Homework 3

# Homework 3 - Emilie Gein Homework 3 21 2004 lb apples.99...

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Emilie Gein Homework 3 21. 2004, lb apples .99, oranges 1.14. 1994, lb apples .72, oranges .55 Apples: (.99/.72) 1/10 -1= 3.23% .99(1.0323) 20 = 1.86962 Oranges: (1.14/.72) 1/10 -1=4.7% 1.14(1.047) 20 = 2.86 22. 8,000 car loan for 48 monthly payments, APR 10%, what is monthly payment? Effective annual interest rate? 8,000=X(1/.00833 – 1/(.00833x1.00833 48 )) X=203.11 EAR=(1+APR/M) m -1= (1+.1/12) 12 - 1=10.471% 23. PV of 3-year annuity of \$100, r=6%? 100x (1/.06- 1/(.06x1.06 3 ))= 267.305 PV of 3-year annuity wait 2 years for 1 st payment? 267.305/(1.06 2 )= 237.9005 28. 8,000 car loan for 48 monthly payments of \$240each, what is APR? What is Effective annual interest rate? 8000=240( 1/r – 1/(r x (1+r) 48 ))) using calculator the APR= 19.2%, EAR=( 1+19.2%/12) 12 - 1 =20.983% 35.Annual payment of 10,000 for 10 years. First in 4 years. R=5% 10,000 x (1/.05- 1/(.05x 1.05 10 )= 77217.3 77217.3/(1.05 4 )= 63526.86381 43. Borrowed 100,000, monthly payments 804.62 for 30 years. r=?, ear? 100,000= 804.62(1/r- 1/(r x (1+r)

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Homework 3 - Emilie Gein Homework 3 21 2004 lb apples.99...

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