Pricipals of Finance, FIN100 Homework Help!

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HFNSZBZ1973

Business Finance

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There are nine questions required for this assignment, please answer all 9 questions! Please...No plagiarism!

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E1. Go to the Federal Reserve website, http://www.federalreserve.gov. Go to “Economic Research and Data,” and access “Consumer Credit.” Find interest rates charged by commercial banks on new automobile loans, personal loans, and credit card plans. a. Compare the current or recent level of interest rates among the three types of loans. b. Compare trends in the cost of consumer credit provided by commercial banks over the past three years. P2. Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the future value if the interest rate is a simple interest rate? b. What would be the future value if the interest rate is a compound interest rate? P3. Determine the future values if $5,000 is invested in each of the following situations: a. 5 percent for ten years b. 7 percent for seven years c. 9 percent for four years P4. You are planning to invest $2,500 today for three years at a nominal interest rate of 9 percent with annual compounding. a. What would be the future value of your investment? b. Now assume that inflation is expected to be 3 percent per year over the same three-year period. What would be the investment's future value in terms of purchasing power? c. What would be the investment's future value in terms of purchasing power if inflation occurs at a 9 percent annual rate? P5. Find the present value of $7,000 to be received one year from now, assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7,000 is received after two years. P7. Determine the present value if $15,000 is to be received at the end of eight years and the discount rate is 9 percent. How would your answer change if you had to wait six years to receive the $15,000? P16. Use a financial calculator or computer software program to answer the following questions: a. What would be the future value of $15,555 invested now if it earns interest at 14.5 percent for seven years? b. What would be the future value of $19,378 invested now if the money remains deposited for eight years and the annual interest rate is 18 percent? P17. Use a financial calculator or computer software program to answer the following questions: a. What is the present value of $359,000 that is to be received at the end of 23 years if the discount rate is 11 percent? b. How would your answer change in (a) if the $359,000 is to be received at the end of 20 years? P19. Use a financial calculator or computer software program to answer the following questions. a. What would be the future value of $19,378 invested now if the money remains deposited for eight years, the annual interest rate is 18 percent, and interest on the investment is compounded semiannually? b. How would your answer for (a) change if quarterly compounding were used?
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Good evening,Hope you are doing great. Just wanted to tell you that I finished working on your task.I am attaching to this message a Microsoft Office Word ( .docx format ) file entitled " Finance Solving Final" which contains all the answers.I included a step by step guide of how I reached the answer so there are no confusions :-Everything that is written in bold is the problems text-Everything that is written in italic is the answer-Everything that is written in a table is the formula I used-Everything that is highlighted in yellow is the final answer---I am pretty sure this is what you wanted me to work on.I will please you to take a look at it and in case you need any kind of further explanations or changes I will be here to do them.

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(Your Name)
2 February 2018
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Solutions

2
Finance

Go to the Federal Reserve website, http://www.federalreserve.gov. Go to “Economic
Research and Data,” and access “Consumer Credit.” Find interest rates charged by
commercial banks on new automobile loans, personal loans, and credit card plans.
a.

Compare the current or recent level of interest rates among the three types of loans.

2017 Report (2018 is currently not available )
Interest Rate
2017
48 Months New Auto
4.61
24 Months Personal Loans
10.13
Credit Card
12.89
Based on these information we can deduct that when referring to interest in car loan it is a lot
lower than for personal loans ( Personal Loans – New Auto = 10,13% - 4,61%=5,7% difference
between the two) and also than for credit card plans ( Credit Card ...


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