A famous quarterback just signed a $15 MM contract providing $3 MM per year for 5 years. A less famous receiver signed a $13 MM, 5-year contract providing $9.0 MM now and only $800,000 a year for 5 years. If interest rates are 10%, who is better paid on a PV basis and by how much?
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A famous quarterback just signed a $15 MM contract providing $3 MM per year for 5 years. A less famous receiver signed a $13 MM, 5-year contract providing $9.0 MM now and only $800,000 a year for 5 years. If interest rates are 10%, who is better paid on a PV basis and by how much?
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- A famous quarterback just signed a $12.8 million contract providing $3.2 million a year for 4 years. A less famous receiver signed a $11.8 million 4 year contact providing $3 million now and $2.4 million a year for 4 years . The interest rate is 8%.what is th PV of the quarterback's contract? what is the PV of the receiver's contract?A famous quarterback just signed a $10.8 million contract providing $2.7 million a year for 4 years. A less famous receiver signed a $7.0 million 4-year contract providing $3 million now and $2.2 million a year for 4 years. The interest rate is 8%. a. What is the PV of the quarterback's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value million b. What is the PV of the receiver's contract? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value millionA famous quarterback just signed a $19.5 contract providing $3.9 million a year for 5 years. A less famous receiver signed a $18.5 million 5-year contract providing $4 million now and $2.9 million a year for 5 years. The interest rate is 10%.
- You expect to receive $150,000 per year on a contract that will last 5 years. You are trying to compare this offer to a lump sum payment. If you can earn 5% on your investments, how much is the contract worth to you today?You want to buy a $400,000.00 home. You plan to pay 10% as a down payment, and take out a 25-year loan for the rest. A. How much is the loan amount going to be? My loan amount will be $________ . B. What will your monthly payments be if the interest rate is 2%? If my interest rate is 2% then my monthly payment will be $_______ . C. What will your monthly payments be if the interest rate is 6%? If my interest rate is 6% then my monthly payment will be $_________.You want to buy a $169,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 4.85% interest for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be? $ c) How much total interest do you pay? $ d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be? $ e) How much money in interest will you save if you finance for 15 years instead of 30 years? $
- A borrower is purchasing a property for $180,000 and can choose between two possible loan alternatives. The first is a 90% loan for 25 years at 9% interest and 1 point and the second is a 95% loan for 25 years at 9.25% interest and 1 point. Assuming the loan will be held to maturity, what is the incremental cost of borrowing the extra money? O 12.01% O 14.34% 13.50% O 13.66%If money is worth more than 0% to you, would you rather receive $10,000/year for 5 years or receive $5,000/year for 10 years? What is your preference if you must pay these amounts, rather than receive them?Suppose you want to purchase a home for $375,000 with a 30-year mortgage at 5.14% interest. Suppose also that you can put down 25%. What are the monthly payments? (Round your answer to the nearest cent.) $ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.) $ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.) $
- A borrower is purchasing a property for $200,000 and can choose between two possible loan alternatives. Loan A is a 90% loan for 25 years at 8% interest and 2 points and Loan B is a 95% loan for 25 years at 8.75% interest and 1 point. Assume the loans will be held to maturity, what is the incremental cost of borrowing the extra money? Assume that the loans will be repaid in 5 years. What is the incremental cost of borrowing the extra money? Rework parts (a) and (b) assuming the lender is charging 3 points on Loan A and 2 point on Loan B. What is the incremental cost of borrowing?Assume that you want to buy a house that costs $350,000+u dollars. If you make a 20% down payment, the apr is 5.89% on a 30 year mortgage. If you make a 10% down payment the apr is 6.64 on a 30 year mortgage. Compute how much less you have to pay per month if you make the 20% down payment? U=12You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? $ 181800 b) What will your monthly payments be if the interest rate is 6%? 1089.98 C) What will your monthly payments be if the interest rate is 7%? Submit Question