Kyle was supposed to pay Cassandra $5,200, 6 months ago, and $1,880, 5 months from now. If he wants to reschedule these payments with two payments, one payment of $2,300 today and the balance 3 months from now, calculate the balance amount. Assume that the simple interest charged is 4.75% p.a. and the agreed focal date is 3 months from now. Round to the nearest cent

Kyle was supposed to pay Cassandra $5,200, 6 months ago, and $1,880, 5 months from now. If he wants to reschedule these payments with two payments, one payment of $2,300 today and the balance 3 months from now, calculate the balance amount. Assume that the simple interest charged is 4.75% p.a. and the agreed focal date is 3 months from now. Round to the nearest cent

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Imagine you borrow $490 from your roommate, agreeing to pay her back $490 plus 7 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.49 percent. What is the total dollar amount you will have to pay her back in year? What percentage of the interest payment is the result of the real rate of interest? (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 17.54 or 17.54%.)
Imagine you borrow $560 from your roommate, agreeing to pay her back $560 plus 8 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.00 percent. What is the total dollar amount you will have to pay her back in a year? What percentage of the interest payment is the result of the real rate of interest? (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 17.54 or 17.54%.) Excol Tompleto
magine you borrow $500 from your roommate, agreeing to pay her back $500 plus 12 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 5.94 percent. What is the total dollar amount you will have to pay her back in a year? What approximate percentage of the interest payment is the result of the real rate of interest? Use the simplified Fisher equation. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 17.54.)Excel Template(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you’ve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Total dollar amount $enter a dollar amount rounded to 2 decimal places Approximate…
Dan borrowed $1496.00 today and is to repay the loan in two equal payments. The first payment is in three months, and the second payment is in eleven months. If interest is 7% per annum on the loan, what is the size of the equal payments? Use today as the focal date. The size of the equal payments is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A contract requires that Bob makes payments of $2946 and $3568 to Jim 24 and 39 months respectively. Bob would like to change the payment structure to a payment of $1590 today, and a second payment made 36 months from today. If the two sets of payments are economically equivalent, and the interest rate is 5.2% compounded quarterly, then what is the amount of the second payment? Give your answer rounded to the nearest cent.
If you borrow $2,900 and agree to repay the loan in six equal annual payments at an interest rate of 11%, what will your payment be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will your payment be if you make the first payment on the loan immediately instead of at the end of the first year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
You MUST use the TI BA II calculator features (N, I/Y, PV, PMT, FV, AMORT) Matt agreed to make two payments - a payment of $2,000 due in nine months and a payment of $1,500 in a year.If Matt makes a payment of $1,800 now, when should he make a second payment of $1,700 if money is worth 8% compounded quarterly?
Dan borrowed $994.00 today and is to repay the loan in two equal payments. The first payment is in five months, and the second payment is in ten months. If interest is 7% per annum on the loan, what is the size of the equal payments? Use today as the focal date. The size of the equal payments is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Jane was due to make loan payments of S1805 seven months ago, $4310 four month ago, and S534 in five months Instead, she is to make a single payment today If money is worth 87% and the agreed focal date is today, what Is the Size of the replacement payment?
You plan to borrow $25,000 at a 3.4% annual interest rate compounded annually. The terms require you to amortize the loan with 5 equal payments each made at the end of each year. You would like to construct an amortization schedule showing details of the payments. Answer the following questions, and choose the closest answer from the possible choices following each question: 1.To find the interest repaid in period 1 only in the financial calculator amortization worksheet, you enter P2 = 2.To find the interest repaid in period 1 only in the financial calculator amortization worksheet, you enter P1 = 3.How much total interest is repaid in periods 1 to 2?
Suppose your firm has an obligation to pay an annuity with 18 annual payments of $80,000. The first payment is due two years from today. Assume all interest rates are 11.5%. Write down the information requested on your answer sheet. What is the duration of the obligation? Please carry out intermediate steps further but in your final answer be accurate to and express your FINAL answer as accurate to the nearest 4 decimal places. Please do NOT answer MORE than 4 decimal places...round your answer to the nearest 4 decimal places.
Mr. Bean wants to borrow $8,200 for three years. The Interest rate Is 5.5% compounded monthly. a. What quarterly payments are required on the loan? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PMT $ b. What will be the balance owed on the loan at the start of the third year? (Round PMT calculation to 2 decimal places. Do not rou other intermediate calculations and round your final answer to 2 decimal places.) Balance owed

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