This website uses cookies to ensure you have the best experience. Learn more

Chapter 4 Homework Essay

986 words - 4 pages

1. A $50,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT?
a. The annual payments would be larger if the interest rate were lower.
b. If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7-year amortization plan.
c. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower.
d. The last payment would have a higher proportion of interest than the first payment.
e. The proportion of interest versus principal ...view middle of the document...

When solving for interest rate you will never have a negative value.

3. Riverside Bank offers to lend you $50,000 at a nominal rate of 6.5%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Midwest Bank also offers to lend you the $50,000, but it will charge an annual rate of 7.0%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by Midwest versus the rate charged by Riverside?
a. 0.52%
b. 0.44%
c. 0.36%
d. 0.30%
e. 0.24%

Riverside Bank : EFF%= (1 + 0.0054)12 -1.0 = 0.0668 = 6.68%
Midwest Bank: EFF% = (1 + 0.07)1 – 1.0 = 0.07 =7%

Difference = 0.32%

4. Steve and Ed are cousins who were both born on the same day, and both turned 25 today. Their grandfather began putting $2,500 per year into a trust fund for Steve on his 20th birthday, and he just made a 6th payment into the fund. The grandfather (or his estate's
trustee) will make 40 more $2,500 payments until a 46th and final payment is made on Steve's 65th birthday. The grandfather set things up this way because he wants Steve to work, not be a "trust fund baby," but he also wants to ensure that Steve is provided for in his old age.
Until now, the grandfather has been disappointed with Ed, hence has not given him anything. However, they recently reconciled, and the grandfather decided to make an equivalent provision for Ed. He will make the first payment to a trust for Ed today, and he has instructed his trustee to make 40 additional equal annual payments until Ed...

Other assignments on Chapter 4 Homework

Case Essay

2895 words - 12 pages managerial cost analysis 4. Identify and discuss “real world” implications of management accounting information 5. Work in groups. Objectives 1, 2 and 3 will be assessed through successful completion of homework and two exams. Objectives 4 and 5 will be assessed through an evaluation of class participation. Class Policies: The class policies on attendance, grades, and withdrawals will follow the

Sylabus For Rhetoric Essay

3351 words - 14 pages | |Mon, Sep 5 |Labor Day Holiday (no classes) | |Wed, Sep 7 |The Process of Critical Analysis | | |Writing Analytically, Chapter 4


485 words - 2 pages MODULE 2: Chapter 1 - Introduction to Statistics & Displaying Distributions with Graphs Presentation and Lecture Notes: 1. Introduction to Statistics & Graphical Presentations (59.3 MB – Voice-Over PowerPoint Presentation saved as a WMV Windows Media Audio/Video file) Note: The same presentation is also saved and posted in a handout format (as a PDF file) for those of you who wish to print and study from a paper copy. Both of these files are


890 words - 4 pages Data File 2 Chapter Three (Show all your work) 1) A teacher asked each of her students how many novels they had read in the previous six months. The results are shown below. 0 1 5 4 2 1 3 2 2 7 2 5 0 1 0 1 1 2 6 0 2 3 1 2 7 1 4 2 3 1 7 0 0 2 1 1 0 6 1 7 Construct a frequency table for the number of novels read. |Number |Frequency | |of novels

Working Adult Students

983 words - 4 pages Jose Navarro#18 ESL 827 JC WA#4 Draft #4 High School Experience The teenage years are some of the most important stages in everyone’s life because that’s when we all start a new chapter in our lives, which is difficult and very interesting at the same time. The teen years are exciting because that’s when we begin to somehow take control of our lives by making our own decisions and making our own choices about what we’d like to do or

Week1 Homework

822 words - 4 pages Homework Week 1 Chapter 1 The Four Types of Firms 1. What is the most important difference between a corporation and all other organizational forms? The biggest difference between a corporation and all other types of organizational forms is that a corporation is not one person. It is a standalone entity versus a person that is an owner. 2. What does the phrase limited liability mean in a corporate context? Limited liability is

Ibc Case

4994 words - 20 pages Mid Term Review Vertical Integration & Firm Scope I Vertical Integration & Firm Scope II Corporate Strategy - Acquisitions Syllabus Grant 1 Case method Grant 3 The Five Forces Grant 4 The books business Grant 5 Grant 7, pages 169-179 Competing on Resources Grant 7, pages 179-188 Cases Assignment(s) Due (before class) Whole Foods Cola Wars - Team selection (on Canvas) - Case homework Barnes & Noble vs.

