Your home mortgage loan has an initial balance of $500,000. The loan is to be...
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Accounting
Your home mortgage loan has an initial balance of $500,000. The loan is to be paid off in exactly 30 years, with monthly payments of $2,750. What is the interest rate (as annual percentage rate, APR) on this loan? Hint: First, solve for the loans monthly interest rate. Then, multiply this monthly interest rate by 12 to find the APR.
5.76%
5.21%
4.39%
3.29%
Clarissa wants to fund a growing perpetuity that will pay $6,000 per year to a local museum, starting next year. She wants the annual amount paid to the museum to grow by 4% per year. Given that the interest rate is 6%, how much does she need to fund this growing perpetuity?
250,000
240,000
200,000
300,000
If the interest rate is 3%, then you should be indifferent between receiving $100 today and
$97.09 in one year.
$103.00 in one year.
$97.00 in one year.
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