Marlin and Dory decide to start Message in a Bottle marketing business. Marlin cashes in a $15,000 savings deposit that was paying 6% interest per year. Dory sells a $20,000 bond that was paying 10% interest per year. They also borrow $30,000 from RBC Bank at 15% per year. What are the yearly implicit costs of financing the Message in a Bottle business? Select one: A. $7,400 B. $34,500 C. $2,900 D. $37,900 E. $72,400

Marlin and Dory decide to start Message in a Bottle marketing business. Marlin cashes in a $15,000 savings deposit that was paying 6% interest per year. Dory sells a $20,000 bond that was paying 10% interest per year. They also borrow $30,000 from RBC Bank at 15% per year. What are the yearly implicit costs of financing the Message in a Bottle business? Select one: A. $7,400 B. $34,500 C. $2,900 D. $37,900 E. $72,400

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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Formulate a system of equations for the situation below and solve. Michael Perez has a total of $2900 on deposit with two savings institutions. One pays interest at the rate of 6% / year, whereas the other pays interest at the rate of 8% / year. If Michael earned a total of $212 in interest during a single year, how much does he have on deposit in each institution? at 6%/year $ at 8%/year $
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Big Sean is buying a new truck from Willie’s Auto Sales, the dealer is providing the financing and he uses the discount method. If borrows $40,000 at 9% for 48 months, how much is his monthly payment?
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You go to the loan fund of the company where you work and find that they have an emergency fund whose regulations establish that the credits will be paid in monthly installments for 12 months, and that the installments 3,6,9 and 12 will be double the others. Likewise, the interest is 3 % per month. The amount that they will lend depends on the installment. a) If you are loaned $500,000, what will the normal payments be? b) If your regular payments are $10,000, what would be the value of the loan?

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