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Please help me with these questions... zoom in if u cant see it properly thanks ( remember to round it ) If the interest rate
Please help me with these questions...
zoom in if u cant see it properly thanks ( remember to round it )
If the interest rate this year is 8.3% and the interest rate next year will be 10.3%, what is the future value of $1 after 2 years? What is the present value of a payment of $1 to be received in 2 years? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Future value Present value A local bank advertises the following deal: Pay us $100 at the end of each year for 10 years and then we will pay you (or your beneficiaries) $100 at the end of each year forever. a. Calculate the present value of your payments to the bank if the interest rate is 8.75%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value b. What is the present value of a $100 perpetuity deferred for 10 years if the interest rate is 8.75%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value c. Is this a good deal? Yes You have just borrowed $170,000 to buy a condo. You will repay the loan in equal monthly payments of $1,790.48 over the next 25 years. a-1. What monthly interest rate are you paying on the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Monthly interest rate : You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, the bank also charges you a loan initiation fee of $22, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) Effective annual interest rate : A retiree wants level consumption in real terms over a 25-year retirement. If the inflation rate equals the interest rate she earns on her $367,500 of savings, how much can she spend in real terms each year over the rest of her life? Available real annual spendingStep by Step Solution
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