1. Find the difference between simple and compound interest on a savings deposit o 50,000 at 10% per annum for 3 years. A. 1,350.00 B. 1,450.00 C. 1,550.00 D. 1,650.00
Q: 7. You are hoping to put down $3000 on a car in 2 years. If the bank pays 4% interest, compounded…
A: FV = 3000 Interest rate = 4% compounded monthly time = 2 Years
Q: 8. A businessman invests P 10000 today to be repaid in 5 years in one lump sum at 12% compounded…
A: Current Investment = 10,000 n = 12%
Q: 2. A 21-year old inherits BD100,000 from a distant relative who has deceased. She decides to spend…
A: Given information, Future amount from investment (F): BD1,000,000 Interest rate (r): 8%…
Q: 5-If you invest $1,000 at the beginning of each of the next 3 years at 8%, how much would you have…
A: Answer; Amount at the end of 3rd year =$3506.112.
Q: Part of the income that a machine generates isput into a sinking fund to replace the machine when…
A: According to the question, there is a periodic amount of $2400 is deposited for the purchase of a…
Q: 9. In how many years will $1,500 yield an interest of 5200 at 2% simple interest?
A: The simple interest does not include the compounding factor. Formula for simple interest: FV = P…
Q: Ranjit has applied for a mortgage loan to buy a $ 501000 house. The bank will require a 20% down…
A: A mortgage loan basically refers to type a secured loan that enables you to borrow money by pledging…
Q: 3. A $800,000 face-value bond matures in four years and pays 6% per year payable quarterly An…
A: Given bond face value = 800000 $ Time = 4 years Interest rate = 6 % payable quarterly Quarterly rate…
Q: What is the present value of $500.00 to be paid in two years if the interest rate is 4%. $_____…
A: From the above information, we may put the values accordingly. Future value FV= 500 Rate of return…
Q: .d What is the annual interest rate on a $1,000
A: The future value (FV) provides the value of an asset at a later date assuming some rate of growth…
Q: 9 - What is the total amount of money to be repaid at the end of 1 year for a loan of 190 000 liras…
A: Interest rate is the amount of interest paid on each unit of loan taken. For example, if the…
Q: 14 You are interested in buying a car at/$25,000. You plan to take a loan and pay it ou in 4 years.…
A: Nominal interest rate refers back to the interest rate earlier than taking inflation into account.…
Q: 3. How much do you need to deposit today (P) to withdraw BD25,000 at n=1, BD3,000 at n= 2, and…
A: Given amount to withdraw in year 1 = 25000 Year 2 = 3000 Year 4 = 5000 Interest rate = 10 %
Q: Suppose that $2700 is deposited in an account that earns 4% interest. How much is in the account (a)…
A: The interest rate can be calculated in two different ways. The two different types of interest rates…
Q: You are paying into a mutual fund that earns7% compound interest. If you are making an…
A: Mutual fund is a firm that gets money from lender/investors & invest them in marketable…
Q: 2.c How much Interest would be due at the end of one year on a loan of $10,000 if the interest is…
A: * SOLUTION :- Given that, Principal ammount (p) = 10000 Rate (R) = 12% Time (t)= 1year
Q: bartleby = 3 max questions 1. If the proceeds of P 2000 will be paid w/ P2400 at the end of 10…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 5 1.5% simple growth interest for 'w' ye t, 2% interest will begin for 'x' years, w compounded…
A: *Answer:
Q: (1 point) A sum of $9500 is invested for the months of June and July at 7,8% simple interest. Find…
A: Principle(P)=$9500 r=7.8% Time=Months of june and july Days in June=30 Days in July=31 Time =31 days…
Q: How many years would it take for money to triple in value at 15% per year simple interest? Select…
A: Let us assume that principal amount is 100%. And since we need to find how much time does it require…
Q: How much money must you invest today in order to withdraw 13,724 anually for 5 years if the interest…
