Suppose you have received a credit card offer from a bank that charges interest at 2.4% per month compounded monthly. What is the annual nominal interest rate for this credit card? (provide your answer in % with one decimal place)
Q: 7. Suppose that a man lends $1000 for four years at 12% per year simple interest. At the end of the…
A: Compound interest (otherwise called compounding interest) is the interest on a loan or deposit…
Q: Suppose you are a beneficiary designated to immediately receive #7318 each year for 10 years,…
A: Above cash flow is an example of constant annuity payments received for 10 years . We use the…
Q: Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8%…
A: Year Withdrawal/Annual deposits PV F @ 8% PV of withdrawal/deposits 0 1 600 0.9259 555.558…
Q: You are willing to pay $15,625 now to purchase a perpetuity which will pay you and your heirs $1,350…
A: The present value interest issue of AN regular payment may be an issue that will be used to work out…
Q: What is the amount of interest earned on $2,000 for five years at 10% simple interest per year?
A: here we calculate the interest earned by simple interest so the calculation as follow-
Q: Every year you deposit $2,000 into an account that earns 2% interest per year. What will be the…
A: Answer; Correct Option is (b) 180000
Q: In five years, a salary of $56,000 per year with a 5% growth due to cost-of-living adjustment in the…
A: There are two cases, first in which income is received for four years and there is an increment in…
Q: f I plan to avail of a loan today and I will start to pay it P9,348 at the start of every month up…
A: Equivalent annual rate = (1 + 11.9/4)4 - 1 = 11.56% Monthly rate (rate)= 1.1156^1/12 - 1 = 0.91575%…
Q: A man deposits P 1,000 at the end of each month for 3 years at a nominal rate of 12% compounded…
A: Given, Nominal rate of interest (r) = 12% compounded monthly For finding the effective interest…
Q: Q5. At 5% annual interest, what is the difference in the present and future value of P100 paid at…
A: Given, Annual Interest Rate : 5%Payment Made : P100Term : 10 years
Q: If you paid $90 to a loan company for the use of $1,252 for 120 days, what annual rate of interest…
A: Here, it is given that an individual pays $90 as an interest payment on a laon of 1,252 for a time…
Q: what is the future of P600 deposited at the end of every month for 4 years if the interest rate is…
A:
Q: Solving A=Pert for P, we obtain P=Ae-rt which is the present value of the amount A due in t years if…
A: When an amount is compounded continuously , then it will achieve the highest possible of compound…
Q: If $18,000 is invested at 9% for 15 years, find the future value if the interest is compounded…
A: The formula to be used is At = Ao [1 + r / 2 ]2t Where, At = future valueAo = 18,000r = 9% or 0.09t…
Q: If you obtain a loan of ₱1,000,000 at the rate of 12% compounded annually In order to build a house,…
A: Loan Amount = 1000000 Interest Rate= 12% N=10 Years Equal Payment Series =?
Q: Explain Simple Loan considering Articles 1953 to 1955 and 1980
A: A simple loan, also known as a simple interest loan, is a loan with a low interest rate. It's a type…
Q: Compare the interest earned on $8,000 for 15 years at 8% simple interest with the amount of interest…
A: A fixed percent of interest rate on the principal amount over a specific time period is referred to…
Q: Question (1): Mark "True" for the correct phrases and "False" for the incorrect phrases * True False…
A: in a market, when an individual make an investment, he must analyze the codt and returns associated…
Q: A man deposits P 1,000 at the end of each month for 3 years at a nominal rate of 12% compounded…
A: Given nominal interest rate = 12 % compounded monthly Effective rate = (1 + 12%/12)^1*12 – 1 =…
Q: Find the present value of a deferred annuity of P6362 every six months for 3 years that is deferred…
A: Given deferred annuity (A) =6362 every six months Time =3 years rate of interest =4% compounded…
Q: What is the present worth of a P500 annuity starting at the end of the third year and continuing to…
A: PW = PV of annuity at end of year 3 x P/F(i%, 3)
Q: Suppose that, to cover some of your college expenses, you are obtaining a personal loan form your…
A: Given Total amount of money paid after three year =20223 Interest rate =10% compound monthly.
Q: What is the annual rate of interest (in %) if P275 is earned in 10 months on an investment of…
A:
Q: What is the nominal rate of interest compounded continuously for 10 years if the compound amount…
A: Nominal interest is the interest before adjusting inflation.
Q: Find the 7 uniform annual deposits that can provide a single withdrawal of $38,500, at 2 years after…
A:
Q: Determine the principal that would have to be invested to provide P200 of simple interest income at…
A: The interest rate is the amount charged by a lender to a borrower on top of the principal for the…
Q: A man deposits P500 at the end of each year and expected to have an amount of P2,769.84 at the end…
A: (1 )Solution: Uniform Series of compound interest F = A(1+i)n-1 + … + A(1+i)3 + A(1+i)2 + A(1+i)…
Q: What is the ordinary simple interest earned on P 35, 000 for the period from April 3, 2020 to…
A: SI is a method of calculating the amount of interest that must be paid on the principal, and it is…
Q: On January 1, you deposit $5,000 in a credit union that pays 8% nominal annual interest, compounded…
A: Interest rate is the amount charged on an amount of money by a lender from a borrower to use the…
Q: What is the present value or price of a 10 year P20,000 annuity with an interest rate of 5%
A: Annuity is the series of Equal amount payment in equal interval . And it is not given that annuity…
Q: Money borrowed today is to be paid in 5 equal payments at the end of each quarter. If the interest…
A: Given: The quarterly payment is = ₱ 21,293 The interest rate is = 3% compounded quarterly Money to…
Q: Find the nominal rate, which if converted to quarterly could be used instead of 12% compound…
A: Nominal rate: It means the rate before taking inflation into account.
