Question
In: Finance
1. Matt Johnson delivers newspapers and is putting away $30 at the end of each quarter...
1. Matt Johnson delivers newspapers and is putting away $30 at the end of each quarter from his paper route collections. Matt is 12 years old and will use the money when he goes to college in 6 years. What will be the value of Matt's account in 6 years with his quarterly payments if he is earning 4% (APR), 10.5 % (APR), or 13 % (APR)? What will be the value of Matt's account in 6 years with his quarterly payments if he is earning 4%(APR)?
2. What is the effective annual rate (EAR) of a mortgage that
is advertised at 11.25% (APR) over the next twenty years and paid
with semiannual payments?
What is the effective annual rate (EAR) of the mortgage at 11.25%
APR with semiannual payments?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
What Matt Johnson delivers newspapers and is putting away $35 at the end of each quarter...
What Matt Johnson delivers newspapers and is putting away $35 at
the end of each quarter from his paper route collections. Matt is
10 years old and will use the money when he goes to college in 8
years. What will be the value of Matt's account in 8 years with his
quarterly payments if he is earning 6.5% (APR), 9.5% (APR) or 13%
(APR)?
What will be the value of Matt's account in 8 years with his
quarterly payments...
Future value with periodic rates. Matt Johnson delivers newspapers and is putting away $30 at the...
Future value with periodic rates. Matt Johnson delivers
newspapers and is putting away $30 at the end of each quarter from
his paper route collections. Matt is 8 years old and will use the
money when he goes to college in 10 years. What will be the value
of Matt's account in 10 years with his quarterly payments if he is
earning 7% (APR), 9.5% (APR), or 15% (APR)?
What will be the value of Matt's account in 10 years...
Future value with periodic rates. Matt Johnson delivers newspapers and is putting away $35 at the...
Future value with periodic rates. Matt Johnson delivers
newspapers and is putting away $35 at the end of each quarter from
his paper route collections. Matt is 8 years old and will use the
money when he goes to college in 10 years. What will be the value
of Matt's account in 10 years with his quarterly payments if he is
earning 6.5 % (APR), 8 % (APR), or 13.5 % (APR)? What will be
the value of Matt's account...
Today is 1 July 2018. Matt is 30 years old today. Matt has a portfolio which...
Today is 1 July 2018. Matt is 30 years old today. Matt has a
portfolio which consists of three Treasury bonds (henceforth
referred to as bond A, bond B and bond C). There are 200 units of
bond A, 300 units of bond B and 500 units of bond C. Bond C is a
Treasury bond which matures on 1 January 2021. One unit of bond C
has a coupon rate of j2 = 3.35% p.a. and a face value...
Today is 1 July 2018. Matt is 30 years old today. Matt has a portfolio which...
Today is 1 July 2018. Matt is 30 years old today. Matt has a
portfolio which consists of three Treasury bonds (henceforth
referred to as bond A, bond B and bond C). There are 200 units of
bond A, 300 units of bond B and 500 units of bond C.
• Bond A is a Treasury bond which matures on 1 January 2027. One
unit of bond A has a coupon rate of j2 = 2.95% p.a. and a face...
Today is 1 July 2018. Matt is 30 years old today. Matt has a portfolio which...
Today is 1 July 2018. Matt is 30 years old today. Matt has a
portfolio which consists of three Treasury bonds (henceforth
referred to as bond A, bond B and bond C). There are 200 units of
bond A, 300 units of bond B and 500 units of bond C. Bond A is a
Treasury bond which matures on 1 January 2027. One unit of bond A
has a coupon rate of j2 = 2.95% p.a. and a face value...
A loan is to be repaid in end of quarter payments of $1,000 each, with there...
A loan is to be repaid in end of quarter payments of $1,000
each, with there being 20 end of quarter payments total. The
interest rate for the first two years is 6% convertible quarterly,
and the interest rate for the last three years is 8% convertible
quarterly. Find the outstanding loan balance right after the
6th payment.
Perpetuity A pays $100 at the end of each year. Perpetuity B pays $25 at the end of each quarter.
Perpetuity A pays $100 at the end of each year. Perpetuity B pays $25 at the end of each quarter. The present value of perpetuity A at the effective rate of interest is $2,000. What is the present value of perpetuity B at the same annual effective rate of interest i?
If P5000.00 is invested at the end of each quarter for 6 years, at an interest...
If P5000.00 is invested at the end of each quarter for 6
years, at an interest rate of 7% compounded bimonthly, what does
the total peso amount available 3 years after the last deposit?
Draw Cash flow diagram
1.)How much is this annuity worth today? It will payout $630 each quarter for 30 years....
1.)How much is this annuity worth today? It will payout $630
each quarter for 30 years. Your desired annual interest return is
4.8 %. (Don't forget to adjust the interest rate for quarterly, in
addition to the time period.) $40,473.27 $39,954.22 $46,003.28
$46,486.44 $39,637.64
2.)Your savings contract will pay you $260 each month for the
next 4 years . With a 7 percent nominal annual interest rate, what
is this contract worth today? Adjust the interest rate and number
of...
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