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Question: Help with finance homework please?
(Posted by: Peter on 2010-03-10 17:28:08)
HW #4 1)You are offered the opportunity to put some money away for retirement. You will receive five annual payments of $25, 000. How much would you be willing to invest today if you desire an interest rate of 12%? 2)You are prepared to make monthly payment of $225, beginning at the end of this month, into an account that pays 9 percent interest compounded monthly. What is the effective annual interest rate? How many payments will you have made when your account balance reaches $20, 000? 3)You have recently finished your MBA at the Iona College. Naturally, you are going to purchase a new BMW. The car costs about $30, 000. The bank quotes an interest rate of 15 percent APR for a 72- month loan with a 10 percent down payment. What will your monthly payment be? What will the loan balance be when you sell the car two years later from now? |
