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- Justin invests $2000 at time 0. He receives $6443 at time 1 and pays $4500 at time 2. Compute the Net Present Value of his investment at an effective annual rate of interest of 3%. Possible Answers A 11.25 B 12.29 D E 13.66 14.38 15.41Jill has a liability of 6000 due in four years. This liability will be met with payments of A in two years and B in six years. Jill is employing a full immunization strategy using an annual effective interest rate of 5%. Calculate |A-BI A) 0 B) 146 C) 293 D) 586 E) 881Smith invests usd 10.000 in an account that pays interest. After the first year he receives 4.200 interest. What is the value of r, the rate of interest?
- Every three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which formula to compare with cash payment? A. Future value of IB. FV of AnnuityC. Present Value of ID.Luke borrows $200 000 from a bank to set up a medical practice. He agrees to pay a fixed interest rate of 18.48% per year (calculated monthly) and to repay by equal monthly instalments over 10 years. Calculate the monthly payment and breakdown the first two payments into interest and principal components. Also, how does the last payment breakdown? Please show work/Formulas usedEngr. Tongol borrowed money from a loan shark. He receives from the loan shark an amount of P 134,200 and promise to repay P 150,000 at the end of 1 year and 9 months. What is the simple interest rate?
- Izni invested RM400 eight years ago earning 7% interest per year. If Izni spends all her interest earnings immediately after receiving them, she earns __________ interest. Select one: a. no b. complex c. interest on d. only simplJack takes out a mortgage for $725,000 at an interest rate of i(2) = 7.250%. The amortization period is 30 years. What is his weekly payment? a. $1,182.96 b. $1,126.62 C. $923.83 d. $1,171.69 e. $957.63Louisa invested $4,500 at 4% interest compounded semiannually for two years. Calculate the future value of Louisa's investment using Exhibit 11-1 or the formula FV = P(1 + R)n.
- On 12 May 2019, Alaa invested his money in Certificate of Deposit (CD) of Bank TTC, this CD has 5000 $ of face value and 6 percent interest.This CD will mature on 10 December 2019. Calculate the effective rate on his investment in this CD. ( assume 1 year are 365 days)A man has two investments, one paying 3% annual interest and the other 4%. The total annual income from the investments is $17,000. If the interest rates were interchanged, the total annual income would be $18,000. Determine the following: The amount of each investment. Explain the concepts/principles that were considered and the factors that affected the condition of item (a)Janet receives a $ 10,000 life insurance benefit. If she uses the proceeds to buy an n-year annuity immediate, the annual payout will be 1534.86. If a 2n-year annuity due is purchased, the annual payout will be 994.13. Both calculations are based on an effective annual interest rate of i. Calculate i.