Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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3. A loan of $6000 was repaid by quarterly payments of $450. If interest was 12%
compounded monthly, how long did it take to pay back the loan?
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- Suppose that you deposit $15 at the end of each month into a savings account that pays 2% interest compounded monthly. After a year, ------ is in the account.arrow_forwardIf you borrow $5000 for five years and seven months at 9% compounded quarterly. How much is owed on the due date?arrow_forwardConsider a loan of $2.5 million that is paid quarterly over a period of 10 years. Calculate the dollar amount of interest and loan principal repaid corresponding to each payment if the interest rate is 9% per year, compounded quarterly. What is the 5th Quarter Interest and also the 5th Quarter Principal Repayment respectively O a $157,274.15 and $232,276.07 O b. $97,158.12 and $95,032.24 O c. $46,919.62 and $32,752.85 O d. $52,601.74 and $42,841.70arrow_forward
- What is the monthly payment to repay a 10 year loan of $200,000 at a nominal rate of 15% per year if the interest is compounded quarterly? Assume interperiod compounding.arrow_forwardIf you borrow $5,300 at $400 interest for one year, what is your annual interest cost for the following payment plan? (Round the final answers to 2 decimal places.) a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective rate % op % %arrow_forwardA loan shark made a loan of $3000 to be repaid at 56% interest compounded monthly. How much is owed after 10 months?arrow_forward
- 2) A loan of $50,000 is taken out today at 13 % compounded quarterly and will be repaid over 6 years with end of month payments. How large will those payments be to fully repay the loan?arrow_forwardFind the monthly payment and estimate the remaining balance (to the nearest dollar). Assume interest is on the unpaid balance. 10) 30-year car loan for $235,000 at 3.21%; remaining balance after 20 years.arrow_forwardIf you deposit $2000 in an account that pays 3.6% with quarterly compounding, what is the balance after six years? How much interest is earned?arrow_forward
- A debt of $819.07 was to be repaid in 33 months. If $1007.02 was repaid, what was the nominal rate compounded monthly that was charged?arrow_forwardWhat is the present value of loan payments of$515made at the end of every month for 3 years and 6 months? Interest is9.85%compounded annually?arrow_forward
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