Question
In: Finance
4. What annual interest rate would you need to earn if you wanted a $200 per...
|
4. |
What annual interest rate would you need to earn if you wanted a
$200 per month contribution to grow to $14,700 in five
years? |
|
5. |
You wish to buy a $20,000 car. The dealer offers you a 5-year
loan with an 8 percent APR. What are the monthly payments? |
|
6. |
Joey realizes that he has charged too much on his credit card
and has racked up $3,000 in debt. If he can pay $150 each month and
the card charges 18 percent APR (compounded monthly), how long will
it take him to pay off the debt? |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
3. What is the annual interest rate that would cause $200 to grow to $289 in 8 years?
3. What is the annual interest rate that would cause $200 to grow to $289 in 8 years?
4. What is the future value of a 6-year, $203 ordinary annuity if the annual interest rate is 5%?
5. What is the PV of a 6 year, $289 annuity due if the annual interest rate is 5%?
6. What is the value of a perpetuity that makes a payment of $155 per year? Assume the current interest rate is 4%.
7....
6. (Basic time period) If you can earn interest at an annual interest rate of 9%,...
6. (Basic time period) If you can earn interest at an annual
interest rate of 9%, how long will it take for $25,000 to grow to
be: Using Excel
a. $30,000?
b. $40,000?
c. $75,000?
d. $100,000?
1.) If you invest $15,000 today what interest rate would you have to earn to have...
1.) If you invest
$15,000 today what interest rate would you have to earn to have
$57,000 in 18 years? ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE
DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121).
ROUND TO THE NEAREST TENTH OF A PERCENT. DO NOT USE THE PERCENT
SIGN (%) IN YOUR ANSWER.
2.) If you invest $16,000 today, how long would it take until
you have $61,000 if you have an interest rate of 16%?...
You are investing a sum of money for 4 years. You earn a simple interest rate...
You are investing a sum of money for 4 years. You earn a simple
interest rate of r = 10% for the first 2 years and
j12 = 6% for the last 2 years. What is the
equivalent effective annual rate of return, j, you earn
over each of the 4 years?
A.
7.98%
B.
8.81%
C.
8.07%
D.
7.84%
An interest rate is 7.50% per annum with annual compounding. What is the equivalent rate with...
An interest rate is 7.50% per annum with annual compounding.
What is the equivalent rate with continuous compounding? (Answer is
in percentage with two decimal place - example 5.35)
Micky earns $200 this year and will earn $210 next year. The interest rate is 5...
Micky earns $200 this year and will earn $210 next year. The
interest rate is 5 percent (r=0.05), whether Micky borrows or
saves.
Draw his intertemporal budget constraint. Calculate and show on
your diagram the horizontal intercept and the vertical
intercept.
Suppose Micky saves $100 this year so that he can consume more
next year. Show his consumption choice on your diagram. How much
does he consume this year and next?
Now suppose the government introduces a 40 percent tax...
A. An interest rate equals to 1% per month. What it will be the annual effective...
A. An interest rate equals to 1% per month. What it will be the
annual effective interest rate?
B. An interest rate equals to 4% per quarter compounded monthly.
What it will be the annual effective interest rate?
C. An interest rate equals to 7% per half-year (6months) compounded
bi-annually (every two years). What it will be the annual effective
interest rate?
The YTM on a bond is the interest rate you earn on your investment if interest...
The YTM on a bond is the interest rate you earn on your
investment if interest rates don’t change. If you actually sell the
bond before it matures, your realized return is known as the
holding period yield (HPY).
A.) Suppose that today you buy a bond with an annual coupon rate
of 7 percent for $1,060. The bond has 21 years to maturity. What
rate of return do you expect to earn on your investment? Assume a
par value...
The YTM on a bond is the interest rate you earn on your investment if interest...
The YTM on a bond is the interest rate you earn on your
investment if interest rates don’t change. If you actually sell the
bond before it matures, your realized return is known as the
holding period yield (HPY).
a.
Suppose that today you buy an annual coupon bond with a coupon
rate of 8.4 percent for $775. The bond has 7 years to maturity and
a par value of $1,000. What rate of return do you expect to earn...
The YTM on a bond is the interest rate you earn on your investment if interest...
The YTM on a bond is the interest rate you earn on your
investment if interest rates don’t change. If you actually sell the
bond before it matures, your realized return is known as the
holding period yield (HPY).
a. Suppose that today you buy a bond with an annual coupon rate
of 8 percent for $1,170. The bond has 16 years to maturity. What
rate of return do you expect to earn on your investment? Assume a
par value...
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