An investment of $125,000 will return $150,000 in 10 years. What annual interest rat is implied...

  

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•An investment of $125,000 will return $150,000 in 10 years. What annual interest rat is implied by these cash flows with monthly compounding? RATE = (PV) FV -) (1/m) -1 150,000/125,000 ^(1/120) - 1 = 0.0015 * 12 =0.018246 = 1.8246% PAYMENT •YouTown borrows $6,000,000 from Simonsen bank at 6% interest for ten years. What would their monthly loan payment be? rPV •PMT = 1-(1+r)¯ -n * 12. 6,000,000 1-(1+)-120 •PMT = •PMT= $66,612.30 EXCEL TIP: =PMT(rate, nper, PV, FV) •An investment of $125,000 will return $150,000 in 10 years. What (annual) compounding rate is implied by these cash flows? FV RATE = (PV)(1/n)-1 150,000/125,000 ^(1/10) - 1 = 0.0184 or 1.84% QUESTION 20 An investment of $136117 will return $168848 in 12 years. What (annual) compounding rate is implied by these cash flows? (Report as a percentage to two decimal places, for example, 0.0278 would be 2.78) QUESTION 21 An investment of $133172 will return $166888 in 9 years. What (annual) compounding rate is implied by these cash flows if there is monthly compounding? (Report as a percentage to two decimal places, for example, 0.0278 would be 2.78) QUESTION 22 Robbins Town borrows $83 million from Simonsen bank at 5.58% interest for 14 years. What would the monthly payment be (including principal and interest) on this loan? 4.16666 points 4.16666 points 4.16666 points Save Answer Save Answer Save Answer QUESTION 23 Robbins Town borrowed money from KimBank and the monthly payments are $1.58 million. How many years will it take to pay off the balance of $225 million at 6.70% interest? Report the answer to two decimal places. 4.166 •An investment of $125,000 will return $150,000 in 10 years. What annual interest rat is implied by these cash flows with monthly compounding? RATE = (PV) FV -) (1/m) -1 150,000/125,000 ^(1/120) - 1 = 0.0015 * 12 =0.018246 = 1.8246% PAYMENT •YouTown borrows $6,000,000 from Simonsen bank at 6% interest for ten years. What would their monthly loan payment be? rPV •PMT = 1-(1+r)¯ -n * 12. 6,000,000 1-(1+)-120 •PMT = •PMT= $66,612.30 EXCEL TIP: =PMT(rate, nper, PV, FV) •An investment of $125,000 will return $150,000 in 10 years. What (annual) compounding rate is implied by these cash flows? FV RATE = (PV)(1/n)-1 150,000/125,000 ^(1/10) - 1 = 0.0184 or 1.84% QUESTION 20 An investment of $136117 will return $168848 in 12 years. What (annual) compounding rate is implied by these cash flows? (Report as a percentage to two decimal places, for example, 0.0278 would be 2.78) QUESTION 21 An investment of $133172 will return $166888 in 9 years. What (annual) compounding rate is implied by these cash flows if there is monthly compounding? (Report as a percentage to two decimal places, for example, 0.0278 would be 2.78) QUESTION 22 Robbins Town borrows $83 million from Simonsen bank at 5.58% interest for 14 years. What would the monthly payment be (including principal and interest) on this loan? 4.16666 points 4.16666 points 4.16666 points Save Answer Save Answer Save Answer QUESTION 23 Robbins Town borrowed money from KimBank and the monthly payments are $1.58 million. How many years will it take to pay off the balance of $225 million at 6.70% interest? Report the answer to two decimal places. 4.166

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