Remaining Time:27 minutes, 08 seconds Question Completion Status: QUESTION 13 f
ID: 2620184 • Letter: R
Question
Remaining Time:27 minutes, 08 seconds Question Completion Status: QUESTION 13 f an annuity pays $1,000 at the end of each year for ten years, what is its yield if the price of the annuilty is $7,7217 0.0500196 QUESTION 14 0, What is the present value or a $500 perpetuity at 5%? QUESTION 15 f you take a 10-year $20,000 loan from the bank, the interest rate is 10% what is your monthly payment? QUESTION 16 South Penn Trucking is financing a new truck with a loan of $10,000 to be repaid in 5 annual end of year instaliments of $2.504 56. What annual interest rate is the company paying? Click Sove ond Submit to sove and subesit Cick Sove All Answers to sove ail onswers 2 3Explanation / Answer
Please round answer as per your requirement because you have not mentioned rounding parameters.
13.
Correct answer is > 5.001960% or 5%
Using financial calculator BA II Plus - Input details:
#
FV = Future Value =
$0.0
PV = Present Value =
-$7,721.0
N = Total number of remaining payment periods =
10
PMT = Payment or Coupon / frequency =
$1,000.00
CPT > I/Y = Rate =
5.001960
Convert Yield in annual and percentage form = Yield / 100 =
5.001960%
14.
Present value of perpetuity = Cash flow / Rate
Present value of perpetuity = $500 / 5%
= $10000.00
15.
Correct answer > $264.301474 or $264.30
Using financial calculator BA II Plus - Input details:
#
I/Y = Rate = Yield / Frequency of payment in a year = 10/12
0.833333
FV =
$0
N = Remaining term x frequency
120
PV =
-$20,000
CPT > PMT = PMT monthly =
$264.301474
16.
Correct answer > 7.999931% or 8%
Using financial calculator BA II Plus - Input details:
#
FV = Future Value =
$0.0
PV = Present Value =
-$10,000.0
N = Total number of remaining payment periods =
5
PMT = Payment or Coupon / frequency =
$2,504.56
CPT > I/Y = Rate =
7.999931
Convert Yield in annual and percentage form = Yield / 100 =
7.999931%
Using financial calculator BA II Plus - Input details:
#
FV = Future Value =
$0.0
PV = Present Value =
-$7,721.0
N = Total number of remaining payment periods =
10
PMT = Payment or Coupon / frequency =
$1,000.00
CPT > I/Y = Rate =
5.001960
Convert Yield in annual and percentage form = Yield / 100 =
5.001960%