T-Bill rate = .75% 1.5-year T-Note rate = 1.10% 2-year T-Note rate = 1.65%Melissa agrees to contribute $500 to the alumni fund at the end of each year for the next 4 years. Shannon wants to match Melissa's gift, but he wants to make a lump-sum contribution. If the current interest rate is 2.5% compounded annually, how much should Shannon cortribute to equal Melissa's gift? (Round your answer to the nearest cent.)9 - What is the total amount of money to be repaid at the end of 1 year for a loan of 190 000 liras drawn from the bank for housing needs with a compound interest of 15% per year?A) 218 500B) 220 000C) 225 000D) 235 000E) 215 000
- For a principal borrowed under %14 nominal interest rate, compounded annually, a bank offers two alternative payment plans in gradient series with 35 years of payment horizon Base payment of $1000 at the end of the first year, and at the end of every next year, the payment size will be increased by $25 compared to the previous year. Base payment of $800 at the end of the first year, and at the end of every next year, the payment size will be increased by a constant $x compared to the previous year. What is x? Choose the closest value to your answer. For a principal borrowed under %14 nominal interest rate, compounded annually, a bank offers two alternative payment plans in gradient series with 35 years of payment horizon Base payment of $1000 at the end of the first year, and at the end of every next year, the payment size will be increased by $25 compared to the previous year. Base payment of $800 at the end of the first year, and at the end of every next year, the payment size…John Whitney Payson, who purchased a painting by Vincent van Gogh for$80,000 in 1947, sold it for $53.9 million in 1988. If Mr. Payson had invested his $80,000 in another investment vehicle (such as stock), how much annual interest would he need to have earned in order to accumulate the same wealth as he did from the painting investment? Assume for simplicity that the investment period is 40 years and that the interest is compounded annually.1. An engineer plans to borrow $25,000 to open his own consulting business. He must repay $500 a month for 5 years. What is the nominal annual interest rate (compounded annually)? 2. An engineer is planning a 15 year retirement. She has decided that she will need to withdraw $4,000 each month from her bank account to live. How much money should she have in the bank at the start of her retirement, if the bank pays 0.25% interest per month (compounded monthly)? Hint: There are 15 x 12 compounding periods.
- Lourdes has just retired and plans to consume $14257 from the retirement account every year for the next 12 years starting one year from today, meeting the rest of the expenses from other resources. If the annual interest rate is 9.6% compounded semiannually, how much does Lourdes have in the retirement account today? Round off interest rate to six decimal places.Answer the following simple interest problem using the provided formula ONLY. Show your complete solution. Simple Interest 1. If a man borrowed money from his girlfriend with simple interest rate of 12%, determine the present worth of 74, 900.00 pesos, which due at the end of seven months.A bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. What is the bond's price? Assume annual compounding. Round your answer to two decimal places.
