A man who won P300, 000 in a lottery decided to place 50% of his winnings in a trust fund for the college education of his son. If the money will earn 14% a year compounded quarterly, how much will the man have at the end of 10 years, when his son will be starting his college education?
Q: You want to start saving for your 10 yr old son. If i=6% compounded quarterly, how much would you…
A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…
Q: How much do you need to invest now at 4.8% to provide regular payments of $500 per year for the next…
A: The regular payment (A) = $500 Total number of years (n) = 4 Interest rate (r) = 4.8%
Q: How long will it take P5.00 to be four times its value if invested at rate of the 7% compounded…
A: * SOLUTION :-
Q: A man paid 10% down payment of P200,000 for a house and lot and agreed to pay the balance on monthly…
A: here find the time by annuity formula which are as follow-
Q: Suppose that a $100 lump-sum amount is invested for 10 years at a nominal interest rate of 6%…
A: Interest is the cost of capital. While borrowing money, borrowers have to pay an ‘interest’,…
Q: If P385,941 is deposited at a rate of 12.27% compounded semi-annually, what is the compound interest…
A: The amount deposited is compounded semi annually, that is twice a year.
Q: With interest rate of 9% compounded continuously, what is the present worth of a perpetuity of P8000…
A: A perpetuity is a type of insurance policy that pays out for the rest of your life. Perpetuity in…
Q: A man bought an equipment costing P60,000 payable in 12 quarterly payments each installment payable…
A: Quarterly compounding refers to the amount of interest earned on a quarterly basis on an account or…
Q: what is the future of P600 deposited at the end of every month for 4 years if the interest rate is…
A: *SOLUTION :-
Q: Akamane wishes his son to receive P 551,389.00 ten years from now. What amount should he invest now…
A: The calculation of initial amount has two phase . In first phase we have to calculate the amount…
Q: What is the accumulate value of a payment of P12,500.00 at the end of each year for 9 years with…
A: Future Value is defined as the value of a current asset at given point of time in the future. Future…
Q: If you borrow 9000 dolars and agree to repay the loan in six equal annual payments at an interest…
A: In economics, present value refers to the current value of a future stream of cash flow. Future…
Q: If P500,000 is deposited at a rate of 11.25% compounded monthly, determine the compounded interest…
A: Given information, Principal amount (P)= P500,000 Interest rate (r)= 11.25% Compounded period (m)=…
Q: Andrei invested P15,000 @ 10% per half yearly for 2 years. If the interest is compounded half-…
A: Given InformationThe principal amount is 15,000The interest rate is 10% or 0.1Time = 2years or 4…
Q: P4000 is borrowed for 75 days at 16% per annum ordinary simple interest. How much will be due at the…
A: Given: P = 4000 R=16% r=R/100 = 0.16 t=75/365 years
Q: 19. Each year a single payment of P5000 is deposited in an account that earns 16% compounded…
A:
Q: A present loan of P12,000 is to repaid by equal payments every 6 months over the next 8 years. If…
A: *Present value of the loan = P12000 *Loan payment semi-annually *Time = 8 years Interest rate = 7%
Q: What are the present worth and the accumulated amount of a 5 - year annuity paying P 6,000 at the…
A: Given information, Annuity (A): P 6000 Interest rate (i): 12% Time period (N): 5 years To find:…
Q: How much money will be in an account in 5 years if $20,000 is deposited now at an interest rate of…
A: Given Principal = 20,000 Interest rate = 1.5% per month compounded yearly therefore Interest rate…
Q: . Akamane wishes his son to receive P700,000.00 twelve years from now. What amount should he invest…
A: The calculation of initial amount has 3 phase . In first phase we have to calculate the amount after…
Q: ach year a single payment of ₱1,766.00 is deposited in an account that earns 6% compounded…
A: Compound interest is the interest on a loan or deposit calculated supported each the initial…
Q: What is the accumulated amount of P 5 000 after 10 years that is at 8% compounded bi monthly?
