suppose a bank offers to lend you $10,000

We reviewed their content and use your feedback to keep the quality high. (3 marks) 2. 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. PMT $0 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 each quarter and then pay off the principal amount at the end of the year. Suppose a bank offers to lend you 10000 for 1 year on a loan contract that calls. Can these firms be maximizing their profits? The first plan requires a $3,500 immediate up-front payment. c. $71,319.98 $2,215.71 (T/F). Accordingly, those with a total income of up to Rs 5 lakh are liable to a penalty of Rs 1,000 in case of filing ITR after July 31. How much would $5,000 due in 20 years be worth today if the discount rate were 5.5%? d. $30,484.00 a. PV $1,015,000 If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20? "Fahrenheit to Celsius, and Celsius to Fahrenheit". An account that pays 7% nominal interest with monthly compounding., Charter Bank pays a 4.50% nominal rate on deposits, with monthly compounding. d. Exactly 10% of the first monthly payment represents interest. Pat Statsdud, a student ranking near the bottom of the statistics class, decided that a certain amount of studying could actually improve final grades. Share the love - Tell a friend about the Consumer Action Group - your National Consumer Service . BEGIN Mode 2 Lease term: 20 years (i.e., 240 payments, first payment at time 0) Payment amount: $650 per month Annual discount rate: 14%. What is the effective annual rate on the loan? 8.24% b. \text { Total vacation } \\ The bank loan officer offers you the loan if you agree to pay $16,000 in interest plus repay the $175,000 at the end of one year. 4 & 700 & 1250 \\ 83. \end{array} & {\text { Total Willingness to Pay }} \\ True. We reviewed their content and use your feedback to keep the quality high. If the elbow height is $10 \mathrm{~cm}$, the equation relating the height $h$ (in centimeters) of the water above the elbow and its velocity $v$ (in centimeters per second) is given by 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. We have 1000+ PHD and Post Graduate experts. 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. William's initial investment and the receipt of dividend at the end of every year is referred to as _____ and _____, respectively. Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. d. $756,924.04 The Capital One Venture Rewards Credit Card is this issuer's flagship travel card, with an average credit limit of $10,000. Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter the end of the year. This will put in circulation $1,000,000, which is quite a sum to be dumped into a city in the day or two they will be here, and its effect will be felt in all lines of trade. Ask your question! What is the current stock price? 58 reviews of Bob Stallings Hyundai "Must haves in my purchase experience were Ethics in the deal and a reliable attractive Product. How long will it take for his funds to double? False, Time lines can be constructed in situations where some of the cash flows occur annually but others occur quarterly. Solve this equation for $h$ and graph the result, using the velocity as the independent variable. List the circumstances and conditions. Period123456UnitSales22,50017,25015,75011,25013,50018,750CostofSales$15,15011,25010,500$8,2509,00014,250. $22,863.00 We reviewed their content and use your feedback to keep the quality high. What's the rate of return you would earn if you paid $950 for a perpetuity that pays $85 per year? PMT $85. b. $$ 7.76% c. 8.63% d. 9.59% e. 10.65%. What is the present value of the following cash flow stream at a rate of 6.25%? suppose you spent INR 20,000 in a billing cycle of 30 days. What is the effective annual rate on the loan? You will make 4 deposits in an account that pays 5.7% interest. DCB Bank offers 7.85 percent interest on FDs with three-year tenures. a. If you sell it, what rate of return would your uncle earn on his investment? For example, Aetna matches employees' U.S.-based student loan payments up to $2,000 a year for a lifetime maximum of up to $10,000 for qualifying loans; PwC offers associates and senior . Suppose you are buying your first condo for $300,000, and you will make a $15,000 down payment. How much will you have when the CD matures? (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 . Suppose People's 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 each quarter and then pay off the principal amount at the end of the year. It will be receiving $120,000 at the time of maturity. \text{2}\ldots\ldots\ldots & \text{17,250} & \text{11,250}\\ Wells Fargo Personal loan will get your back defense that have a competitive repaired interest. $3,488.83 If he earned a dividend income of $30, the stock's yield is:, Your uncle would like to restrict his interest rate risk and his default risk, but he would still like to invest in corporate bonds. This is true regardless of the original life of the loan or the interest rate on the loan. The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. c. 19.24% e. $607,116.15, All other things held constant, the present value of a given annual annuity decreases as the number of periods per year increases. What is the most you should pay for the annuity? The bank offers you a $15,000, seven-year loan at 8.25 percent annual interest. c. $1,801.39 By creating an account, you agree to our terms & conditions, Download our mobile App for a better experience. Payment Receipts or bank A/C statement showing all the payments made to Builder/Seller; Account Statement: Last 6 months Bank Account Statements for all Bank Accounts held by the applicant/s; If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year; Income Proof for Salaried Applicant/ Co-applicant/ Guarantor: You sold a car and accepted a note with the following cash flow stream as your payment. The effective annual rate on the load is then of 13,6%. \text { Younger } \\ \text{6} \ldots\ldots\ldots & \text{18,750} & \text{14,250}\\ c. $2,428.22 As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or greater than the nominal rate on the deposit (or loan). I need $10,000 to invest in a project that will pay a safe 6% rate of return next year. Question 14 options: 14.31%. How much would he have after 6 years if he leaves it invested at 7.0% with annual compounding? 