1.) What is the maximum amount Ginger Logan can borrow today if it must be repaid in 8months with?
... simple interest at 9% and she knows that at the time she will be able to repay no more than $13,000?2.)Find the present value of the following f
... simple interest at 9% and she knows that at the time she will be able to repay no more than $13,000?
2.)Find the present value of the following future amount.
$9000 at 10% compounded semiannually for 10years
3.)Robyn Martin wants to establish an account that will supplement her retirement income beginning 30 years from now. For each interest rate find the lump sum she must deposit today so that $400,000
will be available at time of retirement.
5% compounded daily
4.) Suppose a savings and loan pays a nominal rate of 3.9%
on savings deposits. Find the effective annual yield if interest is compounded quarterly
or:... simple interest at 9% and she knows that at the time she will be able to repay no more than \u200b$13,000?2.)Find the present value of the following future amount.\u200b$9000 at 10% compounded semiannually for 10years3.)Robyn Martin wants to establish an account that will supplement her retirement income beginning 30 years from now. For each interest rate find the lump sum she must deposit today so that \u200b$400,000 will be available at time of retirement. 5% compounded daily4.) Suppose a savings and loan pays a nominal rate of 3.9% on savings deposits. Find the effective annual yield if interest is compounded quarterly
or:Please, only one question per post.I suggest you buy a financial calculator. It's only ten bux or less and it comes with a book that explains how such things are calculated. You need to get that process in your head. It's not hard to learn, you just fight with it until you start to feel like you have seen it before.#1 -- Final value = $13,000, 8 payment periods, 9% interest.If you borrow something at 9% interest, the balance at the end of the first period is:FV = PV x 1.09 where 1.09 is what 9% means. I am assuming 9% per period. If it is 9% per year, you have to divide by 12 to get a monthly rate. At the end of the second period:FV = PV x 1.09 x 1.09 which is the same as FV = PV x (1.09)^2At the end of the Nth period:FV = PV x (1.09)^NNow you want to solve for PV, so you divide both sides of the equation by (1.09)^N. You divide both sides of an equation by the same amount and the equation will still be equal.FV/(1.09)^N = PV 13,000/1.992562642 = $6524.26I repeat: if you meant interest \"per annum\" you have to divide by 12 to get the monthly rate. That would be .75% per month or (1.0075)^N and the result would be quite different.
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