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- is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 1% is $. (Round your response to the neareast two decimal place) If a loan is paid after two years, and the amount $1000 is to be paid then with a corresponding 2% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place) Next 11:41 AMToni received a loan of $200,000 at 10% interest. The interest was deducted from the loan at the time the money was borrowed. If, at the end of one year, Toni has to pay the full amount of $200,000, what is the actual rate of interest?SHOW SOLUTIONS A couple decided that for every child that will be born they will place a deposit in the bank so that the child's 18th birthday he will received an amount of P 300,000. If they deposit today an amount of P 15,249.13, what is the bank's nominal rate annually?
- Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is o ffering five- year investment certificates that pay interest compounded quarterly. What is the minimum nominal interest rate he would have to receive to reach his go al? |Suppose you have received a credit card offer from a bank that charges interest at 2.4% per month compounded monthly. What is the annual nominal interest rate for this credit card? (provide your answer in % with one decimal place)Explain Simple Loan considering Articles 1953 to 1955 and 1980
- Is it possible for a one-year coupon bond to have a negative nominal interest rate? Explain, how?John Doe received the following information in a mailed advertisement: "You could borrow $4,400 for just $184.62 per month for 36 months at 29.1% APR. Get the money you need at a payment you can afford." Would you take this borrowing opportunity? What is the effective interest rate being charged to the borrower? Assume the maximum acceptable interest rate is 15%. The effective annual interest rate is %. (Round to two decimal places.)▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $enter your response here. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $enter your response here. (Round your response to the neareast two decimal place)
- ework (CIT 25) This question addresses the impact of saving on an economy by examining what happens if tax laws change to induce saving and how changes in tax laws can discourage saving. The following graph shows the market for loanable funds. Show the impact of a change in the tax law that successfully encourages saving by shifting either the demand curve (D), the supply curve (S), or both. (?) S INTEREST RATE F2 F3 11 F4 d F5 COL F6 % 。。。。 O F7 A F8 & & F9 * F10 F11 ) F12 2 Fn Lock D Insert Prt Sc + X 1:44 PM 4/29/2022 (2 D Ba2. Calculate the value of P corresponding to the following series, if the effective interest rate applicable to each period is 10%:Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place)