20.24% - 28.24% (Variable) $95. In that case, if you get into an accident or run into a tree, you'll first have to pay $500 out of pocket for the damages. c. The monthly payments will increase over time. $$ What is the effective annual rate on the loan? If you have all of your documents, then it should be pretty easy to shop around. After those three total views, we ask that you support us with a subscription. Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. There is an immediate need to focus on affordable housing while bringing in more investments into . How much will you have when the CD matures? e. $3,745.76, What is the PV of an ordinary annuity with 5 payments of $6,200 if the appropriate interest rate is 4.5%? (1+ r/n) n -1, where r is the apr rate and n are . What nominal annual interest rate is built into the monthly payment plan? held and the other is eligible for $10,000 in . A firm makes investments of $2,000 this year, $4,000 next year, and $2,500 the following year. The number of months is will take her to have enough money to start college is closest to: Bill is considering investing $450 at the end of every month in a fixed income instrument. 11.84%. Suppose a company offers a dividend payment of $2.5 every year. What is the effective annual rate on the loan? Among the private banks, it offers the highest interest rate. 1307.45 b. 4.78%. A key advantage of a decentralized organization is ________. What is the most you should pay for the annuity? Where: r = the annual interest rate. What effective annual rate (EFF%) does the bank pay? a. Rebecca is currently working, but is planning to start a college in few years. What interest rate would you earn if you bought this bond at the offer price? e. The amount representing interest in the first payment would be higher if the nominal interest rate were 7% rather than 10%. What will your annual loan payment be? The first step to calculate the annual interest rate is to calculate the total yearly interest amount you will pay. 16.46%. . What's the present value of $1,525 discounted back 5 years if the appropriate interest rate is 6%, compounded monthly? (c) The operation of subtracting 32 from a number and then multiplying the result by 5/95 / 95/9 is the inverse of the operation of multiplying a number by 9/59 / 59/5 and then adding 32 . X=X=X= \rule{1cm}{1pt}. What is the percent interest rate or effect Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and financing the rest at 8% interest for 30 years. 2 & 475 & 800 \\ If the interest is compounded monthly, what is the annual rate of return earned on the investment?. You could earn 5.5% on your money in other investments with equal risk. d. 2.72% What's the present value of $4,500 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually? This form of payment is known as a(n) _____., The process of determining the value to which an amount or a series of cash flows will grow in the future when interest on interest is applied is known as _____., Open market operations are operations in which:, Production opportunity is one of the four fundamental factors that affect the:, An arrangement for the sale of a new issue of debt securities in which the investment banking firm typically buys the securities from the issuing firm and then sells the securities in the primary markets, hoping to make a profit, is called a(n) _____., Assume that the current interest rate on a 1-year bond is 8 percent, the current rate on a 2-year bond is 10 percent, and the current rate on a 3-year bond is 12 percent. 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. Which of the following bank accounts has the highest effective annual return? Pats marks on these were 12/20 and 14/30, respectively. c. $1,226,360.01 The What is the present value of the following monthly lease? They can get into recruit basic training, they should have these special population Kelley Tyler offices because they are members. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $4,000. --> 1280/10000, Convert this APR to EAR. b. loan? "They will average an expenditure of SIOO each or possibly more while in the city. 89 questions from our users. You want to quit your job and return to school for an MBA degree 3 years from now, and you plan to save $5,000 per year, beginning immediately. Prospect Gone Bad * February 28, 2023 at 11:18 am. Farmers Bank offers to lend you $50,000 at a nominal rate of 5.0%, simple interest, with interest paid quarterly. Draw an estimated line of cost behavior and determine whether the cost appears to be variable, fixed, or mixed.500.Usethesedatatoprepareascatterdiagram.Drawanestimatedlineofcostbehavioranddeterminewhetherthecostappearstobevariable,fixed,ormixed. Under these assumptions, how much will you have 3 years from today? If the interest is compounded monthly, what is the annual rate of return earned on the investment is closest to:?, Ibiza Corporation has been investing $20,000 for the last four years in an investment scheme that is maturing at the end of the current year. (Base your answer on an arithmetic rather than geometric average. She wants to withdraw $45,000 at the beginning of each year, beginning immediately. Which of the following bank accounts has the lowest effective annual return? a. Under these assumptions, how much can she spend each year after she retires? Homework help starts here! What does this statistic tell you? a. a. \end{array} & \begin{array}{c} What is the coefficient of determination? find $A B$ and $B A$. And a 64-year-old borrower said that "the thought of having the loan payments starting again in general and without cancellation terrifies me. Experts are tested by Chegg as specialists in their subject area. 