Problem 5-23 Present Value of Multiple Annuities (LGS-4) A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $1,500 per month for the next three years and then $3,000 per month for two years after that. If the bank is charging customers 8.75 percent APR, how much would it be willing to lend the business owner? (Do not round intermediate calculations and round your final answer 2 decimal places) Present value

Problem 5-23 Present Value of Multiple Annuities (LGS-4) A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $1,500 per month for the next three years and then $3,000 per month for two years after that. If the bank is charging customers 8.75 percent APR, how much would it be willing to lend the business owner? (Do not round intermediate calculations and round your final answer 2 decimal places) Present value

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2P: Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for...

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Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
Question 3: A father wants to set up a bank account that will pay his daughter $(10000) at the end-of-quarter (EOQ) 4 and $(2x1) at EOQ 8. He will fund this account by making quarterly payments of $A from the present (time zero) through EOQ 7. If the quarterly percentage rate is 4%, what is the value $A that must be deposited into the account
Question Help A bank lends some money to a business. The business will pay the bank a single payment of $183,000 in ten years time. How much greater is the present value (PV) of this payment if the interest rate is 6% rather than 5%?
Question 7 A person needs $20,000 immediately as a down payment on a new home. Suppose that she can borrow this money from her company credit union. She will be required to repay the loan in equal payments made every six months over the next 10 years. The annual interest rate being charged is 10% compounded bimonthly. What is the amount of each payment? Use the editor to format your answer
e TB MC Qu. 5-45 A small business owner visits his... A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $1,500 per month for the next three years and then $500 per month for the two years after that. If the bank is charging customers 5.5 percent APR, how much would it be willing to lend the business owner? Multiple Choice $4,046.90 $59,293.50 $24.26100 $66,000.00
Siyles Assume twwo banks have different offers to take a lone. Where the amount will be compound monthly. How much money you must pay on 10 years. Bank A Bank B Loan 75,000 5.25% 25,000 Interest Rate 5% 1. Calculate the monthly compounded amount for Bank A and B algebraically. 2. Calculate the monthly compounded amount for Bank A and B using MS excel 3.Decide which bank you will select and why. 4. find the annual rate of interest, compounded quartile will money double in 4 years?
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) 7. Your goal is to have $15,000 in your bank account by the end of eight years. If the interest rate remains constant at 3% and you want to make annual identical deposits, what amount will you have to deposit into your account at the end of each year to reach your goal? O $2,024.22 O $1,855.54 O $1,349.48 O $1,686.85 If your deposits were made at the beginning of each year rather than an at the end, what is the amount your deposit would change by if you still wanted to reach your financial goal by the end of eight years? O $49.13 O $36.85 O $66.33 O $61.41
Question Help ▼ You plan to deposit $800 in a bank account now and $500 at the end of the year. If the account earns 3% interest per year, what will be the balance in the account right after you make the second deposit? The balance in the account right after you make the second deposit will be $ (Round to the nearest dollar.) Enter your answer in the answer box.
Question 9 . If you have ATM fees each month of $3 for 5 years, what is the total cost of those banking fees? Your Answer: Answer
Question 9 Assume that Sean and Catherine only pay the minimum payment on Credit Card #2 (balance $6,500). The minimum balance is 3% of the total balance. What is their minimum monthly payment? $195 Question 10 Using the BankRate calculator and the minimum payment you calculated above, if Sean and Catherine pay the minimum payment plus an additional $25, how many months would it take them to pay off their credit card loan based on a 15.9% APR?
TERMINAL ACTIVITY PROBLEM SET Read and examine the following real-life applications of deferred annuity. 1. 2. Identify the given quantities and answer the questions that follow. Derek purchased a laptop through the credit cooperative of their company. The cooperative provides an option for a deferred payment. Adrian decided to pay after 4 months of purchase. His monthly payment is computed as P3,500 payable in 12 months. How much is the cash value of the a) What is the interest rate? b) Find the periodic rate. c) What is the deferral period? laptop if the interest rate is 8% convertible monthly? d) How much is the cash price of the laptop? Ambitžon and Passion, Our Mission Partnership Your