Mariam borrows RM67,000 from you today and agrees to repay RM183,229 with a 9 percent annual interest rate. Estimate how long it will take Mariam to fulfill her pledge. (There is no need for interpolation) Answer O n= 13 - 14 O n= 11- 12 O n= 15 - 16 O n= 17 - 18
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- Present Values Krista Kellman has an opportunity to purchase a government security that will pay $200,000 in 5 years. Required: Note: Round answers to two decimal places. 1. Calculate what Krista would pay for the security if the appropriate interest (discount) rate is 6% compounded annually. 2. Calculate what Krista would pay for the security if the appropriate interest (discount) rate is 10% compounded annually. 3. Calculate what Krista would pay for the security if the appropriate interest (discount) rate is 6% compounded semiannually.H5. Emily borrows a 2-year loan amount L, which she has to repay in 24 end-of-themonth payments. The first 16 payments are $1,000 each and the final 8 payments are $2,000 each. The nominal annual interest rate compounded monthly is 12%. Find L and then find the outstanding balance right after the 12th payment has been made.Eren Yeager borrows $100 000 to buy his dream home at an interest rate of 12% p.a. compounding quarterly with quarterly repayments. If the loan is over 20 years, what will be his repayments? Select one: a. $2 754.17 b. $3 311.17 c. $3 451.17 d. $2 932.17
- 10. Axel has a promissory note for $1750 dated March 15, 2013. The note is due in 360 days with interest at 6.5%. If Axel sells the note to a bank on December 19, 2013 for $1819.17, what rate of interest will he realize on his investment?Hudson agreed to borrow R4 954, 85 at 9% compound interest per month when he signed the loan papers today. Each month, the loan payment is R143, 84. How many loan installments does he need to make before the balance is settled in full? a. 70,30 b. 56, 88 c. 29, 89 d. 40,00 Question 16 Peter wants to purchase a car that costs R250 000,00. He decides to take a loan on the car in the expectation that it will be paid over six years at an interest rate of 15% compounded monthly. What will the interest payment be on the 24th monthly payment? a. R5 286, 24 b. R2 876,01 c. R2 410,24 d. R3 125,003. Ahmad bought a set of sofa and paid RM200 as a down payment. The balance was to be paid by monthly payments of RM150 for two years. The interest rate was charged 10% per annum based on the original balance. No use excel. Find: a) the amount of the loan. (RM3000) b) the cash price. (RM3200) c) the amount he has to pay immediately after the 20th payment, if he decides to settle all the outstanding debts. Use the Rule of 78. (RM580)
- 13Assume you plan to borrow $400,000 from your bank to buy a home. The bank offers: • a 5-year fixed rate of 6.05%, compounded monthly. • a 3-year fixed rate of 5.75%, compounded monthly. If you choose to repay the borrowing in equal installments monthly over a 20 years, what would be the difference between your monthly payments at the two different APRs? a. $89.32 b. $68.94 c. $26.98 d. $154.58 14You expect that the interest rate will decrease in the near future, therefore you eventually choose the 3-year fixed rate. Then, what will be your mortgage balance after 3 years? a. $321,598.59 b. $452,321.21 c. $365,056.12 d. $379,325.89 15Three years passed, it's time to renew your mortgage. Upon your renewal, your bank is now offering a new 3-year fixed rate of 4.5%, what would be your monthly repayment amount after renewal? a. 2825.32 b. 2598.54 c. 1965.21 d. 2563.60Steve Mc Nut charged James B. Lekoy 12 ¾% simple interest rate for the P250,000 he borrowed. James promised to pay the entire amount in eight months and he is allowed by Steve to pay partial payments. If he paid a couple of P50,000 during the first two months and another P75,000 at the end of 4 months, how much would be his final payment?49 A businessman borrowed P310,000 with interest at the rate of 4.7% compounded semi-annually. He agrees to discharge his obligation by paying a series of 8 equal semi-annual payments, the first being due at the end of 5.1 years. Find the semi-annual payment. Express your answer in whole number.
- 18. An engineer has a current balance of P110 000.00 in his savings account. The bank will be giving 6% interest compounded semi-annually for the next two years and 8% interest compounded semi-annually thereafter. A large corporation is offering P10 000.00, 8% bonds that pay interest every six months for P11 000.00. If the maturity is five years, and bond earnings are deposited in the bank, should he withdraw and purchase the bonds, or should he leave his savings in the bank? Use future worth analysis. (Ans. Money should be left in the bank; P156 654.05; P147 706.39)32. Chen Xiu wants to buy a house for which he needs to borrow $200,000. If he takes out a 30- year fixed rate 6% mortgage, his scheduled monthly payments will be closest to:A. $556.B. $1,000. C. $1,199.9. Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Jacob needed money for some unexpected expenses, so he borrowed $2,138.41 from a friend and agreed to repay the loan in three equal installments of $800 at the end of each year. The agreement is offering an implied interest rate of . Jacob’s friend, Devan, wants to go to business school. While his father will share some of the expenses, Devan still needs to put in the rest on his own. But Devan has no money saved for it yet. According to his calculations, it will cost him $31,897 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $3,800 at the end of every year in a mutual fund, from which he expects to earn a fixed 6% rate of return. It will take approximately for Devan to save enough money to go to business school.
