Question: BEFORE ATTEMPTING QUESTION, PLEASE BE MINDFUL TO ANSWER ALL 5 PARTS TO QUESTION TO GET THUMBS UP, etc. And round all to two decimal places.
BEFORE ATTEMPTING QUESTION, PLEASE BE MINDFUL TO ANSWER ALL 5 PARTS TO QUESTION TO GET THUMBS UP, etc. And round all to two decimal places.
1.a) If you take out a 5 year, $70,000 car loan that calls for monthly payments at an APR of 5%, what is your monthly payment? Round to 2 decimal places
1.b) Suppose a condo generates $13,000 in cash flows in the first year. If the cash flows grow at 2% per year, the interest rate is 8%, and the building will be sold at the end of 21 years with a value of $80,000, what is the present value of the condo's cash flow? Round to 2 decimal places
1.c) Suppose you borrow $15,000 from a bank. The terms of the loan are 19 years with an interest rate of 11%. What are the annual loan payments at the end of the year to the bank? Round to 2 decimal places
1.d) You are planning for your retirement in 39 years. At that time you want to have enough saved to be able to afford to spend $240,000 per year (starting at time 40) for 19 years (if you live longer than 19 years your kids will have to support you).
How much will you need to have saved by time 39 if the expected interest rate from time 39 to 58 is 12 percent per year?
1.e) Suppose a condo generates $28,000 in cash flow in the first year. If the cash flows grow at 5% per year, the interest rate is 10%, and the building lasts forever, what is the present value of the condo's cash flow? Round to 2 decimal places
PLEASE ANSWER ALL 5 PARTS AND SHOW ALL WORK ! Thanks in advance
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