Q: Suppose that, to cover some of your college expenses, you are obtaining a personal loan form your…
A: The expense of getting can come in many structures. It is consistently to the greatest advantage of…
Q: Q: You borrow $20,000 to be repaid in equal instalments over the following four years. The interest…
A: Installments that will be paid at the end of every year is estimated as follows: Principal=Cash Flow…
Q: What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…
A: * SOLUTION :-
Q: 863,171 is placed in an account at 3.66% compounded quarterly for 7 years. How much is in the…
A: pv = P863,171
Q: Suppose that the interest rate is 10% per year, compounded annually. What is the minimum amount of…
A: Compound interest formula: CI = P(1 + r / n)nt - P Where CI is compound interest P is Principal,…
Q: Suppose you are a beneficiary designated to immediately receive 14933 each year for 11 years,…
A: Given, PV = P 14933 Time = 11 year Interest rate = 2%
Q: Find the present value of a deferred annuity of P7179 every six months for 7 years that is deferred…
A: Deferred annuity can be defined as the contract with the insurance companies which promise the owner…
Q: What interest rate compounded monthly is needed for an amount of P20,442 to increase to P34,904 in 2…
A: Given: Principal amount=P 20442 Future value=P 34904 Number of years=2
Q: Q1) what lump sum of money must be deposited into bank account at present so that $600 per month can…
A: The Interest Rate is given as(i) 9% per monthMonthly Payment(PMT) = $600The Annuity is due for 4…
Q: At 7% annual interest compounded monthly, how long will it take your P96529 to double? Round your…
A: Present value (PV) = 96529 Future value (FV) = 96529x2 = 193058 Annual interest rate compounding…
Q: An investment of P2658 is made at the beginning of each month for 4 years and 11 months. How much…
A: Investment Monthly = 2658 n = 4 Years and 11 months i.e. 12*4 + 11 = 59 months. r = 5%/12 =
Q: Suppose that the interest rate is 10% per year, compounded annually. What is the minimum amount of…
A: please find the needed answer below.
Q: Suppose that $30,000 is borrowed today at 12% interest. The loan is to be repaid by uniform annual…
A:
Q: the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of…
A:
Q: Suppose Alice decides to put some money in a new account that compounds twice per year. At the…
A: Compounding Compounding is the act of reinvesting an asset's profits, whether they be from capital…
Q: how much money must you deposit today to an account earning 12% so that you can withdraw P25,000…
A: Present value means the current value of the assets or a future sum of money.
Q: You obtain a loan 1.5 at the rate of 18% compounded annually in order to build a house. The payment…
A: Given: Loan (P)=1.5 Rate (r)=18% compounded annually
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5% interestcompounded daily?Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place)14. What is the nominal value of the interest compounded continuously for a period of 3years if the value of the uniform series present worth factor is 2.038?
- How much would you have to deposit now. so that you can withdraw of $10000 starting at the end of year 5 , and subsequent Withdrawals will decrease a rate of of 10% semiannual year over the previous year's until at the end of year 8 , if the interest rate is 676. compounded semi-annually? Note: Draw the cosh flow diagram and use interest rate with five decimal places. Box your final answer and upload the picture of your solution.Find the present value (in dollars) of an annuity that pays $7,000 at the end of each 6-month period for 7 years if the interest rate is 6% compounded semiannually. (Round your answer to two decimal places.) $How much would you have to deposit now, so that you can withdraw of $10,000starting at the end of year 5, and subsequent withdrawals will decrease a rate of of 10% semiannual year over the previous year’s until at the end of year 8, if the interest rate is 6%, compounded semi-annually? Draw the cash flow diagram and use interest rate with five decimal places.
- It is likely that airplane tickets will increase 5% in each of the next 4 years. The cost of a plane ticket at the end of the first year will be $10571. How much money would need to be placed in a savings account now to have money to pay for a trip at the end of each year for the next 4 years? Assume the savings account pays 2% annual interest. Round your answer to 2 decimal places. Add your answerCash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7%interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)You borrowed an amount of $15,000 and paid it $20,223 in 3 years. If the interest rate was compounded monthly, what is the nominal interest rate?
- What is the present equivalent of a uniform series of quarterly payments of $4,500 each for 8 years and a quarterly payments $2,000 of the next 5 years if the interest rate is 8% compounded bimonthly? Note: Round off your interest rate to five decimal places Round your answer to 2 decimal places.8. What is the nominal rate of interest compounded continuously for 10 years if the compound amount factor is 1.34986?5. How much would you have to deposit now, so that you can withdraw of $10000 starting at the end of year 5, and subsequent withdrawals will decrease a rate of of 10% semiannual year over the previous year's until at the end of year 8, if the interest rate is 6%, compounded semi-annually? Draw the cash flow diagram and use interest rate with five decimal places. DONT USE EXCEL. USE MANUAL SOLVING