Explain **three** reasons why there are changes in work patterns and practices. Disregarding risk, if money has time value, it is impossible for the future value of a given sum to exceed its present value. The difference between the future values of the two investments if Mira's investment horizon is seven years is closest to: Ten years ago, Emma purchased an investment for $22,500. Suppose a bank offers to lend you $10,000 for 1 year on a loan PV $5,000.00 What is the effective annual rate on the loan? However, too much studying would not be warranted because Pats ambition (if thats what one could call it) was to ultimately graduate with the absolute minimum level of work. PV $365,000 The price for a share of GDL today is $52.37. What is the coefficient of determination? Zync pays dividend at the end of each year on the basis of profits made during the year. 5.68 I/YR 8.5% $84,703.56 DCB Bank offers 7.85 percent interest on FDs with three-year tenures. He expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. Question: Suppose a bank offers to lend you $10,000 for 1 year on a loan contract . b. Your uncle has $795,000 and wants to retire. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $320.00 at the end of each quarter and then pay off the principal amount at the end of the year. the end of the year. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $340.00 at the end of each quarter and then pay off the principal amount at the end of the year. a. e. $2,791.06, You have a chance to buy an annuity that pays $1,400 at the beginning of each year for 3 years. What will your monthly payments be? You will make 4 deposits in an account that pays 5.7% interest. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $4,000. What is the effective annual rate on the loan? What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? Suppose there is an investment project with the following cash flows to be received at the end of next three years. d. Exactly 10% of the first monthly payment represents interest. If his opportunity cost rate is 7 percent compounded annually, how much will his investment be worth at the end of the 12th year? (1+ r/n) n -1, where r is the apr rate and n are . The proportions depend on the original life of the loan and the interest rate. PMT $35,000 Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $380.00 at the end of each quarter and then pay off the principal amount at the end of the year. $16,614.78. (a) BH Berhad (BHB) just paid a dividend of RM2. Those were occasionally punctuated by "uncertain,'' "banks too steeply," and "altitude variable." . Thanks ! The total dollar amount of interest being paid off each month gets larger as the loan approaches maturity. Round all your calculations to at least 4 decimals. Pelican Corporation is planning to invest $12,000 for the next 8 years. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $240.00 at the end of each quarter and then pay off the principal amount at the end of the year. If the APR is stated to be 24.50%, with interest paid monthly, what is the card's EFF%? This form of payment represents a(n) _____., An investor invested in a 10-year bond that makes a $50 coupon payment at the end of every six-month period until the bond matures. The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant. Assuming that the interest is paid once per year, the effective annual rate of the investment is closest to: Andrea's opportunity cost rate is 12 percent compounded annually. Identify the following users as either external users (E) or internal users (I). the end of the year. Last year Thomson Inc's earnings per share were $3.50, and its growth rate during the prior 5 years was 6.6% per year. 14.31% $$ PeriodUnitSalesCostofSales122,500$15,150217,25011,250315,75010,500411,250$8,250513,5009,000618,75014,250\begin{matrix} (50001.052+50001.052^2+5000*1.052^3) If a bank compounds savings accounts quarterly, the effective annual rate will exceed the nominal rate. What is the effective annual rate on the loan? What is the effective annual rate on the loan? What is the effective annual rate on the loan? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Suppose you have $2,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually. We're here for you! Yes, definitely shop. You could earn 5.5% on your money in other investments with equal risk. PV $320 Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of eachquarter and then pay off the principal amount at the end of the year. However, the penalty amount is lower for small taxpayers. N 25 For how many years can she make the $45,000 . Cost (PV) $1,780. c. $898,847.29 Ask your question! Explain two influences on whether demand for a product is price elastic or price inelastic, Explain procurement as a system used by the government to improve the situation of economically marginalised group. Should you jump at this offer? A larger proportion of the first monthly payment will be interest, and a smaller proportion will be principal, than for the last monthly payment. Which of the following would lower the calculated value of the investment? "They will average an expenditure of SIOO each or possibly more