Question
1.You win an annuity due annuity that pays $100 a week for 200 weeks. Current interest rates are 5.4 percent APR with weekly compounding. What
1.You win an annuity due annuity that pays $100 a week for 200 weeks. Current interest rates are 5.4 percent APR with weekly compounding. What is the present value of the annuity? Show your work.
2.You buy a house whose purchase price is $400,000. You put $80,000 as a down payment and the other $320,000 must be financed. You take out a 30 year fixed rate mortgage at 4 percent APR with monthly compounding.What is the amount of the monthly mortgage payment? Show your work.
3.A seasoned coupon Treasury Bond currently has 12 years to maturity, a 1000 dollar face value, and a coupon rate of 7 percent (paid semi-annually). The current yield to maturity on the bond is 5 percent APR (compounded semi-annually). What is the price of the bond? Show your work.
please provide the formulas used and full steps for equations thanks!
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