Given the following information, what would you expect to be the minimum price at which a 3 month futures contract for 100 bushels of wheat would be trading? • The spot price of wheat is $8 per bushel. Storage and insurance costs for wheat are $.50 per 100 bushels, per month, payable at the end of the storage period. You can borrow money at 8% per year. a) $865.50 b) $814.50 c) $816.50 d) $817.5
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- You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,200,000 purchase price. The monthly payment on this loan will be $12,000. a. What is the APR on this loan? Annual percentage rate b. What is the EAR? Effective annual rateA store offers a 'special deal' to lend us $5,500 today, whereby you pay off the loan in one year with 12 monthly payments of $500 each, with the first payment due 1-month from today. What effective annual rate (EAR) are they charging us on the loan?You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2.6 million purchase price. The monthly payment on this loan will be $14,200. a. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the EAR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Annual percentage rate % b. Effective annual rate %
- You have just purchased a new warehouse. To finance the purchase, you've arranged fora 38-year mortgage loan for 70 percent of the $3,380,000 purchase price. The monthlypayment on this loan will be $17,100. a. What is the APR on this loan? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g., 32.16.)b. What is the EAR on this loan? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g., 32.16.)Jane Doe plans to make twelve end-of-month payments of $18,000 each on a short term investment account. The account earns a monthly interest rate of 2.5%. a. What is the present worth (i.e., Po) of these payments? b. Repeat Part (a) but assuming that they are beginning-of-month payments. a. The present equivalent of the payments is $ nearest dollar.) b. The present equivalent of the payments is $ nearest dollar.) (Round to the (Round to thees You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage for 80 percent of the $3,200,000 purchase price. The monthly payment on this loan will be $17,300. a. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the EAR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Annual percentage rate b. Effective annual rate % % 8 # Next >
- You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,600,000 purchase price. The monthly payment on this loan will be $16,700. a. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the EAR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Annual percentage rate b. Effective annual rate % %You have just purchased a new warehouse. To finance the purchase, you've arranged for a 25-year mortgage for 80 percent of th $1,800,000 purchase price. The monthly payment on this loan will be $11,800. What is the APR? The EAR? 07.67 percent: 7.94 percent O7.72 percent: 7.94 percent O7.72 percent: 8.03 percent O8.70 percent: 9.10 percentYou have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,600,000 purchase price. The monthly payment on this loan will be $16,700. a. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the EAR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- Asset XYZ is selling for $200 in the cash market. Asset XYZ pays the holder $16 per year in quarterly distributions ($4 each quarter), with the next distribution due in 3 months (one quarter of a year). The 3-month interest rate is 6% per year. What is the price of the future contract with a delivery date 3 months from today?A bicycle shop is for sale with a price of $110,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. Compute the monthly payment on this loan. O $1,509.78 O $1,659.10 O $1,460.01 O $1,277.51 O $1,775.24Maybepay Life Insurance Co. is selling a perpetual annuity contract that pays $3300 monthly. The contract currently sells for $336,000. a. What is the monthly retun on this investment vehicle? b. What is the APR? c. What is teh effective annual return?