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ratelena [41]
3 years ago
11

You have graduated from college but unfortunately have $39,000 in outstanding loans. The loans require payments of $3,435 per ye

ar, which covers interest and principal repayment (that is, the loan has the same basic features as a mortgage). If the interest rate is 4 percent, how long will it take you to repay the debt
Business
1 answer:
vladimir1956 [14]3 years ago
3 0

Answer:

15.44 years

Explanation:

Using both excel rate function and financial calculator, the time taken to repay the debt can be computed thus:

Excel rate function:

=nper(rate,pmt,-pv,fv)

rate= interest rate=4%

pmt=yearly payment=c

pv=loan oustanding=-39000

fv=the balance after all payments should be zero=0

=nper(4%,3435,-39000,0)= 15.44 years

Financial calculate

PMT= 3435

RATE=4

PV=-39000

FV=0

CPT N=15.44 years

This means a payment of $3,435 per year for 15 years  and $ 1,511.40  ($3,435*0.44) in the sixteenth year

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There is not enough information in this question to answer it. You cannot determine significance with just the alpha value. You need the actual test statistic (p-value) to determine this.

If the p-value is less than the alpha value, you reject the null hypothesis (the there is no difference).

3 1
3 years ago
Ann Hopkins borrowed $60,000 for her child’s education. She must repay the loan at the end of 8 years in one payment with 512% i
mart [117]

The Maturity Value that Ann must pay is $89,461.

Assuming the rate of interest is compounded annually.

Given,

Principal value = $60,000 = P

Rate of interest = 5.12% = i

Number of years = 8 = T

Since maturity value = Amount

Now, using the formula for calculating the amount,

Amount = P × {(1+i)^T}

Now, substituting the given values in the above formula for amount we get,

Amount = $60,000 × {(1+0.0512)^8}

             = $60,000 × {(1.0512)^8}

             = $60,000 × 1.49101776418

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             = $89,461 (Approximately)

Hence, The Maturity Value that Ann must pay is $89,461.

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7 0
2 years ago
You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.27 and the total
andriy [413]

Answer:

the beta be for the other stock in your portfolio is 1.73

Explanation:

The computation of the beta be for the other stock in your portfolio is shown below:

Given that

risk free asset contains the beta of 0

And,  

market beta = 1

Now  

1 = 1 ÷ 3 × 0 + 1 ÷ 3 × 1.27 + 1 ÷ 3 × beta

The beta of other stock = 1.73

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Here we assume that one-third should be invested in all 3 things each

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garri49 [273]

Complete Question:

What are the benefits of a long-term bond over a short-term bond?

Answer:

c. While long-term bonds have more risks associated with them, they have the potential to bring in higher returns for the initial investment.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

Bonds are generally debts, which may be floated in different ways with respect to the issuer of the bond and its type. Bonds are used by government and corporate institutions to borrow money with interest and they also have to pay for the face value of the bonds at maturity.

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Law Incorporation [45]

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6 0
3 years ago
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