Solving for Rates What annual rate of return is earned on a $3,800 investment when it grows to $8,100 in eighteen years?
Future Value of an Annuity Due If the future value of an ordinary, 6-year annuity is $7,700 and interest rates are 7 percent, what's the future value of the same annuity due?
Present Value of Multiple Annuities A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,800 per month for the next three years and then $3,800 per month for the two years after that. If the bank is charging customers 7.25 percent APR, how much would it be willing to lend the business owner?
Teaser Rate Mortgage A mortgage broker is offering a 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 5.6 percent APR interest rate. After the second year, the mortgage interest charged increases to 9.2 percent APR. What is the effective interest rate in the first two years? What is the effective interest rate after the second year?
Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in 10 years if the market interest rate is 6 percent. (Round your answer to 2 decimal places.)