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12. Exactly 3 years ago, Jantzen deposited $1,250 into an account that paid interest of 4.50% p.a. If today, the interest rate on this account
12. Exactly 3 years ago, Jantzen deposited $1,250 into an account that paid interest of 4.50% p.a. If today, the interest rate on this account increases to 5.5% p.a., and if that rate continues for the next 15 years, how much money will Jantzen have in his account exactly 15 years from today? a. $3490.25 b. $4023.51 c. $4328.12 d. $3748.03 e. $4476.32 13. Ryo and Tallie are shopping for furniture. They just selected a living room set that costs $7,854.00 (including tax and delivery fees). The furniture store has offered to accept payments of $205.00 per month for the next 48 months (with the first payment due exactly one month from today). What is the nominal annual rate of interest (i.e., the p.a. rate) that the furniture store is charging Ryo and Tallie (expressed as a percent and rounded to 2 decimal places)? a. 13.41% b. 11.53% c. 14.12% d. 10.84% e. 9.48% 14. Exactly six years ago, Xen borrowed $325,000 to buy a house. The fixed annual interest rate on the 30 year loan is 4.90% p.a. The loan requires monthly payments, the first payment was made exactly one month after Xen bought the house, and Xen has made every payment for the past six years on time. Because interest rates have recently decreased, Xen is considering refinancing the loan. Assuming that Xen just made the 72nd payment on the loan, what is the remaining balance on the loan (i.e., the amount that Xen would need to refinance to completely pay off the current loan)? a. $285,236.60 b. $278,361.82 c. $271,367.55 d. $266,147.84 e. $291,783.29 15. Your neighbor offers you an investment opportunity, which will pay a single lump sum of $2,000 seven years from today. The investment requires a single payment of $1,500 today. The return on the investment is % a. 4.195 b. 4.729 c. 5.361 d. 5.922 e. 6.584
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