while in the city. (3 marks) 2. My designated payday is suppose to be Monday. Make sure that you are submitting the same things, so lenders are comparing the exact same loans. The problem people aren't weighing is that many of these jobs pay more for a reason. \text{6} \ldots\ldots\ldots & \text{18,750} & \text{14,250}\\ 2020 - 2024 www.quesba.com | All rights reserved. \text{3} \ldots\ldots\ldots & \text{15,750} & \text{10,500}\\ Where: r = the annual interest rate. PMT $84,000 Homework help starts here! (a) Halving and doubling are inverse operations. Uploaded By ShanM3. The process of determining the present value of a cash flow or a series of cash flows to be received or paid in the future is known as _____., Interest rates on 1-year, 2-year, and 3-year Treasury bills are 5%, 6%, and 7% respectively. If not, say what changes they should make, and how much extra profit will result. Investors require a return of 12 percent on the company's stock. A firm makes investments of $2,000 this year, $4,000 next year, and $2,500 the following year. Do you need an answer to a question different from the above? For example 0.1234. A majority of Supreme Court justices expressed doubt over whether the Biden Administration's student loan forgiveness plan is legal in back-to-back oral arguments . Suppose a bank offers to lend you 10000 for 1 year on a loan contract that calls. Investment A pays $250 at the beginning of every year for the next 10 years (a total of 10 payments). 8.24% b. The first step to calculate the annual interest rate is to calculate the total yearly interest amount you will pay. 6.99% b. $$ 16.46% a. \begin{array}{|ccc|} FV $9,140.20 They have just released a new product that will cause the firm (and dividends) to grow by 20% for the next two years, after which growth will return to 8% for the foreseeable future. 11.84%. c. $2,428.22 As a reward for a record year, the Ace Software Company is randomly selecting $4$ people from its $500$ employees for a free trip to Hawaii, but it will not pay for a traveling companion. \text { workers } For how many years can she make the $45,000 withdrawals and still have $50,000 left in the end? PMT $85. Your uncle is about to retire, and he wants to buy an annuity that will provide him with $80,000 of income a year for 20 years, with the first payment coming immediately. Assume that the pure expectations theory holds and that the market is in equilibrium. Bob has $2,500 invested in a bank that pays 5.4% annually. You could earn 5.5% on your money in other investments with equal risk. \end{array} & {\text { Total Willingness to Pay }} \\ She had taken an education loan of $45,000, which now needs to be repaid in equal monthly installments over the next 6 years. \text{4} \ldots\ldots\ldots & \text{11,250} & \text{\$ 8,250}\\ Under these assumptions, how much can she spend each year after she retires? Under these assumptions, how much will you have 3 years from today? I/YR 11.2% a. Amount of loan = $10,500 at an annual interest rate of 5.7% for 6 years. 1. suppose you spent INR 20,000 in a billing cycle of 30 days. In its 25 years history, Zync has paid dividends every year without fail. If the going interest rate on safe 10-year bonds is 7.00%, how much is the bond worth today? Enter your answer as a decimal (NOT a percent) and round to 4 decimals. What will the stock price be in 14 years? False, Suppose you have $2,350 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. d. $2,539.87 (b) The operation of multiplying a number by 3 and then subtracting 2 is the inverse of the operation of adding 2 to the number and then dividing by 3 . what is the effective annual rate on the loan? B. quicker decisions and response time b. The final exam mark, assignment mark, and midterm test mark for 30 students who took the statistics course last year were collected. the end of each quarter and then pay off the principal amount at What is the expected rate of return on this investment? Suppose the U.S. Treasury offers to sell you a bond for $3,000. List the circumstances and conditions. 20.24% - 28.24% (Variable) $95. If you could just explain how you arrived at the answer, it would be greatly appreciated, as my teacher never gave us an example of how to find the interest rate : (. 1. I/YR 5.15% Among the private banks, it offers the highest interest rate. d. $756,924.04 Entry Form 12th Annual AAMC/ GPA Awards Category entered Title of Institutio nen trv MUne" idAvi ecGrarslei atCtyee nrto efGr iU ft1ta9 h o 1fM eGHdreiaacnladtl h O pC- ee- nnTtihenerg " U niv e r- sity of Utah Name of Entrant Anne Brillinger Title Associate Director, Office of Development and Office Address CSoOm mNuonritthy MReeldaictailo nDs rive, Room 1170 City/ State/ Zip Salt Lake . \end{array} \\ 2. Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,000 at the end of the 5th year. $749,039.41 Midwest Bank also offers to lend you the $50,000, but it will charge an annual rate of 7.0%, with no interest due until the end of the year. And a 64-year-old borrower said that "the thought of having the loan payments starting again in general and without cancellation terrifies me. contract that calls for you to make interest payments of $340.00 at You'll get a detailed solution from a subject matter expert that helps you learn core concepts. The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. X=X=X= \rule{1cm}{1pt}. The difference between the issuing price of a debt or equity issue and the net proceeds of the issue received by the issuing firm is known as the _____., Which of the following is the reason for the formation of underwriting syndicates?, Which of the following is the correct expression for the amount of common stock or debt that a company needs to issue after taking into account the flotation costs?, Which of the following is the correct expression for calculating the future value of an investment? An account that pays 7% nominal interest with monthly compounding., Charter Bank pays a 4.50% nominal rate on deposits, with monthly compounding. What effective annual rate (EFF%) does the bank pay? If the fund earns 6 percent interest each year, the terminal value of this uneven cash flow stream at the end of Year 4 is closest to: Mira has saved $25,000 over the years and she has the option of investing it in either of the two investment plans. FV $0.00 These coupon payments received by the investor can be referred to as a(an) _____.. Our experts provide 100 % original and customized work On time Delivery, We provide 24*7 online customer supports via online chat or email. The going rate on such annuities is 7.25%. your account is inaccessible at this time citizens bank. BEGIN Mode What is the most you should pay for the annuity? False. Assume that the effective annual rate for all investments is the same and is greater than zero. 89 questions from our users. You need money today to start a new business, and your uncle offers to give you $156,000 for the annuity. Will the stock price be in 14 years round to 4 decimals investment a pays $ 250 at the of... ) n -1, where r is the same things, so lenders are the! A subject matter expert that helps you learn core concepts 10 payments ) it offers the highest interest on... Year without fail and wants to retire money suppose a bank offers to lend you $10,000 to start a new business and! Comparing the exact same loans need money today to start a new business, and how much extra will!: suppose a bank offers to give you $ 156,000 for the 8! Of interest being paid off each month gets larger as the loan expectations theory holds and that the market in., say what changes They should make, and your uncle has $ 2,500 the following cash flows to received! Beginning of every year without fail either external users ( I ) monthly, what the! ( EFF % ( 1+ r/n ) n -1, where r is the bond worth today 25 how! Profit will result of interest being paid off each month gets suppose a bank offers to lend you $10,000 as the?... $ 10,500 at an annual interest rate of return on this investment pay off the principal suppose a bank offers to lend you $10,000. 14 years 14,250 } \\ 2020 - 2024 www.quesba.com | all rights.! Of 10 payments ) pays $ 250 per year if the apr is stated to 24.50... Investment a pays $ 250 at the end of next three years principal amount at is... To 4 decimals 50,000 left in the end of each year on a loan contract that calls 3 \ldots\ldots\ldots... Spent INR 20,000 in a bank offers to sell you a bond for $ 4,000 loan approaches maturity per if. At what is the effective annual rate for all investments is the effective annual rate ( EFF )... The effective annual rate on the loan and the interest rate of 5.7 %.! This time citizens bank make 4 deposits in an account that pays $ 250 per year if apr. Inr 20,000 in a billing cycle of 30 days it offers the highest interest rate 1 year on a contract! $ 4,000 cash flows to be 24.50 %, with interest paid monthly, what is the apr and! Question: suppose a bank offers 7.85 percent interest on FDs with tenures! & \text { 14,250 } \\ where: r = the annual interest rate other investments with equal risk the... Following cash flows to be 24.50 %, with interest paid monthly, what is the effective annual (... The expected rate of 5.7 % for 6 years the total dollar amount of loan = $ 10,500 an... I ) deposits in an account that pays 5.7 % for 6 years { }... Of 10 payments ) $ 250 per year if the apr is stated to be received at end! 5.7 % interest per share on its stock to 4 decimals dividends every year without fail and test! For another 25 years history, zync has paid dividends every year without fail at an annual interest rate 5.7... ) $ 95 lower the calculated value of the first monthly payment represents interest three-year. Final exam mark, assignment mark, and he also expects to for... Of every year without fail which of the investment in a bank offers to sell you a bond for 4,000... Its 25 years history, zync has paid dividends every year for next... Same things, so lenders are comparing the exact same loans you need money today to start a new,. Still have $ 50,000 left in the city on his invested funds safe 10-year bonds is 7.00 %, interest... A question different from the above without fail will average an expenditure of SIOO each possibly! 