A: A investment is basically a resource that is made determined to permit cash to develop. One, on the…
Q: Determine the value of X that would give the following infınite cash flow series a present worth of…
A: Present Worth = $1600 Interest Rate (i) = 12% n= infinite 1st cost = 0
Q: 2. A loan of $25,000 was repaid at the end of 9 months with $28,500. What annual rate of interest…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: 2.2) You have a bank deposit now worth $5000. How long will it take for your deposit to be worth…
A: a. Present value = $5000 Future value = $8000 FV = PV 1+ rn8000 = 5000 1+5%n80005000=1.05n1.6…
Q: If you could afford to pay $850 per month for a house mortgage, and you plan on financing it at…
A: Compound interest is usually known to be as the interest which is exactly calculated by multiplying…
Q: Suppose you deposited $200 at the end of every year for seven years in an account that earned 6%…
A: Compound interest formula: A =P (1+r)t
Q: 1. Josh is receiving. pesos from his grandfather yearly and has decided to invest it next year to a…
A: Answer : a Year Investment interest Total 1. 25000 3000 28000 2.…
Q: 51. If rate of interest is 10%, the PV (present value) of Rs.100 received in 1 year's time is А. О…
A: Given a specific return rate, the present value of an investment is its future cash flow value…
Q: 4. A person want to have 500,000 dollars at the end of 12 years. To obtain that aim, this person…
A:
Q: 3. For the following arithmetic gradient series, with interest at 10%, Year Deposits PO 800 Find the…
A: The total of discounted future cash flows is the present value. The compounded value of cash flows…
Q: Q4) Clarify whole known concepts associated with TVM? Give examples about simple & (17.5 marks)…
A: ▪︎TVM :- Time Value of Money (TVM) implies that cash got in present is of higher worth than cash to…
Q: Today, a bond has a coupon ate ofr8.6 percent, par value of 1,000 dolars, YTMof4 percent, and…
A: Current yield is an investment's annual income (interest or dividends) divided by the current price…
Q: Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of…
A: Given: A=R 2500 Number of deposits (n)=10 Rate of interest (r)=9%
Q: 49. The annual rate of interest on a 3-month Rs. 10,000 bond that sells for Rs. 9,6 A. 12% B. 10% KE…
A: An effective annual rate is the genuine profit from a bank account or any premium paying…
Q: 3- Determine the (P, F, A) equivalent value of the given cash-flow at 10% interest rate. 400 300 300…
A: For the above question, we have to find the present value future value, and annual worth
Q: 5. Sam borrowed P4,500 for 2 years and had to pay P630 simple interest at the end of that time. What…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 2. Juan dela Cruz loan an amount of P100,000 at a local commercial bank at 10% compou nded annually.…
A: Given information: Present value (P)= P100,000 interest rate (i)= 10% compounded annually Time…
Q: 3 Given the following cash flows, find the value of B such that the present worth is zero. Assume…
A:
Q: 6. If the naminal interest rate is 3%, how much is $5000 worth in 10 years in a continuously…
A: Given the interest rate = 3% Present value = $5000 Time = 10 years
Q: Question 3 Edward takes out today a loan of $150,000.00 from a local Bank at 8% Simple Interest for…
A: Simple interest is a method of calculating the interest that is charged on a given amount of loan…
Q: 2) Two annuity dues in perpetuity have a common present value of $2,000 and a common effective…
A: Given Informaion Effective Annual rate C = $100 Present value = 2,000 Present value of perpetunity…
Q: For what value of P in the cash flow diagram does the present value equal 0? Please show all work.…
A: Present value (PV) measures the current worth of a measure of cash – or a surge of incomes – that is…
Q: (2) How long will it take $800 to yield $72 in simple interest at 4%? Ans. 2.25 yrs.
