Question
I need this now please.. 1 - Determine theequal, annual,end-of-year payment required over the life of the following loans to repay them fully during the
I need this now please..
1 -Determine theequal, annual,end-of-year payment required over the life of the following loans to repay them fully during the stated term.
LoanPrinciple ($)Interest RateType of Loan (Yrs)Annual Payment ($)
A10,0001017__________
B20,000157__________
2 -You are considering the purchase of a BMW M5. You will borrow the money from BMW Financial Services. The terms of the deal are outlinedbelow:
BMW M5
RWD, 500hp,0-100 in 4.7s
MSRP= $90,000
Term= 48 months
APR= 4%
Down Payment= $0
Monthly Payments= $2,032.11
The amortized loan payments are a blend of interest and principal. What is the total amount of interest you would pay over the life of theloan? Assume that taxes are zero.
What is the total amount of interest you would pay over the life of theloan?
$(Round to the nearestdollar.)
3 -The Shelby Cobra retails for $50,209 (all taxesincluded). What are the monthly loan payments for the car if you make a down payment of $4,343, the term is 2 years and the APR is 9%? (Car loan payments are made at the end of eachmonth.)
What is the amount of the monthlypayment?
$Put the number to the nearestcent.)
4 -If you buy a factory for$250,000 and the terms are20% down, the balance to be paid off over 30 years at a 12 percent rate of interest on the unpaidbalance, what are the 30 equal annualpayments? (Round to the nearest wholedollar)
A.$31,036
B.$24,829
C.$20,593
D.$50,212
E.$6,667
5 -A generous benefactor to the local ballet plans to make a onetime endowment which would provide the ballet with$150,000 per year into perpetuity. The rate of interest is expected to be 5 percent for all future time periods. How large must the endowmentbe?
A.$300,000
B.$750,000
C.$3,000,000
D.$1,428,571
6 -You have just taken out a 30year mortgage on your new home for$120,000. This mortgage is to be repaid in 360 equal monthly installments. If the stated(nominal) annual interest rate is 14.75percent, what is the amount of each of the monthlyinstallments? Round to the nearest whole dollar.
A.$1,493
B.$1,440
C.$1,522
D.$1,472
E.$1,515
7 -A 10year ordinary annuity that provides a return of7% has a present value of$15,000. What are the annual annuitypayments?
A.$1,500.00
B.$2,232.84
C.$2,235.44
D.$2,135.66
E.$2,038.02
8-Find the present value of a 5year annuity due if the annual payments are$600 and the interest rate is11%. How much larger is the present value of the annuity due than the present value of the ordinary
5year annuity?
A.$279.22
B.$243.93
C.$204.76
D.$227.45
E.$261.32
9-Jennifer presents a business plan to herbank's loan officer that predicts net cash flows for the first three years of$10,000, $15,000, and$8,000 respectively. If these cash flows occur at the end of each year and the discount rate is4%, what is the total present value of these cashflows? (Round to the nearest wholedollar)
A.$37,993
B.$31,114
C.$30,596
D.$35,683
E.$29,397
10 -Assume that you will receive$2,000 a year in Years 1 through5, $3,000 a year in Years 6 through8, and$4,000 in Year9, with all cash flows to be received at the end of the year. If you require a 14 percent rate ofreturn, what is the present value of these cashflows? (Round to the nearest wholedollar)
A.$15,129
B.$9,851
C.$11,714
D.$13,250
E.$17,353
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