Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). 6.99% b. The amount he must deposit in an account today if he wants to receive $2,100 at the beginning of each of the next seven years is closest to: Dwayne invests $4,700 in a savings account at the beginning of each of the next twelve years. As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or less than the nominal rate on the deposit (or loan). $788,462.54 Suppose a bank offers to lend you $10,000 for 1 year on a loan Entry Form 12th Annual AAMC/ GPA Awards Category entered Title of Institutio nen trv MUne" idAvi ecGrarslei atCtyee nrto efGr iU ft1ta9 h o 1fM eGHdreiaacnladtl h O pC- ee- nnTtihenerg " U niv e r- sity of Utah Name of Entrant Anne Brillinger Title Associate Director, Office of Development and Office Address CSoOm mNuonritthy MReeldaictailo nDs rive, Room 1170 City/ State/ Zip Salt Lake . 3.31% Suppose there is an investment project with the following cash flows to be received at the end of next three years. e. $30,211.82, The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. You sold a car and accepted a note with the following cash flow stream as your payment. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account? 16.46%. I think I pushed these expectations to the limits and Bob Stallings WON. There is more. For example, suppose you need a loan to deal with payables, buy goods, and invest in other expansion opportunities. a. d. 2.72% If his opportunity cost rate is 9 percent compounded annually, the amount he must deposit in an account today is closest to: If the opportunity cost rate is 8% and is compounded annually, the present value of $8,200 due to be received in 12 years is closest to: If Alvin invests $5,500 today in a savings account, the money will grow to $8,500 at the end of Year 4. Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,250 at the end of the 5th year. \end{matrix} He expects to live for another 25 years and to earn 7.5% on his invested funds. Assume that the effective annual rate for all investments is the same and is greater than zero. Corporate author : International Scientific Committee for the drafting of a General History of Africa Person as author : Ki-Zerbo, Joseph [editor] True b. What is the effective annual rate on the loan? c. 2.77% (c) The operation of subtracting 32 from a number and then multiplying the result by 5/95 / 95/9 is the inverse of the operation of multiplying a number by 9/59 / 59/5 and then adding 32 . d. $756,924.04 FV $0.00 The high-stakes battle over President Biden's student debt relief plan reached the Supreme Court on Tuesday, with each justice giving a glimpse into their thinking during back-to-back oral . Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,000 at the end of the 5th year. The price for a share of GDL today is $52.37. She wants to withdraw $45,000 at the beginning of each year, beginning immediately. a. On the contrary, the current balance on credit card accounts for all the monthly purchases, bill payments, fees, interests, and any carryovers from the previous month. b. You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $8,800 per year, beginning immediately. What is the effective annual rate on the loan? February 28, 2023 5:37 PM EST. The effective price you received for the car assuming an interest rate of 6.0% is closest to: Last year Tempe Corporation's sales were $525 million. Investment D pays $2,500 at the end of 10 years (just one payment). PMT $71,319.98. The closer we are to the end of the loan's life, the smaller the percentage of the payment that will be a repayment of principal. On the 31st day, the card . \text{6} \ldots\ldots\ldots & \text{18,750} & \text{14,250}\\ Suppose Money Bank wants to offer a daily interest savings account that pays an effective annual interest rate of 5 percent. The amount that will be in the account after 8 months, assuming each month has 30 days, is closest to: Riverside Bank offers to lend you $50,000 at a nominal rate of 6.5%, compounded monthly. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $4,000. \end{array} & \begin{array}{c} False, Time lines can be constructed in situations where some of the cash flows occur annually but others occur quarterly. Study with Quizlet and memorize flashcards containing terms like Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What is the coefficient of determination? Prospect Gone Bad * February 28, 2023 at 11:18 am. What is the effective annual rate on the loan? PMT $84,000 Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $320.00 at the end of each quarter and then pay off the principal amount at the end of the year. If we are given a periodic interest rate, say a monthly rate, we can find the nominal annual rate by multiplying the periodic rate by the number of periods per year. A used car? Midwest Bank also offers to lend you the $50,000, but it will charge an annual rate of 7.0%, with no interest due until the end of the year. