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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Suppose you borrowed $15,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. by how much would you reduce the amount you owe at the end of the first year? (in other words, how much of the principal anount of the loan have you paid off)
A. $2,404.91
B $2,531.49
C. $2,930.51
D. $2,790.96
E. $2,658.06
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- 5. A loan of £2,000 is to be repaid over 7 years with equal annual payments at the end of each year. The interest rate is 6.5% p.a. effective. (a) Draw up the loan schedule (b) What payment makes the outstanding balance drop below £1,500? (c) What is the outstanding balance after 4 payments? After the first 4 payments the individual needs to borrow another £1,000. It is agreed that the new outstanding balance will be repaid in 4 more years with quarterly installments. The first installment is P and then they increase by £10 per quarter. (d) Find P.arrow_forwardCan you help me to find the full repayment for this question, please?arrow_forward2. Problem 5.17 (Effective Interest Rate) еВook You borrow $225,000; the annual loan payments are $30,017.40 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. %arrow_forward
- Please Provide Answer with calculationarrow_forward1.5 Suppose you would like to retire in 15 years. To save for retirement, you deposit an amount A into the bank at the beginning of the next 180 months. After that period, you would like to withdraw $1,000 at the beginning of the following 300 months. Assume a nominal yearly rate of 7.5% compounded monthly. What amount does A have to be?arrow_forwardTHANKS FOR THE HELPPP!!!arrow_forward
- Suppose you borrowed $20,000 at a rate of 9.2% and must repay it in 5 equal installments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you have made the first payment? O a. $16,000.00 O b. $17,106.89 Oc. $14,831.44 O d. $16,671.44 Oe. $15,266.89arrow_forwardSuppose you borrowed $25, 000 at a rate of 9.0% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be? Select the correct answer. a. $7, 703.52 b. $7, 729.92 c. $7, 716.72 d. $7, 736.52 e. $7,723.32arrow_forwardSuppose you borrowed $38,000 at a rate of 9.0% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be? Select the correct answer. a. $11,735.41 b. $11,723.41 c. $11,726.41 d. $11,732.41 e. $11,729.41arrow_forward
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