You’re prepared to make monthly payments of $290, beginning at the end of this month, into an account that pays 7 percent interest compounded monthly. How many payments will you have made when your account balance reaches $20,000?
Answer to relevant QuestionsThe present value of the following cash flow stream is $8,400 when discounted at 9 percent annually. What is the value of the missing cash flow?Year Cash Flow1...... $2,0002........ ...A local finance company quotes a 17 percent interest rate on one-year loans. So, if you borrow $25,000, the interest for the year will be $4,250. Because you must repay a total of $29,250 in one year, the finance company ...You have just arranged for a $1,800,000 mortgage to finance the purchase of a large tract of land. The mortgage has a 7.8 percent APR, and it calls for monthly payments over the next 30 years. However, the loan has an ...Stone Sour Corp. issued 20-year bonds two years ago at a coupon rate of 7.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?Backwater Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent. The current yield on these bonds is 7.55 percent. How many years do these bonds have left until they mature?
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