Question
I need the answers checked to these and also the work shown as far as the steps taken to achieve the answer: 6. Michael wants
I need the answers checked to these and also the work shown as far as the steps taken to achieve the answer:
6. Michael wants to have $20,000 in an investment account seven years from now. The account will pay 0.4 percent interest per month. If Michael saves money every month, starting one month from now, how much will he have to save each month? $200.80
7. Intel recently purchased a new office building costing $200 million. The firm financed
this purchase at 8.25 percent interest with monthly payments of $1,839,789. How many years will it take the firm to pay off this debt? 16.73 Years
8. What is the effective annual rate of 5.25 percent compounded monthly? 5.38% @ 12 compounding periods
9.Global Enterprises has just signed a $3 million contract. The contract calls for a payment of $.5 million today, $.9 million one year from today, and $1.6 million two years from today. What is this contract really worth if Global Enterprises can earn 12 percent on its money? 2.58 Million
10. I have $72,000 in my bank account today. The bank manager told me that I will have $100,000 money in five years if I keep the money in this account and don't touch it (meaning that I won't withdraw from it or don't add more into it). The account pays me daily interest. What is the APR for my account? 6.57%
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