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- A mortgage 105m is a loan that a person makes to purchase a house. Table 19.11 provides a list of the mortgage interest rate for several different years and the rate of inflation for each of those years. In which years would it have been better to be a person borrowing money from a bank to buy a home? In which years would it have been better to be a bank lending money?Problem 2 Suppose you purchased a house and took a 30 -year mortgage. The mortgage is unusual: you pay yearly, not monthly. The yearly payment is$17,000and the interest rate is4.2%. What is the amount of mortgage you took? (Round to two decimals.) Hint: find the PV of all the payments.4. Eleanor makes year-end deposits of 500,000 the first year, 550,000 the second year, 605,000 thethird year, and so on increasing the next year’s deposit by 10% of the deposit in the preceding yearuntil the end of the 10th year. Ronald makes equal year-end deposits of 720,00,000 each year for 10years. A.) Is the gradient of Eleanor’s payments increasing or decreasing?B.) If interest on both funds is 12% compounded annually, who will be able to save more atthe end of 10 years.
- 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?Provide cash-flow diagram if applicable. The PH debt as of today amounts to 12 trillion. This balloons with an interest rate of 0.16% yearly. Suppose thegovernment requires every earning individual to pay the debt by 2030, how much each of us would need to paymonthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6%compounded daily, and we will start the payment by the end of 2022? The Philippines is estimated to have 110million people, with the work force of around 20%.! Pls answer !bartleby = 3 max questions 1. If the proceeds of P 2000 will be paid w/ P2400 at the end of 10 months, find the discount rate. 2. At certain interest rate compounded quarterly, an amount worth P8000 will be P20000 after 5 yrs. How much would it be at the end of 10 years? 3. For a deposit of $1023 at 7.8 % interest compounded continuously over 4 years, find the interest earned?
- Example 2: EOY NCF ($) 1 100 2 90 3 80 4 70 find the present value at 10% interest of the series of payments given in Example 2.(1) If you are planning to withdraw $6000 per year for five year , with first withdrawal starts six year from now . The amount of the money that should be deposit now at an interest rate 10%will be closet to (A) 14.112 (B) 16.123 (C) 13.122 (D) 15.1231. What is the Single Payment Compound Amount factor for an interest rate of 2% over 10 years? 2. What is the Uniform Gradient Future Worth factor for an interest rate of 10% over 10 years? 3. What is the Uniform Series Present Worth factor for an interest rate of 5.5% over 20 years? 4. A bank pays 3% interest per year (compounded annually). a. To what amount will a $5,000 deposit grow if left in the bank for 10 years? b. Draw the Cash Flow Diagram for this problem.
- 1a) Jane and John have found a house, which owing to a depressed real estate market costs only $201,500. They will put $22,000 down and finance the remainder with a 30-year mortgage loan of 4.65% compounded monthly. i. How much will their monthly loan payment be? ii. How much interest will they pay in the second payment? 1b.) They will also have the following expenses: property taxes of $2,100, homeowner's insurance of $1,625, and $290 mortgage insurance (in case on of them dies before the loan is repaid, a requirement from the bank). These annual amounts are paid in 12 installments and are added to the loan payment. What will their full monthly cost be? i.) If they can afford $1200 a month, can they afford the house?The disposable income from your part-time job in 2019 was $18,800. In 2018, you borrowed $700 at 14 percent interest. You repaid your loan with interest in 2019. How much would you have available for spending in 2019? (Do not round intermediate calculations.)2. Assume a bond with the following characteristics: face value = $1000; maturity = 5 years; N yearly coupon payments = $100. a. If the current price of this bond is $850, state what the formula is to calculate the bond's yield to maturity and state the range of interest rates where the yield to maturity should fall b. If you purchased this bond at face value and held it for 1 year, when you resold it for $850, what is the bond's rate of return?
