Question
2a. An insurance company is offering quarterly payments of $820 for the next 9 years in exchange for a one-time payment of $18,000 today. What
2a. An insurance company is offering quarterly payments of $820 for the next 9 years in exchange for a one-time payment of $18,000 today. What is the per annum rate of return on this offer? (Round to nearest 100th of a percent and enter your answer as a percentage, for example, as 12.34)
Answer:
2b. Poor Dog, Inc. borrowed $155,000 from the bank today. They must repay this money over the next 5 years by making monthly payments of $3775. What is the interest rate on the loan? (Round to nearest 100th of a percent and enter your answer as an annual percentage rate for example, as 12.34)
Answer:
2c. What would be the sum of all the payments made (i.e., total $s paid over the 30 years, ignoring time value) on the following house mortgage? Loan amount is $195,000 with an interest rate of 7.0% per annum, term of 30 years, and monthly payments. (Round to nearest penny and enter, for example, as 123456.78)
Answer:
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