assignment questions-Nitish

# assignment questions-Nitish - Infinite 0.17 question 14...

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question 5 sum borrowed = \$34,000 Annual Int rate= 0.08 Repayment term= 15 Annual cash flow= \$3,887.72 question 6 Annual revenue each year= \$73,000 Interest= 8.5 No. of years = 8 Present value = \$8,588.24 question 7 Amount deposited at end of \$4,000 each year Interest= 0.11 Number of years paid = 20 40 Amount after 20 yrs \$262,781.16 Amount after 40 yrs \$2,459,072.63 question 13 Stated rate No of times compounded EAR 0.08 Semi annually 0.09 0.18 Monthly 0.2 0.09 Weekly 0.09 Infinite

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Unformatted text preview: Infinite 0.17 question 14 First national bank EAR = 0.15 First united bank EAR = 0.15 First united bank is preferable because it quaestion 19 The APR is 30% per month EAR = 0.34 which is 34 % question 23 Perpetuity pays \$1,800 per month Currently sells for \$95,000 monthly return = 1.89 APR = EAR= [1+(APR/m)]^m - 1 t is charging only 15.02% annually lesser than first national which is charging 15.16 annually....
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## This note was uploaded on 11/28/2010 for the course MANAGEMENT 561 taught by Professor Armour during the Spring '10 term at Gannon.

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assignment questions-Nitish - Infinite 0.17 question 14...

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