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You are considering to borrow $25,000 from a bank for 36 months with equal monthly installments. The bank offers the credit with 1% monthly interest
You are considering to borrow $25,000 from a bank for 36 months with equal monthly installments. The bank offers the credit with 1% monthly interest rate. If you accept this credit deal, your outstanding loan at the end of the second month will be closest to: Select one: a. $24,420 b. $24,750 c. $23,340 d. $23,830 Consider a project with the following cash flows: co G CA C 6,000 . 6,000 -15,000 6,000 6,000 If the appropriate discount rate for this project is 15%, then the NPV is closest to: Select one: O a. $1,067 b. -$1,067 a C. -$2,130 O d. $2,130 Suppose that you are planning to accumulate $15,000 in one year. Given a monthly interest rate of 1%, the amount approximately you need deposit at the end of each month if you already have $5,000 in your account is closest to: Select one: a. $737 0 b. $540 O C. $634 O d. $483 Assume that a financial asset will provide $500 for the next 10 years and then its cash flows will start to grow by 5% a year forever. If the annual interest rate is 8% for the first 10 years and 10% thereafter, its price is closest to: Select one: a. $8,200 b. $10,500 C. $9,800 d. $7,400
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