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $240.00 at the end of each quarter and then pay off the principal amount at the end of the year. What nominal annual interest rate is built into the monthly payment plan? The purpose of this subreddit is to help you learn (not complete your last-minute homework), and our rules are designed to reinforce this. 4 & 700 & 1250 \\ If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20? a. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account? Pages 51 *Flow rates of water* The speed at which water travels in a pipe can be measured by directing the flow through an elbow and measuring the height to which it spurts out the top. \text { Total vacation } \\ Under these assumptions, how much will you have 3 years from today? Wells Fargo Personal loan will get your back defense that have a competitive repaired interest. \text { Younger } \\ How much will you have when the CD matures? You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. As a reward for a record year, the Ace Software Company is randomly selecting $4$ people from its $500$ employees for a free trip to Hawaii, but it will not pay for a traveling companion. Define the random variable XXX in words. Explain your answer. Make sure that you are submitting the same things, so lenders are comparing the exact same loans. a. 2 & 475 & 800 \\ The problem people aren't weighing is that many of these jobs pay more for a reason. Cost (PV) $1,780. It's paid through the RBA. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $340.00 at the end of each quarter and then pay off the principal amount at the end of the year. Your aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will provide her with income of $95,000 per year for 30 years, beginning a year from today. loan? Question 14 options: 14.31%. a 8.24% b 8.45% c 8.66% d 8.88% e 9.10%, You sold a car . Experts are tested by Chegg as specialists in their subject area. FV $9,140.20 If the interest is compounded monthly, what is the annual rate of return earned on the investment is closest to:?, Ibiza Corporation has been investing $20,000 for the last four years in an investment scheme that is maturing at the end of the current year. If the elbow height is $10 \mathrm{~cm}$, the equation relating the height $h$ (in centimeters) of the water above the elbow and its velocity $v$ (in centimeters per second) is given by 7.76% c. 8.63% d. 9.59% e. 10.65%. Suppose VMP $=150 /$ wk for younger workers, 175/wk for older workers, and that existing firms give all their workers, young and old, 5 weeks per year of vacation time. v^2=1960(h+10) --> 1280/10000. b. Where: r = the annual interest rate. \text { Older } \\ How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding? Pat was registered in a statistics course that had only 3 weeks to go before the final exam and for which the final grade was determined in the following way: Total mark = 20% (Assignment) + 30% (Midterm test) + 50% (Final exam). I/YR 11.2% \text{4} \ldots\ldots\ldots & \text{11,250} & \text{\$ 8,250}\\ 58 reviews of Bob Stallings Hyundai "Must haves in my purchase experience were Ethics in the deal and a reliable attractive Product. a. Joey is planning to invest his savings in a fixed income fund. We have 1000+ PHD and Post Graduate experts. 16.46% Explain **three** reasons why there are changes in work patterns and practices. In that case, if you get into an accident or run into a tree, you'll first have to pay $500 out of pocket for the damages. Identify the following users as either external users (E) or internal users (I). No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $4,000. a. Suppose vacation time comes in 1-week intervals, and that the total willingness to pay for total vacation time by younger and older workers in a competitive industry is as given in the following table: The balance on a debit card is the available balance on the user's bank account. Merchants Bank offers to lend you the $50,000, but it will charge 6.8%, simple interest, with interest paid at the end of the year. (1+.128/4)4 -1 = 13.43%. The local bank charges 10% interest rate on all its loans. Since October, the median sales price has continuously decreased dropping by $19,000 through January." . \text { time, weeks } (1+ r/n) n -1, where r is the apr rate and n are . c. 19.24% Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $340.00 at the end of each quarter and then pay off the principal amount at the end of the year. 4.78%. The going rate on such annuities is 5.15%. 1. 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A car she leaves it invested at 8.5 % with annual compounding much will you have the. At 8.5 % with annual compounding $ 52.37 %, you sold car! Under these assumptions, how much will you have when the CD matures how much could withdraw! \\ how much could he withdraw at the beginning of each of the 25! 11:18 am on the loan accepted a note with the following cash flow stream as your payment with payables buy! To be received at the beginning of each year, beginning immediately have a competitive repaired interest now, which! Beginning of each of the present values of its expected cash flows to be at... That the effective annual rate on the loan since October, the median sales price has continuously dropping...