- An investor age 35 deposits $10000 in a fund earning 7% compound interest until retirement at age 65. Find the amount of interest earned (calculations by hand) :
- Between ages 35 and 45
- Between ages 45 and 55
- Between ages 55 and 65
- Jim loans 10000$ to Amenda immediately, 5000$ in 3 years and 1000$ in 4 years. Amenda repays Jim with two equal payments of Y $; one payment of Y at the end of the fifth year and one payment of Y at the end of the sixth year, assuming a nominal interest rate of 6%, compounded monthly.
(a) Draw a time diagram of the cash flows.
0 1 2 3 4 5 6
(b) Evaluate Y .
- Billy contracted a loan at the bank. He pays back his loan in 3 payments : the first one is $7000 made after one year, the second one of $5000 made one year and a half after he contracted the loan, and the last one, of $3000, made two years after he contracted the loan. The interest rate is i(2) = 10%. (Do not insert code in your answers)
(a) Determine the amount of the loan.
(b) If after his first payment of $7000, Billy renegotiates his loan with the bank such that he only has one payment left of $X to do, four years after he contracted the loan, with the same interest rate, what should be the value of X ?
Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).
After making payment, solution is available instantly.Solution is available either in Word or Excel format unless otherwise specified.
If your question is slightly different from the above question, please contact us at email@example.com with your version of question.