FIN 370 Week 2 Financial Markets and Institutions Report( 2 Papers)
· 5-15
· 5-39( Calculate monthly payment only)
5-1FutureValue Compute the future value in year 9 of a $ 2,000 deposit in year 1 and another $ 1,500 deposit at the end of year 3 using a 10 percent interest rate.
5-3 Future Value of an Annuity What is the future value of a $ 900 annuity payment over five years if interest rates are 8 percent? 5-5 Present Value Compute the present value of a $ 2,000 deposit in year 1 and another $ 1,500 deposit at the end of year 3 if interest rates are 10 percent. 5-7 Present Value of an Annuity What’ s the present value of a $ 900 annuity payment over five years if interest rates are 8 percent? 5-12 Present Value of an Annuity Due If the present value of an ordinary, 6-year annuity is $ 8,500 and interest rates are 9.5 percent, what’ s the present value of the same annuity due? 5-15Effective Annual Rate A loan is offered with monthly payments and a 10 percent APR. What’ s the loan’ s effective annual rate( EAR)? 5-39 Loan Payments You wish to buy a $ 25,000 car. The dealer offers you a 4-year loan with a 9 percent APR. What are the monthly payments? How would the payment differ if you paid interest only? What would the consequences of such a decision be? ==================================================
FIN 370 Week 2 Financial Markets and Institutions Report( 2 Papers)
For more course tutorials visit www. uophelp. com
This Tutorial contains 2 Papers