plan A plan B plan C Down payment 10,000.00 8,000.00 5,238.23 Annual payments 3,549.24 10,056.47 2,540.40 Years 25 25 25 Discount rate 14% 14% 14% What is the present value of plan C?
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- In the CF diagram shown below, compute the Future amount F at the end of 6 yrs if i = 6% compounded annualy.A(n) 16-year bond has a coupon of 6% and is priced to yield 13%. Calculate the price per $1,000 par value using semi-annual compounding. If an investor purchases this bond two months before a scheduled coupon payment, how much accrued interest must be paid to the seller? The price of the bond, PV, is $nothing. (Round to the nearest cent.)Let's say that you invest $8000 at 3.1 percent annual interest for 6 years. What will its value be? Carefully follow all numeric directions. Round intermediate steps to four decimal places and final answers to two.
- If your credit card calculates interest based on17.85% APR, compounded monthly:(a) What are your monthly interest rate and annualeffective interest rate?(b) If your current outstanding balance is $2,500 andyou skip payments for two months, what wouldbe the total balance two months from now?Using the data given below, select the equation that will correctly calculate the future value of the cash flow at the end of Year 6. Use an interest rate of i =4% Year Income Expense 0 $10,000 1 $1000 2 $900 3 $800 4 $700 5 $600 6 $500 Group of answer choices {10,000 – 1,000(P/A, 4%, 6) -100(P/G, 4%, 5)} (P/F, 4%, 6) {10,000 – 1,000(F/A, 4%, 6) +100(F/G, 4%, 6)} (F/P, 4%, 6) {10,000 – 1,000(P/G, 4%, 6) +100(P/A, 4%, 6)} (F/P, 4%, 6) 10,000 – {1,000(P/A, 4%, 6) +100(P/G, 4%, 6)} (P/F, 4%, 6) {10,000 – 1,000(P/A, 4%, 6) +100(P/G, 4%, 6)} (F/P, 4%, 6)Determine the periodic deposit. Round up to the nearest dollar. How much of the financial goal comes from deposits and how much comes from interest?Periodic Deposit: $? at the end of each yearRate: 8% compounded annuallyTime: 12 yearsFinancial Goal: $20,000
- William got a loan for 36,000 dlls to be payable in 27 years with an interest rate of 2.3 percent per year. He pays all payments on time. What would the unpaid balance be at the end of the 9th year?Mr. Smith is planning his retirement. He has decided that he needs to withdraw $12000 per year from his bank account to supplement his other income from Social Security and a private pension plan. How much money should he plan to have in the bank at the start of his retirement, if the bank pays 10% per year, compounded annually, and if he wants money to last for a 12-year retirement period?Tom's retirement account in a company currently totals $ 416,384. What perpetual income can Tom and his heirs receive pee year if he retires now and the moneu is invested in an annuity earning 6% interest? A. $20,980 B. $24,980 C. $22,980 D. $26,980
- ANSWER LETTER D ONLY M purchased a small lot in a subdivision, paying P200,000 down and promising to pay P15.000 every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly. (a)What was the cash price of the lot? (b) If M missed the first 12 payments , what must he pay at the time the 13th is due to bring himself up to date? (c) After making 8 payments, M wished to discharge his remaining indebtedness by a single payment at the time when the 9th regular payment was due, what must he pay in addition to the regular payment then due? (d) If M missed the first 10 payments, what must he pay when the 11th payment is due to discharge his entire indebtedness?Ab 4 Economics Nabil is considering buying a house while he is at university. The house costs $200 000 today. Renting out part of the house and living in the rest over his five years at school will net, after expenses, $2000 per month. He estimates that he will sell the house after five years for $210 000. If Nabil’s MARR is 6 percent compounded monthly, should he buy the house? Use annual worth.You are paying into a mutual fund that earns7% compound interest. If you are making an annualcontribution of $14,000, how much will be in thefunds in 25 years?
