Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 FINACE QUESTIONS Final answer are already online but i need detailed calculations 7. The Spector Corporation buys a machine for $20,000 and expects revenue

4 FINACE QUESTIONS

Final answer are already online but i need detailed calculations

7. The Spector Corporation buys a machine for $20,000 and expects revenue of $4,770.42 per year for the next ten years. What is the expected rate of return on the machine?

8. What interest rate, compounded quarterly would you have to earn in order for it to take you twelve years to save up $200,000 by depositing $8000 in an investment at the end of each year? [the effective rate = 12.55%, the rate compounded quarterly =12%]

9. What monthly payments (made at the end of the month) would a bank demand if you were to borrow $50,000, to be repaid over three years, if the interest that is charged is 16% compounded quarterly? What would be your remaining debt at the end of two years of these payments?

10. How many years will it take you to pay off a mortgage of $100,000 if you are making monthly payments of $1434.71 and the rate of interest you are being charged is 12.3040% compounded semiannually?

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

Fundamentals Of Futures And Options Markets

Authors: John C. Hull

7th Edition

0136103227, 9780136103226

More Books

Students also viewed these Finance questions