Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Leven Corporation negotiated a short-term loan of $685,000. The loan is due in 10 months and carries a 6.86 interest rate. Use simple interest to calculate the total amount of thetioan. If necessary, round the answer to the nearest cent.
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- The payment necessary to amortize a 5.5% loan of $82,000 compounded annually, with 8 annual payments is $12,944.85. The total of the payments is $103,558.80 with a total interest payment of $21,558.80. The borrower ma larger payments of $13,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the paymen and (c) the amount of interest saved.arrow_forwardDetermine the annual financing cost of a 1-year (365 day), $13,000 discounted bank loan at a stated annual interest rate of 9.0 percent. Assume that no compensating balance is required. Round your answer to two decimal places. %arrow_forwardMiller borrows $370,000 to be paid off in four years. The loan payments are semiannual with the first payment due in six months, and interest is at 8%. What is the amount of each payment? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1). Multiple Choice О $62,451 О $118,400 $122,549 О $54,955arrow_forward
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