Question 10 Marla borrows $4,500 and repays the loan with four equal quarterly installments, with the first
Question:
Question 10
Marla borrows $4,500 and repays the loan with four equal quarterly installments, with the first installment made 3 months after the loan is made. If interest is charged at a rate of 12 per cent per annum compounded quarterly, the quarterly installment is
| a. | $1,107.89 | |
| b. | $1,210.62 | |
| c. | $1,075.62 | |
| d. | $1,246.94 |
Question 11
An individual borrows $4,500 from the bank to be repaid in three equal annual installments, with the first installment to be paid one year after the loan amount is received. If interest on the loan is charged at a rate of 9 per cent per annum compounded annually, to the nearest dollar the annual installment is
| a. | $1,778 | |
| b. | $1,631 | |
| c. | $1,259 | |
| d. | $1,373 |
Question 12
Katherine deposits $200 today and at the end of the next 11 yearly intervals (i.e. 12 deposits in all) into a bank account paying an interest rate of 5% per annum compounded annually. If no withdrawals are made, 12 years from today the account will hold
| a. | $2,983.43 | |
| b. | $1,861.28 | |
| c. | $3,342.60 | |
| d. | $3,183.43 |
Expert Answer:
Solution Question 10 The quarterly installment can be calculated using the formula Quarterly install... View the full answer
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
