A company has agreed to pay a lawsuit of 3 million dollars in 4 years. How much should the company deposit now into an account paying 6% interest compounded monthly to make that payment at the due date?
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A company has agreed to pay a lawsuit of 3 million dollars in 4 years. How much should the company deposit now into an account paying 6% interest compounded monthly to make that payment at the due date?
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- A businessman wants to borrow P1,000,000 from a bank that charges a rate of interest of 12% compounded quarterly, payable for a period of 4 years. How much would the businessman’s monthly amortization if he is required to pay after the end of the month?A company must pay a $309,000 settlement in 3 years. (a) What amount must be deposited now at 6% compounded semiannually to have enough money for the settlement? (b) How much interest will be earned? (c) Suppose the company can deposit only $200,000 now. How much more will be needed in 3 years? (d) Suppose the company can deposit $200,000 now in an account that pays interest continuously. What interest rate would they need to accumulate the entire $309,000 in 3 years? (a) The amount that must be deposited is $ (Do not round until the final answer. Then round to the nearest hundredth as needed.) (b) The amount of interest earned will be $. (Do not round until the final answer. Then round to the nearest hundredth as needed.) (c) The additional amount needed in 3 years will be $. (Do not round until the final answer. Then round to the nearest hundredth as needed.) (d) The company will need an interest rate of %. (Do not round until the final answer. Then round to the nearest hundredth as…:A company borrowed (100000$) from a bank and decided to repay this dept by a series payments (payment every 6 months for 5 years). The bank put a condition about the payment that every payment should increase by (1000$) each time. If the interest rate is (% 9) compounded quarterly, determine the amount of each payment?
- A company has agreed to pay $3.5 million in 7 years to settle a lawsuit. How much must it invest in an account paying 6 % annual interest compounded monthly to have that amount when it is due? What is the interest rate per period? (Type an integer or decimal rounded to four decimal places as needed.) The company should invest (Do not round until the final answer. Then round to the nearest dollar as needed. Use the answer from the previous step to find this answer.)Suppose a certain manufacturer deposits $3,000 at the beginning of each 3 month period for 6 years in an account paying 8% interest compounded quarterly. (Round your answers to the nearest cent.) (a) How much (in $) will be in the account at the end of the 6 year period? (b) What is the total amount (in $) of interest earned in this account?As debt payment, P315,000 is due in 4 years and 7 months. If the debtor wishes to repay the debt now, and the lender applies 9% interest compounded semi-annually, how much does he have to pay?
- 1) A company deposits $5000 in a bank at the end of every year for 20 years. The company withdraws $2000 at the end of every year during the subsequent 10 years. If the bank pays 3% interest, how much would be in the account at the end of 30 years?If AJ corporation deposits RM150 at the end of each year for the next eight years in an account that pays 5 percent interest, i. How much money will AJ have at the end of eight years? ii. Suppose AJ decided that they need to have RM5300 at the end of eight years. How much will they have to deposit at the end of each year?A company owes Php 80,000 which includes the interest, to be paid one year from now by monthly deposits. The company deposits Php 2,000 at the end of the first month, Php 3,000 for the second month and increasing the deposits in each succeeding month by 50% until the 12th month. If the interest rate is 9% compounded monthly, will the total amount of deposits beenough to repay the debt? If not, how much more is needed?
- SureWin Company owes an amount of debt to a bank and the bank proposed the following annual payments to pay off the debt. Year 0 (Today): 20,000 Year 1: 24,000; Year 2: 30,000; Year 3: 30,000; Year 4: 35,000; (1) If the appropriate interest rate that bank is charging is APR 6% annual compounding, what would be the amount to debt owed today? (2) If SureWin can negotiate with the bank to pay yearly equal instalments over 4 years starting from the end of year 1 with the same 6% annual interest rate, what would be the amount of yearly payment? (3) If the bank accepts SureWin proposal in (2), what would be the interest amount paid to the bank in the first year?The Bluebird Company has a $10,000 liability it must pay three years from today. The company is opening a savings account so that the entire amount will be available when this debt needs to be paid. The plan is to make an initial deposit today and then deposit an additional $2,500 a year for the next three years, starting one year from today. The account pays a 3% rate of return. How much does the Bluebird Company need to deposit today? a) $1,867.74 b ) 2,079.89 c) 3, 108.09 d) 4,276.34 e) 4,642.2820,000 dollars is deposited into an account A at time zero and every year, 3000 dollars is added to it. The account pays 5 percent yearly effective interest and each year, the interest is paid to the account owner (is NOT rolled over into the account). This continues for 20 years. a. If the interest is deposited into a non interest bearing account B, what is the balance in account B at the end of 20 years? What is the total amount in accounts A and B at the end of 20 years? b. Now assume that account B pays 4 percent interest compounded yearly. What is the ending amount in account B, and what is the owner’s yield rate (accounts A and B together)?
