Answer:
R=154.66941
Explanation:
the payment will be made monthly so we need to convert the 5.99% APR in to moths
Monthly Interest =5.99%/12 = 0.499%
Total payments = 60
Amount Borrowed = $8000
Rental = ?
Using the annuity formula = P=R*(1-(1+i )^-n ) / i
So we have = 8000=R*(1-(1+0.499%)^-60) / 0.499%
8000=R* (1-0.74181) / 0.499%
8000=R* 0.25818/ 0.499%
8000=R*51.72321
R=8000/51.72321
R=154.66941
The answer is 2009 alright.
Answer:
Explanation:
It is given that there is a liability to creditors of 6,500
Total assets = Total liability + Shareholder's equity
a) Shareholder's equity = Total assets - Total liability = 10,250 - 6,500 = 3,750
b) Shareholder's equity = Total assets - Total liability = 5,900 - 6,500 = -600
In simple interest, the interest rate is
i=(10500-9000)/9000=16.67%
In compound interest, compounded monthly,
10500=9000(1+i/12)^12
=>
APR=12(10500/9000)^(1/12)-1
=11.155%
(effective interest is still 16.67%)
Answer:
the current yield is 7.49%
Explanation:
The computation of the current yield on the bond is shown below:
The current yield is
= Annual coupon payments ÷ Bond price
= ($1,000 ×6.5) ÷ $867.25
= $65 ÷ $867.25
Hence, the current yield is 7.49%
