What is the APR of the loan

Assignment Help Financial Management

Reference no: EM131980642

1. Assume that you contribute $200 a month to a retirement plan for 15 years. Then you are able to increase the contribution to $400 a month for another 25 years. Given a 5% interest rate what is the value of your retirement plan after 40 years?

2. You have arranged for a loan on your new car that will require the first payment today. The loan is for $40,000, and the monthly payments are $705. If the loan will be paid off over the next 72 months, what is the APR of the loan?

3. You invest $7,000 in stock and receive dividends of $65, $70, $70, and $65 over the following four years. At the end of the four years, you sell the stock for $7,900. What was the IRR on this investment?

Reference no: EM131980642

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