Radu purchased a short-term $17.000, 60-day GIC which will earn 1% interest annually When the GIC matures, the maturity value is rolled into another short-term 180-day GIC which will earn 3.75% interest annually What is the maturity value of the second GIC?
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- What is the purchase price of a 50-day T-bill with a maturity value of $1,421 that earns an annual interest rate of 4.446%? ( Assume a 360-day a years)The current price of the underlying instrument is 1000 PLN. In a year (right after the expiry of the forward contract) this instrument will bring a dividend of PLN 70. In half a year the investor should bear the cost of storage of this instrument in the amount of PLN 50. If the current semi-annual interest rate is 4% (continuous interest rate) and the current annual interest rate is 5% (continuous interest rate), what should be the current forward price of this contract with time to maturity 1 year? O a. 1072.30 PLN O b. 1032.79 PLN O c. 1102.82 PLN O d. 1101.80 PLNassume a $175,000 mortgage loan and 10-year term. The lender is charging an annual interest rate of 6 percent and 4 discount points at origination. a. What is the monthly payment Assuming that it is based on an amortization period of 30 years? b. What will be the required balloon payment at the end of the tenth year? c. What is the effective borrowing cost on the loan if it is held to maturity? Give typing answer with explanation and conclusion
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- A manufacturer can lease a machine for 6 years at $3,680 per quarter, payable at the beginning of each quarter. Alternatively, they can purchase the machine for $76,000 and sell it for $8,700 in 6 years. The cost of capital is 9.1% compounded annually. a. What is the present value of the cost: (enter a positive value accurate to the nearest dollar) i) of the lease option? ii) of the purchase option? GAb) A company is thinking of acquiring fixed assets worth TK. 10 million on financial lease for five years at an interest rate of 12%. The lease would be amortized over five years by equal annual installments. You are required to calculate annual installment and show how lease is amortized over five years if installment is paid at year end or at the beginning of the year.With a selling price $140,000, a 20% down payment, and interest at 10 1/2% for 25 years, calculate the interest and principal payment fr the first payment