Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The rent on a building is 20,000 a month for 10 years with the first payment due today and the first of the month after that. If the APR is 9% compounded monthly, what is the value of those rent payments?
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- Imagine a loan of $420,000. The loan is to be repaid in six years (i.e., last payment at the end of month 72). If the APR of this loan is 7.80%, what will be your monthly payments? $7,724 $7,643 $7,451 $7,323 $7,548arrow_forwardWhat is the future value of $20 a week for 10 years at 6% interest? Assume the first payment occurs at the end of this week.arrow_forwardusing excel do the following Create an amoritization schedule for a $1,000,000 loan that requires equal annual payments in each of the next 10 years. The annual rate is 6%. How much is the remaining loan balance after 5 years? Analyze the amount of each equal payment that goes towards interest and principal in each year. What do you notice?arrow_forward
- You borrow $50, 000 for 5 years. This is an amortized load, meaning that payments are the same each month, and the loan is fully paid off with final payment. The quoted interest rate (or APR) in 12% per year. What is the monthly payment?arrow_forwardFind the cost of the monthly rent for a two-bedroom apartment in 30 years, assuming an inflation rate of 3% (compounded continuously), if the current rent is $910. (Round your answer to the nearest cent.) Need Help? Read Itarrow_forwardFind the cost of the monthly rent for a two-bedroom apartment in 30 years, assuming an inflation rate of 5% (compounded continuously), if the current rent is $640. (Round your answer to the nearest cent.) $arrow_forward
- Determine the monthly payment if you take out a loan for $ 200000 with an annual interest rate of 7% and the term of the loan is 20 years. Monthly Payment =arrow_forwardwhat is the present value of a loan that calls for the payment of $500 per year for six years if the discount rate is 10 percent and yne forst payment will be made one year from now ? how would your answer change if $500 per year occured for ten years ?arrow_forwardPaying rent and insurance premiums are examples of an annuity due. Suppose you have to pay a monthly rents of $1,800 for an apartment studio in LA at the beginning of every month. The annual interest rate is 4%. What comes closest to the present value of the monthly rents if you intend to live there for 24 months and the rent is not expected to change? 28540 45050 43000 41600 000arrow_forward
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