Question
Those question I have correct answer (below). I need the process(step by step or explain )!!thanks 1.Present Value Factor for Reversion of $1 Period 6%
Those question I have correct answer (below). I need the process(step by step or explain )!!thanks
1.Present Value Factor for Reversion of $1
Period | 6% | 7% | 8% | 9% | 10% |
1 | .943396 | .934579 | .925926 | .917431 | .909091 |
2 | .889996 | .873439 | .857339 | .841680 | .826446 |
3 | .839619 | .816298 | .793832 | .772183 | .751315 |
4 | .792094 | .762895 | .713503 | .708425 | .683013 |
5 | .747258 | .712986 | .680583 | .644931 | .620921 |
6 | .704961 | .666643 | .630170 | .596267 | .564474 |
Using only the information in the table above, what would the IRR be for an investment that cost $500 in period 0 and was sold for $750 in period 5? (C)
Between 6% and 7%
Between 7% and 8%
Between 8% and 9%
Between 9% and 10%
2.Using only the information in the table above, approximately how much would you pay today for an investment that pays $0 annual interest, but earns 8% interest over the next four years and has a face value at maturity of $13,500? (C)
$8,000
$9,000
$10,000
$11,000
3. A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5%. What would the monthly payment be? (C)
$694
$1,042
$1,342
$1,355
Not enough information
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