Question: Your broker offers to sell you a note for 13 250
Your broker offers to sell you a note for $13,250 that will pay $2,345.05 per year for 10 years. If you buy the note, what rate of interest (to the closest percent) will you be earning?
Answer to relevant QuestionsA mortgage company offers to lend you $85,000; the loan calls for payments of $8,273.59 per year for 30 years. What is the effective annual interest rate, rEAR, that the mortgage company is charging you?What is the present value of a perpetuity of $100 per year if the appropriate discount rate is 7 percent? If interest rates in general were to double and the appropriate discount rate rose to 14 percent, what would happen to ...You need to accumulate $10,000. To do so, you plan to make deposits of $1,750 per year, with the first payment being made one year from today, in a bank account that pays 6 percent annual interest. Your last deposit will be ...Assume that your aunt sold her house on January 1 and that she took a mortgage in the amount of $10,000 as part of the payment. The mortgage has a quoted (or simple) interest rate of 10 percent, but it calls for payments ...Sarah is on her way to the local Chevrolet dealership to buy a new car. The list, or “sticker,” price of the car is $24,000. Sarah has $3,000 in her checking account that she can use as a down payment toward the purchase ...
Post your question