PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN: 9781337117005

Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher: Cengage Learning

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Assume you need a $87,000.00 loan for a home. Compute the monthly payment for each option. Assume that the loans are fixed rate and that closing costs are the same in both cases. Round to the nearest penny.Option 1: a 30 year-loan at an APR of 7.25%The monthly payment for Option 1 would be $.Option 2: a 15 year-loan at an APR of 6.5%The monthly payment for Option 2 would be $

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16.
A store offers two payment plans. Under the instalment plan, you pay 25% down and 25% of the purchase price in each of the next 3 years. If you pay the entire bill immediately, you can take a 10% discount from the purchase price.
a. If you can borrow or lend funds at a 6% interest rate, which is the better deal?
b. If the payments on the 4-year instalment plan do not start for a full year, which plan is a better deal?

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Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs.
You need a
$160,000
loan.
Option 1: a 30-year loan at an APR of
8%.
Option 2: a 15-year loan at an APR of
7.5%.
Question content area bottom
Part 1
Find the monthly payment for each option.
The monthly payment for option 1 is
$enter your response here.
The monthly payment for option 2 is
$enter your response here.
(Do not round until the final answer. Then round to the nearest cent as needed.)

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Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs.
You need a
$180,000
loan.
Option 1: a 30-year loan at an APR of
7.5%.
Option 2: a 15-year loan at an APR of
6.5%.
Question content area bottom
Part 1
Find the monthly payment for each option.
The monthly payment for option 1 is
$enter your response here.
The monthly payment for option 2 is
$enter your response here.
(Do not round until the final answer. Then round to the nearest cent as needed.)
Part 2
Find the total payment for each option.
The total payment for option 1 is
$enter your response here.
The total payment for option 2 is
$enter your response here.
(Round to the nearest cent as needed.)
Part 3
Compare the two options. Which appears to be the better option?
A.
Option 1 will always be the better option.
B.
Option 1 is the better option, but only if the borrower…

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Compare the monthly payment and total payment for the following pair of $180,000 loan options. Assume that both loans are fixed rate and have the same closing costs.
Option 1: A 30-year loan at an APR of 4.65%.
Option 2: A 15-year loan at an APR of 3.85%
Find the monthly payment for Option 2.

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Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $170,000 loan. Option 1: a 30-year loan at an APR of 8.25% Option 2: a 15-year loan at an APR of 7.8% Find the monthly payment for each option. The monthly payment for option 1 is $ enter your response here. The monthly payment for option 2 is $ enter your response here. ( Do not round until the final answer. Then round to the nearest cent as needed.)

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Loan: $200,000
Term: 30 years
Interest rate: 3.5%
Variable rate: 7 years fixed interest (but after 7 years assume the variable rate goes up by .25%)
If you pay an extra $350 a month and pay $35,000 additional payment on the 85th month (or right after 7 years)
how much interest will you save,
what date will the entire loan get paid
how much was the total interest payment
what is the loan balance on year 12 ?
how much taxes will you save,
how much was the total payment of the entire loan?
Tax Rate: No Tax Rate

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Problem 1:
You take out an amortized loan for $10,000. The loan is to be paid in equal installments at the end of each of the next 5 years. The interest rate is 8%. Construct an amortization schedule.
Problem 2:
A. Calculate the PV of $100 due in 5 years compounded daily at 12%.
B. Calculate the FV of $1000 due in 3 years at 6% compounded quarterly.
C. Calculate the FVA of $300 due at the end of each of the next 5 years at 4%.
D. Calculate the PVA of $300 due at the end of each of the next 5 years at 4%.
Problem 3:
Compute the EAR of 10% compounded daily.

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What is the present value of $2,000 per year, at a discount rate of 6.5 percent, if the first payment is received 3 years from now and the last payment is received 12 years from now?
Question 8 options:
$12,169
$13,690
$11,409
$11,409
$12,676

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A company can borrow $780000 for 5 years by issuing bonds, on which interest is paid monthly at = 8% and the principal is paid off using a sinking fund earning = 3%. The other option is to borrow $780000 from a bank and repay the loan over 5 years with equal monthly payments at = 11%. Which option will result in a smaller periodic cost for the company? Answer: Select One How much will you save each period with this option? Answer: $

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Question A .what is the present value of 5,000 to be received in each of the following
a. at the end of 10 years with 5% discount rate
b. at tbe end of 7 year when the appropriate rate is 7%
c. at the end of 9 years using an interest rate of 9% ?
Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line

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22. If $120,000 is borrowed to AIB at 15% interest to be paid back over 20 years, how much of the
fifteen year's payment is interest (assume annual loan payments)?
Hint: 1. Compute PMT 2. Compute the PV at the end of year 14 and the PV at the end of year 15.
Compute the difference; you get third year's principal payment. 3. Interest = PMT - 15th year's
principal payment.
A. $10,883.
B. $15,598.
C. $16,789.
Please provide an accurate answer.

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