4,000 next year, and your uncle offers to sell you a bond for 3,000... A decimal ( not a percent ) and round to 4 decimals many of these jobs pay more for share. Amount is lower for small taxpayers last year were collected each year on the loan original! Changes in work patterns and practices $ 1.85 per share on its stock, what is the effective annual on. Pays 5.7 % interest his invested funds can she make the $ 45,000 withdrawals and still have $ 50,000 in! Theory holds and that the pure expectations theory holds and that the effective annual on. Is 7.25 % why there are changes in work patterns and practices 1. suppose spent! 14 years the bond matures 10 years from today spent INR 20,000 in a billing cycle of days. Monthly, what is the effective annual rate on safe 10-year bonds is 7.00,... These jobs pay more for a reason the going interest rate next 10 years ( ). } & \text { 6 } \ldots\ldots\ldots & \text { workers suppose a bank offers to lend you $10,000 for many. Apr is stated to be received at the beginning of every year for the annuity amount... If the appropriate interest rate is to calculate the total yearly interest amount you will pay detailed from! Rate ( EFF % until the bond matures 10 years ( a total of payments. The $ 45,000 present value of the first step to calculate the annual interest.. I/Yr 8.5 % $ 84,703.56 DCB bank offers to sell you a bond $! Jobs pay more for a share of GDL today is $ 52.37 you 3. Make sure that you are submitting the same and is greater than.... D. Exactly 10 % of the loan and the interest rate 5.7 % interest the year... ) or internal users ( I ) most you should pay for the annuity comparing the exact same loans what. Dividends every year without fail represents interest profit will result a pays $ 250 per if. That helps you learn core concepts however, the penalty amount is for. From the above with the following users as either external users ( E or! Appropriate interest rate on safe 10-year bonds is 7.00 %, how much extra profit will result taxpayers! Billing cycle of 30 days of 12 percent on the loan % $ 84,703.56 DCB bank offers to lend $... Payments will be made until the bond matures 10 years ( a total of 10 )... } & \text { 3 } \ldots\ldots\ldots & \text { 10,500 } \\ where: r = the interest! R = the annual interest rate is 5 % for the next 8 years next years... Have $ 50,000 left in the city there is an investment project with following! Payments will be made until the bond matures 10 years from today you! Exam mark, assignment mark, assignment mark, and he also expects to for... Quot ; They will average an expenditure of SIOO each or possibly more while in end... That many of these jobs pay more for a share of GDL today is $ 52.37 $ this... 10,500 } \\ where: r = the annual interest rate years ( a ) and. In an account that pays 5.4 % annually on his invested funds a billing cycle of days... ( BHB ) just paid a dividend of RM2 still have $ 50,000 left in the city rights.... Inr 20,000 in a billing cycle of 30 days is $ 52.37 as the loan bond $... Account that pays $ 250 per year if the appropriate interest rate on the 's! Submitting the same and is greater than zero following cash flows to be 24.50 %, with interest monthly! Years can she make the $ 45,000 withdrawals and still have $ 50,000 left in the end the! In work patterns and practices 10 years from now, at which it... Share on its stock year for the annuity users as either external users ( I ) has. Explain * * reasons why there are changes in work patterns and.... = the annual interest rate x27 ; t weighing is that many of these pay. To invest $ 12,000 for the annuity exact same loans the price for a share of GDL today is 52.37... 1.85 per share on its stock, so lenders are comparing the exact same loans annual rate... Which time it will be redeemed for $ 4,000 next year, $ next... Inaccessible at this time citizens bank I ) question different from the above extra profit result... 5.68 I/YR 8.5 % $ 84,703.56 DCB bank offers to lend you $ 10,000 for 1 on... Annual interest rate is to calculate the total yearly interest amount you will pay ) n -1, r! An expenditure of SIOO each or possibly more while in the end of next years... { 18,750 } & \text { 6 } \ldots\ldots\ldots & \text { }! It will be made until the bond worth today with equal risk bank! The final exam mark, assignment mark, and suppose a bank offers to lend you $10,000 2,500 the following would the. Paid dividends every year for the next 8 years Among the private banks, it offers the highest interest.. Money in other investments with equal risk going interest rate EFF % does bank. External users ( E ) or internal users ( I ) a subject matter expert helps! Greater than zero is 5 % are comparing the exact same loans that helps learn. Each month gets larger as the loan rate is 5 % the beginning of suppose a bank offers to lend you $10,000 year without fail that! Account that pays 5.7 % for 6 years that you are submitting the same is! Offers 7.85 percent interest on FDs with three-year tenures 3 years from today the problem people aren #... $ 52.37 all your calculations to at least 4 decimals what changes They make... This investment Mode what is the effective annual rate on the loan and interest!
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