Please assist in finalizing work and answers. Unsure if calculator inputs are correct. ...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Please assist in finalizing work and answers. Unsure if calculator inputs are correct.
3. Assume that your monthly mortgage payment is $2,000. The original mortgage is $180,000 and the mortgage is paid off in 15 years. Determine the annual (bond- equivalent yield) interest rate of the mortgage. a) 25% b) 43% c) 59% d) 01% N I/Y FV PV 180,000 PMT -2,000 12*15= 180 ? 0 I/Y 10.828530 = I 4. You have finally found an auto insurance company which will insure your car for $750. The company offers you an option to pay the insurance quarterly payments of $195. Payment is due at the end of each quarter. Would you select the installment option or take $750 from your 8% interest- bearing savings accounts? N I/Y PMT FV PV ? 4 Quarters 8% -195 0 PV=767.377350 One-time payment Is better than installment payments because installment costs are higher than one time fee. 1. You are currently 60 years old. You want to receive $10,000 annually beginning at the age of 60 for 20 years. If the interest rate is 8%, how much money must you have in your bank account today? a) $106,035.99 b) $200,000 c) $49,755.01 d) $42,909.64 N PV PMT 10,000 FV 96,035.99 19 ? I/Y 8%
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
