Bond and Percent

academic year interest rate of 3.76 percent would pay a 5,032 dollars interest over 10 years,

For option 2 I calculated the savings I receive from reduced payment. For that I used difference between the mortgage payments as annuity payment for 180 months for Question A and for 60 months for Question B

Poor Dog, Inc. borrowed $135,000 from the bank today. They must repay this money over the next six years by making monthly payments of $2,215.10. What is the interest rate on the loan? Express your answer with annual compounding.

| |finance the balance. How much will each monthly loan payment be if they can borrow the necessary funds for 30 years at 9% per |

14. How close does the terminal value in part 2 get to the present value using the growing annuity formula in part 3?

d. If you can earn 9% per year, how much will you have to save each year if you want to retire in 40 years with $3 million?

What annual interest rate is needed to produce $200,000 after five years if only $100,000 is invested?

21. Earl Miller plans to buy a boat for $19,500 with an interest charge of $2,500. Earl figures he can afford a monthly payment of $650. If Earl has to pay 36 equal monthly payments, by how much can he afford the boat per month?

1) Establish the principal and interest amount of the monthly payment. Using the 30 year loan principal and interest amount of the payment is $1,150.92

10. An investment of $1,000 today will grow to $1,100 in one year. What is the continuously compounded rate of return?

for the next three years and 3% per year thereafter. Calculate the value of EverGrow

A $20,000, 90-day, 8% note payable was issued on November 1, 2015. Using a 360-day year, what is the amount of accrued interest on December 31, 2015?

Let us start off by calculating the interest earned over the four years of the mortgage:

a. How much would the payment be if rate of interest is 5% and you only financed the truck for 48 months?

Assume that the annual payments in the sixth year is equal to the rental payment in the fifth year ( 112.9 and 86.0) and the remainder of the lump sum values (54.6 and 17.8) is due in the seventh year. With a discount rate of 5.4%, the present values of the rental payments for the years 2006 and 2007 are as follows: