Answer:
Anna Conda
The total of all the loan payments made is
= $48,708.
Explanation:
a) Data and Calculations:
Cost of the new Toyota Tundra pickup truck = $45,000
Loan to finance the purchase of the truck = $41,000
Period of loan = 5 years
Interest rate on the loan for financing the purchase = 3.5%
Future Value Factor at 3.5% for 5 years from a FV table = 1.188
Future Value of the loan = $41,000 * 1.188 = $48,708
The total interest on the loan = $7,708 ($48,708 - $41,000)
I think the most appropriate answer would be D. Because it has a 50 percent chance of winning $X and a 50 percent chance of losing $Y.
I hope it helped you!
Answer:
a. Assuming you purchased the bond for $850, what rate of return would you earn if you held the bond for 30 years until it matured with a value $5,000?
future value = present value x (1 + r)ⁿ
- future value = $5,000
- present value = $850
- n = 30
5,000 = 850 x (1 + r)³⁰
(1 + r)³⁰ = 5,000 / 850 = 5.882652
³⁰√(1 + r)³⁰ = ³⁰√5.882652
1 + r = 1.0608444
r = 0.0608444
r = 6.08%
b. Suppose under the terms of the bond you could redeem the bond in 2025. DMF agreed to pay an annual interest rate of 1.3 percent until that date. How much would the bond be worth at that time?
future value = present value x (1 + r)ⁿ
future value = 850 x 1.013⁷ = $930.43
c. In 2025, instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2048. What annual rate of return will you earn over the last 23 years?
5,000 = 930.43 x (1 + r)²³
(1 + r)²³ = 5,000 / 930.43 = 5.373859398
²³√(1 + r)²³ = ²³√5.373859398
1 + r = 1.075849638
r = 0.0758
r = 7.58%
Answer:
$1, 263. 75
Explanation:
If annual income is $8,425 and the tax rate is 15%,
Annual Tax would be 15% of $8,425
=15/100 x $ 8425
=0.15 x 8, 425
=$1, 263.75
