Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Business Math - Annuities Please answer correctly and I will thumbs up! If money can earn 8.1% compounded monthly, how much more money is required

Business Math - Annuities

Please answer correctly and I will thumbs up! image text in transcribedimage text in transcribedimage text in transcribed

If money can earn 8.1% compounded monthly, how much more money is required to fund an ordinary annuity paying $330 per month for 30 years than to fund the same monthly payment for 20 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) $ more is required This problem demonstrates the dependence of an annuity's present value on the size of the periodic payment. Calculate the present value of 15 end-of-year payments of: (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. $2,300 b. $3,300 c. $4,300 Use a discount rate of 6.3% compounded annually. After completing the calculations, note that the present value is proportional to the size of the periodic payment. A 18-year loan requires month-end payments of $627.33 including interest at 9.2% compounded monthly. What is the balance on the loan after half of the payments have been made? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Balance on the loan

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

Grow The Pie How Great Companies Deliver Both Purpose And Profit

Authors: Alex Edmans

1st Edition

1108494854,1108849482

More Books

Students also viewed these Finance questions

Question

Answered: 1 week ago

Answered: 1 week ago