Payments of $3,700, due 70 days ago, and $4,200, due in 60 days, are to be replacedby payments of $4,100 due today and the balance due in 30 days. What must thesecond payment be if the payee is to end up in an equivalent financial position?Money now earns 8.80%. Use 30 days from now as the focal date. (Use 365 days ayear. Do not round intermediate calculations and round your final answer to 2decimal places.)

Time value of money states that the money with us today has more value than the same amount of money…

Answered: Payments of $3,700, due 70 days ago,…

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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Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Future Value (Payment Payment Years Interest Rate (Annual) made on last day of period) $ 243 15 12 % 5,755 10 11 75,684 7 13 168,532 11 4 Future Value (Payment made on first day of period)
Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Payment $ 183 5,155 75,084 167,932 Years 13 8 5 9 Interest Rate (Annual) 12% 11 13 4 Future Value (Payment made on last day of period) 4 Future Value (Payment made on first day of period)
One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $640 per month. You will charge 1.04 percent per month interest on the overdue balance. If the current balance is $14,860, how long will it take for the account to be paid off? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. X Answer is complete but not entirely correct. Number of months 591.60 X
Suppose you deposit D dollars at the beginning of each month into an account that pays a monthly rate of r as a decimal. Then, the balance B of the account after t months is given by B = D(1 + r) (1 + r)t − 1 r dollars. Suppose you deposit $160 at the beginning of each month into an account that pays a monthly rate of r = 0.005, which corresponds to an APR of 6%. How long does it take for the account balance to build to $2600? Report your answer to the nearest whole month. months
Payments of $3,000 due 8 months ago and $5,000 due in 8 months from now will be replaced by one equivalent payment six months from now. If money can earn 6% simple interest, what is the size of this payment? (Round final answer to 2 decimal places, no $ sign. For example, $89,123.36 input as 89,123.36) Do not round intermediate steps.
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $600 per month. You will charge 1.0 percent per month interest on the overdue balance. If the current balance is $14,820, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Number of months
One of your customers is delinquent on his accounts payable balance. You've mutuallyagreed to a repayment schedule of $660 per month. You will charge 1.06 percent permonth interest on the overdue balance.If the current balance is $14,880, how long will it take for the account to be paid off? (Donot round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $690 per month. You will charge 1.09 percent per month interest on the overdue balance. If the current balance is $14,910, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $580 per month. You will charge .98 percent per month interest on the overdue balance. If the current balance is $14,800, how long will it take for the account to be paid off? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Number of months
A loan payment of $2138 was due 43 days ago and another payment of $1474 is due 45 days from now. What single payment 90 days from now will pay off the two obligation if interest is to be 8% and the agreed focal date is 90 days from now? Answer to the nearest cent, ie two decimals. Answer: 3505.29 x The correct answer is: 3688.86
You have a balance of $12,000 for your tuition on your American Express credit card. Assume that you make no more charges on the card. Also assume that American Express charges 15% APR and that each month you make only the minimum payment of 5% of the balance. What percentage of the previous balance is paid off each month? Round the percentage to two decimal places. (Hint: Construct a formula for the balance after t minimum payments and simplify the decay factor in order to answer this question.) 3.34 × % Submit Answer Home My Assignments Request Extension
Friendly’s Quick Loans, Inc., offers you $7.75 today but you must repay $9.85 when you get your paycheck in one week (or else). a. What is the effective annual return Friendly’s earns on this lending business? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If you were brave enough to ask, what APR would Friendly’s say you were paying? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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