Frank had originally promised to pay Jane $1,500 3 months ago, $1,000 today and $1,000 6 months from now. Frank missed his first payment and both parties have agreed to a new deal. Frank will now make two equal payments - one today and the remainder in 3 months. Calculate each payment using an interest rate of 5.00% compounded monthly. Round your answer to 2 decimals. Your Answer: Answer

Frank had originally promised to pay Jane $1,500 3 months ago, $1,000 today and $1,000 6 months from now. Frank missed his first payment and both parties have agreed to a new deal. Frank will now make two equal payments - one today and the remainder in 3 months. Calculate each payment using an interest rate of 5.00% compounded monthly. Round your answer to 2 decimals. Your Answer: Answer

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A friend wants to borrow money from you. He states that he will pay you $3,900 every 6 months for 7 years with the first payment exactly 7 years and six months from today. The interest rate is 6.2 percent compounded semiannually. What is the value of the payments today? Multiple Choice $35,805.70 $28,718.70 $29,488.70 $27,679.39
Melissa was supposed to pay Erik $4,100, 6 months ago, and $1,760, 5 months from now. If she wants to reschedule these payments with two payments, one payment of $3,900 today and the balance 3 months from now, calculate the balance amount. Assume that the simple interest charged is 6.75% p.a. and the agreed focal date is 3 months from now. $203.38 Ⓒ Round to the nearest cent
Fritz Benjami buys a car costing $14200. He agrees to make payments at the end Fritz's monthly payment is: of each monthly period for 6 years. He pays 6.0% interest, compounded monthly. What is the amount of each payment? Find the total amount of interest Fritz will pay. (Round to the nearest cent.)
James pays $6000 now in order to receive n yearly payments of $850.05 with the first payment starting at time 6 years. The annual effective rate of interest is 8%. Find n. Give your answer to the nearest integer. please only respond if you are confident in your answer, the last response was incorrect
Phil has systematically contributed $3000 to his RRSP at the beginning of every three months for the past 17 years. If the RRSP has earned 8.8% compounded quarterly, what is the value of Phil's RRSP today? (Do not round Intermedlate calculations and round your final answer to 2 declmal places.) The value of the RRSP today $ 54600.00 connect
Your friend was supposed to repay you $250 1 month ago and $125 15 days ago. You instead agree to receive two equal payments from them 2 months and 4 months from now. If you are charging your friend 15% interest, determine the size of the equal payments.
magine you borrow $500 from your roommate, agreeing to pay her back $500 plus 12 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 5.94 percent. What is the total dollar amount you will have to pay her back in a year? What approximate percentage of the interest payment is the result of the real rate of interest? Use the simplified Fisher equation. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 17.54.)Excel Template(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you’ve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Total dollar amount $enter a dollar amount rounded to 2 decimal places Approximate…
please solve last part. Eddie borrows $1000. To repay the amount she makes 12 equal monthly payments of $93.12. Determine the following: Please answer all 4 parts and draw a diagram. Thank you! (i) The monthly interest rate, (ii) The nominal annual interest rate, (iii) The effective annual interest rate, (iv) The interest paid in month 2 and the amount paid towards the principal in month 2.
Chelsea was supposed to pay Jacob $4,800, 6 months ago, and $1,500, 5 months from now. If she wants to reschedule these payments with two payments, one payment of $3, 100 today and the balance 3 months from now, calculate the balance amount. Assume that the simple interest charged is 5.25% p.a. and the agreed focal date is 3 months from now.
Shelly Obama Sanders gets a loan for $3,000 and repays the loan in 12 monthly payments of $258.75 per month. Under the APR formula, what is the amount of interest included in her first payment? Keep your answer to two decimal places
Jordan was supposed to pay Courtney $4,200 6 months ago and $2,220 in 5 months. If he wants to repay this amount with two payments of $3,500 today and the balance amount in 3 months, calculate the balance amount. Assume interest is 2.40% p.a. and the agreed focal date is 3 months from now.
uppose Brian has $1000 to lend to one of two friends for 6 months. The first friend, Tom, is offering to pay him 9% interest compounded quarterly. The second friend, Steven, is willing to pay him 8.8% interest compounded daily. a) Compute the future value if Brian were to give his $1000 to Tom. Round your answer to the nearest centb) Compute the future value if Brian were to give his $1000 to Steven. Round your answer to the nearest cent. c) Every cent is important to Brian. Which friend is offering Brian the better deal?

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