Paying an effective annual rate

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Reference no: EM131968765

A) You are expecting to receive $300 at the end of each year in years 3, 4, and 5, and then 500 each year at the end of each year in years 10 through 25, inclusive. If the appropriate discount rate is 9.2 percent, for how much would you be able to sell your claim to these cash flows today??

B) You are paying an effective annual rate of 12.93 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on your account? (Enter rate in percents, not in decimals.)

C) If you put up $43,463 today in exchange for a 10.7 percent, 12 year annuity, what will the annual cash flow be?

Reference no: EM131968765

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