Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. What is the present value of 52 monthly cashflows of $212 each starting today if the interest rate is 3.3% per year monthly compounded?

1. What is the present value of 52 monthly cashflows of $212 each starting today if the interest rate is 3.3% per year monthly compounded? Round to the nearest cent.

2. If you take out an amortized loan of $35,000 with a 9 year term and 6.8% interest rate, what are the annual payments you need to make? Round to the nearest cent.

3. Suppose you take out a $15,000 7-year balloon loan from a bank at an interest rate of 6.9%. What will be the balloon payment at the end of the loan term? Round to the nearest cent.

4. You own a 28-year, 4.1% annual coupon bond with $1,000 face value. If the yield to maturity is 5%, how much is it worth? Round to the nearest cent.

5. You make a one-time $2,604 deposit into an account which pays 2.6% compounded weekly. If you don't touch this account for 6 years, how much interest will the account generate during that time? Round to the nearest cent.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sport Finance

Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello

4th Edition

1492559733, 978-1492559733

More Books

Students also viewed these Finance questions