Question
Question 39 (1 point) Use the following tables to calculate the present value of a $20,000 6%, 5-year bond that pays interest annually, if the
Question 39 (1 point)
Use the following tables to calculate the present value of a $20,000 6%, 5-year bond that pays interest annually, if the market rate of interest is 7%
Present Value of $1 at Compound Interest
Periods | 5% | 6% | 7% | 10% |
1 | .95238 | .94340 | .93458 | .90909 |
2 | .90703 | .89000 | .87344 | .82645 |
3 | .86384 | .83692 | .81630 | .75132 |
4 | .82270 | .79209 | .76290 | .68301 |
5 | .78353 | .74726 | .71299 | .62092 |
6 | .74622 | .70496 | .66634 | .56447 |
7 | .71068 | .66506 | .62275 | .51316 |
8 | .67684 | .62741 | .58201 | .46651 |
9 | .64461 | .59190 | .54393 | .42410 |
10 | .61391 | .55840 | .50835 | .38554 |
Present Value of Annuity of $1 at Compound Interest
Periods | 5% | 6% | 7% | 10% |
1 | .95238 | .94340 | .93458 | .90909 |
2 | 1.85941 | 1.83339 | 1.80802 | 1.73554 |
3 | 2.72325 | 2.67301 | 2.62432 | 2.48685 |
4 | 3.54595 | 3.46511 | 3.38721 | 3.16987 |
5 | 4.32948 | 4.21236 | 4.10020 | 3.79079 |
6 | 5.07569 | 4.91732 | 4.76654 | 4.35526 |
7 | 5.78637 | 5.58238 | 5.38929 | 4.86842 |
8 | 6.46321 | 6.20979 | 5.97130 | 5.33493 |
9 | 7.10782 | 6.80169 | 6.51523 | 5.75902 |
10 | 7.72174 | 7.36009 | 7.02358 | 6.14457 |
Question 39 options:
| $19,180 |
| $20,000 |
| $20,842 |
| $22,567 |
Question 40 (1 point)
You want to buy a car. The loan will be $32,000 at 9% interest paid monthly for 5 years. What is the monthly payment. Don't do this Ryan's way.
Question 40 options:
| 539 |
| 753 |
| 614 |
| 664 |
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