A firm borrows $ 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus $ 2,000 more for two years at 8%. What is the lump sum due?
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A firm borrows $ 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus $ 2,000 more for two years at 8%. What is the lump sum due?
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- Fairytail firm borrows P200,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?A couple borrows $4,000 from a lending company for 6 years at 12% At the end of 6 years, it renews the loan for the amount plus $ 4,000 more for three years at 12%. What is the lump sum dueConsider a bond with a face value of $2,000 that pays a coupon of $150 for 10 years. Suppose the bond is purchased at $500, and can be resold next year for $400. What is the rate of return of the bond? 10% 0% -10% 20%
- What would be the selling price of a 10-year bond with a face value of 100000, interest at 20% which is paid quaterly if an investor desires to earn a 16% nominal interest on 100000 worth of these bonds?Suppose a company just paid a dividend for RM0.30 and expects to increase dividendsby 3% per year. The required return is 8%. Calculate the value of the stock.A company buys a machine for $17,000, which it agrees to pay for in six equal annual payments, beginning one year after the date of purchase, at an annual interest rate of 5%. Immediately after the second payment, the terms of the agreement are changed to allow the balance due to be paid off in a single payment the next year. What is the final single payment? (Answer: $8642)
- list 5 K The effective interest rate is calculated as the total interest earned during the year divided by the beginning balance of the investment as the first of the year. O True O False ..On a $200,000, 30-year fixed mortgage, the monthly payment will be approximately how much when the nominal interest rate on the mortgage is 4.2%? (a) $568 (b) $980 (c) $918 (d) $1,000 (e) $895.Dan is considering borrowing $500,000 to purchase a new condo. Based on that information, answer the following questions. Show all work. Calculate the monthly payment needed to amortize an 8% fixed-rate 30-year mortgage loan. Calculate the monthly amortization payment if the loan in (a.) was for 15 years instead.
- A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $80 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. 1. 6% - 2. 8% - 3. 10% -A young couple has made a nonrefundable deposit of the first month's rent (equal to $1000) on a one-year apartment lease. The next day they find another apartment that they like just as well, but its monthly rent is only $900. They plan to be in the apartment for a year. Should they switch to the new apartment? Assume an (annual) interest rate of 12%. Select one: True FalseYou use RM40,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. If the current interest rate on savings is 8%, you earn an economic profit of ___________ Working Calculation: