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Q: 13. happy Corp. established a fund where they pay $200 annually into the fund. The interest rate…
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A: Future value (FV) = $ 4100 Annual interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25%…
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A: In the given question Php 400 will be deposited at the end of each month for 6 months. The amount…
Q: A fund is to created by investing 900 at the end of every month for 9 years. IF money is worth 9%…
A: Monthly investment (C) = 900 Annual interest rate = 9% Monthly interest rate (R) = 9%/12 = 0.75%…
Q: Ali is making $1,000 monthly deposits into a fund that pays interest at a rate of 6% compounded…
A: Given: Monthly deposit = $1,000 Interest rate = 6% Years = 10
Q: Anton deposits P400,000 today and another P200,000 in 6 years into a fund paying simple interest of…
A: Simple interest is a method of calculating the interest charged on a loan or the interest receivable…
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A: An annuity is a contract where periodic payments are made in the future in return for a lump-sum…
Q: Our clients saved $2,500,000 for retirement. They wish to withdraw $20,000 from the fund each month…
A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…
Q: Mr. Velasquez invests P 2,500 at the end of each 6 months to a fun Paying 8 % % compounded…
A: Semiannual deposit (S) = P 2500 r = 8.75% per annum = 4.375% semiannually
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A: Future Value = $50,000 Time period = 6 Years Interest rate = 3.5%
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A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…
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A: Solution:- Calculation of Schedule of Investment fund ( Amount in Php) Year Opening balance…
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A: Find out future value of current value after two years and than find out the period required.
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A: Future value (FV) = P 12,500 Period = 4 Years Number of monthly deposits (n) = 4*12 = 48 Annual…
Q: Mary set up a fund that would pay her family $3,000 at the beginning of every month, in perpetuity.…
A: A perpetuity is an indefinitely renewable annuity. The cash flow stream will never end. In financial…
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A: Compounding of interest means, interest is received on principal as well as the earned interest…
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A: Given Information Interest rate = 2.5% compounded semi-annually Time Period = 6 years Accumulated…
Q: John save Php 120 every quarter for 3 years earning 7% compounded monthly in a fund. How much will…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: Mr. Moreno started to deposit Php. 5,500 quarterly in a fund that pays 2.5% compounded monthly. How…
A: Multiple questions asked, so we can solve only first one or question asked as per requirement under…
Q: Clearlake Optical has a $50,000 note that comes due in 3 years. The owners wish to create a sinking…
A: Given: Annual rate (r)=1.5%=0.015 Future value (A)= $50,000 Number of years (t)=4 Number of payments…
Q: Sheila started to deposit P18,000 semi-annually in a fund that pays 5% compounded semi-annually. How…
A: Semiannual deposit (D) = P 18000 r = 5% per annum = 2.5% semiannually n = 10 years = 20 payments
Q: ma'am minda started to deposit P2,000 quarterly in a func that pays 5.5% compounded quarterly. How…
A: Quarterly Deposit = 2000 Interest rate = 5.5℅/4 = 1.375℅ per quarter N = 24 quarters
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A: p Principal Amount (1000*3) 1000 i Interest rate per annum 6% i Quarterly interest (6%/4) 1.50%…
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A: Future value means the value at some future point of time. The future value can be calculated of an…
Q: Assume that you want to have $ 2650 saved in a sinking fund in 1 year. The account pays 4.5%…
A: Annuity from future value formula will be used to calculate annuity amount: Annuity is calculated…
Q: Assume that you want to have $ 4450 saved in a sinking fund in 1 year. The account pays 2%…
A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, P = Periodic payment r =rate per period…
Q: is deposited each year into a bank account that pays 8% interest compounded quarterly how much would…
A: The future value of annuity includes the amount being deposited each year and the amount of interest…
Q: month until the end of the 4th year, she plans to increase her deposit by 5,000. How much is the…
A: Present value of an annuity with a fixed growth rate Annuity is a series of equal payments at equal…
Q: Kenny decided to make a P1,000 monthly deposit in a fund that pays 6% compounded quarterly. How much…
A: Monthly deposit (P) = P1000 Interest rate = 6% Monthly interest rate (r) = [{1+(0.06/4)}4]1/12-1…
Q: 0. Tammy is saving up money for an emergeney fund. She hopes to have 4 months' worth of income…
A: The PMT function or formula can be used to determine the amount of monthly payments to accumulate a…
Q: A person sets up a sinking fund in order to have P100,000 after 10 years for his children’s college…
A: Future Value Required = 100,000 Time Period = 10 years or 20 semi annual periods Interest Rate =…
Q: If you borrow money from your friend with simple interest of 12%, find the present worth of P20,…
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…
Q: . How much must a man place in a fund at the end of each month in order to have P12,500 at the end…
A: Future value (FV) = P 12500 Period = 4 Years Number of monthly payments (n) = 4*12 = 48 Interest…
Q: Monthly, Val's net earnings are $4,500, and expenses are $4,000. How much should Val have in savings…
A: Introduction: Val`s monthly net earnings are $4500 and expenses are $4000 we need to find savings…
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A: Note: We are providing the solution of question no.1 as specified in the first line of the question.…
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each month. If interest on the account is 5% compounded quarterly, for how long does Laura have to deposit the money? Please include the cashflow diagram and what kind of annuity formula can we use on this question aside from the excel format?
