A payment stream consisting of $1807 due (but not paid) 9 months ago, and $4042 due in 8months is to be replaced with the following equivalent set of payments: an unknown paymentdue today, and a payment of $1727 due in 17 months. What is the amount of the payment duetoday if the rate of simple interest is 4.28% ? Give your answer rounded to the nearest cent anduse today as the focal date.

The simple interest is very simple and straight forward interest and there is interest on the…

A payment stream consisting of $1807 due (but not paid) 9 months ago, and $40 months is to be replaced with the following equivalent set of payments: an unkno due today, and a payment of $1727 due in 17 months. What is the amount of the today if the rate of simple interest is 4.28% ? Give your answer rounded to the nea use today as the focal date.

A payment stream consisting of $1807 due (but not paid) 9 months ago, and $40 months is to be replaced with the following equivalent set of payments: an unkno due today, and a payment of $1727 due in 17 months. What is the amount of the today if the rate of simple interest is 4.28% ? Give your answer rounded to the nea use today as the focal date.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A loan payment of $1124 was due 49 days ago and another payment of $2664 is due 45 days from now. What single payment 90 days from now will pay off the two obligation if interest is to be 5% and the agreed focal date is 90 days from now? Answer to the nearest cent, ie two decimals.
A loan payment of $1049 was due 50 days ago and another payment of $3443 is due 45 days from now. What single payment 90 days from now will pay off the two obligation if interest is to be 11% and the agreed focal date is 90 days from now? Answer to the nearest cent, ie two decimals. Answer:
Scheduled payments of $800 due two months ago and $1200 due in one month are to be repaid by a payment of $1000 today and the balance in three months. What is the amount of the final payment if the simple interest rate is 7.75% p.a and the focal date is one month from now?
A loan of $7000 is to be repaid by three equal payments one and a half year from now, three years and four and three quarter years from now respectively. What is the size of the equal payments if interest on the debt is 15% compounded quarterly ? Use six decimal places for intermediate calculations and round the final answer to 2 decimal places (e.g., 0,00) Be sure to show the tinancial calculator inputs for PY, I, PV, CY, N, FV and PMT on the document that you will hand in at the end of the test. Show the work for each calculation (required). Include a timeline if desired (optional)
Suppose that you need an amount of money which equals to $10000000. It is possible to find it from bank A at an annual interest rate of 18% under 12 equal payment. If the first payment will be 1 month later the day you used the loan. Find the CF (Cash Flow), the equal payments and prepare the amortization table.
A loan payment of $1100.00 was due 10 days ago and another payment of $800.00 is due 40 days from now. What single payment 90 days from now will pay off the two obligations if interest is to be 3% and the agreed focal date is 90 days from now? The value of the payment is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A payment stream consists of a payment of $1600 today, a payment of $2400 in 3 months, and a payment of $2600 in 21 months. What is the fair market value of this payment stream 18 months from today? Assume a compound interest rate of 6.5% compounded quarterly. Today + $1600 FV1 = $ PV3 = $ Start by calculating the following values on the time diagram: FV2 = $ 3 Months The fair market value of this payment stream is: Total = $ Time Value of Money Solver $2400 Enter the given values. 0 N: = 0 Number of Payment Periods 1:% = 0 Annual Interest Rate as a Percent PV: = Present Value PMT: = 0 Payment FV: = Future Value P/Y: 0 12 V Payments per Year C/Y: 12 V Compounding Periods per Year PMT: = END € Solve Solve Solve Solve 18 Months Solve FV2 FV1 + PV3 Total 21 Months $2600
Given an interest rate of 4.8 percent per year, what is the value at date t = 10 of a perpetual stream of $3,200 payments that begins at date t = 20? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Given an interest rate of 5.7 percent per year, what is the value at t = 8 of a perpetual stream of $4,100 annual payments that begins at t = 18? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value at t = 8 $
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