Emily purchased a bond valued at $10,000 for highway construction for $4,540. If the bond pays 7.9% annual interest compounded monthly, how long must she hold it until it reaches its full face value?
Q: wishes to provide herself, or her estate, with an income of $10,000 at the end of each year for 10…
A: Deposit A Amount = 10,000 End of year deposits N = 10 years Deposit B Amount = 10,000 End of year…
Q: 8. Frank invests $1500 in a bond that pays 6.5% per year compounded annually. How much money will he…
A: Investment amount = $ 1500 Annual interest rate = 6.5% Period = 6 Years
Q: Adam purchases a retirement annuity that will pay him $1,500 at the end of every six months for the…
A: Semi Annual Payment $ 1,500.00 Time Period (years) 8 Interest rate 4% Monthly…
Q: Andrea is depositing P4, 000 each month in an ordinary annuity that pays 2% interest compounded…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Scofield purchased a bond, costing 890, three years ago, with a current price of 925. This bond paid…
A: Yearly Interest Payments (Coupon) = 100 Time Period for Holding (N) = 4 years Price of Bond at end…
Q: Nine years from now, Sam wants to have an amount available to deposit into an account…
A: ANSWER GIVEN ON THE NEXT SHEET
Q: May deposits PhP 20,000 into a fund at the beginning of each year for 10 years. At the end of 15…
A: This is a classic case of an annuity due, annuity perpetuity, annuity deferrals. First, we will…
Q: Emily purchased a bond valued at $10,000 for highway construction for $4,410. If the bond pays 6.4%…
A: Using excel NPER function
Q: Mildred can purchase a municipal bond with a par (face) value of $1000 that will mature in 10 years.…
A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…
Q: Candace borrows $4000 from Nick due in 10 years with simple interest at 8% monthly. Two years after…
A: The proceeds would be the difference between Present value at new terms and old terms. and we will…
Q: Keith invested in a savings bond for 3 years and was paid simple interest at an annual rate of 2%.…
A: Time Period = N = 3 years Interest rate = 2% Simple Interest = 120
Q: Marie Snell recently inherited some bonds (face value R100 000) from her father, and soon thereafter…
A: Here, Face Value of Bond is R100,000 Coupon Rate is 2% Therefore, Coupon Payment is :…
Q: what is Ben's total monthly payment?
A: Insurance is the security taken by a person against life or asset. Against the insurance or security…
Q: ones can deposit $5,000 at the end of each 6-month period for the next 12 years and earn interest at…
A: a) Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, P =Periodic payment i.e. $5000 n = no.…
Q: Jessica purchased a home on January 1, 2021, for $750,000 by making a down payment of $300,000 and…
A: Here to understand the details of maximum deduction allowance which are made in the itemized…
Q: Lars has been approved for a $425,000, 20-year mortgage with an APR of 5.125%. a. What is his…
A: given, principal amount =$425,000 n=20 years r=5.125% m=12
Q: John House has taken a 30-year, $250,000 mortgage on his house at an interest rate of 6% per year.…
A: If an individual or company has insufficient of funds then, the option for mortgage is available. We…
Q: Joan Tanaka borrows $80,000 at 14 percent interest toward the purchase of a vacation home. Her…
A: Assumption: It is assumed that the student is asking for monthly payment.
Q: Emily purchaseda bond valued at $10,000 for highway construction for $4,540. IT the bond pays 7.9%…
A: Face Value = 10,000 Present Value (Price) = 4540 Monthly Compounding Interest % = 7.9%/12 = 0.6583%…
Q: Mr. N. invests $5,000 in a certificate of deposit (CD) at his local bank. Hereceives 2 percent…
A: RATE 2% YEARS 5 PMT (MONTHLY DEPOSIT) 0 PRESENT VALUE $5,000
Q: Eren purchased a bond, costing 890, three years ago, with a current price of 925. This bond paid 100…
A: Price of bond =Present value of value after 4 years +Present value of coupon payment.
Q: Roman paid $68,800 as a down payment towards an apartment purchase and receive nortgage from a bank…
A: Loans are paid by monthly equal amounts of payments and these equal payments carry the payment for…
Q: Joan purchases a 30-year federal government bond for $10,000 that pays 4 percent annual interest.…
A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…
Q: Mathias purchases a 7-year CD for $5000 with 1.1% APR compounded monthly, and a 7-year bond for…
A: C=Annual amount received after 7 year P=Invested amount r= Rate n=Number of year T=compounded…
Q: At the beginning of his current tax year, David invests $11,550 in original issue U.S. Treasury…
A: Formula: Interest Amount = Face value of bond x interest rate
Q: John purchased a $20,000 20-year bond at a 2% dis- count. It pays semiannually at a rate of 4% per…
A: In case of bond interest is payable annually, semi annually as per initially agreed, but it is…
Q: llaine invested Php 50,000 in a bond fund for 3 years that pay 2.75% annually. If interest will be…
A: The bonds are paid coupon payment each period but there is withholding tax to be paid on the coupon…
Q: n in Kim's account when she first purchases the stock
A: Margin-: Margin is the capital rented from a brokerage firm to buy an undertaking. It is the…
Q: Brian borrows $ 7500 from his friend at an annual 6% interest rate, which he will pay five years…
A: Future value is the value of the present cash flows after certain period. Due to interest that can…
Q: 4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent…
A: Introduction: The present value of annuity due refers to the current value of a series of future…
Q: John borrows $15000 for 5 years at an annual effective interest rate of %9. At the end of each year…
A: Computation:
Q: Mr. Arturo bought a bond having a face value of Php3500 for Php3300. The bond rate was 16% nominal…
A: Selling price of an investment is that price at which bond or an investment is being sold by a…
Q: David owns $15,000 worth of 10-year bonds of Ae Corporation. Thee bonde pey interest every 6 months…
A: Given information: Value of bond is $15,000 Number of years is 10 Interest rate is 2% per year…
Q: Jessica purchased a home on January 1, 2018 for $650,000 by making a down payment of $260,000 and…
A: The internal revenue service is a U.S. government agency responsible for the collection of taxes and…
Q: Emily purchased a bond valued at $10,000 for highway construction for $4,540. If the bond pays 7.9%…
A: This is the question of TIME VALUE OF MONEY. According to TIME VALUE OF MONEY, FV=PV×1+Rmm×t where,…
Q: Erica borrowed money from Charles an amount of 58,744 and promise to pay at the end of second and…
A:
Q: David owns $30,000 worth of 10-year bonds of Ace Corporation. These bonds pay interest every 6…
A: Bond is a debt instrument which provides fixed interest payment quarterly, half-yearly or annually.
