Morris paid £500 a month for 20 years to pay off the mortgage on his Glasgow house. If his down payment was £5000 and the interest rate was 6 percent compounded monthly, what was the purchase price of the house?
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- How much money will be in a bank account at the end of 15 years if $100 is deposited today and the interest rate is 8 percent compounded annually?Calculate the price of a zero-coupon bond that matures in 20 years if the market interest rate is 3.8 percent. Assume semiannual compounding. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)Suppose Kay inherits $250,000, which she invests today at a rate of return of 9 percent compounded annually. Who much will Kay's investment be worth in 25 years?
- What is the interest rate on your credit card if after 10 years you owe $40 for a pizza that had a price of $10? The interest rate is _______. A. a monthly rate of 15/12 percent B. 15 percent per year compounded monthly C. a monthly rate of 15/365 percent compounded daily D. 15 percent per year compounded annually Submitfind the present value of $175 perpetuity if the interest rate is 6 percent compounded quarterly. payments are at the beginning of the period.Find the present value of $750 to be paid four years from now when the prevailing interest rate is 10 percent, if interest is compounded annually.
- You just obtained a loan of $15,000 with monthly payments for four years at 5.04 percent interest, compounded monthly. What is the amount of each payment?How long will it take for an investment with an annual rate of return of 6% compounded annually to grow to ten times its current value? Answer neatly with proper explanationA bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. What is the bond's price? Assume annual compounding. Round your answer to two decimal places.
- Frank purchased his house 16 years ago by taking out a 25-year mortgage for $150,000. The mortgage has a fixed interest rate of 5 percent compounded monthly. If he wants to pay off his mortgage today, how much money does he need? He made his most recent mortgage payment earlier today.You are making semiannual deposits into a fund that pays interest at rate of9% compounded continuously. What is the effective semiannual interest rate?(a) 4.000%(b) 4.708%(c) 4.164%(d)4.175%Suppose a man purchases a luxury car with an initial down payment of $20,000 and then makes quarterly payments: $2000 at the each of each quarter for six years and $3500 at the end of each quarter for eight more years. Given an interest rate of 6% compounded quarterly, find the present value of the payments and the list price of the luxury car.
