If you increase the number of payments on an amortized loan, does the payment increase or decrease? Why or why not?
Answer to relevant QuestionsIf you won the lottery and had the choice of the lump-sum payoff or the annuity payoff, what factors would you consider besides the implied interest rate (indifference interest rate) in selecting the payoff style?You are a new employee with the Metropolis Daily Planet. The Planet offers three different retirement plans for you to choose from. Plan 1 starts the first day of work and puts $1,000 away in your retirement account at the ...Mauer Mining Company leases a special drilling press with annual payments of $150,000. The contract calls for rent payments at the beginning of each year for a minimum of six years. Mauer Mining can buy a similar drill for ...Fill in the missing annual interest rates in the following table for an ordinary annuitystream.If Mary deposits $4000 a year for three years, starting a year from today, followed by 3 annual deposits of $5000, into an account that earns 8% per year, how much money will she have accumulated in her account at the end of ...
Post your question