QUESTION 1 Bobby took out a loan of $1200 at 4.5% compounded semiannually and paid it off after 4 months. How much did he have to pay to retire the loan?
QUESTION 1 Bobby took out a loan of $1200 at 4.5% compounded semiannually and paid it off after 4 months. How much did he have to pay to retire the loan?
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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QUESTION 1
Bobby took out a loan of $1200 at 4.5% compounded semiannually and paid it off after 4 months. How much did he have to pay to retire the
loan?
QUESTION 2
How much must you pay now to the nearest dollar for a certificate of deposit that earns 4% annually compounded monthly if it will be warth
$10,000 in 5 years?
QUESTION 3
Marge wants to accumulate $2500 for a down payment on a car. If she wants to be able to buy the car in 6 months when she gets a raise, how
much should she put each month into an account earning 0.25% per month to achieve her gaol? Round to the nearest penny if needed.
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