mat View Window Help FIN330-SP2021A-X#1-Partlv.docx Locked OD 10 Times New Rom. Regular 12 10 . 17 IN ORDER TO RECEIVE FULL CREDIT FOR PROBLEMS: YOU MUST INDICATE IN DETAIL THE MATHEMATICAL CALCULATIONS REQUIRED TO DERIVE YOUR SOLUTIONS THIS MEANS THAT, AT A MINIMUM, YOU MUST CORRECTLY SET UP THE PROBLEM, SHOW ALL INTERMEDIATE ALGEBRAIC STEPS (IF ANY ARE REQUIRED): AND: SHOW ALL INTERMEDIATE CALCULATIONS PRIOR TO YOUR FINAL ANSWER. ALL ANSWERS IN THE FORM OF A PERCENT I MUST BE CORRECTLY ROUNDED TO THE NEAREST.01% AND ALL ANSWERS IN THE FORM OF A DOLLAR VALUE MUST BE CORRECTLY ROUNDED TO THE NEAREST 5.01 . 1. [10 POINTS) Calculate the APR for the following: Number of times compounded that is compounding frequency): Monthly Effective Annual Rate (EAR): 9.7% 2. [10 POINTS) A firm has signed a new employee to a three-year contract. The details of the contract provide an immediate cash bonus (to be paid today) of $25,000. The new employee will then receive $50,000 in salary at the end of the first year (that is, one year from today), $70,000 the next year (that is, two years from today) and $100,000 at the end of the last year of the contract (that is, three years from today). Assuming an 9 percent discount rate, how much is the new employee's contract worth? 3. [TO POINTS Suppose that you receive a credit card offering an introductory rate of 0.9 percent per year, compounded monthly, for the first six months. The rate the increases to 27.0 percent compounded monthly. You decide to transfer a $9,000 balance that you owe on your existing credit card to the new credit card, and you make no payments for the next year. How much interest will you owe on the new credit card at the end of the first year! YOU MUST INDICATE IN DETAIL THE MATHEMATICAL CALCULATIONS REQUIRED TO DERIVE YOUR SOLUTIONS THIS MEANS THAT, AT A MINIMUM, YOU MUST: CORRECTLY SET UP THE PROBLEM SHOW ALL INTERMEDIATE ALGEBRAIC STEPS (IF ANY ARE REQUIRED); AND; SHOW ALL INTERMEDIATE CALCULATIONS PRIOR TO YOUR FINAL ANSWER ALL ANSWERS IN THE FORM OF A PERCENT I I MUST BE CORRECTLY ROUNDED TO THE NEAREST.01% AND ALL ANSWERS IN THE FORM OF A DOLLAR VALUE MUST BE CORRECTLY ROUNDED TO THE NEAREST $.01 1.0 POINTS) Calculate the APR for the following: Number of times compounded (that is, compounding frequency): Monthly Effective Annual Rate (EAR): 9,7% 2 TLO POINTSA firm has signed a new employee to a three-year contract. The details of the contract provide an immediate cash bonus (to be paid today) of $25,000. The new employee will then receive $50,000 in salary at the end of the first year (that is, one year from today], $70,000 the next year that is, two years from today) and $100.000 at the end of the last year of the contract (that is, three years from today). Assuming an 9 percent discount rate, how much is the new employee's contract worth? 1 TO POINTS) Suppose that you receive a credit card offering an introductory rate of 0.9 percent per year, compounded monthly, for the first sex months. The rate then increases to 270 percent compounded monthly. You decide to transfer a $9,000 balance that you owe on your existing credit card to the new credit card, and you make no payments for the next year. How much interest will you owe on the new credit card at the end of the first year