1. Joe agrees to make the ff. payments from the lending investor End-of-year 1 2 3 45 5 Payment 5000 6000 7000 8000 9000 Required: a. Determine the amount of money that he can loan from the lending investor. b. In case Joe opts to return the money plus interest in equal end-of-year payments, compute the annuities or the amount of annual payments needed to make. Use 12% interest rate.

1. Joe agrees to make the ff. payments from the lending investor End-of-year 1 2 3 45 5 Payment 5000 6000 7000 8000 9000 Required: a. Determine the amount of money that he can loan from the lending investor. b. In case Joe opts to return the money plus interest in equal end-of-year payments, compute the annuities or the amount of annual payments needed to make. Use 12% interest rate.

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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effective rates of interest find the interest rate earned on each of the following : a. You borrow $700and promise to pay back $749 at the end of 1 year b. You lend $700 and borrower promises to pay you $749 at the end of 1 year c. You borrow $8,500 and promise to pay back $201,229 at the end of 10 years d. You borrow $9,000 and promise to make payments of $2,684.80 at the end of each year for 5 years
You are loaned $300 at the end of years 1, 2, and 3. You pay this loan back with payments of X at the end of year 5, and $300 at the end of years 4, 6, and 7. Find X if the effective annual interest rate i = .07
simple interest1. Sassy borrowed P 10,500 on Nov. 6, 2020 to be repaid on April 11, 2021 at 15.3% interest in a year. How much will the interest be? Find the amount to be paid on the maturity date
You plan to borrow $33,100 at a 7.0% annual interest rate. The terms require you to amortize the loan with 7 equal end-of- year payments. How much interest would you be paying in Year 2? O a. $2,077.39 b. $2,049.26 c. $6,141.81 d. $2,317.00 e. $5,740.01
Find the interest rates earned on each of the following:a. You borrow $720 and promise to pay back $792 at the end of 1 year.b. You lend $720 and the borrower promises to pay you $792 at the end of 1 year.c. You borrow $65,000 and promise to pay back $98,319 at the end of 14 years.d. You borrow $15,000 and promise to make payments of $4,058.60 at the end of each year for 5 years.
urururururururururuirururururururururururururururuurırcturuururururırıurırarururururur" 2/ a person owes 1000$ due in 1 year with interest rate 6%. two equal payments in 3 and 9 months, respectively, will be used to discharge this obligation. What will the size of these payments if the person and the creditor agree to use an interest rate of 6% and a focal date in 1 year,
1. On 23 January 2021, Sofie took a loan of RM7000 from a local bank that charged r% simple interest per annum. By using Banker's Rule, Sofie settled her loan on 18 May 2021 by paying RM7134.17. Find: a) the term of the loan. b) the interest rate, r.
Find the payment necessary to amortize a 5.5% loan of $7700 compounded semiannually, with 6 semiannual payments. Find (a) the payment necessary to amortize the loan and (b) the total payments and the total amount of interest paid based on the calculated semiannual payments. Then create an amortization table to find (C) the total payments and total amount of interest paid based upon the amortization table. a. The semiannual payment needed to amortize this loan is $ (Round to the nearest cent as needed.) b. The total amount of the payments is $ (Round to the nearest cent as needed.) The total amount of interest paid is $ (Round to the nearest cent as needed.) c. The total payment for this loan from the amortization table is $ %24 The total interest from the amortization table is $
simple interestSolve the following problems:1. Sassy borrowed P 10,500 on Nov. 6, 2020 to be repaid on April 11, 2021 at 15.3% interest in a year. How much will the interest be? Find the amount to be paid on the maturity date.2. Find the exact interest and the final amount due on P 12,350 at 11 % for 150 days, using ordinary interest.3. The interest on a loan of P 2,500 is P 165.00 . If the rate of interest is 6 %, when is the loan due?
A borrower has two alternatives for a loan: (1) issue a $300,000, 120-day, 8% note or (2) issue a $300,000, 120-day note that the creditor discounts at 8%. Assume a 360-day year. a. Calculate the amount of the interest expense for each option.$ for each alternative. b. Determine the proceeds received by the borrower in each situation. (1) $300,000, 120-day, 8% interest-bearing note $ (2) $300,000, 120-day note discounted at 8% $ c. Alternative is more favorable to the borrower because the borrower .
You plan to borrow $46,400 at a 7.6% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? a. $3,526.40 b. $8,790.61 c. $8,169.71 d. $3,126.32 e. $3,173.51
Find the interest rates earned on each of the following. Round your answers to the nearest whole number. a. You borrow $660 and promise to pay back $759 at the end of 1 year. % b. You lend $660 and the borrower promises to pay you $759 at the end of 1 year. % c. You borrow $69,000 and promise to pay back $109,495 at the end of 6 years. % d. You borrow $11,000 and promise to make payments of $3,359.50 at the end of each year for 5 years. %

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