- Determine the kind of annuity used in the following situations. Then, solve the problem. Show your neat and complete solution. 1. Your dad deposits P 10,000 every 3 months for 7 years in an account paying 4% compounded quarterly.How much will she have in his account at the end of 7 years assuming no withdrawals were made?An aunt gifts you with $12,000, but only after you invest it for one year. She givesyou two choices.1. Invest the entire sum at 4.2% compounded monthly.2. Invest $1000 at 7.1% each month in an annuity that pays every month.(a) What is the future value of the money invested with method 1?(b) How much interest is earned with method 1?(c) What is the future value of the money invested with method 2?(d) How much interest is earned with method 2?(e) Which method would you choose?Suppose you are in charge of annuities for a life insurance company. A customer comes in and wants to buy an annuity that will pay her a fixed amount each month for the rest of her life. She has $1 million to buy the annuity. Explain how you would determine the monthly payment she would get. How would the monthly payment be affected by a rise in interest rates
- A father wants to set up a bank account that will pay his daughter $12,000 at the end-of-quarter (EOQ) 4 and $24,000 at EOQ 8. He will fund this account by making quarterly payments of $A from the present (time zero) through EOQ 7. If the quarterly percentage rate is 2%, what is the value $A that must be deposited into the account? Please include equations used and cashflow diagramSuppose you have estimated that you will need $2,500 per month in your retirement to meet your expenses and live comfortably, and that you have found or chosen a fund (account) which pays monthly interest 4% APR . What principal, or balance, will your account need to maintain in order to be able to pay you this amount each month? Round/take your answer to the nearest cent.Find the monthly house payment necessary to amortize the following loan. 9) In order to purchase a home, a family borrows $121,000 at 3.0% for 30 yr. What is their monthly payment? Round the answer to the nearest cent.
- Solve the given problem. A. Mrs. Ledesma apply for a loan for the renovation of their house. She agreed to pay P10,000 quarterly for 5 years that will start at the end of 2 years. If interest rate is 6% converted quarterly, how much is her loan? a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________. d. Period of deferral is ________. e. The interest rate per period is ___________. f. The present value of the loan is ___________. B. Your mother plans to buy you laptop for your online class. She got an offer from Abenson of monthly installment of 1,950 monthly for 1 year and a down payment of 5,500. The payment will start at the end of 3 months. How much is the cash price of the laptop if the interest rate is 3% compounded monthly. a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________. d. Period…If you desire to have $15,000 for a down payment for a house in six years, what amount would you need to deposit today? Assume that your money will earn 2 percent. Use the appropriate factor(s) from the tables providedPlease answer using GUFSA method and please also use the formulas attached. 1. Mario would like to save P3,000 at the end of each month, for six months, in a fund that gives 9% interest compounded monthly: How much is the amount or future value of his savings after 6 months? 2. Gus purchased a laptop, and he would like to know the present value of his monthly payment of P3,000 when interest is 9% compounded monthly. How much is the present value of his payments at the end of 6 months? 3. Renato paid P200,000 as down payment for a car. The remaining amount is to be settled by paying P16,200 at the end of each month for 5 years. If interest is 10.5% compounded monthly what is the cash price of his car? 4. In order to save for her high school graduation, Mariglenn decided to save P200 at the end of each month. If the bank pays 0.250% compounded monthly how much will her money be at the end of 6 years? 5. The buyer of a car pays P169,000 cash and P12,000 every month for 5 years. If…
