Question: You lend a friend 10 000 for which your friend will
You lend a friend $10,000, for which your friend will repay you $27,027 at the end of five years. What interest rate are you charging your “friend”?
Relevant QuestionsYou’ve run out of money for college, and your college roommate has an idea for you. He offers to lend you $15,000, for which you will repay him $37,313 at the end of five years. If you took this loan, what interest rate ...What is the future value of each of the following streams of payments?a. $500 a year for 10 years compounded annually at 5 percentb. $100 a year for 5 years compounded annually at 10 percentc. $35 a year for 7 years ...To pay for your child’s education, you wish to have accumulated $15,000 at the end of 15 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 6 percent ...Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $21,074.25 that will pay them $3,000 per year for 20 years. They ...On December 31, Son-Nan Chen borrowed $100,000, agreeing to repay this sum in 20 equal annual installments that include both principal and 15 percent interest on the declining balance. How large will the annual payments be?
Post your question