Steven Garcia borrowed some money from his friend and promisedto repay him $1,210, $1,300, $1,470,...

Steven Garcia borrowed some money from his friend and promised to repay him $1,210, $1,300, $1,470, $1,630, and $1,630 over the next five years. If the friend normally discounts investment cash flows at 6.5 percent annually, how much did Steven borrow?

Solutions

Expert Solution

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

On 31 October 2013, Josh borrowed money from his parents. He promised that he would repay...

On 31 October 2013, Josh borrowed money from his parents. He promised that he would repay the money on 31 October 2017, with interest at a nominal interest rate of 7% p.a., compounding quarterly. The total amount that he was due to pay his parents at that time was exactly $10,000 but he started his studies at university so he couldn’t afford to repay the loan. If interest continues to accrue, what amount must Josh pay on 31 October 2022...

You borrowed $1500 from a friend last year and promised to pay him at 5.5% annual...

You borrowed $1500 from a friend last year and promised to pay him at 5.5% annual real interest rate. Over the year, inflation turns out to be 1.5%. The amount of money you owe your friend this year is (please don't enter the $-sign in your answer):

You borrowed some money at 8 percent per annum. You repay the loan by making three...

You borrowed some money at 8 percent per annum. You repay the loan by making three annual payments of $ 238 (first payment made at t = 1), followed by five annual payments of $ 503 , followed by four annual payments of $ 721 . How much did you borrow?

QUESTION 1 : You borrowed some money at 8 percent per annum. You repay the loan...

QUESTION 1 : You borrowed some money at 8 percent per annum. You repay the loan by making three annual payments of $ 128 (first payment made at t = 1), followed by five annual payments of $ 508 , followed by four annual payments of $ 812 . How much did you borrow? (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign). QUESTION 2: Compute the present value of an annuity...

You borrowed some money at 8 percent per annum. You repay the loan by making three...

You borrowed some money at 8 percent per annum. You repay the loan by making three annual payments of $ 150 (first payment made at t = 1), followed by five annual payments of $ 561 , followed by four annual payments of $ 894 . How much did you borrow? (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).

If Pete borrows $250 from his sister and promises to pay back the borrowed money and...

If Pete borrows $250 from his sister and promises to pay back the borrowed money and all interest payments in 3 years with annual interest rate of 4.91%. Three years later, how much will Pete need to pay back to his sister? Please round your answer to the second decimal without dollar sign or comma. E.g. 1234.56

To finance the purchase a new piece of equipment for his business Allan borrowed money from...

To finance the purchase a new piece of equipment for his business Allan borrowed money from his bank paying 5% interest. Before he has paid off the loan he sells the business and disposes of the equipment. There is insufficient sales proceeds to completely pay off the loan and he still has to pay the interest on the unpaid balance. He cannot claim the interest payments a deduction because his business has ceased. True False

Your friend recently inherited $20,000 from a wealthy relative. His stockbroker has advised him to invest...

Your friend recently inherited $20,000 from a wealthy relative. His stockbroker has advised him to invest in three particular stocks. Because of the volatility of the market, your friend requires the stockbroker to provide him with historical yearly returns for these stocks over the past four years. This data is shown in the table below. Find the efficient frontier of this portfolio. Year Stock A Stock B Stock C 1 0.202 0.109 0.153 2 0.024 0.187 0.068 3 0.159 0.098...

Carla Vista Productions borrowed some money from the CaliforniaFinance Company at a rate of 13.80...

Carla Vista Productions borrowed some money from the California Finance Company at a rate of 13.80 percent for a seven-year period. The loan calls for a payment of $1,286,000 each year beginning today. How much did Carla Vista borrow? (Round factor values to 4 decimal places, e.g. 1.5214 and final answer to nearest whole dollar, e.g. 5,275.)Carla Vista borrowed

Blossom Productions borrowed some money from the California Finance Company at a rate of 15.80 percent...

Blossom Productions borrowed some money from the California Finance Company at a rate of 15.80 percent for a seven-year period. The loan calls for a payment of $1,692,000 each year beginning today. How much did Blossom borrow? (Round factor values to 4 decimal places, e.g. 1.5214 and final answer to nearest whole dollar, e.g. 5,275.) Please explain problem in detail. Thank you.

Subjects