1. Calculate the amount of simple interest earned. $1,000 at 13% for 20 years $ 2600 2. –/1.05 points SmithNM12 11.1.022.CMI. Find the future value, using the future value formula and a calculator. (Round your answer to the nearest cent.) $823 at 5.5% compounded quarterly for 6 years $ 3. –/1.05 points SmithNM12 11.1.030. Find the present value, using the present value formula and a calculator. (Round your answer to the nearest cent.) Achieve $225,500 at 8.25% compounded continuously for 8 years, 145 days. $ Homework 6: Financial Management (Chapter 11) (Homework) PRAVEEN MISHRA MAT104, section 160VA001-1138-001, Fall 2013 Instructor: IMED CHOUIKHA WebAssign 11/17/13 Blackboard Learn https://blackboard.strayer.edu/webapps/portal/frameset.jsp?url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_107908_… 2/9 4. 0/1.05 points | Previous Answers SmithNM12 11.1.032. If $38,500 is invested at 6.7% for 30 years, find the future value if the interest is compounded the following ways. (Round your answers to the nearest cent.) (a) annually $ (b) semiannually $ (c) quarterly $ (d) monthly $ Your answer cannot be understood or graded. More Information (e) daily $ (f) every minute (N = 525,600) $ (g) continuously $ (h) simple (not compounded) $ 5. –/1.05 points SmithNM12 11.1.046. Suppose that an insurance agent offers you a policy that will provide you with a yearly income of $40,000 in 30 years. What is the comparable salary today, assuming an inflation rate of 5% compounded annually? (Round your answer to the nearest cent.) $ 11/17/13 Blackboard Learn https://blackboard.strayer.edu/webapps/portal/frameset.jsp?url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_107908_… 3/9 6. –/1.05 points SmithNM12 11.2.025. Convert the credit card rate to the APR. Oregon, per month % 7. –/1.05 points SmithNM12 11.2.031. Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $200 balance, 16%, $50 payment (a) previous balance method $ (b) adjusted balance method $ (c) average daily balance method $ 1 % 3 4 11/17/13 Blackboard Learn https://blackboard.strayer.edu/webapps/portal/frameset.jsp?url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_107908_… 4/9 8. –/1.05 points SmithNM12 11.2.045. Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker price of $42,150 with factory and dealer rebates of $5,100 (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.) $ (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.) $ (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) % (d) State whether the 0% APR or the 2.5% add-on rate should be preferred. 0% APR 2.5% add-on rate 11/17/13 Blackboard Learn https://blackboard.strayer.edu/webapps/portal/frameset.jsp?url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_107908_… 5/9 9. –/1.05 points SmithNM12 11.2.048. For the car loan described, give the following information. A newspaper advertisement offers a $4,500 used car for nothing down and 36 easy monthly payments of $147.62. (a) amount to be paid $ (b) amount of interest $ (c) interest rate (Round your answer to two decimal places.) % (d) APR (rounded to the nearest tenth percent) % 10.–/1.05 points SmithNM12 11.2.059. Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money in order to buy a new one. Sears offers them an installment loan at 16% (add-on rate). If the refrigerator at Sears costs $1,538 plus 5% sales tax, and Karen and Wayne plan to pay for the refrigerator for 3 years, what is the monthly payment? (Round your answer to the nearest cent.) $ 11/17/13 Blackboard Learn https://blackboard.strayer.edu/webapps/portal/frameset.jsp?url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_107908_… 6/9 11.–/1.05 points SmithNM12 11.5.020.CMI. Use a calculator to evaluate an ordinary annuity formula for m, r, and t (respectively). Assume monthly payments. (Round your answer to the nearest cent.) $150; 5%; 35 yr A = $ 12.–/1.05 points SmithNM12 11.5.038.CMI. Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer to the nearest cent.) $ Amount Needed A Frequency n Rate r Time t $50,000 semiannually 15% 10 yr 13.–/1.05 points SmithNM12 11.6.015.CMI. Use a calculator to evaluate the amortization formula for the values of the variables P, r, and t (respectively). Assume n = 12. (Round your answer to the nearest cent.) $150,000; 4%; 25 yr $ A = m 1 + ? 1 r n nt r n m = P 1 ? 1 + r n r n ?nt 11/17/13 Blackboard Learn https://blackboard.strayer.edu/webapps/portal/frameset.jsp?url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_107908_… 7/9 14.–/1.05 points SmithNM12 11.6.032. Find the monthly payment for the loan. (Round your answer to the nearest cent.) $900 loan for 12 months at 14% $ 15.–/1.05 points SmithNM12 11.6.040.CMI. Find the monthly payment for the loan. (Round your answer to the nearest cent.) A $110,000 home bought with a 20% down payment and the balance financed for 30 years at 8.5% $ 16.–/1.05 points SmithNM12 11.6.042. Find the monthly payment for the loan. (Round your answer to the nearest cent.) Finance $650,000 for a warehouse with a 9.50% 30-year loan $