When Dan signed a three-year contract as a manager, the company allowed reimbursement of $420 at the end ofevery month for his car expenses. At the time the contract was signed, money was worth 9.61% compounded monthly(a) What value did the expense reimbursement provision have when the contract was signed?(b) What is the outstanding value of the reimbursement after the 10th payment?(a) The value was $(Round to the nearest cent as needed Round all intermediate values to six decimal places as needed.)(b) The outstanding value is S(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

The PV of a contract refers to the value of the future cash flows of the contract after they have…

Answered: When Dan signed a three-year contract…

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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Mr. Smith's annual salary is $230,000.  He has been on his job for the past four years.  His current pay stub from 6/30 of this year shows YTD gross income of $113,712, the previous year's W-2 shows $210,549 AND the year before that his W-2 shows $198,782. What is the base monthly income you would put on the loan application?
K Jie purchased a computer priced at $1316.21, financing it by paying $60.16 on the date of purchase, and signing a contract to pay equal monthly payments over the next seventeen months. If the terms of the contract state that interest is calculated at 9.4% compounded monthly, how much does Jie have to pay at the end of each month? ... Jie must make payments of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 2
Tarell purchased a car for $54,700; he paid 5% of the cost as a down payment and financed the balance amount at 3.4% compounded semi-annually for 5 years. a) What is the size of payment made at the end of every month to settle the loan? $ b) What was the amount of interest charged? $ TVM Solver
An employee obtained a loan of P486,555 at the rate of 20.774% compounded bimonthly to build a house. Determine the following: 1.Nominal interest rate compound twice a month %. 2.Amount he has to pay at the end of thw 15 years? 3.Equal amount to be paid at the end of 5th and 7th year to be fully paid.
An employee obtained a loan of P486,555 at the rate of 20.774% compounded bimonthly to build a house. Determine the following: Nominal interest rate compound twice a month %. Amount he has to pay at the end of thw 15 years? Equal amount to be paid at the end of 5th and 7th year to be fully paid.
On January 1, Frank bought a used car for $7200 and agreed to pay for it as follows: down payment; the balance to be paid in 36 equal monthly payments; the first payment due February 1; an annual interest rate of 9%, compounded monthly. (a) What is the amount of Frank’s monthly payment? (b) During the summer, Frank made enough money to pay off the entire balance due on the car as of October 1. How much did Frank owe on October 1?
A friend purchased a new sound system that was selling for $4200: He agreed to make a down paymentof $1000 and to make 24 monthly payments of $160; beginning one month from the time of purchase.What is the eective interest rate being paid?
Jie purchased a computer priced at $891.06, financing it by paying $60.38 on the date of purchase, and signing a contract to pay equal monthly payments over the next fifteen months. If the terms of the contract state that interest is calculated at 11.9% compounded monthly, how much does Jie have to pay at the end of each month? Jie must make payments of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Mr. Owen is buying a new washer/dryer for $2459 at Home Depot. There is 7.5% sales tax added to his purchase. He plans to charge this to his Home Depot credit card, which earns 19.5% APR. He wants to pay $245 per month to the credit card. Fill in the amortization table to calculate how long it will take to pay off the loan. Month Balance Interest Amt. Applied to Principal New Balance 1 $2441.39 2 $2441.39 3 $36.34 $208.66 $2027.40 4 $2027.40 $32.95 $212.05 $1815.35 8 $226.18 $932.11 $231.29 $3.76 ----
If you paid $68 to a loan company for the use of $1043 for 39 days, what annual rate of interest did they charge? (Assume a 360-day year.)
An individual entering the workforce plans to make monthly contributions to a retirement account in the amount of $250 beginning at the end of next month and continuing for the next 40 years. (a) If the retirement account earns 8% compounded monthly, find the amount expected in the retirement account at the end of 40 years. Round to the nearest penny. (b) If the retirement account charges a maintenance fee of 2% each year, the net interest rate earned by the retiree becomes 6%. Find the amount expected in the retirement account. Round to the nearest penny. (c) Compare the answers from part (a) and part (b) above to determine the total percent lost by the retiree due to the fee. Round your answer to two decimal places. % lost
On September 8, Bert Sarkis started an annuity. He arranged to have $60 deducted from his end-of-month paychecks. The money would earn 7% interest compounded monthly. (a) Find the future value of the account on December 1 using an Amortization Formula. (Round your answer to the nearest cent.) $ 10280 X (b) Find the future value of the account on December 1 by applying the Compound Interest Formula to each payment individually. (Round your answer to the nearest cent.) 5.75 X (c) Find Bert's total contribution to the account. $ 2356.176 x (d) Find the total interest. (Round your answer to the nearest cent.) $ 7923.824 X

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