rly amount ne should save ir ne can invest them at an interest rate of 9% Annual
ID: 2801624 • Letter: R
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rly amount ne should save ir ne can invest them at an interest rate of 9% Annual rate). Assume monthly compounding] a. $676.74 b. $833.33 c. $182.05 d. $416.67 e. none of the given answers 9, Mr. Homemaker has just taken out a $200,000 mortgage at an interest rate of 4.5% [Annual rate). The mortgage calls for equal monthly payments for 30 years. Then the amount of the monthly payment is: a. $1162.95 b. $775.30 c. $1013.37 d. $666.67 e. none of the given ones 10. Mr. Bond is considering purchasing a bond with 8-year maturity and $1,000 face value. The coupon interest rate is 8% andthe interest is paid annually. If Mr. Bond requires 10% yield to maturity on the investment, then the price of the bond is: a. $1,122.87 b. $893.30 c. $875.39 d. $950.75 e. none of the given answers Eall FN PR Page # 1 Inwest @ Borvow @ e miasvre ofExplanation / Answer
9)
Monthly mortgage payment [P×r×(1+r)^n]÷[(1+r)^n-1] Here, 1 Interest rate per annum 4.50% 2 Number of years 30 3 Number of compoundings per per annum 12 4 = 1÷3 Interest rate per period ( r) 0.38% 5 = 2×3 Number of periods (n) 360 Loan amount (P) $ 200,000 Monthly mortgage payment $ 1,013.37 200000*0.38%*(1+0.38%)^360)/((1+0.38%)^360-1)Related Questions
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