3. Four years ago, Tavaris Stewart (a young proje in rural Simpson County) used

Question

3. Four years ago, Tavaris Stewart (a young proje in rural Simpson County) used the Small Business loan progra manager at Civil Tech Eng ineering Firm ear-$5,000 was borrowed three years ago at 3.42%. Two at 5.23%, and last year $7,000 was borrowed at 6.03% per year. Now he would like to consolidate his a 5% fixed interest one year) t debt into a single 20 year rur nnual interest rate. If Stefon Campbell makes annual payme o repay his total debt, what is the amount of each paym You have $170 available for investment in stock. You are looking for a growth stock whose value can grow to $500 over 5 years. What kind of growth rate (i) are you looking for? (5pts) 4.

Explanation / Answer

First debt value = 4000*(1+4.06%)4 = 4690.24

Second debt value = 5000*(1+3.42%)3 = 5530.74

Third debt value = 6000*(1+5.23%)2 = 6644.01

Fourth debt value = 7000*(1+6.03%) = 7422.10

Total Debt = 4690.24 + 5530.74 + 6644.01 + 7422.10 = 24287.10

Annual paymnet = 24287.10 * 5% / (1 - (1+5%)-20) = 1948.86 per year

2)

Annual growth rate (CAGR) = (500/170)(1/5) - 1 = 24.08%

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.