Question
In: Accounting
13) The following table shows annual rates for various types of loans in 2015. Assume monthly...
13)
The following table shows annual rates for various types of loans in 2015. Assume monthly payments and compounding periods. HINT [See Examples 5 and 7.]
|
Loan |
30-Year |
15-Year |
5-Year |
4-Year |
Credit |
|
October |
3.93 |
3.14 |
4.30 |
4.24 |
13.10 |
|
November |
4.09 |
3.31 |
4.31 |
4.26 |
13.10 |
|
December |
4.09 |
3.34 |
4.34 |
4.29 |
13.10 |
You currently owe $9000 on your credit card, which charges interest at the October 2015 rate. What is the least you need to pay per month to pay off the card in 5 years? (Round your answer to the nearest cent.)
$
Solutions
Expert Solution
@ the rate of interest of 13.1 % 9000 USD will be paid in 60 equal monthly installments (5 years). The monthly installment amount is USD 205. Below is the calculations for your reference (example of 8 months is given.
| month | date | Amount owed (balance as on date | Interest @ 13.1% | Monthly payment | towards principal |
| 1 | Oct-15 | 9,000 | 98 | 205 | 107 |
| 2 | Nov-15 | 8,893 | 97 | 205 | 108 |
| 3 | Dec-15 | 8,785 | 96 | 205 | 109 |
| 4 | Jan-16 | 8,676 | 95 | 205 | 110 |
| 5 | Feb-16 | 8,566 | 94 | 205 | 111 |
| 6 | Mar-16 | 8,454 | 92 | 205 | 113 |
| 7 | Apr-16 | 8,342 | 91 | 205 | 114 |
| 8 | May-16 | 8,228 | 90 | 205 | 115 |
| Total payouts | 3,320 | 12,300 | 8,980 |
|
|
ekkarill92 answered 1 year agoRelated Solutions
Bank provides 5 different loans. The types of these loans and monthly interest rates are given...
Bank provides 5 different loans. The types of these loans and
monthly interest rates are given below.
Type Of Credit Percentage Of Interest(month)
A
(commercial)
5.5
B)(home)
3.5
C
(auto)
5
D (House
2)
4.5
E (short
term))
6
The bank can give credit £ 100 million. The goal is to maximize
interest income
But have some obligations about the loans:
Credit C cannot be more than 25% of credit B.
Credit A can be given up to a maximum...
1. To gain the benefit of _______________, a bank makes various types of loans, to various...
1. To gain the
benefit of _______________, a bank makes various types of loans, to
various types of borrowers.
A. guaranteed
income
B. diversification
C. more firm-specific risk
exposure
D. reduced operational risk
E. reduced off-balance-sheet risk
2. Argentina
unilaterally told its creditors in 2005 that it would henceforth
repay only $0.30 for every $1.00 of its debt that was outstanding.
Argentina’s creditors had been exposed to ______________ risk,
which was then realized.
A.
sovereign
B. operational
C. technology
D. ...
The following table shows the U.S. rates of personal tax as of the year 2016, and...
The following table shows the U.S. rates of personal tax as of
the year 2016, and these tax rates presented in this table are
marginal tax rates. (This is Table 3.7 on
Page 74 of your textbook.)
Single Taxpayers
Married Taxpayers Filing Joint Returns
Tax Rate (%)
0-$9,275
0-$18,550
10.0
$9,276-$37,650
$18,551-$75,300
15.0
$37,651-$91,150
$75,301-$151,900
25.0
$91,151-$190,150
$151,901-$231,450
28.0
$190,151-$413,350
$231,451-$413,350
33.0
$413,351-$415,050
$413,351-$466,950
35.0
$415,051 and above
$466,951 and above
39.6
Based on this table, answering the following questions:...
The following table shows the U.S. rates of personal tax as of the year 2016, and...
The following table shows the U.S. rates of personal tax as of
the year 2016, and these tax rates presented in this table are
marginal tax rates. (This is Table 3.7 on
Page 74 of your textbook.)
Single Taxpayers
Married Taxpayers Filing Joint Returns
Tax Rate (%)
0-$9,275
0-$18,550
10.0
$9,276-$37,650
$18,551-$75,300
15.0
$37,651-$91,150
$75,301-$151,900
25.0
$91,151-$190,150
$151,901-$231,450
28.0
$190,151-$413,350
$231,451-$413,350
33.0
$413,351-$415,050
$413,351-$466,950
35.0
$415,051 and above
$466,951 and above
39.6
Based on this table, answering the following questions:...
