What is expected rate of return on machine

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1. The Spector Corporation buys a machine for $20,000 and expects revenue of $4,770.42 per year for the next ten years. What is the expected rate of return on the machine?

2. What interest rate, compounded quarterly would you have to earn in order for it to take you twelve years to save up $200,000 by depositing $8000 in an investment at the end of each year? [the effective rate = 12.55%, the rate compounded quarterly =12%]

3. What monthly payments (made at the end of the month) would a bank demand if you were to borrow $50,000, to be repaid over three years, if the interest that is charged is 16% compounded quarterly? What would be your remaining debt at the end of two years of these payments?

4. How many years will it take you to pay off a mortgage of $100,000 if you are making monthly payments of $1434.71 and the rate of interest you are being charged is 12.3040% compounded semiannually?

Reference no: EM131450403

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