Your target is to earn an annualized rate of 5%, what is the most you can pay for a 135-day Treasury bill that pays 10,000 AZN at maturity? (Assume one year is 360 days)

Q: You are considering taking out a loan of $6,000.00 that will be paid back over 11 years with…

A: Loan amount (L) = $6000 Quarterly payment (Q) = $185.41 r = 5.8% per annum = 1.45% per quarter

Q: You can invest $ 35,000 today. This investment offers you a fixed annual return, computed monthly…

A: Perpetuity is the series of payments at fixed intervals for an infinite time period.  The amount of…

Q: If you have $10,000 today, and save $12,000 per quarter year at the end of the quarter while earning…

A: In the given question we need to compute the number of quarters required to accumulate $100000 if we…

Q: Suppose you need to accumulate GHȼ100,000 in 10 years. You plan to make a deposit in a bank now, at…

A: The future value of the growing annuity is the future worth of a cash flow series growing at a…

Q: You would like to have ​$   59,000 in   15 years.  To accumulate this​ amount, you plan to…

A: The concept of time value of money tells us that worth of money keeps on changing with passage of…

Q: Suppose you currently have $20,000 and plan to purchase a 8-year certificate of deposit (CD) that…

A: Using the Future value and NPER function in excel

Q: A loan of $60,000 is due 10 years from today. The borrower wants to make annual payments at the end…

A: Firstly, calculating PMT with annual compounding:

Q: annually

A: Formula to calculate r: r = (FV/PV)^1/n - 1

Q: Suppose you owe $600 on your credit card and are paying 14 percent interest. If you pay off the debt…

A: Interest is the amount paid for the usage of the principal borrowed.

Q: You are considering taking out a loan of 20,000.00 that will be paid back over 7 years with monthly…

A: given information  loan amount = 20,000  interest rate = 4.8% monthly interest rate = 0.004 no of…

Q: You are considering taking out a loan of 20,000 that will be paid back over 7 years with monthly…

A: Interest amount decreases and the principal paid amount increase as loan payments proceed further.

Q: Given an interest rate of 6.0 percent per year, what is the current value of a perpetual stream of…

A: Value of the perpetuity in 4 years will be = Annual amount / interest rate = $ 36,000 / 0.06 = $…

Q: Suppose you will need $20,000 in 3 years. How much must you invest per month in order to have…

A: Present value is the current worth of the amount that is expected to be received in future date.

Q: Suppose you have a student loan of $35,000 with an APR of 12​% for 30 years.   The required…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: What is the present equivalent of $ 180,000 to be received in 15 years when the interest rate is 7%…

A: Time value of money (TVM) means that the amount of money received in the present period will…

Q: An annuity will make a payment every two months, starting two months from now. If the yield rate is…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You are considering taking out a loan of $14,000.00 that will be paid back over 8 years with monthly…

A: Equity in a home refers to how much of that home's value a person has already invested in it.

Q: Would you prefer making a $25,000 investment that will earn interest at the rate of 6 percent…

A: Given: Investment amount is $25,000 The rate of 6 percent The calculation is shown below as,

Q: Your plan is to have $40,000 in your account, 13 years from today. You can invest in an account that…

A: Future value required (FV) $40,000 Interest rate = 8.05% Monthly interest rate (r) = 8.05%/12 =…

Q: If i put in $500 a month which pays daily interest rate of 1% p.a., how much will I have at the end…

A: Interest is the amount of fee paid to an investor or depositor for providing funds. It is the…

Q: If you borrow $24398 with an annual rate of 9% compounded monthly and make a payment of $282 every…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Compute the monthly payment on a $65,000 loanif the principal and interest are to be repaid in 84…

A: a) Loan amount (PV) of $65,000 needs to be repaid in (n) 84 equal installments at an annual interest…

Q: You are getting paid 12k a month at the end of each working month for one year. What is the present…

A: In this question we need to calculate the present value from following details: Salary per month =…

Q: to deposits of $80 a month for 18 years, then they are offering a guaranteed rate of 4.5% interest…

A: Future Value of Annuity: It is the future worth of the present annuity stream cash flows. It is…

Q: How much do you have to deposit today so that beginning 11 years from now you can withdraw 10,000 a…

A: Amount deposit today is calculated by adding the present value of all the cash flows.

Q: You are planning to make monthly deposits of $450 into a retirement account that pays 10 percent…

A: An annuity is a series of equivalent periodic cash flows for a specific duration. The future value…

Q: You were buying a House for $190,000 with a down payment of $57,000. The loan will be paid back over…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: You will deposit $354 each year into an investment account that earns 5% interest (as an effective…

A: The question is based on the concept future value of annuity payment for 10 years at end of period,…

Q: Suppose you deposit $100 today in an account paying 8 percent. In one year, you will deposit another…

A: Given information: Yearly deposit amount $100 Number of years is 1 Interest rate is 8%

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest  K700 a…

A: Time Period 30 Stock Return  10% Bond Return 6% Amount In Stock       K 700.00 Amount In…

Q: An investment that will give you monthly payments for 14 years costs $146,897. If your required…

A: An annuity is a series of cash flows that involve equivalent periodic amounts at equal time…

Q: Suppose that you start a savings account today with $ 265,000.00, from which you will make a single…

A: Since there are multiple questions As per company policy it is only possible to solve  one question.…

Q: Suppose that you earn $45,600 per year. What is your monthly salary? Assume that you deposit 10% of…

A: Future value of annuity The future value of annuity refers to the total value of the investment at…

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 12 years with…

A: We need to use loan amortisation formula to calculate unpaid balance of loan Unpaid balance(P)…

Q: Your bank will pay you an interest rate of .097 percent per week. You want to have $22,000 in 10…

A: Given: Interest rate = 0.097% Future value = $22,000 Years = 10

Q: You owe $100,000. You plan to make monthly payments of $1000. If the interest rate is 6% monthly,…

A: Amount owe = $100,000 Monthly Payment(P) = $1000 Interest rate(n) = 6%/10 = 0.50% Let number of…

Q: You have $33,556.25 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: given, FV = $220000 r= 12% time line

Q: An investment will give you monthly payments of $890 for 9 years. If your required return is 8.13%,…

A: Monthly payment (M) = $890 n = 9 years = 108 months r = 8.13% per annum = 0.6775% per month

Q: you need to have $33,750 in 5 years. you can earn an annual interest rate of 6 percent for the first…

A: Present value = Future value / (1+r)^n

Q: If you have $50,000 in an interest-bearing savings account that pays2 percent annual interest, how…

A: Present value = 50000 Interest rate = 2% Days = 30  Assume 365 days in Year

Q: You want to borrow $30,000. For the loan to you must repay $1100 every quarter (4 times per year)…

A: Loan is an agreement between lender and borrower where lender agrees to provide funds to lender for…