Finance ch. 5 - bank time deposit that pays a nominal...

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7. A bank recently loaned you $15,000 to buy a car. The loan is for five years (60 months) and is fully amortized. The nominal rate on the loan is 12%, and payments are made at the end of each month. What will be the remaining balance on the loan after you make the 30 th payment? A) $ 7,599.03 B) $ 8,363.62 C) $ 8,637.38 D) $14,515.50 E) $ 8,611.17 Points Earned: 5.0/5.0 Correct Answer(s): E 8. Your lease calls for payments of $500 at the end of each month for the next 12 months. Now your landlord offers you a new 1-year lease that calls for zero rent for 3 months, then rental payments of $700 at the end of each month for the next 9 months. You keep your money in a
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Unformatted text preview: bank time deposit that pays a nominal annual rate of 5%. By what amount would your net worth change if you accept the new lease? (Hint: Your return per month is 5%/12 = 0.4166667%.) A) +$509.81 B) +$125.30 C) -$253.62 D) -$509.81 E) +$253.62 Points Earned: 5.0/5.0 Correct Answer(s): C 9. Suppose you borrowed $25,000 at a rate of 8% and must repay it in 4 equal installments at the end of each of the next 4 years. How much would you still owe at the end of the first year, after you have made the first payment? A) $18,513 B) $21,110 C) $19,452 D) $18,976 E) $19,049 Points Earned: 5.0/5.0 Correct Answer(s): C...
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Finance ch. 5 - bank time deposit that pays a nominal...

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