Time Value of Money

According to the conditions above, what should their monthly payment be? If Kelsey and Cody do not send their payment in on time, what will the following month’s payment be?

The fixed cost is assumed that Larry has discovered the other fixed cost incurred. The total investment is $800,000. The worst case scenario assumes that Larry got a total line of credit from the bank in the amount of $400,000 and invested $400,000 from other source. The Notes payable – short term and the long-term debt is (11.8 + 3.7) = 15.5 % from Table F in the handout. The Loan interest and payment per year is ($400,000 * 0.155)= $62,000. The Income data from Table F indicates that there is a 0.4% of all other expenses net out of the total sales which equals to $109,908 (5,700,666 gallons * $4.82 *0.4%) .

in monthly savings around to $139. Over time you could save $33,284, with a repayment period of about

You have been making payments for the last 25 years and have finally paid off your mortgage. Your original mortgage was for $345,000 and the interest rate was 5% per year compounded semi-annually for the entire 25 year period. How much interest have you paid over the last 5 years of the mortgage?

The company has an agreement with a bank that allows the company to borrow the exact amount needed at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company will pay the bank all of the accrued interest on the loan and as much of the loan as possible while still retaining at least $50,000 in cash.

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

13. What is the formula for the Present Value (PV) for a finite stream of cash flows (1 per year) that lasts for 10 years?

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

Therefore the annual interest rate is 8% and the effective annual rate compounded quarterly is 8.24%

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

Compensating balance = 10% → 0.10 = loan ∙ 0.10 = $11,111,111 ∙ 0.10 = $1,111,111

At an interest rate of 15% per year (3.75% for three months, the amount to borrow equals

After the calculations you end up coming out with a rate of 14.87%. The third and final part of question three asks what rate you will need if the interest is compounded semiannually. All you have to do is double the amount of terms and you will come out with a lower number of 7.177%. Since the interest is compounded semiannually that means that you will need to times that number by two and you come out with your final number of 14.35%.

1. My Introduction with a credit card balance of $5,270.00 and an (APR) of 15.53 percent based upon my own conclusions and assuming there are no other fees are applied. In my report I took my balance of $5,270 x 15.53%= $818.431. The Maximum monthly payment would be $5,270.00+818.43= $6,088.43. Took get this I take the balance + total interest = Total balance. So to get the minimum monthly payment take $6,088.43/12=$508.00 minimum monthly payment.

(Compound value solving for I) at what annual rate would the following have to be investe