Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please help! thank you in advance ! suppose

please help! thank you in advance ! Suppose Community...

60.1K

Verified Solution

Question

Accounting

please help! thank you in advance !
image
image
image
Suppose Community Bank offers to lend you $9,000 for one year at a nominal annual rate of 15.75%, but you must make interest payments at the end of each quarter and then pay off the $9,000 principal amount at the end of the year. What is the effective annual rate on the loan? a. 16.94% b. 15.75% c. 16.37% d. 16.70% e. 16.59% Grossnickle Corporation issued 25 -year, noncallable, 7.1% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.0%. What is the current price of the bonds, given that they now have 24 years to maturity? a. $1,289.77 b. $1,338,76 c. $1,346.01 d. 51,301,88 e. $1.295.97 You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $5,200 per year, beginning immediately. You will make 4 deposits in an account that pays 5.5% interest. Under these assumptions, how much will you have 4 years from today? a. $21,944.00 b. $22.579.79 c. $17,379.79 d. $29,021.67 e. $23,821.67

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students