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 . How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account? 6.99% b. 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. 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{3} \ldots\ldots\ldots & \text{15,750} & \text{10,500}\\ B. quicker decisions and response time Your father's employer was just acquired, and he was given a severance payment of $365,000, which he invested at a 7.5% annual rate. Depending on the needs of your online business, you can get business loans from banks or private lenders, get invoice financing, or apply for government . False, When a loan is amortized, a relatively low percentage of the payment goes to reduce the outstanding principal in the early years, and the principal repayment's percentage increases in the loan's later years. Which of the following statements is CORRECT? Which of the following banks provides you with the highest effective rate of interest? Amount of loan = $10,500 at an annual interest rate of 5.7% for 6 years. The going rate on such annuities is 5.25%. There is more. For this purpose, she would need $20,000. How much will your account be worth at the end of 25 years? The proportions depend on the original life of the loan and the interest rate. School Curtin University Sarawak; Course Title BUSINESS l; Type. Convert this APR to EAR. What is the effective interest rate if the loan is an add-on interest loan with 12 monthly payments? N 21.07. $749,039.41 Used to calculate deemed income, we ve grown to a financial counsellor you:! Suppose a bank offers to lend you $10,000 for one year at a nominal annual rate of 10.25%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. It means I might have to take a second job or use my . (1+r/n)n -1, where r is the apr rate and n are the number of period compounding. You could earn 5.5% on your money in other investments with equal risk. Suppose People's 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 each - 14892811 a. If $a$ and $b$ are nonzero real numbers, How much would $5,000 due in 25 years be worth today if the discount rate were 5.5%? Your uncle has $1,015,000 and wants to retire. To determine how much work to do in the remaining 3 weeks, Pat needed to be able to predict the final exam mark on the basis of the assignment mark (worth 20 points) and the midterm mark (worth 30 points). Assume that the effective annual rate for all investments is the same and is greater than zero. a. Enter your answer as a decimal (NOT a percent) and round to 4 decimals. 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 - 12389955 N 5.68 years. For how many years can she make the $45,000 withdrawals and still have $50,000 left in the end? 2.42% Under these assumptions, how much will you have 3 years from today? If not, say what changes they should make, and how much extra profit will result. 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. \text{4} \ldots\ldots\ldots & \text{11,250} & \text{\$ 8,250}\\ e. $30,211.82, The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. Option C is correct Effective interest rate=6.66% Computer Graphics and Multimedia Applications, Investment Analysis and Portfolio Management, Supply Chain Management / Operations Management. The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. False, Suppose you have $2,350 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. 2020 - 2024 www.quesba.com | All rights reserved. Assume that the pure expectations theory holds and that the market is in equilibrium. 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. What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? c. An account that pays 7% nominal interest with monthly compounding. The local bank charges 10% interest rate on all its loans. Corporate author : International Scientific Committee for the drafting of a General History of Africa Person as author : Ki-Zerbo, Joseph [editor] We offer one free story view per month. N/A. The going rate on such annuities is 5.15%. 4. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. 03/01/2023 kubiweb Would you like to combine the debit,financing pick otherwise looking for fund to have repair and you will coverage costs ? Jude wants to receive $1,100 at the beginning of each of the next eight years. FV $0.00 Investment A pays $250 at the beginning of every year for the next 10 years (a total of 10 payments). 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. If we are given a periodic interest rate, say a monthly rate, we can find the nominal annual rate by multiplying the periodic rate by the number of periods per year. An investment of Rs 1 lakh will grow to Rs 1.26 lakh in . 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 : (. n = the number of times the interest is compounded per year. a. Loan payments that have been on hold since the start of the coronavirus pandemic three years ago are supposed to resume no later than this summer. Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! I/YR 5.15% False, Your child's orthodontist offers you two alternative payment plans. $788,462.54 \text { workers } [1] [2] If a victim makes the payment, the . D. duplication of efforts. Accueil Uncategorized what time does commonwealth bank . How much will you have when the CD matures? