Answered step by step
Verified Expert Solution
Question
1 Approved Answer
if i could get a step by step walk through on how to do this, that would be great too. thanks guys! 1. You recently
if i could get a step by step walk through on how to do this, that would be great too. thanks guys!
1. You recently purchased a car and took out a four-year loan for $20,000. The loan calls for equal monthly payments and the rate of 0.5% per month. How much interest is paid in the 3 rd month? 2. You will receive $20,000 in two years at graduation. You plan on investing it for the following 8 years and hope to double that amount. What rate per month must you earn? 3. You will make weekly payments of $1,000 into an account that pays 9% compounded weekly. How many payments will you have made when your account balance reaches $100,00? 4. Your firm is issuing 14-year zero coupon bonds with a 5% yield and pays semiannually. The goal is to raise $3,000,000. What is your company's total repayment 14 years from now? 5. Your firm is issuing 14-year coupon bonds with a 5% yield , 6% coupon, and pays annually. The goal is to raise $3,000,000. What is your companys total repayment 14 years from now? 6. The price of the bond is $1130.35. the bonds make annual payments, has a YTM of 5.6%. Calculate the coupon rate. The bonds are 7 years from maturity. 7. You currently have $55,000 in your retirement account. You will make quarterly deposits of $2,750 into your account for the next 20 years. If the account earns 8% compounded quarterly, calculate how much you have in your account when you retire in 20 years. 8. Your firm issued 20-year zero coupon bonds one year ago. The YTM is 5.5%. Calculate the current bond price if the bonds make annual payments. 9. You owe $2,500 on your credit card. If they charge 16.44% compounded monthly and you want to pay off your debt in 3 years, how much must you pay each month? 10. You are planning your retirement in 30 years. You plan to have $2,500,000 in your retirement at that time and the account will earn 10% compounded quarterly. If you will withdraw an equal amount each year, for the 10years after retirement, how much can you withdraw? Assume you will have nothing left after 10 yearsStep 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