You took out a loan to buy a new car. The monthly interest rate on the loan is 0.6%. You have to pay $240 every month for 60 months. a. What is the present value of the cash flows if it's an ordinary annuity? b.
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You took out a loan to buy a new car. The monthly interest rate on the loan is 0.6%. You have to pay $240 every month for 60 months.
a. What is the present value of the cash flows if it's an ordinary
b.
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- You took out a loan to buy a new car. The monthly interest rate on the loan is 1%. You have to pay $220 every month for 60 months. What is the present value of the cash flows if it's an annuity due?You took out a loan to buy a new car. The monthly interest rate on the loan is 1%. You have to pay $220 every month for 60 months. What is the future value of the cash flows if it's an annuity due?Suppose that you want to avoid paying interest and decide you'll only buy the furniture when you have the money to pay for it. An annuity is basically the opposite of a fixed-installment loan: you deposit a fixed amount each month and receive interest based on the total amount that's been saved. The future value formula is: A = 12M 1+ 12 7 12t - 1 where M is the regular monthly payment, r is the annual interest rate in decimal form, and t is the term of the annuity in years. With a monthly payment of $110, what would the future value be if you chose an annuity with a term of two years at 4.5% interest? Round you answer to the nearest cent. The future value would be $. X S
- Supposed you want to buy a used car but your savings is not enough. To do this, you borrow P60,000 to be amortized in four equal payments at the end of each of the next four years, and the interest rate is paid 15 percent on the outstanding loan. What is the annuity payment?You took out a loan to buy a new car. The monthly interest rate on the loan is 0.6%. You have to pay $240 every month for 60 months. What is the future value of the cash flows if it's an ordinary annuity?1. You deposit NOK 250,000 in a savings account. The bank offers 0.25% nominal annual interest rate. How long do you have to leave the money in the account before you have NOK 260,000 in the account? a) At quarterly interest? b) By continuous interest? c) What must the interest rate be if you want to reach the savings target of 10 years by annual return?
- Suppose you are going to receive $13,500 per year for five years. The interest rate is 8.4%a. What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due?b. Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? What if the payments are annuity due?c. Which has the highest present value (future value), the ordinary annuity or annuity due?Suppose you borrow 11,000 for 5 years at 6% towards the purchase of a car. What would be the monthly payments and total interest for the loan?You want to take out a mortgage on a house worth $50,000 and pay it back in 10 years. Since your credit is very poor, the bank charges you simple interest at the rate of 2% per month. a. How much will you owe after 1 year? b. How much is the interest?
- Suppose that you want to avoid paying interest and decide you'll only buy the furniture when you have the money to pay for it. An annuity is basically the opposite of a fixed-installment loan: you deposit a fixed amount each month and receive interest based on the total amount that's been saved. The future value formula is: 12t 12 [(1 - - - - ] 1 12 A = r where is the regular monthly payment, ▾ is the annual interest rate in decimal form, and ʼn is the term of the annuity in years. If you chose an annuity with a term of two years at 4.8% and a monthly payment of $120, the future value would be $3016.45. Recalculate the future value amount if you're willing to raise your monthly payment $20 per month. Round your answer to the nearest cent. The future value would be $ Xb) Suppose you begin saving for your retirement by depositing $2,000 per year in an IRA. If the interest rate is 7.5%, how much will you have in 40 years if the payments are made: at the end of the year (ordinary annuity)? at the beginning of the year (annuity due)?suppose you want to buy a new car that costs you 15514 OMR by a loan from bank Muscat for 6 years. the bank charges you 4.004 percent on your loan. what is the annual payment should you pay to the bank every year on your loan?