Answer:
0.811% per month is the amximum rate it can affor
or 9.732% annual rate with monhly compounding.
Explanation:
We have to solve for the rate at which the monthly payment equals 900 dollars.
C 900.00
time 240
rate r
PV $95,000.0000
Given the complexity of the formula we solve using excel or a financial calcualtor
we write on a1 =PV(A2;240;95000)
on a2 we write any number between 0 and 1
then we use goal seek tool adn define that we want A1 to be 95,000 by changing A2 (which is the argument for rate)
the value of A2 after this is our answer:
PV $95,000.0000
Answer:
$3,208
Explanation:
The computation of the future value is shown below;
As we know that
Future valie = Present value × (1 + rate of interest)^number of years
where
Present value is $2,500
Rate of interest = 2.5% ÷ 4 = 0.625%
And, the time period is = 10 × 4 = 40
So, the future value is
= $2,500 × (1 + 0.625%)^40
= $3,208
<span>In the past ten years, the largest amount of growth has been seen in the expenditure on services. For example, in the period 2014-5, that expenditure grew by 3.4%. Comparatively, the other components of household expenditure showed relatively modest differential gains during the last 10-year period.</span>