Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Your money is tied up and you need to borrow $10,000. The following two alternatives are being offered by the lender: (1) pay $3,288.91 at the end of each year for 5 years, starting at the end of the first year (5 payments total at 18 percent nominal per year compounded quarterly which equates to 19.25% effective); or (2) pay $X at the end of each quarter for 6 years, starting at the end of the first quarter (24 payments total at 18 percent nominal per year compounded quarterly). Determine the value of $X that will make Alternative 2 equally desirable to Alternative 1 if
a. your TVOM is 8% nominal per year compounded.
b. your TVOM is 22% nominal per year compounded quarterly.

Sagot :

angiealfayed
at the end of each year for 5 years, starting at the end of the first year (5 payments total at 18 percent nominal per year compounded quarterly which equates to 19.25% effective); or (2) pay $X at the end of each quarter for 6 years, starting at the end of the first quarter (24 payments total at 18 percent nominal per year compounded
Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.