Answer:
$515.56
Explanation:
Since it is a non-subsidized loan, interest would accrue during the 4 years Jeffery is in college.
So, find interest accrued using simple interest rate formula;
Simple interest (SI)= Principal * rate* time
SI = 30,000*0.052*4
SI = 6240
Next, add this amount to the borrowed loan amount;
Total amount in 4 years = 30,000 + 6,240 = 36,240
Using a financial calculator, input the following to solve for the monthly PMT;
PV = -36,240
FV = 0
Monthly interest rate ; I = 5.2%/12 = 0.433%
N = 7*12 = 84 months
then compute payment; CPT PMT = $515.56
Answer:
2 year yield 4 years from now 37.99%
Explanation:
given data
Interest rates r1 = 6.05% = 0.0605
Interest rates r2 = 7.6% = 0.0760
to find out
2 year yielding 4 years from now
solution
we find here 2 year securities will be yielding 4 years from now by as
2 year yield 4 years from now = ![\frac{(1+r2)^{t2}}{[(1+r1)^{t1}]^{0.5}}](https://tex.z-dn.net/?f=%5Cfrac%7B%281%2Br2%29%5E%7Bt2%7D%7D%7B%5B%281%2Br1%29%5E%7Bt1%7D%5D%5E%7B0.5%7D%7D)
- 1
put here value we get
2 year yield 4 years from now = ![\frac{(1+0.0760)^6}{[(1+0.0605)^4]^{0.5}}](https://tex.z-dn.net/?f=%5Cfrac%7B%281%2B0.0760%29%5E6%7D%7B%5B%281%2B0.0605%29%5E4%5D%5E%7B0.5%7D%7D)
- 1
2 year yield 4 years from now = 1.379915 - 1
2 year yield 4 years from now = .379915
so 2 year yield 4 years from now 37.99%
Answer:
You have not provided any options. However, since this is more of a practical question, the suitable answers are,
- Mutual Funds
- Certificate of Deposits
- High yield bearing Bonds
Explanation:
Mutual funds are a wonderful option to track the share market without exposing yourself to too much market risk. A mutual fund holds a diversified portfolio of stocks that distributes risk among various companies from different industries.
That way, even if the market is poorly performing, as a whole, the fund will be stable. Moreover, in the long term, since you have 50 years until you are 70, compounding your dividends will make you a lot of money to retire.
Besides, mutual funds have a high liquidity, making it easier for you to withdraw your money.
Certificate of Deposits are virtually risk free and provides a descent income through the high interest rates.
The main benefit here is the compounding effect of the interest. Since 50 years is a long time frame, even if you start small, you can eventually end up with a hefty sum to help your retirement. Because the compounding effect will be highly effective in the long term.
Answer:
In other words,this redemption transaction results in $60000 charge to e&p and $85000 reduction of Caramel's paid capital account
Explanation:
E&P in relation to redemption is =total e&p/total shares*shares redeemed
E&P in relation to redemption is =$300000/5000shares*1000shares
E&P in relation to redemption is =$60000
The reduction in Caramel's paid-in-capital is $85000 ($145000-$60000)
