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finance data bank

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Question;uestion 11 You need to accumulate ? 10,000.;To do so, you plan to make deposits of ? 1,250 per year, with the first payment;being made a year from today, in a bank account which pays 12 percent annual;interest compounded annually. Your last deposit will be less than ? 1,250 if;less is needed to round out to ? 10,000. How many years will it take you to;reach your ? 10,000 goal, and how large will the last deposit be?uestion 12 Your Company is planning to borrow ? 1,000,000 on a;5-year, 15 percent, annual payments, fully amortized term loan. What fraction;of the payment made at the end of the second year will represent repayment of;principal?uestion 13 You are branch manager of town centre;Natwest Bank, Manchester. A borrower approaches you for a term loan of ?;500,000. You agreed to give loan to be fully;amortized in a period of 5 year at 10 percent, annual payment. What will;be the size of each installment? What fraction of the payment made at the end;of second year represents repayment of interest?="i1">.uestion 14="i1">It;is now January 1, 2007.;You plan to make 5 deposits of ? 100 each, on every 6 months, with the first;payment being made today. If the bank pays a nominal interest rate of 12;percent, but uses semiannual compounding, how much will be in your account;after 10 years?;b. Ten;years from today you must make a payment of ? 1,432.02. To prepare for this;payment, you will make 5 equal deposits, beginning today and for the next 4;quarters, in a bank that pays a nominal interest rate of 12 percent, quarterly;compounding. How large must each of the 5 paymentsQuestion 15 The prize in last week's Lottery;was estimated to be worth ? 35 million. If you were lucky enough to win, then;it will pay you ? 1.75 million per year over the next 20 years. Assume that the;first installme="i1">="i1">Ashley;has ? 42,180.53 in brokerage account, and plans to contribute an additional ?;5,000 every year at an annual interest rate of 12 percent. If Ashley has to;accumulate ? 250,000, how many years will it take for him to reach his goal?nt is received immediately.a. If interest rates are 8 percent, what is the present value;of the prize?b. If interest rates are 8 percent, what is the future value;after 20 years?;c. How would your answers change if the payments were received;at the end of each year?ques 16Ashley;has ? 42,180.53 in brokerage account, and plans to contribute an additional ?;5,000 every year at an annual interest rate of 12 percent. If Ashley has to;accumulate ? 250,000, how many years will it take for him to reach his goal?="i1">="i1">="y">="msonormal">="i1">="i1">

 

Paper#51191 | Written in 18-Jul-2015

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