Q: Stephanie purchases a retirement annuity that will pay her $3,000 at the end of every six months for…
A: formula for annuity PVA=A×1-11+rmn×mrm where, r=rate of interest m =frequency of compounding A=…
Q: Carol borrowed $5,200 and signed a straight note with an interest rate of 7% per annum. If she paid…
A: A straight promissory note can be defined as that note which does not require periodic payments over…
Q: An Investor buys common stock in a firm for $1000, At the end of the first year and overy year…
A: Stock Investment refers to the purchase of stocks with an mindset for holding purchased securities…
Q: Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans…
A: We need to calculate future value of investment by using this formula FV = PV(1+i)n where FV =Future…
Q: bonds sell for in the marke
A: 1) Formula to calculate the amount is: Value of the bond = [coupon((1-(1+r/2)^2n)r/2)] + Face…
Q: blake purchased an annuity that had an interest rate of 2.50% compounded semi- annually. it provided…
A: Solution- 2.50% interest rate semianually=2.52=1.25%=1.25100=1+r6-1=1+r=1.002072Monthly…
Q: ames purchased a bond for $3380 that had a rate compounded annually, 2 years later he sold it for…
A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…
Q: Kim opens a brokerage account and purchases 500 shares of Batliboy at OMR50 per share. She borrows…
A: Margin:- In finance, the term margin is defined as the amount of money that is borrowed from a…
Q: In purchasing a lot, Jason agrees to pay $10,000 cash and $5,000 at the end of each three months for…
A: The value of the debt will be equal to the present value of periodic payments plus the cash paid…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- A man purchases a bond for $900. The bond has a face value of $1,000 and pays semi-annual interest payments of $50 each. If the bond is paid in full after 10 years, what annual rate of return will the man receive?Emily purchaseda bond valued at $10,000 for highway construction for $4,540. IT the bond pays 7.9% annual interest compounded monthly, how long must she hold it until t reaches its full face value? She must hold onto the bond for years (Round to two decimal places as needed.)Emily purchased a bond valued at $10,000 for highway construction for $4,540. If the bond pays 7.9% annual interest compounded monthly, how long must she hold it until it reaches its full face value? She must hold onto the bond for years. (Round to two decimal places as needed.) Enter your answer in the answer box and then click Check Answer. CheckAnswer All parts showing Clear All a
- Assume that your grandmother has sold her house on 31.12.2020. The house was partially paid for with a bond, issued on the day, which is secured by a mortgage on the house. The face value of the bond is ISK. 20,000,000. The bond is an annuity loan for 40 years and bears interest of 7.4% p.a. The due date is once a year and is December 31. Now your grandmother will soon have to file her taxes for the year 2023. She has therefore asked you to calculate what her interest income from the bond was in 2023. What was her interest income in 2023?David owns 15,000 worth of 10-year bonds of Ace Corporation. These bonds pay interest every 6 month at the rate of vear (imple interest). How much income wi David receie from istment.eveo,6 monthe? Enter an unter How much interest will David receive over the life of the bonds? Need Help?Isabel purchases a 10-year, 5 percent savings bond with a face value of $1,000 by paying a premium for $1,100. She gets the dividend paid yearly. Determine the rate of return she gets on the bond assuming she keeps the bond till maturity.
- Jerome deposited $5,000 into an 18-month CD that earns a simple interest rate of 2 1/4%. How much will his CD be worth at maturity?Erica borrowed money from Charles an amount of 58,744 and promise to pay at the end of second and fourth year at a simple interest rate of 15.198%. The second payment is 30% more than the first one. How much is the first payment? How much is the second payment?Mildred can purchase a municipal bond with a par (face) value of $1000 that will mature in 10 years. The bond pays 6% interest compounded quarterly. If she can buy this bond for $1050, what rate of return will she earn?
- José borrowed 8100 at 5 1/2% for  three years compounded, semi am annually. What is the future value of the loan and how much interest will he pay on the loan?Jack takes out a mortgage for $725,000 at an interest rate of i(2) = 7.250%. The amortization period is 30 years. What is his weekly payment? a. $1,182.96 b. $1,126.62 C. $923.83 d. $1,171.69 e. $957.63Anna has a mortgage of $427,000 through her bank for property purchased. The loan is repaid by end of month payments of $2,598.80 with an interest rate of 4.05% compounded monthly over 20 years. What is the interest included in the 47th payment of the mortgage? Enter a POSITIVE VALUE rounded to two decimal places. $