Assuming that you can invest to earn a stated annual rate of return of 12%, but where interest is compounded semi-annually. If you make consecutive semi-annual deposits of $500 each, with the first deposit being made today, how much will be your balance at the end of fifth year?  a. $6,590.40 b. $440.59 c. $1,762.34 d. $881.17

Q: f you deposit $1,000 now, $3,000 four years from now followed by five quarterly deposits decreasing…

A: The future value is the future worth of the amount that will be paid or received at future.

Q: d. At the end of three years, how much is an initial $100 deposit worth, assuming a quar- terly…

A: Future Value is the worth of investment in the future period at the given interest rate. Keeping…

Q: Mrs. Go make deposits that forms a geometric gradient that increases at 6% per month for 1 year. She…

A: Deposit per month is P500 Growth rate of deposits is 6% Interest rate is 12% compounded monthly   To…

Q: Suppose that you invest $9,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to…

A: Compound interest is the total interest earned during the investment period. It considers…

Q: uppose an individual makes an initial investment of $1,200 in an account that earns 6%, compounded…

A: We will apply the concept of time value of money here. As per the concept of time value of money the…

Q: In the given qustion as follows , consider making monthly deposits of P dollars in a savings account…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: "If a single deposit of $500,000 is made today, earning 8% interest, compounded QUARTERLY, how much…

A: In the given question, $ 500,000 are invested at 8% compounded quarterly for 10 years. Since…

Q: You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be…

A: Given, Amount borrowed = $28000 Interest Rate = 12% No. of years = 4

Q: Beginning 2 years from today, you deposit $1,500 per year for 18 years (18 deposits); for the…

A: Present value of 18 deposits at the end of Year 1 would present value annuity of $1500 for 18 years…

Q: 2. Suppose you put $100,000 in a certificate of deposit with an annual interest rate of 6 percent…

A: 2 (A) $126,247.7 (B) $1,27,048.9 (C) $126,898.6

Q: You deposit $175,000 in a savings account. The APR (Annual Percentage Rate) is 6%. Calculate the…

A: Effective Annual Rate(EAR) shows net rate which an investment will yield after considering…

Q: Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is…

A: The Future Value of annuity is the total value of all the payments which occurred regularly at a…

Q: Finance. Suppose that $7,600 is invested at 3.9% annual interest​ rate, compounded monthly. How much…

A: Answer

Q: You have just borrowed $100,000 from a bank for a ten-year period. You will be making quarterly…

A: Time Period is 10 years Borrowed amount is $100,000 Interest rate is 8% per annum Compunded…

Q: 3. A financial institution offers a nominal interest rate of 12% while compounding its accounts…

A: Effective Interest Rate: It refers to the annual rate of interest provided the effects of…

Q: Jim makes a deposit of $12,000 in a bank account. The deposit is to earn interest compounded…

A: Deposit $12,000 a)Calculate future value compounded annually 6% for 7 years.b).Calculate Future…

Q: Given below are the future value factors for 1 at 10% for one to five periods. Interest is…

A: It is method of computing interest where interest is calculated over interest as well.

Q: You plan on withdrawing monthly payments for the next ten years and have deposited $100,000 inan…

A: Let's assume that the value of the monthly withdrawals be an amount A.Interest rate = 8% per annum…

Q: Suppose you deposit $4,000 at the end of each quarter for five years at an interest rate of 8%…

A: Given: The deposited amount is $4,000 for five years The interest rate is 8% Deposited quarterly…

Q: An investment promises to pay into an account that pays you 6 percent annually, $151 per month for…

A: In this we have to calculate future value FACTOR and get future value.

Q: A bank deposit of P10,000 earns 3.5% pa compounded quarterly. If inflation is at 5% per year, what…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: Finance. Suppose that $7,700 is invested at 4.7% annual interest​ rate, compounded monthly. How…

A:

Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…

A: For this first find out future value factor annuity and find future value and than find value at end…

Q: Finance. Suppose that $4,300 is invested at 3.4% annual interest rate, compounded monthly. How much…

A: Given Information Present Value = $4,300 Interest rate =3.4% compounded monthly Time Period in Part…

Q: Suppose that your bank pays 6% interest, compounded quarterly. Use Table 12-2 to find how much…

A: Given, Amount of annuity per quarter=$1,900Interest rate i.e. r = 6% p.a. compounding…

Q: What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…

A: First, we should calculate the present value of 5 annual withdrawals and then we can compute the…

Q: Mr. Bee will deposit $1,500 every year, earning interest rate of 9% compounded annually, the first…

A: Annual deposit (P) = $ 1500 Annual interest rate (r) = 9% Number of annual deposits (n) = 10

Q: Assume you make monthly deposits of $3,000 now into an account that pays 12% per year, compounded…

A: the quoted interest rate is always annual interest rate. depending on the compounding frequency, we…

Q: If you make quarterly deposits of $1000 for 15 years into an account that compounds interest at 1.5%…

A: Quaterly deposit is $1000 Time period is 15 years Interest rate is 1.5%   To Find: Future Value

Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…

A: The question is based on the concept of Annuity

Q: Suppose that a savings account attracts an interest rate of 1.6% per annum. How much would need to…

A: Present value means the current value of future money or cash flow given a specified rate of return.…

Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…

A: When a certain amount is deposited at a certain interest with compounding, the accumulated amount is…

Q: What is the amount of 10 equal annual deposits that can provide five annualwithdrawals, where a…

A: The future value of annuity is given by:=C×1+in-1iWhere, C=Cash flow per periodi=Intertest…

Q: You are considering investing $8,500 in a bank term deposit for 5 years. The term deposit will pay…

A: Time value of money Time value of money is a concept according to which money today is worth more…

Q: Suppose that your bank pays 6% interest, compounded quarterly. Use Table 12-2 to find how much…

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: What will $142,000 grow to be in 6 years if it is invested today in an account with a quoted annual…

A: Present value (PV) = $142000 Interest rate = 14% Monthly interest rate (r) = 14%/12 =…

Q: Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is…

A: We need to use future value of annuity formula to calculate annuity amount after 5 years. Future…

Q: If $1,500 is deposited in a savings account at the beginning of each year for 20 years (a total…

A: The formula to compute future equivalent worth of present value:

Q: Suppose that $6,000 is placed in a bank account at the end of each quarter over the next 10 years.…

A: Quarterly payment (Q) = $6000 n = 10 years = 40 quarters Interest rate = 13%

Q: ffering MACY’S has a six-year term deposit that will pay 7% per annum compounded quarterly.  If…

A: EAR stands for effective annual rate. EAR is greater than APR (annual percentage rate) when the…

Q: 1. a. In a savings account 3% annual interest rate compounded monthy, P 1,000 is deposited at the…

A: Note: It is a case where the number of questions asked is more than one and no specified question is…

Q: A customer opens a savings account that applies 2% compound interest annually. If the initial…

A: The money in account at end of 2 years can be calculated as the future value of account,

Q: What is the amount of ten equal annual deposits that can provide five annualwithdrawals, where the…

A: Present value of the amount that is expected to be receiving in some future date is the current…

Q: An investment promises to pay into an account that pays you 6 percent annually, $150 permonth for…

A: In this first we have to calculate future value FACTOR and future value after 22 years and than…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.