1. If PS00,000 is deposited at rate of 11.25% compounded monthly, determine the compounded interest after 7 years and 9 months. 2. What is the present worth of P27,000 due in 6 years if, money is worth 13% and is compounded semi-annually? 3. Mito borrowed P200,000 from a bank at 12% compounded monthly, which is payable monthly for 10 years. If the first payment is to be made after 3 months, how much is the monthly payment?
Q: You borrowed money from the bank with a simple interest 8%, find the present worth of P25,000, which…
A: In Simple Interest Case, FV = PV + (PV x r x n) FV = PV x {1 + (r x n)} Therefore, PV = FV / {1 + (r…
Q: How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum,…
A: Compound Interest: It is the interest on a deposit or loan computed based on the initial principal…
Q: A debt can be repaid by payments of $3125.00 today, $2770.00 in two and half years and $4600.00 in…
A: To Find: Single Payment to settle debt four years from now
Q: An initial deposit of $8500 is made into an account now, and a second deposit of $16000 is made into…
A: The future value of any deposits is the compounded value of the deposits made in the specified time…
Q: a. Calculate the future sum of P5,000, given that it will be held in the bank five years at an…
A: Note 1)It is a case where no sub-part is specified to solve among the multiple sub-parts posted, so…
Q: You deposit 54000 in an account that pays 6% interest compounded semiannually After 4 years the…
A: First, calculate value after 4 years: Future Value (End of 4 years)=Deposit×1+Interest…
Q: What is the quarterly payment on a loan of $22,000 for 5 years at i= 8% per year, compounded…
A: Mortgage/ Borrowings: Borrowings are the loan which is taken by the individual to meet its…
Q: What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7%…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: What is the present worth of P500 deposited at the end of three months for 6 years interest rate is…
A: The Present value of a future deposit is the present worth of that amount. The future amount can be…
Q: The company wanted to receive P500,000 6 years from now. Considering an interest of 14% compounded…
A: Future value required (FV) = P 500,000 Period = 6 Years Annual interest rate = 14% Semi annual…
Q: A person buys a piece of lot for P110,000 down payment and 10 deferred semi-annual payments of P…
A: Present value of all payments is calculated by using discount rate factor and then multiplying the…
Q: Whatis the future sum of 1,900, given that it will be held in the bank for 25 years and earn 17…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: 1. If P500.00 is invested at the end of each year for 6 years at an annual interest rate of 7%, what…
A: The questions here pertain to annuity. An annuity is a stream of constant cash flow that occurs at…
Q: 1.If money is worth 5% compounded semi annually, find the present value of a sequence of 12 semi…
A: 1) Interest rate (r) = 5% per annum = 2.5% semiannually Each payment (P) = P 450 Total payments (n)…
Q: You borrowed Php 20,000 that is to be paid in 2 years with an interest rate of 5% per annum…
A: Amortization schedule contains periodic payment, opening balance, interest charged and closing…
Q: 1. A man deposit 50, 000 in a bank account at 6% compounded monthly for 5 years. If the inflation…
A:
Q: What is the present worth of P5000 deposited at the end of every three months for 5 years if the…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: Assume that 1500 Php is deposited in an account in which interest is compounded annually at a rate…
A: Deposit amount = 1500 Php Interest rate = 6% Period = 5 Years Compounding = Annually
Q: at what interest rate will a principal of P9,500 accumulate to P15,000 in 2 years compounded…
A: Future value = Present value*(1+interest rate/k)^(n*k) where n = number of years = 2 k = compounding…
Q: A debt of RM600 due in three years and RM800 due in four years is to be repaid by a single payment…
A: The figure is shown below for considering the time period:
Q: A payment of $700 is due in 3 years, and $5,000 is due in 5 years. What single payment made today…
A: PV=FV11+rn=$70011+4.54×1004×3+$500011+4.54×1004×5=$612.062293+$3997.59977=$4609.66206=$4609.66
Q: Assume that you deposited RM5,000 at the end of each year for 3 consecutive years in an account that…
A: Annual deposit = RM 5,000 Number of annual deposit = 3 Interest rate = 10% Semi annual interest rate…
Q: A man borrowed P 150,000.00 from the bank payable on the 1st day of every month for 2 years. If he…
A: An interest rate is a rate that is the cost of borrowing money.
