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Business, 14.07.2021 14:00 mathlady12

Q1: First National Bank charges 13.7 percent compounded monthly on its business loans. First United Bank charges 14.0 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan? Q2: One of your customers is delinquent on his accounts payable balance. You' ve mutually agreed to a repayment schedule of $400 per month. You will charge 1.2 percent per month interest on the overdue balance. If the current balance is $20,000, how long will it take for the account to be paid off? Q3: You want to be a millionaire when you retire in 50 years. How much do you have to save each month if you can earn a 14 percent annual return? How much do you have to save if you wait 15 years before you begin your deposits? 25 years? Q4: Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of 27/ÉTERIJE $55,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 6 percent of your annual salary in an account that will earn 11 percent per year. Your salary will increase at 5 percent per year throughout your career. How much money will you have on the date of your retirement 50 years from today? Q5: You're prepared to make monthly payments of $365, beginning at the end of this month, into an account that pays 7 percent interest compounded monthly. How many payments will you have made when your account balance reaches $22,500? Q6: Your financial planner offers you two different investment plans. Plan X is a $26,000 annual perpetuity. Plan Y is a 20-year, $27,400 annual annuity. Both plans will make their first payment one year from today. At what discount rate would you be indifferent between these two plans? ​

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