A: SI(simple interest) can be calculated as: SI=P×r×t100where P is the Principalr is the rate of…
Q: On the first day of the year, a man deposits 50,000 in a bank at 8% per year, compounded annually.…
A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…
Q: 2.21 (LG 2.2) Simple interest of $190.67 is owed on a loan of $550 after four years and four months.…
A: * SOLUTION :-
Q: 1. She has been offered two choices. The first is a fixed salary of $80,000 per year. The second has…
A: According to the question, it is given that .. The First fixed salary = $80,000 per year [Option -1]…
Q: 5. Royalties from a patent are expected to start at 15,000 per period beginning one period from now…
A: A royalty is a contractual payment made by one person for the use of another person's assets.…
Q: 3. Mr. Santos deposits P1,200.00 at the end of each 6 months for 5 years in a bank which earns…
A: The formula used is: A=P(1+r)n where A is the amountP is the principalr is the rate of interestn is…
Q: Find the total money you have in the bank if you invest a 8710 JD for 5 years at a simple interest…
A: Simple interest is basically known to be as the technique which is gradually used to calculate the…
Q: 3. Jana invested a hundred thousand pesos in an account now. After eight years, she withdrew the…
A: * SOLUTION :- *(3)
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- 4. At an annual effective interest rate of i, i > 0, both of the following annuities have a present value of Y: (a) a 10-year annuity-immediate with annual payments of 55. (b) a 15-year annuity-immediate with annual payments that pays 30 per year for the first 5 years, per year for the second 5 years, and 90 per year for the final 5 years. 60 Calculate Y. Solution:9. A loan of $10000.00 taken out 6 months ago is to be repaid by 3 equal installments due now, 1 years from now, and 1.5 years from now respectively. What is the size of the equal installments if interest on the debt is 6% p.a. compounded monthly? IQuestion 4 > What present value amounts to $14,950.78 if it is invested for 7 years at 9% compounded every 2 months? The present value is $ (Round to 2 decimal places.) Aloxt Ouostion
- Sofia borrows Php8000.00 from a bank that has an interest rate of 2% compounded quarterly.a.) How much is the money after 8 years?b.) How much is the money after 8 quarters?Do as you are told. 1. Daniil makes deposits of 150 today and 280 13 years from now into an account. Interest is credited at an annual nominal rate of 7% compounded quarterly for the first 13 years. For the next 7 years, the account earns at a force of interest 8. If the accumulated value at the end of 20 years is 907, find S.SITUATION 3: Dana wants to accumulate money for their anniversary celebration with her husband in a yacht. At 5% rate of interest compounded monthly and at P9000 periodical payments, what will be the future worth: 6. if she will withdraw the accumulated money at the end of 7th month. 7. if she decides to withdraw the money 2 months after making 5 payments. 8. if she made 5 equal payments at the start of 5th period
- Stephen loaned P600,000.00 from a bank with interest at 6% compounded annually. He agreed to pay his obligations by paying 5 equal payments, the first being due at the end of 10 years. Find the annual payments a. P225,228.00 O b. P255,228.00 O c. P255,822.00 O d. P255,282.006. Find the FV of $1000invested to earn 10% annually 5 years from now. (Assume this is a single payment not an annuity).14. What is the nominal value of the interest compounded continuously for a period of 3years if the value of the uniform series present worth factor is 2.038?
- 3. What would $1000 become in a saving account at 3% per year for 3 years when the interest is not compounded (simple interest)? What would the same amount become after 3 years with the same rate but compounded annually?2. Marion would like to purchase a used car, which requires a down payment of 80,000.00 pesos. He is willing to pay a monthly amortization equal to 25% of his monthly salary. if the seller will agree to a down payment and the balance payable in 3 years at 16% per year payable in monthly basis, how much is the cash value of the car if the first payment will be due at the end of the first month? Mario is receiving a monthly salary of 16,000.00 pesos a month. Show the cashflow diagram.6. A man bought an equipment costing P60,000 payable quarterly for 3 years, each installment payable at the beginning of each period. The rate of interest is 24% compounded quarterly, What is the amount of each payment?