Question
In: Finance
Smith borrows $5,000 on August 1, 2017 at a nominal annual rate of interest of 12%...
Smith borrows $5,000 on August 1, 2017 at a nominal annual rate of interest of 12% compounded monthly. Smith agrees to make payments of $800 per month with a first payment on September 1, 2017 and a final payment of less than $800.
In which of the following ranges is the amount of the final payment?
A 363.20
B 385.50
C 389.90
D 392.60
E 1185.50
Solutions
Expert Solution
Ans is C. 389.90
PLEASE
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jeff jeffy answered 2 years agoRelated Solutions
Smith borrows $5,000 on August 1, 2017 at a nominal annual rate of interest of 12%...
Smith borrows $5,000 on August 1, 2017 at a nominal annual rate
of interest of 12% compounded monthly. Smith agrees to make
payments of $800 per month with a first payment on September 1,
2017 and a final payment of less than $800. What is the amount of
the final payment?
On January 1, 2017, Smith deposits 1,000 into an account earning nominal annual interest rate of...
On January 1, 2017, Smith deposits 1,000 into an account earning
nominal annual interest rate of i(4) = 0.04 compounded quarterly
with inter- est credited on the last day of March, June, September,
and December. If Smith closes the account during the year, simple
interest of 4% is paid on the balance from the most recent interest
credit date.
(a) What is Smith’s close-out balance on September 23, 2017?
(b) Suppose all four quarters in the year are considered equal,...
A loan of 11000 is made with interest at a nominal annual rate of 12% compounded...
A loan of 11000 is made with interest at a nominal annual rate
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The U.S. nominal annual rate of interest is 3% and the European annual nominal rate of...
The U.S. nominal annual rate of interest is 3% and the European
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What is the one year forecast of the U.S. dollar (USD) per Euro
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Show work.
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If the real interest rate is 7 percent when the nominal interest is 12 rate is...
If the real interest rate is 7 percent when the nominal interest
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Group of answer choices
5 percent.
1.7 percent.
-5 percent.
7 percent.
19 percent.
Suppose you put $100 in the bank on January 1, 2017. If the annual nominal interest...
Suppose you put $100 in the bank on January 1, 2017. If the
annual nominal interest rate is 5 percent and the inflation rate is
5 percent, you will be able to buy ________ worth of
inflation-adjusted goods on January 1, 2018.
a.
$110
b.
$95
c.
$100
d.
$105
e.
$90
Practically, in the long run the real interest rate is equal
to:
a.
a savings account.
b.
the marginal product of capital.
c.
the rate of return to...
3. Interest rate parity: The annual, riskless, nominal interest rate in the Eurozone is [– 0.5%]....
3. Interest rate parity: The annual, riskless, nominal interest
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a) What is the annual, riskless, nominal interest rate in the US
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b) What happens if interest rate parity is violated? Explain. (7
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Andy borrows funds of $ 1000 with an interest rate of 12% per year with an...
Andy borrows funds of $ 1000 with an interest rate of
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using the amortization method.
a) After paying installments at the end of year 4, A
intends to pay them off. How much money must be paid for the
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b) If after paying installments at the end of year 4,
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The nominal exchange rate is the nominal interest rate in one country divided by the nominal interest...
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What is the monthly payment necessary to amortize this
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