Homework Help Question & Answers

Can you please show your work and help me understand how to get the correct answers....

Can you please show your work and help me understand how to get the correct answers.

5. If the nominal rate of interest is 3.2%, then what is the quarterly periodic rate of interest? . Show 2 decimals in the percentage! Don't enter the % sign. For Example answer: 9.99

Answer: 0.8

7. A perpetuity has a discount rate of 6.7% and a payment of $421.22. What is the present value of this perpetuity?

Answer: 6,286.87

8. You borrow $76,810 to be repaid in annual payments over 6 years. The nominal interest rate on the loan is 9.2%. Based on the above how much should the annual payment should be? (Show pennies!) e.g. 99.99

Answer: 17,224.7

0 0
Add a comment
Answer #1

Periodic Quarterly rate = Nominal rate/Number of quarters in a year

= 3.2%/4

= 0.8%

7.Present value of perpetuity = Annual payment/Discount rate

= 421.22/6.7%

= $6,286.87

8.Annual payment = Amount of Loan/PVAF(9.2%, 6 years)

= 76810/4.4593

= $17,224.7

Add a comment
Know the answer?
Add Answer to:
Can you please show your work and help me understand how to get the correct answers....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coin

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • I need help with solving this please show your formulas so, I can understand it. Thanks...

    I need help with solving this please show your formulas so, I can understand it. Thanks part 1 1,000.00 future value = periodic interest rate = number of compounding periods = 0.035 32.00 what is the present value (single payment)? part 2 periodic payment periodic interest rate = number of compounding periods = 32.00 0.035 32.00! What is the present value of this annuity? part 3 add part 1 and part 2 part 4 1,000.00 future value = periodic interest...

  • PLEASE SHOW HOW YOU WOULD SOLVE USING EXCEL SOFTWARE Par SportsBet.com Corporation is building a $40...

    PLEASE SHOW HOW YOU WOULD SOLVE USING EXCEL SOFTWARE Par SportsBet.com Corporation is building a $40 million office building in Las Vegas and is financing the construction at an 80% loan-to-value ratio, where the loan is in the amount of $32,000,000 This loan has a ten-year maturity, calls for quarterly payments, and has a stated annual interest rate of 7.2% APR. ortsBet.com mini-case Using this information, answer the following questions What is the quarterly payment? Construct a complete Amortization Schedule...

  • Show your work as much as possible below each question to get full credit (Le, you...

    Show your work as much as possible below each question to get full credit (Le, you should provide information about PV: FV. PMT, I/Y, N ... before writing down your answer) 1. What is the present value of the following cash flow stream at a rate of 8.0%? Years: CFs: $2,450 $3,175 $4,400 2. You would like to travel in South America 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan...

  • Solve this with correct answer please. Don't used excel show me your work please. This is...

    Solve this with correct answer please. Don't used excel show me your work please. This is IEM class 6) (25 points) A $10,000, 10-year municipal bond is offered at a premium for $10,500. The bond rate is 8% per year compounded quarterly. If John wishes to earn 7.5% per year compounded quarterly on the bond investment, should he purchase the bond assuming he keeps the bond till it matures and then redeems it at face value? Explain. Show all work.

  • please show all your work i am really trying to understand how to solve these a...

    please show all your work i am really trying to understand how to solve these a woman, with her employers matching program, contributes $700 at the end of each month to her retirement account, which earns 9% interest, compounded monthly. when she retires after 47 years, she plans to make monthly withdrawals for 31 years. if her account earns 7% interest, compounded monthly, then when she retires, what is her macimum monthly withdrawal (without running out of money)? A woman...

  • can somebody help me with 37,38 and (most needed) 40 please??? 200 The theory of interest...

    can somebody help me with 37,38 and (most needed) 40 please??? 200 The theory of interest 36. A loan is being repaid with 10 payments. The first payment is 10, the second 9, d so forth with the tenth payment being 1. Show that the amount of interest in te sixth payment is 5- ag- 37. A loan is repaid with payments which start at $200 the first year and increase by $0 per year until a payment of $1000...

  • PLEASE ANSWER THIS TWO QUESTION THANK YOU Different compounding periods, are used for different types of...

    PLEASE ANSWER THIS TWO QUESTION THANK YOU Different compounding periods, are used for different types of investments. In order to properly compare investments or loans with different compounding periods, we need to put them on a common basis. In order to do this, you need to understand the difference between the nominal interest rate (INOM) and the effective annual rate (EAR). The nominal interest rate is quoted by borrowers and lenders, and it is also called the annual percentage rate...

  • Please show your work with the formulas written out. Please answer as if you can only...

    Please show your work with the formulas written out. Please answer as if you can only use a four function calculator (because that is how I have to learn it). Do not just put down the calculator keystrokes I need to see every step and number to learn how to do it. 9. If you paid $750 for an investment 25 years ago that is now worth $2000, what was your rate of return? 10. If you save $100 per...

  • I understand some of this, need help for it. Correct answers are shown, please show work....

    I understand some of this, need help for it. Correct answers are shown, please show work. I. Between 2012 and 2013 a country's nominal GDP rose from $16.30 billion to $16.789 billion. At the same time the country's price index rose from 142.00 to 144.84 and its population rose from 500,000 to 502,500 people. Based on this data: Nominal GDP increased by 3 % The inflation rate was 2 % and the population grew by 25% RGDP per capita (measured...

  • The answer is already given, I just don't understand how. Can you please show how each...

    The answer is already given, I just don't understand how. Can you please show how each value is caculated and label please! 2. Depreciation, taxes and source of finance. Compute the present value of a project with the following characteristics: Initial investment required 1 million dollars, 40% of it will be financed with a loan at 10% interest rate payable yearly in five years. Yearly savings for the first year of the project is $300,000, increasing by 50,000 year after...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.