The table below shows the market for credit cards at various interest rates in millions of dollars. What is the equilibrium interest rate? Interest Quantity of Financial Capital Supplied Quantity of Financial Capital Demanded Rate (Lending) ($ millions) (Borrowing) ($ millions) 9% $200 $275 10.5% $205 $255 12.0% $210 $235 13.5% $215 $215 15.0% $220 $195 16.5% $225 $175 Provide your answer below:
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- Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table, Table 13-1. (Round your answers to the nearest cent.) AmountFinanced Number ofPayments APR TableFactor FinanceCharge MonthlyPayment $700 18 16% $ $ $Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 27%. Complete the account activity table for Kathy. (Round your answers to the nearest cent.) Month PreviousMonth'sBalance(in $) FinanceCharge(in $) Purchasesand CashAdvances Paymentsand Credits New BalanceEnd of Month(in $) April $643.17 $14.47 $31.45 $75.00 $614.09 May $ $ $287.33 $125.00 $For the following questions, choose the letter of the best answer (Show any work and explanations): 1. A home loan is taken out for $162,000. The loan is for 30 years, with a nominal annual rate of 7.5%,resulting in monthly payments of $1,132.73. The interest portion of the first payment will be what? a) $1,012.50 b) $682.73 c) $120.23 d) Answer cannot be determined without more information 2. A $100,000 asset has a $20,000 salvage value after its 10-year useful life. The depreciation allowanceusing straight-line depreciation is closest to what value? a) $2,000 b) $8,000 c) $10,000 d) $12,000 3. With reference to the straight-line depreciation method, which statement is false? a) The deprecation life (n) is set based on the MACRS property classes. b) An equal amount of depreciation is allocated in each year. c) The book value of the asset decreases by a fixed amount each year. d) The asset is depreciated down to a book value equal to the salvage value. 4. This past year, CLL…
- True/False (Explain): A savings account with annuity due will accumulate more interest amount than a savings account with annuity ordinaryTom Evers an attorney is planning for retirement. He earns $126,000 a year and estimates that he will need 80% of his salary for retirement in 10 years. Tom invests him money in Citizen's Bank at 6% compounded quarterly. How much money would Tom have to put in the bank today to have enough for retirement?Find the present and future values of an income stream of 11000 dollars a year for 17 years. The interest rate is 9% compounded continuously. Round your answers to 2 decimal places. Part 1 The present value represents the amount of money you would have to deposit today in order to match what you would get from the income stream at the future date. The formula is Present Value = M S(t)e" dt. Future value represents the total amount of money you would have if you deposit the income stream until a future date. The formula is Future Value - Present Value* erM To start our problem we need to identify the variables. Time = M = i years Rate = r = i % Income Stream S(t) = i dollars/year
- 16. A U.S. corporate bond has a 10% coupon, payable semiannually. It is priced at par. What is its maturity?5:33 Ь N{ 23% ( Title A man purchased a car with a cash price of P350,000. He was able to negotiate with the seller to allow him to pay only a down payment of 20% and the balance payable in equal 48 end of the month installment at 1.5% interest per month. Once the day he paid the 20th installment, he decided to pay the remaining balance. What is the remaining balance that he paid?| 1/1 ET T T 17 IIProblem 2 Suppose you purchased a house and took a 30 -year mortgage. The mortgage is unusual: you pay yearly, not monthly. The yearly payment is$17,000and the interest rate is4.2%. What is the amount of mortgage you took? (Round to two decimals.) Hint: find the PV of all the payments.
- 6questionLoan servicing includes a number of responsibilities such as collecting monthly mortgage payments from the borrower, remitting principal and interest payments to investors, ensuring sufficient escrow payments are being made by the borrower, and managing default if it should arise. In exchange for these services, mortgage bankers receive a fee. If the outstanding loan balance is $250,000 and the annual servicing fee is 0.35%, what is the monthly fee for servicing the loan? Please explain your calculation A) $72.92 B) $729.17 C) $875.00 D) $8,750.00Living in retirement 25 years Retirement age 65 Annual income $100,000 Interest Rate 6% Need 2 million to live comfortably What is the present value of the retirement income needs? ( this is how much you will need k retirement savings on the day you retire in order to meet your goals) How much must you save each year (or each month) during your working years to meet this goal? ( compute the required payment to achieve a future value equal to the amount you need to have on the day you retire, which was computed above) Is the goal realistic?