8. A friend asks to borrow $49 from you and in return will pay you $52...
8. A friend asks to borrow $49 from you and in return will pay you $52 in one year. If your bank is offering a 5.9% interest rate on deposits and loans:
a. How much would you have in one year if you deposited the $49 instead?
b. How much money could you borrow today if you pay the bank $52 in one year?
c. Should you loan the money to your friend or deposit it in the bank?
Homework Answers
Answer:
a. Amount in 1 year = 49 * 1.059 = 51.891
b. amount to be borrowed today = 52/1.059 = 49.1029
c. since the bank is giving 51.891 it is better to deposit in the bank.
Add Answer to:
8. A friend asks to borrow $49 from you and in return
will pay you $52...
A friend asks to borrow $53 from you and in return will pay you $56 in...
A friend asks to borrow $53 from you and in return will pay you $56 in one year. If your bank is offering a 5.7% interest rate on deposits and loans a. How much would you have in one year if you deposited the $53 instead? b. How much money could you borrow today if you pay the bank $56 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How...
A friend asks to borrow $47 from you and in return will pay you $50 in...
A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is offering a 5.6% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $47 instead? b. How much money could you borrow today if you pay the bank $50 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How...
1. A friend asks to borrow $57 from you and in return will pay you $60...
1. A friend asks to borrow $57 from you and in return will pay you $60 in one year. If your bank is offering a 6% interest rate on deposits and loans: (a) How much (in $) would you have in one year if you deposited the $57 instead? (Round your answer to the nearest cent.) (b) How much money (in $) could you borrow today if you pay the bank $60 in one year? (Round your answer to the...
You borrow $16,000 from your friend. Your friend asks you to pay $421.34 every month for...
You borrow $16,000 from your friend. Your friend asks you to pay $421.34 every month for the next 4 years. What is the interest rate on this loan 1. type of problem. 2. Write formula identifying the rate and term in the factor. 3. Solve with a complete formula.
A friend wants to borrow money from you. He states that he will pay you $3,900...
A friend wants to borrow money from you. He states that he will pay you $3,900 every 6 months for 7 years with the first payment exactly 7 years and six months from today. The interest rate is 6.2 percent compounded semiannually. What is the value of the payments today?
Suppose you want to borrow $105,000 and you find a bank offering a 20-year loan with...
Suppose you want to borrow $105,000 and you find a bank offering a 20-year loan with an APR of 6%. a. Find your regular payments if you pay n=1, 12, 26, 52 times a year. b. Compute the total payout for each of the loans in part (a). c. Compare the total payouts computed in part (b). a. The payment for n=1 would be $ The payment for n= 12 would be $ The payment for n 26 would be...
A friend wants to borrow money from you. He states that he will pay you $2.800...
A friend wants to borrow money from you. He states that he will pay you $2.800 every 6 months for 10 years with the first payment exactly 6 years and six months from today. The interest rate Is an APR of 51 percent with semiannual compounding. What is the value of the payments today? Multiple Choice $32,23430 S23166 33519 o $32.4470 o 5301301
please show your work for 19-21 Problems with a little twist (1-6% unless otherwise stated) 16....
please show your work for 19-21
Problems with a little twist (1-6% unless otherwise stated) 16. If $10000 is deposited today with annual interest rate of 6% and each month is desired to withdraw from this account $100, how many times this monthly withdrawals can be done before the money runs out? 17. If we deposit $100 a month for the next 5 years into an account and at the end of 5 years the account has accumulated $10,000 what...
Your friend offers to pay you an annuity of $6,300 at the end of each year for 3 years in return for cash today. You cou...
Your friend offers to pay you an annuity of $6,300 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?Select the correct answer.a. $16,996.98b. $17,002.88c. $17,014.68d. $17,020.58e. $17,008.78
4- Assume that you can borrow $175,000 for one year from a local commercial bank a. The bank loan officer offers you the loan if you agree to pay $16,000 in interest plus repay the $175,000 at th...
4- Assume that you can borrow $175,000 for one year from a local commercial bank a. The bank loan officer offers you the loan if you agree to pay $16,000 in interest plus repay the $175,000 at the year. What is the percent interest rate or effective cost? discount loan at 9 percent interest. What is the percent interest rate or effective cost? c. Which one of the two loans would you prefer? 5- Assume that the interest a. If...
A friend asks to borrow $53 from you and in return will pay you $56 in one year. If your bank is offering a 5.7% interest rate on deposits and loans a. How much would you have in one year if you deposited the $53 instead? b. How much money could you borrow today if you pay the bank $56 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How...
A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is offering a 5.6% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $47 instead? b. How much money could you borrow today if you pay the bank $50 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How...
A friend wants to borrow money from you. He states that he will pay you $3,900 every 6 months for 7 years with the first payment exactly 7 years and six months from today. The interest rate is 6.2 percent compounded semiannually. What is the value of the payments today?
Suppose you want to borrow $105,000 and you find a bank offering a 20-year loan with an APR of 6%. a. Find your regular payments if you pay n=1, 12, 26, 52 times a year. b. Compute the total payout for each of the loans in part (a). c. Compare the total payouts computed in part (b). a. The payment for n=1 would be $ The payment for n= 12 would be $ The payment for n 26 would be...
A friend wants to borrow money from you. He states that he will pay you $2.800 every 6 months for 10 years with the first payment exactly 6 years and six months from today. The interest rate Is an APR of 51 percent with semiannual compounding. What is the value of the payments today? Multiple Choice $32,23430 S23166 33519 o $32.4470 o 5301301
please show your work for 19-21
Problems with a little twist (1-6% unless otherwise stated) 16. If $10000 is deposited today with annual interest rate of 6% and each month is desired to withdraw from this account $100, how many times this monthly withdrawals can be done before the money runs out? 17. If we deposit $100 a month for the next 5 years into an account and at the end of 5 years the account has accumulated $10,000 what...
4- Assume that you can borrow $175,000 for one year from a local commercial bank a. The bank loan officer offers you the loan if you agree to pay $16,000 in interest plus repay the $175,000 at the year. What is the percent interest rate or effective cost? discount loan at 9 percent interest. What is the percent interest rate or effective cost? c. Which one of the two loans would you prefer? 5- Assume that the interest a. If...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago