Question & Answer: rieworR.CHapter T Homework re: 5 of 10 pts P7-4 (book/static) ㄇ HW Score: 52 78%, 31 67 of 6 (Click the icon to view the Future alue of…..

rieworR.CHapter T Homework re: 5 of 10 pts P7-4 (book/static) ㄇ HW Score: 52 78%, 31 67 of 6 (Click the icon to view the Future alue of $1 table) (Click the icon to view the Future Value of an Odnary Annuity table) (Cick the icon to view the Future Value of an Annuity Due table ) 悬 (Cick the icon to view the Present Value 0, $1 table」 questions) (Use the present value and future value tables, the formula mothod, a financial calculator, or a spreadsheet or your calculations If using present and future value tables or the formula method, use factor amounts Click the kcon to viow the Present Value of an Ordna Annuity table) - (Click the icon to view the Present Value of an Annuilty Due table ) a. You borrowed $15,000 from a friend and promised to repay the loan in seven equal annuaalments Instalments begin who would like to earn 4% annual interest compounded annually? Round your final answer to the nearest cent xxx) at the end of the first year. What are the annual payments required to pay back your fhiene are S 2.499 14 Assurme no interest will accrue on the debt it has S50 to invest in a fund eaning 5% Henest compounded annualy How many years wil r take has an to earn enough money to pay back the debt? Round your inal answer the nearest whol, number c. Zenith & Co purchases jewelry from a supplier for $60,020.50 Zenith uses a note to pay for the jewelry that requires the year What interest rate is used in this agreement? Round your tinal answer to the nearest whole percent, X The interest rate used in this agreement is [ Enter any number in the edit fields and then click Check Answer part /20/2017

rieworR.CHapter T Homework re: 5 of 10 pts P7-4 (book/static) ㄇ HW Score: 52 78%, 31 67 of 6 (Click the icon to view the Future alue of $1 table) (Click the icon to view the Future Value of an Odnary Annuity table) (Cick the icon to view the Future Value of an Annuity Due table ) 悬 (Cick the icon to view the Present Value 0, $1 table」 questions) (Use the present value and future value tables, the formula mothod, a financial calculator, or a spreadsheet or your calculations If using present and future value tables or the formula method, use factor amounts Click the kcon to viow the Present Value of an Ordna Annuity table) – (Click the icon to view the Present Value of an Annuilty Due table ) a. You borrowed $15,000 from a friend and promised to repay the loan in seven equal annuaalments Instalments begin who would like to earn 4% annual interest compounded annually? Round your final answer to the nearest cent xxx) at the end of the first year. What are the annual payments required to pay back your fhiene are S 2.499 14 Assurme no interest will accrue on the debt it has S50 to invest in a fund eaning 5% Henest compounded annualy How many years wil r take has an to earn enough money to pay back the debt? Round your inal answer the nearest whol, number c. Zenith & Co purchases jewelry from a supplier for $60,020.50 Zenith uses a note to pay for the jewelry that requires the year What interest rate is used in this agreement? Round your tinal answer to the nearest whole percent, X The interest rate used in this agreement is [ Enter any number in the edit fields and then click Check Answer part /20/2017

Expert Answer

 

a) The equal annual instalment is an annuity and the Loan amount is its PV at 4%.
So $15000 = Annual instalment*PVIFA(4,7) = Annual instalment*6.00205
Annual instalment = 15000/6.00205 = $          2,499.15 Answer
b) Here, $89800 is the FV of the lump sum amount of $50000 in hand today. The
interest rate is 5%; but the number of years required for $50000 to become
$89800 is not given. It is to be found out.
We have the equality
89000 = 50000*FVIF(5,n)
Solving for n
1.78 = FVIF(5,n)
From the FVIF table, we have
Interest factor for 5% and 12 years = 1.7959
for 11 years = 1.7103
for 13 years = 1.8856
Nearest value to 1.78 is 12 years
Answer: 12 years
c) Here, $60020.50 = 10000*PVIFA(r,7)
r, the interest rate is unknown and is to be solved.
6.00205 = PVIFA(r,7)
From the PVIFA table, the factor for 7 years of 6.00205 is for 4%
Hence, the interest rate used in the agreement = 4% (Answer)

Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: rieworR.CHapter T Homework re: 5 of 10 pts P7-4 (book/static) ㄇ HW Score: 52 78%, 31 67 of 6 (Click the icon to view the Future alue of…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS $13/PAGE
Order Essay
Grand Paper Writers
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All papers are written by the best professional writers to ensure 100% originality. We always provide plagiarism reports whenever we deliver completed papers.

Free Revisions

All papers by Grand Paper Writers are completed and submitted on time. This timely delivery of papers gives you time to go through the paper before the official deadline.

Title-page

As an additional service, we will provide a title page that precedes the contents of your paper. Here, you will provide your personal details.

Bibliography

We also ensure that we provide an extra page for the references or bibliographies following referencing rules.

Originality & Security

At Grandpaperwriters.com, we guarantee students for the provision of security and original work. All your personal information is handled with confidentiality and is not shared with third parties. Additionally, we ensure that we provide original content with accompanying plagiarism reports to show originality.

24/7 Customer Support

Our customer support team is always available 24/7 to provide instant responses to any queries raised by students.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Grandpaperwriters.com has the best professional essay writers for quality services.

Pricing

Flexible Pricing

Here, a Grandpaperwriters.com, we do not compromise on the time of our clients. We always deliver all completed papers on or before the deadlines.

Communication

Admission Help & Client-Writer Contact

Grandpaperwriters.com provides an interactive portal where students can communicate directly to their writers.

Deadlines

Paper Submission

Here, a Grandpaperwriters.com, we do not compromise on the time of our clients. We always deliver all completed papers on or before the deadlines.

Reviews

Customer Feedback

Grandpaperwriters.com appreciates feedback from our clients to help us improve the delivery of essay writing services. As such, we are constantly changing our policies to ensure maximum customer and writer satisfaction.