She paid $500/cow. She paid $10,000 down and took out a 5 year loan with interest calculated using add-on interest for the rest of the cost of the land. Assume annual payments and 4% interest rate. What is the amount of total interest paid over the life of the loan? Answer: she paid $8000 over the life of the loan.
a. Define a variable for the unknown. b. Write an equation to model the problem. c. Solve the equation.
What is the current value of her winnings? 7. Martha Reed has been depositing $1,500 in her savings account every December since 1998. Her account earns 6% compounded annually. How much will she have in December of 2007?
Part A (50 per cent of the marks) Question 1 Panna wants to buy a new suite of furniture for her flat. The furniture costs £3000 from a furniture store in her local town. The saleswoman suggests that Panna takes out a loan from the store’s finance company to fund the purchase of the furniture. The repayment loan from the finance company would be at a fixed APR of 9 per cent for a repayment term of between one and four years, which Panna can select herself. The loan would take the form of a secured loan.
He projects that he will need to have $500,000 in 5 years in order to get the business off the ground. He has found an investment that will yield 12% interest compounded quarterly. How much will he need to invest today to have the amount he requires to start his practice? Part A: Table 6-2 Part B: 3% Part C: 20N Part D: PV = FV(IF) 500000(.55368) 276840 Problem 3: Elizabeth Corday is borrowing $20,000 at 11% over 6 years. She will make annual payments on the loan at the end of each year.
A bond has a par value of $100,000 and pays interest revenues of $5,000 per year. This bond has a five-year life and a current market price of $98,000. Calculate the yield-to-maturity of this bond. (Points : 10) .3. An investor purchased call options for $2 per option.
After deductions she has a net of $1242. She has a retirement account that she contributes three percent to each pay period. She has worked for 10 years. Mary has decided that she wants to earn her bachelor’s in accounting so that she can advance her career. She will incur debt to earn her degree.
Asset / debit balance 2. Basic journal entries The following transactions pertain to the Jennifer Royall Company: May 1 | Jennifer Royall invested cash of $25,000 and land valued at $15,000 into the business. | 5 | Provided $1,000 of services to Jason Ratchford, a client, on account. | 9 | Paid $1,250 of salaries to an employee. | 14 | Acquired a new computer for $4,200, on account.
The lease contract obligates Sangamon to make five equal annual payments of $30,000 to Bismark that begin immediately after the sale. You may assume that the equipment has a useful life of 8 years at the time of the sale. Required: 1. What is the lessor’s effective rate of return from the lease contract? 2.
Question 1 In this question we will analyze what are the relevant cash flows associated with each project. First we will analyze the incremental costs for the Planet Karaoke Pub project which lasts for 4 years. We have up-front renovations costs that are between 770 000 and 1 000 000 Bahts which are the initial outlay for this project. We will now see the revenues associated with this project. We have a monthly renting fee of 170 000 for the first 2 years and then 178 500 monthly fee for the last 2 years.