Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 19, 2024

I need help with this equation. Assume a bank loan requires an interest payment of $85 per year and a principal payment of $1,000 at

I need help with this equation.

Assume a bank loan requires an interest payment of $85 per year and a principal payment of $1,000 at the end of the loan's eight-year life. What would be the present value of this loan if it carried an 8.5% interest rate?

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

Recommended Textbook for

Fundamentals of Investment Management

Authors: Geoffrey Hirt, Stanley Block

10th edition

0078034620, 978-0078034626

More Books

Students also viewed these Finance questions

Question

Life insurer actuaries use several assumptions in calculating reserves for future policy benefits. Which one of the following represents the percentage rate of policies that are terminated for...

Answered: 1 week ago

Question

Graded Probkems: 1. Find the present value cfthe following cash ow streams under the follewmg cenditicns: a. The appropriate discount rate is T94}. b. What is the present value of each each ew stream...

Answered: 1 week ago

Question

Bonds will sell at: Multiple Choice A premium if the stated rate exceeds the market rate. Their face value if the stated rate is equal to the nominal rate. Their face value unless the stated rate is...

Answered: 1 week ago

Question

★★★★★

A teacher traces a small circle on the palm of a kindergartener's hand to let him know it is time for free play. What type of disability does this child most likely have? A. Traumatic Brain Injury B....

Answered: 1 week ago

Question

★★★★★

Refer to the Journal of Behavioral Decision Making (January 2007) study of the effect of guilt emotion on how a decision maker focuses on a problem, Exercise 3.48 (p. 159). The results (number...

Answered: 1 week ago

Question

★★★★★

Determine whether the vector field is conservative. If it is, find a potential function for the vector field. F(x, y) = 15yi - 5xyj

Answered: 1 week ago

Question

★★★★★

Let A, B, and C be three events on a sample space . Examine, possibly with the aid of Venn diagrams, which of the following results are always true: (i) (A AB)B = AB; (ii) (A B)C = ABC; (iii) (AB)C...

Answered: 1 week ago

Question

★★★★★

Elliot Karlin is a 35-year-old bank executive who has just inherited a large sum of money. Having spent several years in the banks investments department, hes well aware of the concept of duration...

Answered: 1 week ago

Question

★★★★★

Question 20 4 pts Alter Inc. plans to grow sales at a 10% annual rate for 2016. Interest expense in 2016 is expected to remain at $3,000. Assuming that income statement and balance sheet...

Answered: 1 week ago

Question

★★★★★

true or false. The electorate consists of only the individuals who voted for the winner in an election

Answered: 1 week ago

Question

★★★★★

There are several major obstacles that may prevent action from being taken to improve the effectiveness of OSHA. These obstacles include inadequate OSHA funding lack of government support for OSHA,...

Answered: 1 week ago

Question

★★★★★

A = Annual demand = 5 0 0 disk drives per year. N = Number of working days in a years at Applied Tech = 2 5 0 days per year H = Holding Cost per year for each disk drive = $ 1 0 / drive / year S =...

Answered: 1 week ago

Question

★★★★★

Ithaca Transport serves a variety of customers, from individual consumers needing a single item delivered, to large manufacturers or wholesalers needing to ship goods to the other side of the world....

Answered: 1 week ago

Question

★★★★★

dentify one challenge or opportunity that you will address as a consultant for medtronic. In your speaker notes, explain the basis or rationale behind this selection. Remember, you are creating a...

Answered: 1 week ago

Question

★★★★★

At the end of the first year of operations (December 31, 2021), the following financial data for APEC Aerospace Corporation are available: Accounts Payable Accounts Receivable Cash $ 33,630 10,000...

Answered: 1 week ago

Question

★★★★★

Walker & Campsey wants to invest in a new computer system, and management has narrowed the choice to Systems A and B. System A requires an up-front cost of $100,000, after which it generates positive...

Answered: 1 week ago

Question

★★★★★

In the circuit shown in Figure 4, a battery supplies a constant voltage of 40 V, the inductance is 2 H, the resistance is 10, and l(0) = 0. (a) Find l(t). (b) Find the current after 0.1s.

Answered: 1 week ago

Question

★★★★★

Assume that on October 1, 2012, Big Company borrowed $10,000 from the local bank at 6 percent interest. The note is due on October 1, 2013. How much interest does Big pay in 2012? How much interest...

Answered: 1 week ago

Question

★★★★★

What are the goals of successful companies?

Answered: 1 week ago

Question

★★★★★

If Best Co. issued 10,000 shares of $20 par value common stock for $30 per share, what amount is added to the Common Stock account? What amount of cash is received?

Answered: 1 week ago

Previous Question Next Question