The table below shows the information for exchange rates, interest rates and inflation rates in the...
The table below shows the information for exchange rates,
interest rates and inflation rates in the US and Germany. Answer
the following questions
Current spot rate: $1.35/€
One-year forward rate: $1.30/€ Interest rate in the US: 4%
Interest rate in Germany: 5% Inflation rate in the US: 3%
Inflation rate in Germany: 3.5%
(a) If you borrowed $1,000 for 1 year, how much money would you
owe at maturity? (2 mark)
(b) Find the 1-year forward exchange rate in $...
(1 point) The table below shows (lifetime) peptic ulcer rates (per 100 population), UU, for various...
(1 point) The table below shows (lifetime) peptic ulcer rates
(per 100 population), UU, for various family incomes, xx, as
reported by the 1989 National Health Interview Survey.
Income
4000
6000
8000
12000
16000
20000
30000
45000
60000
Ulcer rate
14.2
13.6
12.9
12.8
12.9
12.4
11.5
9.4
7.9
(a) Find the equation of the regression line.
Ulcer rate, U(x)=U(x)= .
(b) Estimate the peptic ulcer rate for an income level of x0=x0=
28000 according to the linear model in part...
The table below shows (lifetime) peptic ulcer rates (per 100 population), UU, for various family incomes,...
The table below shows (lifetime) peptic ulcer rates (per 100
population), UU, for various family incomes, xx, as reported by the
1989 National Health Interview Survey.
Income
4000
6000
8000
12000
16000
20000
30000
45000
60000
Ulcer rate
13
13.6
13.3
13.2
12.2
12
10.6
9
8
(a) Find the equation of the regression line.
Ulcer rate, U(x)=U(x)= .
(b) Estimate the peptic ulcer rate for an income level of x0=x0=
23000 according to the linear model in part (a).
Ulcer...
The following table shows hypothetical monthly exchange ratesfor the Canadian dollar and the euro, as...
The following table shows hypothetical monthly exchange rates
for the Canadian dollar and the euro, as well as the standard
deviation of the percentage changes for each currency.Use the table to select the percent change from March 1 to April
1 in the Canadian dollar exchange rate and the euro exchange
rate.MonthValue of the Canadian DollarMonthly Percent Change in Canadian Dollar ValueValue of EuroMonthly Percent Change in Euro Value(US Dollars per Canadian Dollar)(US Dollars per euro)January 1$0.79$1.27February 10.81.27%1.291.57%March 10.78-2.50%1.311.55%April 10.77(-1.02%,...
The following table shows a portion of the monthly returns data (in percent) for 2010–2016 for...
The following table shows a portion of the monthly returns data
(in percent) for 2010–2016 for two of Vanguard’s mutual funds: the
Vanguard Energy Fund and the Vanguard Healthcare Fund. [You may
find it useful to reference the t table.]
Date
Energy
Healthcare
Jan-10
-4.89
-0.11
Feb-10
1.6
0.54
Mar-10
2.27
1.37
Apr-10
2.99
-3.84
May-10
-11.6
-5.16
Jun-10
-5.77
-0.52
Jul-10
8.69
1.52
Aug-10
-6.02
-1.08
Sep-10
10.2
8.24
Oct-10
3.85
2.3
Nov-10
2.82
-2.5
Dec-10
5.55
2
Jan-16...
The following table shows a portion of the monthly returns data (in percent) for 2010–2016 for...
The following table shows a portion of the monthly returns data
(in percent) for 2010–2016 for two of Vanguard’s mutual funds: the
Vanguard Energy Fund and the Vanguard Healthcare Fund. [You may
find it useful to reference the t table.] Date Energy Healthcare
Jan-10 −4.86 −0.08 Feb-10 1.90 0.56 ⋮ ⋮ ⋮ Dec-16 0.10 −5.30 SOURCE:
www.finance.yahoo.com. Click here for the Excel Data File a.
Calculate the sample correlation coefficient rxy. (Round
intermediate calculations to at least 4 decimal places...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
- There are a large number of tasks involved in information technology and programming, and many of...
- Using one quantitative and one qualitative health policy research method described in this chapter, design a...
- What is the Rawls' solution to the age-old question of social (economic / distributive) justice?...
- St. Johns River Shipyards' welding machine is 15 years old, fully depreciated, and has no salvage...
- The following information is available for Robstown Corporation for 20Y8: Inventories January 1 December 31 Materials...
ADVERTISEMENT