FIN 301 - HW#1

What is the present value of an annuity that pays 100

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Unformatted text preview: \$100 every six months for five years? PMT=100, N=10, I=8.3%(EAR) PV=-662.02 5-9. Suppose you invest \$100 in a bank account, and five years later it has grown to \$134.39. a. WhatAPRdiyourecv,fnswmpiauly? APR=6% b. WhatAPRdiyourecvfnswmpthly? APR= 5.93% 5-12. Capital One is advertising a 60-month, 5.99% APR motorcycle loan. If you need to borrow \$8000 to purchase your dream Harley Davidson, what will your monthly payment be? PV=8000, N=60, I=. 499 PMT = 154.63 5-13. Oppenheimer Bank is offering a 30-year mortgage with an EAR of 5. If you plan to borrow \$150,000, what will your monthly payment be? I=((1+.05375)^1/12)-1 = .43725%, N=360, PV=-150000, PMT= -\$828.03 5-16. You have just purchased a home and taken out a \$500,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR of 6%. a. wHomuchilypanters,dwouicpalrngthefsy? PRINCAL=6,140TES2983 b. wHomuchilypanters,dwouicpalrngthe20y(.,bw19dasfromn)? PRINCIPAL = 19144, INTEREST = 1682 5-17. Your mortgage has 25 years left, and has an APR of 7.625% with m...
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