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- SHOW SOLUTIONS AND WRITE NEATLY THE FORMULA COMPOUND INTEREST What nominal rate compunded monthly will yiled an effective interest rate of 5.78% in 2 decimal places. INPUT the % signYou are going to get %10,000,000 in 45 years' time. What is the value of that money today assuming an interest rate of 39% (annual rate) is discounted monthly?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.
- A bond that has a face value of $300 maturing in one year is available for purchase for $252 . What is the interest rate offered on the bond (rounded to the nearest whole percent), and if the price of the bond were to increase, how would the interest rate be affected?What is the present value of $500.00 to be paid in two years if the interest rate is 4%? $ _____(round to the nearest integer, NO decimal point). Question 22 options: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 ..
- If a financial asset that is valued at $18,455 in the Stock Market today would be worth $39,200 in 2 years’ time, what would have been the prevailing interest rate in the financial market?Consider a 25-year loan with an annual interest rate of 7 percent and monthly payments of $1,201.53. The discount points charged by the lender at origination are 3 percent and the cost of borrower title insurance and mortgage insurance are, respectively, 0.5 percent and 2.0 percent of the loan amount. Additional fees paid to other third parties (i.e., not the lender) will equal $4,000. What is the loan amount? What is the lender’s yield/IRR? What is the effective borrowing cost (EBC)? USE EXCELDefine the following: i) Simple interest. ii) Breakeven point. iii) Ordinary annuity. b) When the price of a commodity is Sh. 530 the unit demand is 55 units. The demand is 120 units when the price is Sh. 270. If the cost of production is C = 2q + 150, Calculate the profit when 5 units are produced and sold. c) The present value of an annuity due is Sh. 284,000 after 4 years at a discount rate of 10%. Calculate the annual payment. d) A man deposits Sh. 12,000 in a bank at the beginning of each year. The compound interest is 12% per year. Calculate how long it will take for an accumulated amount of Sh. 95,000.
- Real interest rate is always higher than nominal interest rate True/FalseHow long will it take a sum of money to double at 11% annual percentage rate? ANSWER: 6.641Let’s say you are to receive a payment of 130 euros 1 year from now and the interest rate (your best investment option) is 30%. What is the present value of that 130 euros?