(d)Candice Houston has a $ 24,900 debt that she wishes to repay 6 years from today; she has $ 14,847 that she intends to invest forthe 6 years. What rate of interest will she need to earn annually in order to accumulate enough to pay the debt? (Round answer toO decimal places, e.g. 7%.)Rate of intereste Textbook and Media

Investment Amount $13,847 Furture Value $24,900 FV = P(1+r/n)^ntWhere FV =Future ValueP =…

Answered: (d) Candice Houston has a $ 24,900 debt…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1PROB

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Sarah graduated from college with $29000 in student loan debt. The annual rate on her loans is 6 percent simple interest, and she will make monthly payments for 10 years. What is the remaining balance on her loan after five years, or 60 months? (Hint: Use the amortization function on your financial calculator or Excel Worksheet 5.6.) O $14500 O $16654 O $9682 $19318
ASAP
Solve on the paper onlys Q) At the end of year 5 Joe starts to withdraw $14500 from his savings account. If he takes out the same amount each year and the interest rate is 14%, what was Joe's initial investment assuming the account will be depleted at the end of year 25
Andre Castello owns a savings account that is paying 2.5% interest compounded annually His current balance is $7.598.42. How much interest will he earn over 5 years if the rate remains constant? Select one: a. $998.49 b. $8596.91 c. $949.80 d. $882.52
9. Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Jacob needed money for some unexpected expenses, so he borrowed $2,138.41 from a friend and agreed to repay the loan in three equal installments of $800 at the end of each year. The agreement is offering an implied interest rate of . Jacob’s friend, Devan, wants to go to business school. While his father will share some of the expenses, Devan still needs to put in the rest on his own. But Devan has no money saved for it yet. According to his calculations, it will cost him $31,897 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $3,800 at the end of every year in a mutual fund, from which he expects to earn a fixed 6% rate of return. It will take approximately for Devan to save enough money to go to business school.
A3) Finance Ahmad deposits $1,200 in her bank today. If the bank pays 4 percent simple interest, how much money will she have at the end of five years? What if the bank pays compound interest? How much of the earnings will be interest on interest
A person decides to pay at the beginning of each semester for 6 years the sum of $3315. Calculate the interest rate compounded semi-annually that will have to be credited on these payments so that she can accumulate the sum of $51,803. a. 4.6816% b. (93632%, 2) c. (8%, 2) d. 8% What would be answer ?
Repaying a Loan While Mary Corens was a student at the University of Tennessee, she borrowed $10,000 in student loans at an annual interest rate of 10%. If Mary repays $1,300 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number. year(s)
While Mary Corens was a student at the University of Tennessee, she borrowed $15,000 in student loans at an annual interest rate of 10%. If Mary repays $1,800 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number. ________year(s)
Jasmin has a mortgage of $296,000 through her bank for property purchased. The loan is repaid by end of month payments of $2,460.61 with an interest rate of 6.36% compounded monthly over 16 years. What is the interest paid in the 3rd year of the mortgage? Enter a POSITIVE VALUE for the answer, rounded to two decimal places. P1 = 260,730. X P2 = Interest paid in 3rd year Submit Question = 273,240. X $ 17,017.5 (enter a positive value)
Sara wants to have $530,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 9%, to ensure that she has $530,000 in 18 years time? OA. $112,357 OB. $202,243 OC. $119,492 O D. $157,300
Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.

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