Uniform Payments You just graduated. Congrats. You need a car to get to your new job at Intel. Uncle Guido is willing to loan you $9,000 for a car. He says he will take 6 equal annual payments at the end of the year and will charge you less than your credit card annual rate. He makes you a "most generous" offer of 200 basis points below the card rate of 20% per year. You have no idea what a basis point is but you figure it must be a pretty good thing. A. B. C. D. What is the annual interest rate Cash Diagram Calculate the Annual Payments Factor Notation

Uniform Payments You just graduated. Congrats. You need a car to get to your new job at Intel. Uncle Guido is willing to loan you $9,000 for a car. He says he will take 6 equal annual payments at the end of the year and will charge you less than your credit card annual rate. He makes you a "most generous" offer of 200 basis points below the card rate of 20% per year. You have no idea what a basis point is but you figure it must be a pretty good thing. A. B. C. D. What is the annual interest rate Cash Diagram Calculate the Annual Payments Factor Notation

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Josh is required to pay P57,000 in 15 days or P60,000 in 60 days. Find theannual rate of interest
How much interest is payable each year on a loan of $3,000 if the interest rate is 12% (simple interest) per year when half of the loan principal will be repaid as a lump sum at the end of five years and the other half will be repaid in one lump-sum amount at the end of eight years? How much interest will be paid over the eight-year period? The interest amount is paid at the end of each year. Year. Interest Accrued for Year 1 ? 2 ? 3 ? 4 ? 5 ? 6 ? 7 ? 8 ? Total Interest ?
A man borrowed P25, 000 from a bank for which he signed a promissory note to repay the loan at the end of one year. He only received the amount of P21, 915 after the bank collected the advance interest and an additional amount of P85.00 for legal fees. What was the rate of interest that the bank charged?
An amortization of a debt is in a form of a gradient series of P20,000 on the first year, P19,500 on the second year, P19,000 on the third year, P18,500 on the fourth year. Determine the future amount of the amortization if interest is 0.1.
Jimmy Carpenter, a self-employed individual, is opening a retirement account at a bank. His goal is to accumulate $1,000,000 in the account by the time he retires from work in 20 years ‘time. A local bank is willing to open a retirement account that pays 8% interest compounded annually throughout the 20 years. Jimmy expects that his annual income will increase 6% yearly during his working career. He wishes to start with a deposit at the end of year 1 and increase the deposit at a rate of 6% each year thereafter. a. What should be the size of his first deposit The first deposit will occur at the end of year 1, and subsequent deposits will be made at the end of each year. The last deposit will be made at the end of year 20.b. What is the value of A if the bank decides to decrease the interest rate to 6% compounded annually.
If your goal was to have the largest amount of money in your bank account in two years, which of the following would you choose? (Assume that the beginning deposit and all interest earnings remain in the account for the full two years.) a beginning deposit of $1,010 earning, 3% per a beginning deposit of $950, earning 5% per year a beginning deposit of $930, earning 8% per year a beginning deposit of $1,000, earning 4% per year
Someone deposits $3,500 in their retirement account every year. If their account pays an average of 6% interest and they make 38 deposits before they retire, how much money can this person withdraw in 20 equal payments beginning one year after their last deposit?
You obtained a loan of $25,000 to finance your home improvement project. Based on monthly compounding over 24 months, the end-of-the-month equal payment was figured to be $1200. What is the APR used for this loan?
Assuming I deposit my signing bonus of $36,000 at 9% APR, compounded annually, how much will I have upon retirement in 20 years?
Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. How much would be in the account after 8 months, assuming each month has 30 days
For items 21-30, when asked about an amount of money (interest, discount, present value, future value, annuity, regular payment) round off your final answers to two decimal place values. When asked about rate of interest, express your final answer as percent rounded off to two decimal place values. When asked about time, round off answers to the nearest year., except when asked for the number of days. 21. Rica obtained a 3-year ₱40 000 discounted loan at 2% simple interest for her online business. Find the discount.22. Rica obtained a 3-year ₱40 000 discounted loan at 2% simple interest for her online business. Find the amount of money Rica received.23. Rica obtained a 3-year ₱40,000 discounted loan at 2% simple interest for her online business. Find the true interest rate.24. Find the future value of a ₱120,000-investment compounded semi-annually at 1.5% for 5 years.25. Find the interest on a ₱120,000-investment compounded semi-annually at 1.5% for 5 years.26. Suppose that you want to…
Suppose that, to cover some of your college expenses, you are obtaining a personal loan form your uncle to be repaid in three years. If your uncle always earns 10% interest (compounded monthly) on his money invested in various sources and you paid him $20,223. What was the principal amount of the loan?