Determine the interest rate you will pay

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Reference no: EM133010207

Question - This module related to the analysis of financial statements through indicators, solves the following problems. Use a financial calculator to solve the problems. It is important that you include the procedure and briefly explain how you obtained each result. Keep in mind that the rubric also includes criteria to evaluate the correct use of language, grammar, spelling and syntax.

Required - Present value, future value and interest rate

José López has $ 15,000 in a 6-year certificate of deposit (CD) that pays a guaranteed annual rate of 4%. Make a timeline showing when the cash flows will occur.

Oliver López deposits $ 12,000 in a bank account that pays 7% annual interest. Calculate the account balance after 5 years.

Carmen Hernández has saved $ 8,000 for a car deposit. The highest monthly payment you can afford is $ 455. The loan will have an 11% APR due at the end of each month. Determine what is the most expensive car you can buy if you buy it on credit payable in 60 months.

Determine the present value of a financial instrument that pays $ 18,500 in 10 years if instruments of similar risk pay 6% per year.

Calculate the future value (FV) of a $ 5,000 investment at an interest rate of 10% over 7 years.

Determine the interest rate you will pay, if you are approved for a loan for $ 112,000 with annual payments of $ 15,000 over 8 years.

Reference no: EM133010207

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