If $1,000 is deposited each quarter in an account that earns 2% compounded quarterly, how many full deposits of quarters will it take to reach $11,000.00? What is the amount of the smaller concluding deposit? a) how many quarters will it take to get full deposits?

Q: One year from today you must make a payment of $13,000. To prepare for this payment, you plan to…

A: A periodic payment is the set of payments that a borrower makes to the lender or the deposits that…

Q: se that $2500 is placed in a savings account at an annual rate of 3.4, compounded quarterly.…

A: The period can be calculated by using the EXCEL NPER function. Where, 'RATE' is the interest rate…

Q: A loan of $1000 is paid off in 12 monthly payments of $120 each. What is the effective annual…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Suppose you deposited $1,000 in a credit union account that pays 7% with dailycompounding and a…

A: Excel Spreadsheet:

Q: If $1,300 is deposited each quarter in an account that earns 2% compounded quarterly, how many full…

A: To calculate the number of payments, future value of annuity formula will be used. where C is…

Q: Sixty monthly deposits are made into an account paying 8% nominal interest compounded monthly. If…

A: We need to use future value of ordinary annuity formula to calculate monthly payment PMT =FVn(1+r)n…

Q: Starting three years from today, you make equal annual deposits of $5,000 into an account which…

A: Effective annual rate is calculated using the formula: EAR=1+rmm-1=1+12%22-1=1.062-1=12.36%

Q: Suppose a certain manufacturer deposits $3,000 at the beginning of each 3 month period for 8 years…

A: Gien Information, Deposit = $3,000 Interest Rate = 8% Compounding Frequency = quarterly    Formula…

Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. If…

A: FV of annuity = P * [(1+r)^n-1] / r Where, P = amount of each deposit r = rate of interest per…

Q: What is the future value of $1,000 in five years at 8% interest paid semi annually ? Paid quarterly?…

A: Future value is an amount reccievable in future(after certain period)  by investing today. Formula…

Q: To establish a "rainy day" cash reserve account, a certain company deposits $12,000 of its profit at…

A: The question is based on the concept of Annuity.

Q: Suppose that you make quarterly deposits into a savings account that earns 8% interest compounded…

A: Effective Annual Rate is a modified rate of return where it considers the compounding effect.…

Q: What is the nominal annual rate of interest compounded quarterly if a loan of $21,500 is paid in…

A: Semi-annual effective interest rate is calculated as below in the excel:

Q: If P25, 000 is deposited now into a savings account that earns 6% per year, what uniform annual…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City…

A: Simple interest is the additional amount that the bank pays for depositing a sum in the account. In…

Q: The owner of Oak Hill Squirrel Farm deposits $3,000 at the end of each quarter into an account…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: CNB, Inc. will deposit $25,000 into a money market account at the end of each year for the next…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: If $5500 is deposited at the end of each quarter in an account that earns 5% compounded quarterly,…

A: Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on…

Q: To establish a "rainy day" cash reserve account, a certain company deposits $14,000 of its profit at…

A: In the given question we need to calculate the future value of the account after 4 years and after…

Q: If $7,128 is deposited into an account that earns simple interest and it takes 9 years to earn…

A: Interest earned is 1796.26 No of years =9 Annual interest is = 1796.26/9 = 199.58

Q: If $6000 is invested in an account. After three years, the account has $7500 in it. If money is…

A: Question is based on the concept of Time value

Q: f K40, 000 is deposited at the end of each half year in an account that earns 6.2%  compounded…

A: Comment - Multiple Questions Asked Interest  It is the amount that the borrower must pay in order to…

Q: How long will it take a $8,920 loan to accumulate interest of $480 if money earns 3.05% compounded…

A: We are required to calculate the number of periods that will take $8920 to become $ 9,400. 9400 =…

Q: If $19,000 is deposited in an account earning interest compounded weekly at 5.87% for 13 years, what…

A: Effective Rate of Interest: It is the annual rate on a loan or investment considering the effects…

Q: If you deposit 2500 into an account paying 11% annual interest compounded quarterly, how  long until…

A: The number of years: An initial investment grows to a certain given amount at a specified interest…

Q: If $2500 is deposited at the end of each quarter in an account that earns 5% compounded quarterly,…

A: Annuity is a stream of recurring cashflow at regular interval for fixed period at specific rate.…

Q: $480 is deposited at the beginning of every 6 months into a savings account. This will continue for…

A: An account where deposit made by accountholder is credited and credit balance is added with interest…

Q: Velma deposits $2,534 at the end of each quarter, increasing the deposit by $147 per quarter. How…

A: The timing of cash flow is taken into account by discounting them. This is partly due to the effect…

Q: If $5500 is deposited at the end of each quarter in an account that earns 7% compounded quarterly,…

A: Given data; deposit amount = $5500 rate of interest = 7% Future value of annuity = $90,000

Q: 20. $1,000 is deposited each month in an account paying 4.23% for 15 years. Then, $350 is deposited…

A: Note : As per our guidelines, we can only answer one question at once. Please post other question…

Q: You’re prepared to make monthly payments of $265, beginning at the end of this month, into an…

A: Monthly payment (P) = $ 265 Future value (FV) = $ 68000 Annual interest rate  =9% Monthly interest…

Q: Sixty monthly deposits are made into an account paying 8% nominal interest compounded monthly. If…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: Regular quarterly payments of $6000 are deposited into an account paying 3.19% interest, compounded…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: A bank is currently offering a savings account paying an interest rate of 6.0 percent compounded…

A: Equivalent annual rate: It is an annual rate of interest whether compounded monthly, quarterly, or…

Q: To establish a "rainy day" cash reserve account, a certain company deposits $12,000 of its profit at…

A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…

Q: You're prepared to make monthly payments of $260, beginning at the end of this month, into an…

A: The number of payments made can be calculated with the help of NPER function of Excel

Q: How much (in dollars) is needed in an account that earns 9.6% compounded monthly to withdraw $1,000…

A: Computation:

Q: A loan of $27900 is repaid by payments of $675 at the end of every quarter. Interest is 4%…

A: Given: Particulars Amount Loan(PV) $27,900 Payment(PMT) $675 Quarters 4 Interest rate 4%

Q: First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City…

A: a) simple interest on first city bank Simple interest = Amount * rate * time

Q: An account pays 3.3% interest compounded quarterly. Marson will make a regular deposit at the end…

A: Interest - Interest is a regular payment that is made at a certain rate of interest for a fixed…

Q: A payment of $2,690 was due two years ago, and a payment of $1,650 is due today. What single payment…

A: This question can be solved in light of time value of money and future value. The formula to…

Q: If $550 is deposited at the end of each quarter into an account paying 8% compounded quarterly, how…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: 1. If P5,000 is invested in a time-deposit for 2 years in a bank that offers 4% annual interest…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: If you deposit $1500 per month into a credit union savings account that pays interest at a rate of…

A: Using Excel FV function

Q: Suppose you run up a debt of $300 on a credit cardthat charges an annual rate of 12 percent,…

A: Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other…

Q: To establish a "rainy day" cash reserve account, a certain company deposits $12,000 of its profit at…

A: Amount of deposits =12000 interest rate =1.95 compounding quarterly  After 4years  After 5.5 years

Q: A debt of $ 900 is repaid by making payments of $50 at the end of every 6 months. If interest is 3%…

A: The amount of loan is equal to the present value of installment discounted at the required rate of…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.