What is the annual interest rate, if $10,000 grows to $12,166 over 5 years? (Please indicate...

What is the annual interest rate, if $10,000 grows to $12,166 over 5 years?

(Please indicate all steps taken)

Expert Solution

jeff jeffy answered 2 years ago

What is the annual payment on a $10,000 loan, 7% interest for 5 years?

Joan Messineo borrowed $10,000 at a 17% annual rate of interest to be repaid over 3...

Joan Messineo borrowed $10,000 at a 17% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments. a. Calculate the annual, end-of-year loan payment b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time.

Annuity Plan A has an initial annual payment that starts at $10,000 and grows at 5%...

Annuity Plan A has an initial annual payment that starts at $10,000 and grows at 5% per year. Plan B has a flat payment of $12,500 for the 10 years. a. Which 10 year annuity is better, if the annual r=8%? b. At what discount rate would the annuity owner be indifferent between the two plans?

If you borrow $26,000 with monthly payments of $550 over 5 years, what annual rate are...

If you borrow $26,000 with monthly payments of $550 over 5 years, what annual rate are you paying? A. 8.18% B. 8.41% C. 9.81% D. 8.51%

What is the future value of $1,000 invested today at an annual interest rate of 5% for four years?

A loan is amortized over five years with monthly payments at an annual nominal interest rate...

A loan is amortized over five years with monthly payments at an annual nominal interest rate of 6% compounded monthly. The first payment is 1000 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 3% lower than the prior payment. Calculate the outstanding loan balance immediately after the 40th payment is made.

Joan Messineo borrowed 42,000 at a 5% annual rate of interest to be repaid over 3...

Joan Messineo borrowed 42,000 at a 5% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments. a. Calculate the annual, end-of-year loan payment. b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time.

You invest $10,000 at a 12 percent annual rate of return for 5 years. How much...

You invest $10,000 at a 12 percent annual rate of return for 5 years. How much additional interest will this investment provide if it pays interest compounded annually as opposed to simple interest? (Round to the nearest dollar)

NEED TO SHOW ALL WORK IN EXCEL 1. What is the annual interest rate, if $10,000...

NEED TO SHOW ALL WORK IN EXCEL 1. What is the annual interest rate, if $10,000 grows to $12,166 over 5 years? (3) 2. Payments of $500 each are received every six months ($1,000 per year) for 5 years. The nominal annual interest rate is 5%. Using semi-annual compounding, what is the present value today? What is the present value of the payments today? (3) 3. What monthly annuitiy investment (deposit per month) is required to achieve $20,000 in 4...

Suppose you have an interest only loan for $30,000 over 5 years. Should the interest rate...

Suppose you have an interest only loan for $30,000 over 5 years. Should the interest rate be an APR of 7%, compounded monthly, what is the monthly payment in all but the final month? Consider an annuity that pays equal monthly payments of $600 for the next 30 years. Given this, and an APR of 5%, compounded monthly, what would you pay for this today?

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