Question
Answer the following finance questions: 1. If you lend $1,000 to a friend for 5 years at an interest rate of 2%, how much will
Answer the following finance questions:
1. If you lend $1,000 to a friend for 5 years at an interest rate of 2%, how much will she owe you in 5 years? Round to the nearest cent.
2. If you borrow $10,000 for 10 years at an interest rate of 5%, what are the annual payments you'd have to make to pay it off? Round to the nearest cent.
3. You are about to buy a Tesla Model 3 for $38,990. If you pay 5% down and finance the rest at a 5.0% rate for 3 years, what will be your monthly payments? Round to the nearest cent
4. Consider a zero-coupon bond with a $100 face value which matures in 2 years. What is the value of this bond if its yield to maturity is 4.0%? Round to the nearest penny.
5. A zero-coupon bond with a 2-year maturity and face value of $1,000 is trading at $975. What is this bond's yield to maturity? Round to the nearest tenth of a percent (e.g. 4.32% = 4.3).
6. On August 18, 2017, Tesla issued 8-year 5.3% bonds with face value of $1.8 billion and paying semi-annual coupons. How much does Tesla pay to its bondholders every six months? Answer in millions, rounded to two decimal places (e.g., $4.5 million = 4.50)
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