Q: You plan to make a trip that costs you approximately ¢ 4,000,000.00, for this you deposit today in…
A: So required investment will be accumulated in 8 years
Q: How much will be received in 6 years if Php35,000 is deposited in an account earning 5.5% interest…
A: Compound interest is an investment method where the interest earned is reinvested back which earns…
Q: 9th deposit is m
A: Given Information: Amount Deposited each year is P10,000 Time period is 9 years Interest rate is 14…
Q: 1. The Lexington Property Development Company has a RM10,000 note receivable from a customer due in…
A: Present value is the value of an investment in today’s time. It helps to make decisions better.
Q: A piece of machinery can be bought for P10,000 cash or for P2,000 down and 20,000 at the end of 15…
A: Present Value refers to the value of cash flows today which is to be received at some future time…
Q: Suppose you deposit $2,000 at the end of eachquarter for ten years at an interest rate of 9%…
A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…
Q: Taki deposits P50,000 in a bank account at 6% compounded monthly for 5 years. If the inflation rate…
A: The question is related to the Future worth. The details are given. First interest rate will be…
Q: Answer the subquestions below: a. Mr. Formento pays at the end of every month for a loan that…
A:
Q: If I loaned an amount of P10,000.00 with an interest rate of 8.44 % compounded monthly for 5 years.…
A: Loan amount = P 10,000 Annual interest rate (AR) = 8.44% Number of compounding per year (m) = 12
Q: A
A:
Q: If money is worth 8% compounded quarterly, find the present value of 12 quarterly payments of P1,…
A: The rate of interest is 8% compounded quarterly. The payment made for 12 quarters. the each payment…
Q: An amount of R30 0000 is deposited into an account now, at a rate of 3,9% pa. Three years from now…
A: Given: Deposit amount = 300000 Interest rate = 3.9% Additional amount = 170000 New interest rate =…
Q: If $6000 is invested in an account that pays 3% annual compounded interest, compare the amount in…
A: 1. Semi annual: Future value = Present value *(1+rate)^periods Future value =…
Q: A man borrowed an amount of P150,600 to bank that offers an interest rate of 5.36% compounded…
A: Loan is a borrowed amount of money for a fixed time period, which is expected to be repaid with…
Q: How is the manthly pay ment Of P350,000 loan which is to be repaid monthly for 1 year with an…
A: Given: Loan = 350,000 Years = 1 Interest rate=10%
Q: Supposed that P2,000 is deposited each year , on a continues basis into a savings account that pays…
A: Annual deposit (P) = P2000 Interest rate = 6% Mathematics constant (e) =…
Q: 1. At the beginning of each quarter, P36,000 is deposited into savings account that pays 6%…
A: Honor code: Since you have asked multiple questions, we will solve the one question for you. If you…
Q: A certain amount was borrowed for 5 years at 6% simple interest. After which, the amount was not…
A: Simple interest rate for first 5 years = 6% Interest rate for next 8 years = 10% compounded semi…
Q: 2. If you wish to accumulate R200,000 in 7 years' time by depositing R1,850 per month in an account…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: A man borrowed P20000 and promised to pay P35000 at the end of 5yrs. If interest is compounded…
A: Borrowed amount (P) = P 20000 Promised amount to be paid (F) = P 35000 n = 5 years = 10 semiannual…
Q: present value of the investment if the rate of interest is 12% compounded semi-annually?
A: A deferred annuity is a term that is used to refer to the present value of the series of periodic…
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: 2. Deposit the principal amount of P10,000 into a savings account that pays interest at the rate of…
A: Compound interest formula: A = P[(1+r/n)^nt] Where A is the future amount P is the principal r is…
Q: Five years ago, you entered into a 10-year investment with a simple interest of 4% per annum and a…
A: One time principal = P Simple interest for first 5 years (r) = 4% Compounded interest for next 3…
Q: 1. A man deposited P25,000 in a bank with interest at 8% compounded monthly for 3 years. After 3…
A: Introduction Note: “Since you have asked multiple questions, I will solve the first question for…
Step by step
Solved in 2 steps
- 2. Deposit the principal amount of P10,000 into a savings account that pays interest at the rate of 5%. What is the amount in the account after 1 year if the account is: a. compounded annually b. compounded semi-annually c. compounded quarterly d. compounded monthly e. Which is advantageous to the investor?1. Pedro, who deposited P500,000.00 today with a financial Institution M, agreed with the latter that Pedro's money shall earn monthly compounded interest. If the prevailing interest rate of the Institution M is 8 % compounded yearly, how much will the value of his deposit be after 14 months?1. The Lexington Property Development Company has a RM10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is a. 9%? b. 12% compounded monthly? c. 8% compounded quarterly? d. 18% compounded monthly?