A:
Q: If the sum P15, 000.00 is deposited in an account earning 4% per annum compounded quarterly, what…
A: Given Deposited amount =15,000 Interest rate =4% per year compounded quarterly Time =5
Q: Assuming a 10 pcrcent interest rate compounded continuously, what is the present valuc of an annuity…
A: [a] Present value off annuity for the next five years:-PV = $500/[1+10%]^1 + $500/[1+10%]^2 +…
Q: Find the present value of deferred annuity of P 900 every 3 months for 5 years that is deferred 3…
A: Given Information A = 900i = 10% compounded Quarterly = 10/4 = 2.5% or 0.025n = 5*4 = 20 Deferred…
Q: How long in years will it take money to quadruple if it earns 7.5% compounded semi-annually?
A: Present Value (PV) = P Future Value (FV) = 4 times PV (quadruple) = 4P Interest rate compounded…
Q: Find the present value of an annuity due of P1,200.00 paid every 6 months for 5 years at 7%…
A:
Q: Audrey buys a piece of lot for P160,000 down payment and 12 deferred semi-annual payments of P11,000…
A: Property valued = 160,000 11,000 every semi annual payment starting after 7 years Interest rate…
Q: Find the nominal rate which if compounded quarterly is equivalent to 6.5% compounded semi-annually.
A: Given information, Interest rate: 6.5% Compounded period: 2 (semi-annually) It is equal to the…
Q: You want to be able to travel and withdraw P7,100 at the end of every month during your yearlong…
A: Suppose the principal needed at the beginning of travel is P. After the last withdrawal the balance…
Q: An employee borrowed P20 000 with 15% compounded annually and P30 000 with 12% compounded quarterly…
A: Here, given information is: Present value of P20,000 with 15% interest rate compounded annually And…
Q: What amount will be accumulated by a present investment of P18,200 in 6 years at 3% compounded…
A: As given Future worth = 18200 Time period = 6years Interest rate = 3% compounded quarterly
Q: A saving system yields $8,000 at the end of the first 5 and a further $1,000 increase every year for…
A: Given information: First, 5 years yield = $8000 each year-end From 6th year to 20th year, the…
Q: A man wishes his son to receive P250,000 ten years from now. What amount should he invest if it will…
A: The present worth technique is very famous in industry since every single future expense and incomes…
Q: On the day his son was born, a father deposited to a trust company a sufficient amount of money so…
A: (Q) On the day his son was born, a father deposited to a trusted company a sufficient amount of…
Q: Find the uniform annual amount that is equivalent to a uniform gradient series in which the first…
A: Annual interest rate: It is the rate of interest over a period of one year assuming that the…
Q: What amount of money is equivalent to receiving $10,000, 5 years from today, if the interest rate is…
A: To compute the present value of $10,000, 5 years from now at 8% rate of interest compounded…
Q: What is the present worth of a 3-year annuity paying P 1,000.00 at the end of each month, with…
A: Present worth: The worth of an expected income stream assessed as of the date of valuation is known…
Q: Find the nominal rate which if converted quarterly could be used instead of 12% compounded…
A: The effective annual interest rate refers to the real return on a savings account or other…
Q: What is the future worth of P770 deposited at the beginning of every quarter for 4 years if the…
A: Amount = P770 Time (N) = 4 years Interest rate = 0.13 Quarterly time(n) = 4*4 = 16 years Quarterly…
Q: What single amount at the end of the sixth yearis equivalent to a uniform annual series of $7,500per…
A: Annual uniform amount = 7500 Time = 10 years = 12 years Interest Rate = 10%
Q: Suppose that an investor wishes to deposit an amount now so that in 30 years S1,000,000 will be in…
A: An investor wishes to deposit an amount now so that in 30 years $1,000,000 will be in an account…
Q: Find the present value of deferred annuity of 900 pesos every 3 months for 5 years that is deferred…
A: We are going to find the Present Value of deferred annuity to answer this question.
Q: A man wishes his son to receive P200, 000 fen years from now. What amount should he invest if it…
A: Future value = 200000 n = 10 years interest rate for first 5 years = 10% interest rate for next 5…
Q: 2. Determine the equivalent amount of money at the beginning of the second year if interest is 6%…
A: To Calculate an Equivalent amount of money at starting of the 2nd year, we need Amount at 3rd Year…
Q: A series of 10 annual payments of Php 200, 000.00 is equivalent to two equal payments, one at the…
A: PV = FV(1+r)n where PV = Present value FV = Future value r = rate of…
Q: How much money today is equivalent to $10,000 in 12 years, with interest at 10% compounded annually?
