Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thank you in advance fro helping me understand these finance questions!! 1: Suppose your credit card balance is $16,000. The minimum payment is $336, and

image text in transcribed

Thank you in advance fro helping me understand these finance questions!!

image text in transcribed
1: Suppose your credit card balance is $16,000. The minimum payment is $336, and the annual percentage rate is 19.8% a. If you make a constant monthly payment of $336, how long will it take you to pay off the credit card balance? b. How much interest will you pay if you elect to make the minimum payment? a. If you make a constant monthly payment of $336, how long will it take you to pay off the credit card balance? months (Round to four decimal places.) 2- Starting one month from now, you need to withdraw $210 per month from your bank account to help cover the costs of your university education. You will continue the monthly withdrawals for the next four years. If the account pays 0.3% interest per month, how much money must you have in your bank account today to support your future needs? How much money must you have in your bank account today to support your future needs? $(Round to the nearest cent.) 3: The preferred stock of Marble Comics pays annual dividends of $2 in perpetuity (starting in one year). If you buy a preferred share for $22.36 and hold it in perpetuity, then what is your annual rate of return? Express your answer as a percentage rounded to 2 places. i.e. 12.3456% = 12.35%. What is your annual rate of return from the preferred stock? % (Round to two decimal places.) 4- Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 13 end-of-year payments starting one year from now. The first two payments would be $27,000 and $22,000 in one and two years respectively, and then $19,000 per year after that for 11 years. If Wally requires a return of 9.4%, what is the present value of this stream of cash flows? What is the present value of this stream of cash flows? (Round to the nearest cent.) You borrow $350,000 to buy a house over a 30-year term. The loan is structured as an amortized loan with annual payments and an interest rate of 9%. Complete the cells in the amortization schedule, below. Interest in Principal Principal Owing at Year Payment ($) Payment ($) Repaid ($) End of Year ($) N Interest in Principal Principal Owing at Year Payment ($) Payment ($) Repaid ($) End of Year ($ Round to the nearest cent)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Thomas Calculus Early Transcendentals

Authors: Joel R Hass, Christopher E Heil, Maurice D Weir

13th Edition

978-0321884077, 0321884078

Students also viewed these Finance questions