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APR calculation QC 2. Suppose the interest rate is 7.7% APR with monthly compounding. What is the present value of an annuity that pays $107
APR calculation
QC 2. Suppose the interest rate is 7.7% APR with monthly compounding. What is the present value of an annuity that pays $107 every 6 months for 7 years? QC 3. Suppose you invest $104 in a bank account, and five years later it has grown to $134.64 a. What APR did you receive, if the interest was compounded semiannually? b. What APR did you receive if the interest was compounded monthly? QC 4. Your mortgage has 27 years left, and has an APR of 8.284% with monthly payments of $1,449 . a. What is the outstanding balance? b. Suppose you cannot make the mortgage payment and you are in danger of losing your house to foreclosure. The bank has offered to renegotiate your loan. The bank expects to get $140,529 for the house if it forecloses. They will lower your payment as long as they will receive at least this amount (in present value terms). If current 27 -year mortgage interest rates have dropped to 5.385% (APR), what is the lowest monthly payment you could make for the remaining life of your loan that would be attractive to the bankStep by Step Solution
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