A: The present value is the value of future sum of money at the given interest rate.
Q: Six hundred pesos is deposited each year into a savings account that pays 6 % compounded…
A: Amount invested each year = 600 Time = 8 years Interest rate = 6 % compounded continuously
A man who won P300, 000 in a lottery decided to place 50% of his winnings in a trust fund for the college education of his son. If the money will earn 14% a year compounded quarterly, how much will the man have at the end of 10 years, when his son will be starting his college education?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Question 1 Due to health reasons, Dave is considering early retirement. He currently has $700,000 in a self- managed retirement fund. He thinks he will need S40,000 per year during retirement. He intends to invest his retirement in a low-risk mutual fund which return 1.5% per year. How many years can he live off this retirement fund without the need to look for a job?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 answer2. My son's YouTube channel (ILYAD) is making around $1000 per year at the moment (assume payments at the end of each year). How much will he have in his RESP account 12 years from now if he keeps collecting money from YouTube? Let's assume his revenue remains the same for the next 4 years (starting today) then the revenue increases to $1500 per year, from year 4 to 8, and then it increases to $2000 per year for the remaining years. Consider 5% annual interest rate for this problem
- 5 Question Let Y be the present value of an 11-year term continuous annuity of $1 per year for an insured aged.x. Let х,п Y be the present value of a whole life continuous annuity of $1 per year for an insured aged.x. Given a constant force of interest, 8, show that: ()]))/(bA state lottery gives a winner the choice of receiving the winning amount in equal monthly payments for 20 years or receiving a lump sum equal to the present value of an annuity with future value equal to the winnings. The winner selecting monthly payments will receive $4,000,000/240 = $16,666.67 each month for each million dollars of winnings. (Round your final answers to two decimal places.) (a) Find the present value of an annuity with monthly payments of $16,666.67, at an Interest rate of 5.2% for 20 years, for the winner who wants a lump-sum payment. $ X (b) In order for the lottery to be more profitable, it is decided to pay the winnings in equal monthly payments for 25 years. Find the monthly payments of $4 million in winnings. $ Find the present value of an annuity with those monthly payments at 5.2% for 25 years. $6) Two annuities in perpetuity have the same effective annual interest rate. The first annuity pays $40 every 5 years, starting at the end of the 10th year and has present value $100. The second annuity pays $20 at the end of each 3 months, starting at the beginning of the first three months. Find the present value of the second annuity.
- Fact 21 Eileen has 2.5% of her earnings deposited into her retirement plan. If $150 per month is deposited in the plan, find ner monthly and yearly earnings. 8. Her monthly earnings are $ (Round to the nearest cent as needed.) Her yearly earnings are $ (Round to the nearest cent as needed.) 09 C.SU7 365 https://xlitemprod.pearsoncmg.com/api/v1/print/math4. An engineering consultant wants to withdraw $16,000 per year for each of the next 10 years to purchase hardware and software upgrades. How much money must the consultant deposit initially in an account that earns 4% interest, compounded annually?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)
- 1- How much can you afford to spend now on an Alarm Fire system if it will save you $21,300 per year for the next 5 years? Use an interest rate of 10% per year. 2. You need to buy a car in two years from now, the car dealer made you an offering, if you buy the car now, he would give you 40% a discount rate. You know that the car price will be SR 142,000 if you delay the purchasing decision two years. what is the present worth of the savings? if you refuse the offering. Assume the interest rate is 10% per year. 3. The amount of money that Energy Company can spend now for improving productivity instead of spending $30,000 three years from now at an interest rate of 12% per year is closest to: (a) $15,700 (b) $17,800 (c) $19,300 (d) $21,350Cash 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)Show complete solution (please write eligibly) 1. Find the uniform annual amount that is equivalent to a uniform gradient series in which the first year’s payment is $500, the second year’s payment is $600, the third year’s payment is $700, and so on, and there are a total of 22 payments. The annual interest rate is 11%. Round answer to 2 decimal places.
