Question
Hi, I am struggling with these questions, my exam is tomorrow, help would literally be appreciated! Thank you so much in advance! 1) To make
Hi, I am struggling with these questions, my exam is tomorrow, help would literally be appreciated!
Thank you so much in advance!
1) To make loan amortization schedule, we must first compute which of the following:
a) amount of each loan payout.
b) the total amount of interest that would be paid over the life of the loan
c) total amount of all the payments.
d) amount of interest that would be paid each period
2) You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000.
Your annual interest rate is 10% and you intend to pay for the car over five years. What will be your monthly payment? (Round intermediate calculation to four decimal places. Round the final answer to the nearest of two decimals.)
a) $637.41
b) $566.67
c) $433.33
d) $552.42
3) Carol Jenkins, a lottery winner, will receive the following payments over the next seven years. If she can invest her cash flows in a fund that will earn 9.5 percent annually, what is the present value of her winnings? (Round answer to 2 decimal places, e.g. 15.25.)
Year 1 $213,000
Year 2 $284,000
Year 3 $225,000
Year 4 $275,000
Year 5 $288,000
Year 6 $414,000
Year 7 $598,000
Present value of investment .............
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