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Please help with 5 through 7! Thanks A woman inherits $ 10,000, and is considering where to invest it. Calculate the annual rates of return
Please help with 5 through 7! Thanks
A woman inherits $ 10,000, and is considering where to invest it. Calculate the annual rates of return for each of the following investments (rounding to the nearest 0.1% where needed). a) She has a $15,000 car loan, on which she is charged an annual yield of 7.9%. She could reduce this debt to $5,000. Rate of Return: b) She can loan the money to a relative's business, who promises to pay her back $15,000 in 6 years (Assume this loan is safe-she's 100% certain that she'll be paid back.). Rate of Return: c) She can purchase a parking space for her car which costs $ 10,000 (Assume there are no expenses associated with owning it.). Each month she must pay $15 in taxes and another $15 for maintenance, but she no longer has to pay s100 per month to park her car in a garage. Rate of Return: 6) A condo is purchased for $200,000. It has monthly taxes of s55, fees of $315, and other expenses of $50. A comparable apartment costs $1500 to rent. Five years later, the condo is sold for $290,000, but the real estate agent keeps 5% of the selling price. Calculate the total rate of return received by the owner, rounding to the nearest 0.1%. 7) A share of corporate stock pays a dividend to its owner of $2/year. This amount is expected to be stable into the indefinite future. If the annual safe yield is stable at 5.75%, what is the value of this share of stock? Round your answer to the nearest centStep by Step Solution
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