Course Syllabus

2610 words - 11 pages |Homework: Assignments will be given on MyMathLab every week and | |Requirements |graded. Doing homework in timely manner is crucial for the | | |success

Micro And Macro Exercise

2504 words - 11 pages ECONOMICS FOUNDATION - MBA 502 Homework Assignments Chu Nguyen Quynh Huong Class: M0111 Assignment 1 – Microeconomics 1. The Basics of Supply and Demand (Pindyck – Chapter 2): Excercises 9, 10 (page 63). Excercises 9: a) The original demand is QD =18-3P And supply is QS =-6+9P The 20-percent increase in demand means that the new demand is 120 percent of the original demand, so the new demand is Q ́D =1.2QD Q ́D =1.2(18–3P)=21.6

International Management Homework

1120 words - 5 pages HOMEWORK 1-INTERNATIONAL TRADE THEORY & POLITICAL ECONOMY OF INTERNATIONAL TRADE 1. Read the Samuelson critique from Chapter 5. Explain briefly what you understand from this critique. Do you agree or disagree with this critique? 2. The world’s poorest countries are at a competitive disadvantage in every sector of their economies. They have little to export. They have no capital; their land is of poor quality; they often have too

Factors Affecting Study Habits

2620 words - 11 pages suggestions and assistance in the development of this study. To researcher’s beloved guardians, for the love, understanding and support they gave to the researcher. They serve as the researcher’s inspiration. Thank you! CHAPTER I INTRODUCTION Research on the correlation between study habit and students academic achievement has for long received attention from scholars and educational agencies. For instance, the national

Similar Documents

Is And Work Group Essay

951 words - 4 pages Course Schedule Session 1 (January 12, 2013) Module 1 Topic The Accounting Environment: What is Accounting and Why is it Done? Activities Readings: Chapter 1 LO 1, 2, 3, 4, 5, 6 pages 1 - 23 Assignments: Lyryx Online Homework Assignment: Lab 1, Chapter 1 E1-3 (LO 2), E1-8 (LO 6) P1-6 (LO 1,2), P1-9 (LO1, 2, 6) P1-13 (LO 6), P1-16 (LO 1,2, 3) Due by Sunday, January 20 at 11:00 pm Tests/Exams: (None) Session 2 (January 19

Online Course Registration System Essay

2760 words - 12 pages 3.1.1 User Interfaces 4 3.1.2 Hardware Interfaces 4 3.1.3 Software Interfaces 4 3.1.4 Communication Interfaces 4 3.2 Functional Requirements 5 3.2.1 Creating Courses 5 3.2.2 Grade Management 5 3.2.3 Homework Submissions 5 3.2.4 Group Management 7 3.2.5 Online Quizzes 9 3.2.6 Create Accounts 10 3.3 Performance Requirements 10 3.3.1 Response Time 10 3.3.2 Throughput 10 3.3.5 Capacity 11 3.3.6 Utilization

Acct 553 Week 3 Essay

406 words - 2 pages ACCT553 Week 3 Homework _________________________________________________________ Please provide your answer to each question in the space provided below. When finished, submit to the DropBox. Chapter 7 1. In your "own" words, please describe what a "Suspended Loss" is, how it is generated and when it is becomes deductible. (5 pts) A suspended loss is a capital loss that is suspended until future years because it exceeds passive income

Study Habits Essay

1132 words - 5 pages the statement is false as it applies to you, circle N for no. Be sure to circle Y or N for each statement. Answer carefully so that you get accurate information. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. I have trouble finishing tests on time. I set aside a regular time for studying every day. Before I read a chapter, I turn headings into questions so that I know what I’m going to learn. I don’t have much