What is the maximum that you would be willing to loan your brother for a $100 IOU if he promises to pay you back at the end of the year? You want to earn an annual rate of return of 12%. A) $82.00 B) $89.29 C) $92.73 D) $88.00
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- Suppose that you are obtaining a personal loan from your uncle in the amount of $20,000 (now) to be repaid in two years to cover some of your college expenses. If your uncle usually earns minimum 8% profit (annually) on his money, which is invested in various sources, what minimum lump-sum payment two years from now would make your uncle happy?Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $160,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? O 2.28% O 2.20% O 2.22% 2.33% 2.59%Suppose that, to purchase a car, you are obtaining a personal loan from your uncle in the amount of S65,000 (now) to be repaid in five years. it your uncle could earn 6% interest (oompounded annually) on his money invested in various sources, what minimum lump-sum payment five years trom now would make your uncle happy economically? OA S78648 OB S134, 168 OC s06,985 Oo S92, 241
- 3) If you are willing to loan someone $100 and expect to be paid back $200 and earn 12% on your investment, approximately when would you need to be paid back? A) 4 years B) 5 years C) 6 years D) 7 years E) 8 years1. What is the amount you would have to deposit today to be able to take out $2070 a year for 2 years from an account earning 14 percent. 2. If you desire to have $38300 for a down payment for a house in 11 years, what amount would you need to deposit today? Assume that your money will earn 4 percent.Assume that you just inherited an annuity that will pay you $10,000 per year for 10 years, with the first payment being made today. A friend of your mother offers to give you $60,000 for the annuity. If you sell it, what rate of return would your mother’s friend earn on his investment? If you think a “fair” return would be 6%, how much should you ask for the annuity? What keys do I need to enter in a financial calculator to get the answers of (13.70%, $78,016.92)/ only show me the keys to enter in a financial calculaotr. not excel and not algebra
- (Use Calulator or Formula Approach) You want to receive $5,000 per month in retirement. If you can earn 0.75% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement?After making payments of $901.10 for 8 years on your 30 year loan at 8.3%, you decide to sell your home. What is the loan payoff?(please finanas question correct answer) You want to buy a $243.000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. How much im the loan amount going to be? What will your monthly payments be if the interest rate is 5%? What will be your monthly payments if the interest rate is 6%?
- 17) Sun Woo wants to purchase an annuity that will pay him $1,000 a month for fifteen years. If he can a 4.5% rate of return, how much will he have to pay today in order to purchase this B) $154,327 C) $96,489 D) $130,720 E) $185,171 negotiate annuity? A) $123,185You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? %24 b) What will your monthly payments be if the interest rate is 6%? %24 c) What will your monthly payments be if the interest rate is 7%? %24You are planning to build a vacation home. Your rich uncle offers you a $35,000 loan at 10.5% interest if you make $325 per month payments at the end of each month, how many payments will be required to pay off the loan, and how many years will this take? show relevant calculation
