Compare the average level of interest rates among the three types of loans, FIN 100 Homework

In case you need high-quality essay, we are here to help you. Would you like us to handle your paper? Use our writing services for better grades and meet your deadlines.


Order a Similar Paper Order a Different Paper

Description

Complete the following from the
textbook:

  • Chapter 9: E1, P2, P3, P4, P5, P6, P7, P16, P17, P19

Questions/Answers

E1

1.
Go to the Federal Reserve Web site, http://www.federalreserve.gov. Click on the
Consumer Information tab, and research consumer credit in the various
hyperlinks. Find average interest rates charged by commercial banks on new
automobile loans, personal loans, and credit card plans.

  a. Compare the
average level of interest rates among the three types of loans.

  b. Click on the Economic Research &
Data tab, click on the “Statistics: Releases and  

  Historical Data” hyperlink and then “Consumer
Credit,” and compare trends in the cost of

  consumer credit provided by commercial
banks over the past three years.

P2

2.
Find the FV of $10,000 invested now after five years if the annual interest
rate is 8 percent.

  a. What would be the FV if the interest
rate is a simple interest rate?

  b. What would be the FV if the interest
rate is a compound interest rate?

P3

3.
Determine the future values (FVs) 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

4.
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 (FV) 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
FV in terms of purchasing power?

  c. What would be the investment’s FV in
terms of purchasing power if inflation occurs at 9

  percent annual rate?

P5

5.
Find the present value (PV) of $7,000 to be received one year from now assuming
a 3 percent annual discount interest rate. Also calculate the PV if the $7,000
is received after two years.

P6

6.
Determine the present values (PVs) if $5,000 is received in the future (i.e. at
the end of each indicated time period) in each of the following situations:

  a. 5 percent for ten years

  b. 7 percent for seven years

  c. 9 percent for four years.

P7

7.
Determine the present value (PV) 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

16.
Use a financial calculator or computer software program to answer the following
questions:

  a. What would be the future value (FV) of
$15,555 invested now if it earns interest at 14.5

  percent for seven years?

  b. What would be the FV of $19,378
invested now if the money remains deposited for eight

  years and the annual interest rate is
18 percent?

P17

17.
Use a financial calculator or computer software program to answer the following
questions:

  a. What is the present value (PV) of
359,000 that is to be received at the end of twenty-three

  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 twenty

  years?

P19

19.
Use a financial calculator or computer software program to answer the following
questions:

  a. What would be the future value (FV) 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?

As a student, I know you sometimes get frustrated working on school projects or even struggle to complete assignments on time. You need online writing help to rid you off such troubles. And since we understand your needs, we provide you with reliable and professional academic writers to complete your projects on time and at an affordable price.


Order a Similar Paper Order a Different Paper

Looking for this or a Similar Assignment? Order a Paper Now