You invest $6780 in a floating rate guaranteed investment certificate. For the first 30 months you earn 4.9% compounded semi-annually. For the next 8 months you earn 4.32% compounded monthly. What is the approximate maturity value of the certificate? A. 7857 B. 7775 C. 7875 D. 7785
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You invest $6780 in a floating rate guaranteed investment certificate. For the first 30 months you earn 4.9% compounded semi-annually. For the next 8 months you earn 4.32% compounded monthly. What is the approximate maturity value of the certificate?
| A. |
7857
|
|
| B. |
7775
|
|
| C. |
7875
|
|
| D. |
7785
|
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- 1 a) A security pays you an annual amount of $900 for 10 years. The seller of the security requires the first payment to be made today and the last payment to be made 9 years from today.Interest rate on this security is 5.75 percent per annum. Calculate the present value rounded to2 decimal places. b) An investment promises to pay into an account that pays you 6 percent annually, $150 per month for the next twenty-two years. Suppose the first deposit into the account is made onemonth from today what is the value of the amount which will be in the account at the end of thirty years? Rounded to 2 decimal placesSuppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e) daily (365 days)? (f ) continuously? (Note: Report your answers accurate to four decimal places –e.g., 0.0987 or 9.87%.)A KIMEP BANK quotes you and interest rate of 12,5% per annum with semiannual compounding. What is the equivalent rate with annual compounding and continuous compounding? Choose the right answer: a. The rate with annual compounding is 12.89% and the rate with continuous compounding is 12.12% b. The rate with annual compounding is 12.12% and the rate with continuous compounding is 9.57% c. The rate with annual compounding is 10.28% and the rate with continuous compounding is 12.89% d. The rate with annual compounding is 10.38% and the rate with continuous compounding is 12.12%
- In an amortization table for a four-year loan of $45,280, given an interest rate of 11%, how much will the principal payment be in the second year if the loan calls for equal payments? Select one: a.$15222.90 O b.$10,448.32 O c.$15,593 d.$10,671.69assume a $175,000 mortgage loan and 10-year term. The lender is charging an annual interest rate of 6 percent and 4 discount points at origination. a. What is the monthly payment Assuming that it is based on an amortization period of 30 years? b. What will be the required balloon payment at the end of the tenth year? c. What is the effective borrowing cost on the loan if it is held to maturity? Give typing answer with explanation and conclusionSuppose that you have just borrowed $225,000 using an adjustable-rate mortgage. Suppose that the payment is scheduled to adjust at the end of every year. Use the information provided below to calculate the year 2 payment for this loan. Index rate: Margin: Periodic Cap: Lifetime Cap: Amortization: $1,107 $1,160 $1,296 $1,178 1-year CMT (Currently 1.01% and will increase to 2.06% at the end of the 1st year) 275 basis points 2 percentage points 5 percentage points 30 years with monthly payments and compounding
- 5. An investor buys a 150 TL investment fund from the bank and sells it for 165 TL after 25 days. What is the % of Annual Effective Return? 6. If the monthly (periodically) interest is 1% for a one-month deposit, what is the Annual Effective Return?1.A security pays you an annual amount of $900 for 10 years. The seller of the security requires the first payment to be made today and the last payment to be made 9 years from today. Interest rate on this security is 5.75 percent per annum. Calculate the present value rounded to 2 decimal places. 2.An investment promises to pay into an account that pays you 6 percent annually, $150 per month for the next twenty-two years. Suppose the first deposit into the account is made one month from today what is the value of the amount which will be in the account at the end of thirty years? Rounded to 2 decimal places. 3.What will be the present value, if $5,400 is discounted back 4 years at an interest rate of 3% compounded semi-annually? 4.You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have negotiated a nominal interest rate of 12 percent and you plan to pay-off the car over five years. What is the monthly payments you must make on this loan?1. A security pays you an annual amount of $900 for 10 years. The seller of the security requires the first payment to be made today and the last payment to be made 9 years from today. Interest rate on this security is 5.75 percent per annum. Calculate the present value rounded to 2 decimal places. 2. An investment promises to pay into an account that pays you 6 percent annually, $150 per month for the next twenty-two years. Suppose the first deposit into the account is made one month from today what is the value of the amount which will be in the account at the end of thirty years? Rounded to 2 decimal places. 3. What will be the present value, if $5,400 is discounted back 4 years at an interest rate of 3% compounded semi-annually?
- A payment stream consists of a payment of $1600 today, a payment of $2400 in 3 months, and a payment of $2600 in 21 months. What is the fair market value of this payment stream 18 months from today? Assume a compound interest rate of 6.5% compounded quarterly. Today + $1600 FV1 = $ PV3 = $ Start by calculating the following values on the time diagram: FV2 = $ 3 Months The fair market value of this payment stream is: Total = $ Time Value of Money Solver $2400 Enter the given values. 0 N: = 0 Number of Payment Periods 1:% = 0 Annual Interest Rate as a Percent PV: = Present Value PMT: = 0 Payment FV: = Future Value P/Y: 0 12 V Payments per Year C/Y: 12 V Compounding Periods per Year PMT: = END € Solve Solve Solve Solve 18 Months Solve FV2 FV1 + PV3 Total 21 Months $2600Given an interest rate of 8.5 percent per year, what is the value at date t = 8 of a perpetual stream of $1,900 payments with the first payment at date t=14? Multiple Choice O $13,701.13 O $14,865.72 O $15,163.04 $22,452.94 $14,568.41ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? 4 5 6 27 28 29 C. Suppose you invest St $ 570 monthly. What is the future value of the investment in 29 years, if interest at 5% is compounded monthly? Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A W +