Question
In: Finance
What is the monthly salary of Padmavati if she agrees to a 25 year contract whose...
What is the monthly salary of Padmavati if she agrees to a 25 year contract whose value today is $235,000. She gets a signing bonus equal to 15 percent of the contract value and agrees to an APR of 5.29 percent compounded monthly?
Multiple Choice
-
$1,201.72
-
$1,161.66
-
$1,196.44
-
$1,261.80
-
$1,215.62
Solutions
Expert Solution
| Bonus amount = $235000*15% =$35250 | |||
| Salary present value = $235000-35250 | |||
| =$199750 | |||
| Present Value Of An Annuity | |||
| = C*[1-(1+i)^-n]/i] | |||
| Where, | |||
| C= Cash Flow per period | |||
| i = interest rate per period =5.29%/12 = 0.4408333% | |||
| n=number of period =25*12 =300 | |||
| 199750= C[ 1-(1+0.004408333)^-300 /0.004408333] | |||
| 199750= C[ 1-(1.004408333)^-300 /0.004408333] | |||
| 199750= C[ (0.7328) ] /0.004408333 | |||
| C = $1201.72 | |||
| Correct Option : $1201.72 |
jeff jeffy answered 3 years agoRelated Solutions
Barbara borrows $3000. She agrees to make monthly interest payments on the loan and will build...
Barbara borrows $3000. She agrees to make monthly interest
payments on the loan and will build up a sinking fund with monthly
deposits to repay the principal with a single payment 19 months
from now. If the interest being charged on the loan is j12 = 8.5%
and the interest being earned on the sinking fund is j12= 5.4%,
what is the monthly cost of the debt for Barbara?
The monthly salary S of a shop assistant is the sum of a fixed salary of $500 plus 5% of all monthly sales. What should the monthly sales be so that her monthly salary reaches $1500?
The monthly salary S of a shop assistant is the sum of a fixed salary of $500 plus 5% of all monthly sales. What should the monthly sales be so that her monthly salary reaches $1500?
In a study of monthly salary distribution of residents in Paris conducted in year 2015, it...
In a study of monthly salary distribution of residents in Paris
conducted in year 2015, it was found that the salaries had an
average of €2200 (EURO) and a standard deviation of €550.
One years later (in 2016), it was suspected that the average
salary had increased. A hypothesis test was conducted at a
significance level of 5% to test the suspicion. A random sample of
size 64 was chosen with mean of €2385 and standard deviation of
€650. (Answer...
In a study of monthly salary distribution of residents in Paris conducted in year 2015, it...
In a study of monthly salary distribution of residents in
Paris conducted in year 2015, it was found that the salaries had an
average of €2200 (EURO) and a standard deviation of €550.
One years later (in 2016), it was suspected that the average
salary had increased. A hypothesis test was conducted at a
significance level of 5% to test the suspicion. A random sample of
size 64 was chosen with mean of €2385 and standard deviation of
€650.
Question...
a. In a study of monthly salary distribution of residents in Paris conducted in year 2015,...
a. In a study of monthly salary distribution of residents in
Paris conducted in year 2015, it was found that the salaries had an
average of €2200 (EURO) and a standard deviation of €550. Assume
that the salaries were normally distributed.
(i): Consider sampling with sample size 64 on the above
population. Compute the mean of the sampling distribution of the
mean (X).
(ii): Compute the standard deviation of the sampling
distribution of the mean in Question 1 above.
(iii):...
In a study of monthly salary distribution of residents in Paris conducted in year 2015, it...
In a study of monthly salary distribution of residents in Paris
conducted in year 2015, it was found that the salaries had an
average of €2200 (EURO) and a standard deviation of €550. Assume
that the salaries were normally distributed.
Question 1: Consider sampling with sample size 64 on the above
population. Compute the mean of the sampling distribution of the
mean (?̅).
Question 2: Compute the standard deviation of the sampling
distribution of the mean in Question 1 above....
In a study of monthly salary distribution of residents in Paris conducted in year 2015, it...
In a study of monthly salary distribution of residents in Paris
conducted in year 2015, it was found that the salaries had an
average of €2200 (EURO) and a standard deviation of €550. Assume
that the salaries were normally distributed.
In 2017, a study on the salary distribution of Paris residents
was conducted. Assume that the salaries were normally distributed.
A random sample of 10 salaries was selected and the data are listed
below:
3200
3500
3000
2100
2950
2050...
Sarah’s gross salary is $200,000 per year. She is interested in purchasing a $600,000 house. She...
Sarah’s gross salary is $200,000 per year. She is interested in
purchasing a $600,000 house. She will make a down payment of 20%
and take out a 15 year, 4.5% fixed rate mortgage. The taxes plus
insurance is $8000. In addition, she has student debt and makes
annual payments of $6000 per year. What is the Gross Debt Service
and Total Debt Service ratio? If the bank requires that these
ratios must be less than 30 and 35% respectively, can...
Retrieve the names of employees whose salary is within $20,000 of the salary of the employee...
Retrieve the names of employees whose salary is within
$20,000 of the
salary of the employee who is paid the most in the
company (e.g., if the highest
salary in the company is $80,000, retrieve the names of
all employees that make at
least $60,000)
Based on the following table:
-- drop tables
DROP TABLE EMPLOYEE CASCADE CONSTRAINTS;
DROP TABLE DEPARTMENT CASCADE CONSTRAINTS;
DROP TABLE DEPT_LOCATIONS CASCADE CONSTRAINTS;
DROP TABLE PROJECT CASCADE CONSTRAINTS;
DROP TABLE WORKS_ON CASCADE CONSTRAINTS;
DROP TABLE...
A 25-year, $435,000 mortgage at 4.10% compounded quarterly is repaid with monthly payments. a. What is...
A 25-year, $435,000 mortgage at 4.10% compounded quarterly is
repaid with monthly payments.
a. What is the size of the monthly
payments?
b. Find the balance of the mortgage at the end
of 6 years?
c. By how much did the amortization period
shorten by if the monthly payments are increased by $100 at the end
of year six?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- How Can Hominin Evolution be characterized as " mosaic evolution" Use examples of species from the...
- Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of...
- Mobile and wireless devices are being increasingly used in the Business Administration and Management Industry. write...
- What are the options that might be considered in relation to introducing flexible work practices? What...
- Question 2 : Aggregate Scores: Write a program that opens 2 files, quiz.txt, and hw.txt. The...
- Define the term symbiosis specifically as it applies in a biological context. Compare and contrast parasitism,...
- A research team conducted a study showing that approximately 20% of all businessmen who wear ties...
ADVERTISEMENT