A zero-coupon bond can be redeemed in 20 years for $10,000. How much should you be willing to pay for it now if you want a return of:(a) 5% compounded monthly?(b) 5% compounded continuously?

Q: Find the nominal interest rate compounded daily that corresponds to an effective rate of 4 %- 4

A: Effective interest rate=1+rnn-1

Q: if $300 is invested at an interest rate of 5% compounded quarterly, then the amount after 2 years is…

A: Amount , A= P(1+r/n)nt   where, P= the principle amount             r= rate of interest           t=…

Q: Find the nominal rate of interest that, when compounded monthly, yields an effective interest rate…

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Q: Gallant invests starting at age 25 until he retires at age 65. If he invests $2400 each yearat 9.6%…

A: J

Q: For an interest rate of 6% p.a. Determine the effective interest rate if it is compounded monthly.

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Q: An investor needs $21,000 in 12 years. (a) What amount should be deposited in a fund at the end of…

A: Here, FV=21,000rate=6%=0.06time=12 Quarterly rate is to be calculated. So, n=4.

Q: An investment of $10,000 compounded continuously for 30 years at 10% will be worth.

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Q: Which of the given interest rates and compounding periods would provide the best investment? 2% per…

A: Given thatThree different interest rates are as following

Q: A mutual fund has an average annual rate of return of 14.5 % . The investment company charges 3 %…

A: The formula for the compound interest is Pt=P0(1+r)t whereP0=initial value ($4000 i.e.…

Q: For the 2009 fiscal year, Lowe's Companies, Inc. reported an annual net income of $48,230,000.…

A:

Q: In 19 years, Anthony Oaks is to receive $300,000 under the terms of a trust established by his…

A: It is given that, the time period is t=19 years,  Future Value (FV)=$300,000 rate of return…

Q: How much do you need to invest at the beginning of each of the next 60 months in order to have a…

A: Since the given amount of $100,000 is deposited at beginning of each month, it is annuity due.Then…

Q: Sophia is going to invest $7,900 and leave it in an account for 6 years. Assuming the interest is…

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Q: Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 5% if the…

A:

Q: find the compound interest of an investment of $7,500 at 12% compounded quarterly for 11 years

A: Please see the next step for the solution.

Q: at 10% compounded semiannually? 9. What are the future value and the interest earned if $3200 is…

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Q: If the interest is compounded quarterly, find the nominal rate at which P1,996 accumulates to P3,500…

A: Introduction :

Q: At what simple interest rate will an amount of money double itself in 10 years?

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Q: For an investment of $100,000 at 6% interest for 7 years, find (a) the simple  interest, and (b) the…

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Q: Zero-Coupon Bonds How much should a $10,000 face-value, zero-coupon bond, maturing in 10 years, be…

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Q: Find the present value of a $25,000 annual income stream if it is invested immediately as it is…

A: In the given problem the future value is 25000, the interest rate is 7% and the time period is 15…

Q: Find the amount that results from the given investment. $300 invested at 6% compounded quarterly…

A:

Q: A person needs $15 000 for a down payment on a car. If the person invests $10 000 at 9% interest,…

A: Given  A=15000 P=10000 r=9%=0.09

Q: A $5800 investment is made for a three-year period at an interest rate of 5.4% per year, compounded…

A:

Q: How much interest will you owe if you borrow $2700 for 3 years at a simple interest rate of 7%…

A: Given that  principal amount=P=$2700Time =T=3yearsrate of interest=R=7%find interest

Q: A firm needs to replace most of its machinery in 4 years at a cost of $550,000. The company wishes…

A: Given - A firm needs to replace most of its machinery in 4 years at a cost of $550,000. The company…

Q: A company needs $6,500,000 in 7 years in order to expand their factory. How much should the company…

A: We will find out the required weekly payment.

Q: If an IRA is a variable-rate investment for 25 years at rate r percent per year, compounded monthly,…

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Q: Suppose that you have children young, pay for their college expenses, and finally start saving for…

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Q: (a) How long does it take for an investment to double invalue if it is invested at 8% compounded…

A: a). Given, r=8%=0.08,  n=12 Let P be the principal amount. Now, A=P1+rnn·t⇒2P=P1+0.081212t   ∵Double…

Q: If I make an initial investment of $10,000 in a period of 2 years, what will be the value of my…

A: Answer=$10407.07

Q: Find the present value of $100,000 if interest is paid at a rate of 8% per year, compounded monthly,…

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Q: (a) Martha invests an amount of $10000 at 3.5% compounded quarterly. What is the value of her…

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Q: Find the principal P that must be invested at rate of 8%, compounded monthly, so that $1,000,000…

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Q: An investment of P50,000 is made at the beginning of each month for 5 years. How much will the…

A: This is a case of annuity due.

Q: If $600 is borrowed at 8% interest, find the amounts due at the end of 4 years if the interest is…

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Q: II) Find the interest rate required for a principal of 15000 OMR to produce a future value 40000 OMR…

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Q: Having received a large inheritance, a child's parents wish to establish a trust for the child's…

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Q: At what rate compounded monthly should be P25,000 be deposited in a bank to gain an interest of…

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Q: If R8500 is invested in a saving account offering 5.4% per year, compounded semi-annually, the rate…

A:

Q: For an investment of $100,000 at 9% interest for 8 years, find (a) the simple interest, and (b) the…

A: Here, P=$100,000 r=9% t=8 years

Q: Find the accumulated value of an investment of $20,000 for 6 years at an interest rate of 6% if the…

A: a. 28515.22 b. 28590.06 c. 28640.89 d. 28666.59

Q: Use the compound interest formula A=P(1+ r/n)nt   to approximate the final value of $3300 at 3%…

A:

Q: (a) How long does it take for an investment to triple invalue if it is invested at 6% compounded…

A: (a). When interest is compounded periodically then formula for amount is given as: A=P1+rnnt, where…

Q: Find the amount that results from the given investment. $500 invested at 6​% compounded quarterly…

A: Given: Principal amount (P) = $ 500 Rate of interest (r) = 6 % = 0.06 Number of years (n) = 2 Time…

Q: For the 2009 fiscal year, Lowe's Companies, Inc. reported an annual net income of $48,230,000.…

A: Given: For the 2009 fiscal year, Lowe's Companies, Inc. reported an annual net income of…

Q: If you invest $1,000 at 10% interest compounded every year. a)  How long will it be until your…

A:

Q: A philanthropist deposits $50,000 into a trust fund that pays 4.5%, compounded continuously. The…

A:

Equations and Inequations

Equations and inequalities describe the relationship between two mathematical expressions.

Linear Functions

A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.