Give answers to two decimal places and show all your workings. a) The monthly compounded interest...
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Give answers to two decimal places and show all your workings. a) The monthly compounded interest rate is 10%. i. what is the effective three-month interest rate? ii. iii. iv. (2 marks) what is the present value of an annuity cashflow stream of KZT 1 million to be received every three months for the next five years? (5 marks) what is the effective twelve-month interest rate? (2 marks) what is the present value of a perpetuity cashflow stream of KZT 3 million to be received annually forever? (5 marks) b) The interest rate is 12%. i. (5 marks) ii. A residential apartment produces an income that grows by 5% per annum. If the first year's income is $12000 what is the value of the apartment? (5 marks) ii. What is the PV of an asset that pays KZT 250 000 a month in perpetuity? c) Suppose you take a KZT 20min, 25 year mortgage loan to buy a condo. The interest rate on the loan is 7% and payments on the loan are made annually at the end of each year. i. What is your annual payment on the loan? (4 marks) What would your monthly payment be on the loan if payments were made monthly at the end of each month? (5 marks) Give answers to two decimal places and show all your workings. a) The monthly compounded interest rate is 10%. i. what is the effective three-month interest rate? ii. iii. iv. (2 marks) what is the present value of an annuity cashflow stream of KZT 1 million to be received every three months for the next five years? (5 marks) what is the effective twelve-month interest rate? (2 marks) what is the present value of a perpetuity cashflow stream of KZT 3 million to be received annually forever? (5 marks) b) The interest rate is 12%. i. (5 marks) ii. A residential apartment produces an income that grows by 5% per annum. If the first year's income is $12000 what is the value of the apartment? (5 marks) ii. What is the PV of an asset that pays KZT 250 000 a month in perpetuity? c) Suppose you take a KZT 20min, 25 year mortgage loan to buy a condo. The interest rate on the loan is 7% and payments on the loan are made annually at the end of each year. i. What is your annual payment on the loan? (4 marks) What would your monthly payment be on the loan if payments were made monthly at the end of each month? (5 marks)
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Answer rating: 100% (QA)
a i To calculate the effective threemonth interest rate we can use the formula Effective interest rate 1 Monthly interest raten 1 where n is the number of compounding periods in a year In this case th... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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