Please Answer Both Question Below 1 (65.3 KiB) Viewed 25 times
1. Farmer Joe at Autumn Mist Farms needs to purchase a new tractor to mow and seed his farm. The total purchase price, including delivery, is $8,674. After his down payment and financing for 30 months, Joe will pay $300 per month, and he will incur $2, 308.31 in finance charges. Calculate Joe's downpayment for the tractor. $1,982.31 $300.00 O $6, 365.69 $9,000.00
2. Calculate the annual interest and effective interest rates of purchasing 50 DoggyDigs (DD) bonds maturing in 2010. COMPANY (TICKER) COUPON MATURITY LAST PRICE LAST YIELD EST VOL (000S) DoggyDigs (DD) 6.949 June 8, 2010 52.299 9.259 616,885 The annual interest is $8,548.00. The bonds have an effective interest rate of approximately 5.8%. The annual interest is $12, 634.50. The bonds have an effective interest rate of approximately 3.5%. The annual interest is $6,949.75. The bonds have an effective interest rate of approximately 9.7%. O The annual interest is $3,474.50. The bonds have an effective interest rate of approximately 13.0%.
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