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. (a) BH Berhad (BHB) just paid a dividend of RM2. Charter Bank pays a 4.30% nominal rate on deposits, with monthly compounding. The balance on a debit card is the available balance on the user's bank account. \end{array} If that growth rate were maintained, how many years would it take for Thomson's EPS to triple? If his opportunity cost rate is 7 percent compounded annually, how much will his investment be worth at the end of the 12th year? Yes, definitely shop. (a) Halving and doubling are inverse operations. What is the effective annual rate on the loan? Do you need an answer to a question different from the above? Which of the following statements is correct?, If a stock pays a dividend of $10 and the investors need 8% return on their investment, then the investors should pay _____ for the stock., Which of the following indicates that the cost of money will increase?, A normal yield curve that is upward sloping implies that:, _____ can be negative if the value of the investment decreases during the period it is held., If the Federal Reserve loosens money supply then:. What is the effective annual rate on the loan? 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. Nifty Loans offers personal loans for people on Centrelink payments from $300 to $10,000. The price for a share of GDL today is $52.37. PV $795,000 You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $8,800 per year, beginning immediately. The effective price you received for the car assuming an interest rate of 6.0% is closest to: Last year Tempe Corporation's sales were $525 million. For example, if you invest $1,000 in a savings account with a 5% APY that compounds monthly for one year, the calculation would be: APY = (1 + .05/12)^12 - 1 APY = 0.0512 or 5.12%. Our experts provide 100 % original and customized work On time Delivery, We provide 24*7 online customer supports via online chat or email. a. You will make 3 deposits in an account that pays 5.2% interest. I/YR 7.5% If you're aware of what direction to go and where to look, discovering that $10,000 personal loan with bad credit can be done. What is the most you should pay for the annuity? Sue now has $320. Suppose Money Bank wants to offer a daily interest savings account that pays an effective annual interest rate of 5 percent. What is the most you should pay for the annuity? If the going interest rate on safe 10-year bonds is 7.00%, how much is the bond worth today? v^2=1960(h+10) The high-stakes battle over President Biden's student debt relief plan reached the Supreme Court on Tuesday, with each justice giving a glimpse into their thinking during back-to-back oral . How large would your payments be? Should you jump at this offer? \text{5} \ldots\ldots\ldots & \text{13,500} & \text{9,000}\\ 3/9. 1. Today she can start investing $750 monthly in an investment account that pays 6 percent compounded monthly. If his opportunity cost rate is 9 percent compounded annually, the amount he must deposit in an account today is closest to: If the opportunity cost rate is 8% and is compounded annually, the present value of $8,200 due to be received in 12 years is closest to: If Alvin invests $5,500 today in a savings account, the money will grow to $8,500 at the end of Year 4. What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 5.5%? What effective annual rate (EFF%) does the bank pay? The second part, after page 343, is the same complete Ten e. 23.81%, Your sister turned 35 today, and she is planning to save $85,000 per year for retirement, with the first deposit to be made one year from today. PMT $84,703.56. 2003-2023 Chegg Inc. All rights reserved. 17.31%. Water polo seemed to offer that opportunity. What is the effective annual rate on the loan? She wants to withdraw $45,000 at the beginning of each year, beginning immediately. ** Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 3.20% per year. The closer we are to the end of the loan's life, the smaller the percentage of the payment that will be a repayment of principal. My designated payday is suppose to be Monday. Press question mark to learn the rest of the keyboard shortcuts. I/YR 4.78%. Explain **three** reasons why there are changes in work patterns and practices. What is the effective annual rate on the loan? 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? If the expectations theory of the term structure is correct, what is the 1-year interest rate expected during Year 3? Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at 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 $170.00 at the end of each quarter and then pay off the principal amount at the end of the year. If your required yield is 5% and the bond just paid a coupon, how much will you pay for this bond? An advance-fee scam is a form of fraud and is one of the most common types of confidence tricks. You could earn 5.5% on your money in other investments with equal risk. $1,369.06 If the APR is stated to be 24.50%, with interest paid monthly, what is the card's EFF%? Suppose a bank offers to lend you $10,000 for 1 year on a loan $$ True b. a. a. . Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. \hline \begin{array}{c} a. 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. Some of the cash flows shown on a time line can be in the form of annuity payments but none can be uneven amounts. \text { Older } \\ b. COVID update: Bob Stallings Hyundai has updated their hours and services. Suppose the U.S. Treasury offers to sell you a bond for $3,000. How much could he withdraw at the end of each of the next 25 years and end up with zero in the account? Then you need to calculate the ratio of that interest amount compared to the loan amount in order to get the yearly interest. N 25 You expect the company to have profits of $4.69 per share next year. What will your monthly payments be? PV $365,000 JQA is one stop solution for all subjects Assignment. b. What is the effective annual rate on the 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. Cost (PV) $1,780. FV $0.00 You deposit $1,125 today in a savings account that pays 6% interest, compounded annually. e. 2.15%, As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or greater than the nominal rate on the deposit (or loan).

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