Question
Answer each of the three independent situations, and be sure to show your work. Round all answers to nearest whole number or %. (A)
Answer each of the three independent situations, and be sure to show your work. Round all answers to nearest whole number or %. (A) Brock purchases equipment that has a fair value of $50,000. Brock pays $10,000 as a downpayment, and also issues a note with principal of $60,000, and pays interest of 1% annually, with the principal due in 10 years. What is the market rate for the note? (round to the nearest .1%) N= = PMT= FV= PV= Work (if necessary) Answer (B) Bryce Manufacturing is going to issue a $10,000 bond on Jan. 1, 2020. The bond pays interest of 6%, payable semi-annually on July 1 and January 1. The bonds mature in 10 years. The market rate of interest is 4% at the time of issue. How much did Bryce receive from the issuance of the bonds? N= |= PMT = I Work (if necessary) Answer FV = PV= (C) Brennan is wanting to retire at 65 and have $3 million dollars at that point. Right now Brennan is 25 and currently has $200,000 invested in the market. If Brennan can earn 8%, how much will Brennan need to invest each year (end of the year) to reach his goal? N= Work Answer == PMT= FV = PV=
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started