Determine the interest rate you will pay

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Question - José López has $ 15,000 in a 6-year certificate of deposit (CD) that pays a guaranteed annual rate of 4%. Make a timeline showing the moment in which the cash flows will occur.

Oliver López deposits $ 12,000 in a bank account that pays 7% annual interest. He calculates the account balance after 5 years.

Carmen Hernández has saved $ 8,000 for a car deposit. The The highest monthly payment she can afford is $ 455. The loan will have an APR of 11% payable at the end of each month. Determine what is the most expensive car you can Acquire if you buy it on credit payable in 60 months. Determine the present value of a financial instrument that pays $ 18,500 in 10 years if instruments of similar risk pay 6% per year.

Calculate the future value (FV) of a $ 5,000 investment at an interest rate of 10% to 7 years.

Determine the interest rate you will pay, if you are approved for a loan for $ 112,000 with annual payments of $ 15,000 to 8 years.

Reference no: EM132840185

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