Michelle Hunter received $250,000 from an insurance company after her hus- band's death. Michelle wants to deposit this amount in a savings account that earns interest at a rate of 6% compounded monthly. Then she would like to make 120 equal monthly withdrawals over the 10-year period such that, when she makes the last withdrawal, the savings account will have a balance of zero. How much can she withdraw each month?

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A: Interest is the amount paid in excess of the principal amount by the borrower to the lender. There…

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…

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A: Here we calculate amount will be deposit with continuous compound , so calculation as follow-

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A: Answer in step 2.

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Q: Determine the amount of installment if a man bought a machine costing P 25,000 payable in 10…

A: Installment cost can be calculated as follows: A=P1+rnnt25,000=P1+0.26210×225,000=P11.523P=2,169.57

Q: You are buying a home for $500,000. If you make a down payment of $80,000and take out a mortgage on…

A: Mortgage amount and number of years can be calculated as follows:

Q: You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be…

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A: answer was attached below

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Q: If you obtain a loan of ₱1,000,000 at the rate of 12% compounded annually In order to build a house,…

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Q: you invest $1,000 at an annual interest rate of 5% compounded continuously, calculate the final…

A:

Q: Joe makes 12 monthly deposits of X each during a year at the beginning of each month, into a fund…

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A: Nominal interest is the interest before adjusting inflation.

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A: Present value = 27292 r = 10% Time = 3.5 years

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Q: What effective interest rate per quarter is equivalent to 10% per year compounded monthly

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Q: Jamie saves P4000 every three months in a bank that pays 0.85 compounded monthly. How much will be…

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Q: What is the present worth of each of the given series of payments?(a) $2.700 at the end of each…

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Q: On January 1, you deposit $5,000 in a credit union that pays 8% nominal annual interest, compounded…

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A: FV = 10,000 r = 8% n = 20

Q: If the interest rate is 7% compounded continuously, what is the required quarterly payment to repay…

A: Interest is the cost of capital. We can use interest in the context of either borrowed funds,…

Q: “Compounding of interest is one of humanity's finest inventions,” Albert Einstein famously said. To…

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A:

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Q: Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is…

A: Given,   A = ₱ 2,000.00  Rate (r) = 12%  Number of periods (n) = 6

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A:

Q: find the equivalent rate of 6% compounded semi-anually in a compounded quarterly

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A: Answer is given below