Equivalent equal monthly payment series in constant dollars

Assignment Help Business Economics

Reference no: EM13887138

Suppose that you barrow $17,000 at 15% compounded monthly over four years. Knowing that the 15% represents the market interest rate, you realize that the monthly payment in actual dollars will be $473.12. If the average monthly general inflation rate is expected to 0.5%, determine the equivalent equal monthly payment series in constant dollars.

Reference no: EM13887138

Questions Cloud

Long-run average total costs-to restrict the market entry : long-run average total costs-to restrict the market entry of new competitors

Soccer game ends in a tie, it goes into a penalty kick : If a soccer game ends in a tie, it goes into a penalty kick shootout in which each team chooses five players to take penalty kicks. The team that makes the most subsequent penalty kicks wins the game.

Develop a simple urban constructed wetland design : Develop a simple urban constructed wetland design guidelines and drawings. Your report should include the following:I. Data required for the design II. Types of constructed wetlands III. Components of a constructed wetland

Will the change in price be smaller or larger : If interest rates fall from 6 percent to 5 percent, the price of the bond in the above problem will increase. Will the change in price (regardless of sign) be smaller or larger than in the above problem? Show how much by using the PV formula, Equatio..

Equivalent equal monthly payment series in constant dollars : Suppose that you barrow $17,000 at 15% compounded monthly over four years. Knowing that the 15% represents the market interest rate, you realize that the monthly payment in actual dollars will be $473.12. If the average monthly general inflation rate..

Stress-strain relationship for alloy : Measurements on the surface of a deformed sheet after unloading indicate that e1 = 0.154 and e2 = 0.070. Assume that the von Mises criterion is appropriate and that the loading was proportional (i.e., the ratio α = σy/σxremained constant during loadi..

European union increase the chance for brain drain : Reflect on the long term implications of high unemployment among the younger generations in Spain and Greece. In your opinion, does membership in the European Union increase the chance for brain drain?

Compute the change in the monetary base : Suppose that the Fed conducts an open-market purchase of $1,500 in securities from the nonbank public. The Fed pays for these securities using currency, which the nonbank public holds in the form of cash. Show how this transaction affects the liabili..

Dynamic competitors in the global economy : Japanese business culture is somewhat different from that of the U.S., yet both U.S. and Japanese companies are very successful and dynamic competitors in the global economy. You will find a brief overview of Japanese business practices in Doc Sharin..

User Account

All Pages