On the first day of the year, a man deposits P5,000 in a bank at 8% a year, compounded annually. He withdraws P80.00 at the end of the first year, P90.00 at the end of the second year and the remaining balance at the end of the third year. How much does he withdraw at the end of the third year?
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- On January 1, you deposit $5,000 in a credit union that pays 8% nominal annual interest, compounded quarterly. You wish to withdraw all the money in five equal yearly sums, beginning 31 December of the first year. How much should you withdraw each year? Select one: a. None b. $306 C. $206 d. $4061.9 deposits increasing at a constant rate of 2.7% are made at the end of each year. The first deposit was 1349 and fund earns 5.1% compounded annually. What is the future value of the periodic constant growth payments? Answer to two decimals, do not use $ signs or commasA bank saving account offers 4% compounded on a quarterly basis. A customer deposit $200, in this type of account, at the start of each quarter starting with the first deposit on the first of January and the fourth deposit on the first of October. What is the total amount in his account at the end of the year?
- Arriane borrows $10,000 at an interest rate of 8% compounded annually and wishes to repay the loan over a 4 year period with annual payments such that the second is $500 greater than the first payment, the third payment is $1,000 greater than the second payment and the fourth payment is $2,000 greater than the third payment. The amount of first payment is: A. $ 1,985.57 B. $ 1,873.67 C. $ 2,206.27 D. $ 1,753.55In an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8% compounded quarterly for 6 years. 1. Compute the value of the capital recovery factor. 2. Compute the value of the sinking fund factor. 3. Compute the value of the present worth factor.You are getting a loan to buy your first home. It is a $250,000 home with three bedrooms and two bathrooms. The price is so low because the economy was bad, a lot of people lost their jobs, and few people are buying homes. You got the following information from the bank: Loan Amount: $150,000 Interest Rate 1 month ago: 4.5% Today: 4.1% Loan Period: 15 years (180 months) 1.Based on what you are hearing from friends and what you know about supply and demand in financial markets, what would you predict about the level of interest rates for house loans in the future? Will they stay the same, increase, or decrease? 2.Explain your answer by drawing and explaining two supply and demand curves: one showing the interest rate today (assume it is 4.1%) and one predicting what the interest rate will look like in one month. 3.
- 1. How long must a P40,000 note bearing 4% simple interest run to amount P41,350?6. If $ 1,000 becomes $ 1,126.49 after 4 years invested at a certain nominal rate of interest compounded semi-annually, determine the effective rate.1. A bank charges 1.5% per month on a loan. Find the equivalent nominal rate of interest. 2. A financing company charges 1.5% per month on a loan. Find the equiv alent effective rate of interest. 3. A nominal rate of 12% compounded monthly is equal to an effective rate of interest. 4. Convert 16% compounded semi-annually to equivalent nominal rate which is compounded daily.
- If you borrowed $24,000 at 12% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?QUESTION 3 1.1) Calculate the future value (rounded to the nearest whole number) of monthly deposits of R500, made for 30 years, at a nominal interest rate of 4% p.a. Then find the value of the monthly withdrawals (rounded to the nearest whole number) that can be made from this annuity for a period of 20 years, at a nominal interest rate of 5% p.a. Future value of monthly deposits = Monthly withdrawal =Suppose that over a six-year period, $1000 accumulated to $1922 in an investment certificate in which interest was compounded quarterly. Find the nominal rate of interest, compounded quarterly, that was earned. %. The nominal rate was (Type an integer or decimal rounded to two decimal places as needed.)