- You have a bank deposit now worth $5000. How long will it take for your deposit to be worth more than $8000 if a. The account pays 5 percent actual interest every half-year and is com- pounded every half-year? b. The account pays 5 percent nominal interest, compounded semiannually?1. Suppose Glenn invested P10,000 for 5 years with simple annual interest of 10%. What is the future value of this investment? 2. Deposit the principal amount of P10,000 into a savings account that pays interest at the rate of 5%. What is the amount in the account after 1 year if the account is: a. compounded annually b. compounded semi-annually c. compounded quarterly d. compounded monthly e. Which is advantageous to the investor? 3. A four-year ordinary annuity has a present value of P10,000. If the interest rate is 5% per annum, how much is the amount of the annuity payment? 4. Find the present value of a deferred annuity of P4,800 every six months for 7 years, if the first payment is made in 4 years, and the money is worth 5.5% compounded semi-annually. 5. A loan is 6 Semi-annual payments of P4,500 are to be made to pay for a loan at 5.5% compounded semi-annualy. Find the value of the loan.1. What is the difference between the compound interests on ₱5000 for 1 year at 4% per annum compounded annually and semi-annually? 2. What sum of money must be deposited at the end of every three months into an account paying 3.7% compounded quarterly to accumulate to ₱18,000.00 in twelve years? 3. A sum of ₱12,500 amounts to ₱15,500 in 4 years at the rate of simple interest. What is the rate of interest? 4. What is the future value of an annuity with monthly deposits of ₱175 for 11 years at an interest rate of 7.32% compounded monthly? Deposits are made at the end of the month.
- 1.) An amount of R1 500 is deposited in a bank paying an annual interest rate of 4.3%, compounded quarterly. Find the balance after 6 years. 2.) Your goal is to accumulate R30 000 after 17 years from now. How much must you invest now to have, at an interest rate of 8% compounded semi-annually? 3.) If R500 accumulated to R700 in 5 years with a certain interest compounded quarterly, what is the rate of interest? 4.) A debt of R5000 is to be amortised by 5 quarterly payments made at 3 month intervals. If interest is charged at the rate of 12% convertible quarterly, find the period payment and construct an amortisation schedule. Round the payment up to the nearest cent. 5.) Raees Braai Ltd has the following capital structure: Equity, 2000000, R2, ordinary shares, market price R2, 50 Preference, 1000000, 12%, R1 preference shares, market price R1,20 Reserves R1500 000 Bank loan R500 000, 15% bank loan Debentures R 1750000,16% debentures, market price R110 (issued at R100). The current and…Assume that 1500 Php is deposited in an account in which interest is compounded annually at a rate of 6% for 5 years. How many times is compunding done in a year. What is the initial or rincipal amount. then what is the rate of interest?How much interest is deducted in advance from a loan of P18,000.00 for one year and 6 months if the discount rate is 9%. How much is the proceeds after deducting the interest?
- 1. At the beginning of each quarter, P36,000 is deposited into savings account that pays 6% compounded semiannually. Find the balance in the account at the end of three years. 2. ABC bank pays interest at the rate of 2% compounded quarterly. How much will Ken have in the bank at the end of 5 years if he deposits P3,000 every month? 3. What is the present value of an annuity of P150,000 payable at the end of each 6-month period for 2 yea if money is worth 8% compounded semiannually?1. You deposited PHP1, 500 in a bank with an interest rate of 5% for 1 year. What is the future value of your deposit? 2. FNB pays 6% interest compounded semi-annually. SNB pays 6% compounded monthly. Which bank offers the higher effective annual rate? 3. You deposit PHP1, 000 in your bank account. If the bank pays 4% simple interest, how much interest will you accumulate in your account after 10 years?. a. What if the bank pays compound interest? 4. Mr. Sotto won PHP10 million in the lottery. He was very excited to collect his winnings and had several plans for his PHP10 million. He would buy his dream house, car, and a lot more. However, he was very disappointed when the officers from PCSO said that he will not get his PHP10 million pesos upfront. He, however, has the following options: Get 8.1 million upfront Receive 1 million every year for 10 years Receive 1.8 million every year for 5 years a. The current government bonds have a yield of 5% per annum. Which is the best option?…1.-What is the size of 60 monthly payments and 5 annuities that result from the purchase of land with a value of $ 500,000, if the interest rate is 18% per year, and the payment conditions are 10% down payment and the rest is distributed equally in monthly payments and annuities? 2.-A person deposits an annual amount in a savings account that decreases at a constant rate of $ 500 per year. The size of the first deposit made is $ 10,000 and the last one is $ 5,500. If 15% per year is earned in the savings account, how large must a constant annual deposit be for the same time, so that the accumulated amount is the same?