Interest payment at the end of fifth year in real dollars

Assignment Help Financial Management

Reference no: EM132039411

1. A loan of $100,000 is taken out which requires an annual interest payment of 6% of the borrowed amount of money (in market dollars). No principal payments are made, only interest is paid. Inflation is 3.1% per year. What will be the value of interest payment at the end of fifth year in real dollars?

$6,000

$5,150.

$6,989

$5,930.

2. If you own 270 shares of Air Line Inc at $18.85, 160 shares of BuyRite at $9.8, and 360 shares of Motor City at $45.85, what are the portfolio weights of each stock?

Air Line = .3418, BuyRite = .2025, MotorCity = .4557

Air Line = .2197, BuyRite = .0677, MotorCity = .7126

Air Line = .2700, BuyRite = .1600, MotorCity = .3600

Air Line = .3333, BuyRite = .3333, MotorCity = .3333

Reference no: EM132039411

Questions Cloud

Building mobile applications : What you see - is what you get, building mobile applications. Choose one and how you can incorporate it into your cloud project (you may implement).

Explain what you would have done differently : Explain what you would have done differently as supervisor to make the environment more positive for your team.

Explain the basic concepts of statistics : Now that you are familiar with the basic concepts of statistics, what are some examples of when you have seen or heard statistics used inappropriately?

Basic description of events and event procedures : Please provide a basic description of events and event procedures? How do you invoke an event procedure?

Interest payment at the end of fifth year in real dollars : Inflation is 3.1% per year. What will be the value of interest payment at the end of fifth year in real dollars?

What is involved in the process of assessing security : What is involved in the process of assessing security requirements and defining the security structure with policies?

What might be other suggestions you would make to patient : What might be other suggestions (besides medications) you would make to this patient to help him decrease his blood pressure? Why?

Pc and mobile device hardware and components : Create process documents that explain the steps to install and configure PC and mobile device hardware and components.

Repair common hardware performance issues : What should be included in a "troubleshooting template" used to document how to diagnose and repair common hardware performance issues.

User Account

All Pages