A student is buying an automobile that costs $12,000 and she will borrow the money from a bank, and pay the loan off in five annual instalments. At 15% interest rate, what is the installment amount ? Prepare a cash flow diagram to represent this situation. $12000 15% 5 years 0 1 2 3 4 A A A A A
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- (b) $4,500 at the end of each year for 15 years at 4.75% compounded annually.Find the amount accumulated FV in the given annuity account. HINT [See Quick Example 1 and Example 1.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $110 deposited monthly for 20 years at 3% per year in an account containing $12,000 at the start $ Need Help? Master It Read ItA department store has offered you a credit card that charges interest at 1.05% per month, compounded monthly. a. What is the nominal interest (annual percentage) rate for this credit card? b. What is the effective annual interest rate?
- K Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $14,129 to be accumulated in 3 years; quarterly payments of $1075. The interest rate needed is approximately %. (Type an integer or decimal rounded to two decimal places as needed.) ***Find the amount accumulated FV in the given annuity account. HINT [See Quick Example 1 and Example 1.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $150 is deposited monthly for 11 years at 2% per year FV = $ Need Help? Read It Submit AnswerFind the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same. intervals as deposits. Round your answer to the nearest cent.) $40,000 in a fund paying 5% per year, with monthly payments for 5 years, if the fund contains $10,000 at the start PMT $566.14 Need Help? Read I Watch It
- M purchased a small lot in a subdivision. paying P200 000 down and promising to pay P15 000 every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly. What was the cash price of the lot? Include the Cash Flow Diagram.Michael Sanchez purchased a condominium for $67,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. Round your answers to the nearest cent. (a) What is the amount (in dlls) of the monthly fixed payment, R, of Michael's loan? (b) Construct an amortization schedule for the first four months of Michael's mortgage. Payment Number 0 1 2 3 4 tA Monthly Fixed Payment LA LA Amount of Interest LA LA tA Payment to Principal tA LA tA LA Ending BalanceQuestion 3 Compute for the effective interest rate per month Nominal rate = 22.86% compounded semi-annual
- Using the data given below, select the equation that will correctly calculate the future value of the cash flow at the end of Year 6. Use an interest rate of i =4% Year Income Expense 0 $10,000 1 $1000 2 $900 3 $800 4 $700 5 $600 6 $500 Group of answer choices {10,000 – 1,000(P/A, 4%, 6) -100(P/G, 4%, 5)} (P/F, 4%, 6) {10,000 – 1,000(F/A, 4%, 6) +100(F/G, 4%, 6)} (F/P, 4%, 6) {10,000 – 1,000(P/G, 4%, 6) +100(P/A, 4%, 6)} (F/P, 4%, 6) 10,000 – {1,000(P/A, 4%, 6) +100(P/G, 4%, 6)} (P/F, 4%, 6) {10,000 – 1,000(P/A, 4%, 6) +100(P/G, 4%, 6)} (F/P, 4%, 6)If a bank says that it has a 5% nominal interest rate, but money is compounded monthly in that bank, what is the effective annual interest rate? What is the value of an account 10 years after it started? The initial balance in the account was $5000, and the account has 5% annual interest rate that is compounded monthly.Fir a $5,000 loan repayment over 2 years at 12%. Find the monthly payment.