1 points QUESTION 7 What is the EAR of 12.2% per annum, compounded weekly? Show
ID: 2384067 • Letter: 1
Question
1 points
QUESTION 7
What is the EAR of 12.2% per annum, compounded weekly? Show your answer to two decimal points.
1 points
QUESTION 8
What is the NPV for an investment with an initial outlay now of $425, and expected cash inflows of $166, $246 and $323 at the end of years one through three, respectively, at a discount rate of 10.2% ?
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QUESTION 9
A business borrows $297,268 for 12 years at an annual rate of interest of 7.4%. If payments are annual and the loan will negatively amortize by $45,318, what will be the annual payment required? Put your answer in as a positive number.
Four mortgages: W X Y Z Borrow 1,000 1,000 1,000 1,000 Balloon payment 0 200 1,000 1,300Explanation / Answer
ANSWER: (C)
X is partial amortization; Z is negative amortization
X is partial amortization since balloon payment is still required at maturity
Z is negative amortization since balloon payment at maturity is required more than principal
ANSWER 7
ANSWER 8
Effective Annual Interest Rate = ((1+(i/n))^n)-1 i=standard annual interest rate 12.20% n=number of compounding periods (weekly) 52 ((1+(12.2%/52))^52)-1 12.96%Related Questions
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