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: If you deposit $9,000 now, and you withdraw it after six years at 9% annual interest, what is the…
A: In this question 1st we calculate the value of $9000 at end of 2nd year afterward on that value we…
Q: Every year you deposit $2,000 into an account that earns 2% interest per year. What will be the…
A: Answer; Correct Option is (b) 180000
Q: Describe what is the Compound-Amount Factor?
A: The money is anything which is accepted by the society as a medium of exchange and has the main…
Q: What effective interest rate per 6 months is equal to a nominal 2% per month, compounded…
A: The nominal interest rate (i) is 2% per month and it is compounded continuously.
Q: How long in years will money double its amount if invested at 10% simple interest?
A: Given interest r= 10%
Q: If $4,000 is invested now, $ 7,000 two years from now and $7,000 four years from now at an interest…
A: When you earn interest on a balance in an exceedingly savings or investment account, the interest…
Q: How much interest is included in the accumulated value of $3200 paid at the end of every six months…
A: P = $3200t = 4 year(Semi annually)r = 6.5% Here, P = Principalt = Timer = Rate of interest
Q: At what annual rate of interest, compounded quartile will money double in (3+R) years?
A: We are going to set up the mathematical equation to answer this question.
Q: What is the nominal rate compounded monthly corresponding to an effective rate of 20 %?
A: If monthly nominal rate be r%, then Effective annual rate = (1 + r)12 - 1
Q: How much did Erin deposit every month in her savings account if she had $8,000 after 21 month-end…
A: Answer; Below I attached answer
Q: Find the time required for a sum of money to triple itself at 5% per annum compounded continuously?
A: Meaning of Sum of Money: The term sum of money in the form of simple interest refers to the…
Q: If $18,000 is invested at 9% for 15 years, find the future value if the interest is compounded…
A: The formula to be used is At = Ao [1 + r / 2 ]2t Where, At = future valueAo = 18,000r = 9% or 0.09t…
Q: How long will it take P 10.00 to be four times its value if invested at the rate of 8% compounded…
A: We have Present value P= 10.00 Future value = 40.00 Interest rate =8% compounded semi-annually We…
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: What interest will be owed on your bank on a loan of P25,500 at the end of 3 years, 7months and 20…
A: Simple interest refers to the money that is paid on principal. Total amount is the sum of interest…
Q: What are two steps taken to find the AE, when cash flow has no special pattern?
A: The first step is convert the cash flow to present value by using the below formula.
Q: Determine the present value of a perpetuity of 10,000 pesos payable semi-annually if the money is…
A: Semi-Annual Amount = 10,000 number of payment in a year = 2 compounding period = 4 r = 8%
Q: Find the difference between simple interest and compound interest on a savings deposit of P50 000 at…
A: In simple interest uses the principle amount only while the compound interest includes principle and…
Q: at an interest rate of 2 per month the money will double in value in how many months?
A: In a market, when an individual invests his money in specfiic project, he makes various types of…
Q: A series of equal quarterly payments of $5,000 for 10 years is equivalent to what present amount at…
A: Payment made quaterly = $5000 The time period for which the payment was made = 10 years Interest…
Q: Assume you borrow $2,000 now at 7% per year for 10 years and you must repay the loan in equal yearly…
A: Given: Present value (PV)=$ 2000 Number of years (n)=10 Interest rate (r)=7%
Q: Calculate the amount of simple interest and the amount for: a)$40,000 at 36% per year in 3 years and…
A: To calculate the Simple interest we need to solve for separate time periods . We need to solve for…
Q: Suppose that $100 is invested for five years at an interest rate of 8% per year, compounded…
A: Given: Amount=$100 Interest rate=8% Number of years=5 To find: Amount at end of 5 years
Q: Determine the Ordinary and exact simple interest of a borrowed amount worth 1200000 on February 14,…
A: SI(simple interest) is the product of P(principal), R(rate of interest) and t(time period) divided…
Q: If an investor invests a sum of $100 in a fixed deposit for five years with an interest rate of 15%…
A: Given the information: Amount invested in fixed deposit = $100 Time period for investment = 5 years…
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: unt that compounds interest at 1% per semiannual, the value of n in the F/A factor that will…
A: Compound interest is the addition of interest being made to the principal sum of a deposit or loan.
Q: Jimmy paid off a mortgage by paying $775 per month for 12 years. What was the original amount of the…
A: The present value of an annuity alludes to how much cash would be required today to fund a series of…
Q: If the difference between Simple Interest and Compound Interest on a certain sum of money in 2 years…
A: Using simple interest formula, interest is calculated as interest =PrtWhere P is principle amount or…
Q: Determine the nominal interest rate compounded continuously corresponding to an effective interest…
A:
Q: pounding is done on a yearly basis, the nominal rate is __________ the effective rate. a greater…
A: When compounding is done of yearly basis, the nominal rate will equal to effective rate Nominal…
Q: You borrowed money from the bank with a simple interest 8%, find the present worth of P25,000, which…
A: Given that: Future Worth (A) = 25000Interest Rate (r) = 8% or 0.08Time(t) = 10 months or (10/12)…
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: if interest is compounded at 20% per year, how long will it take for $50,000 to accumulate to…
A: * SOLUTION :-
Q: If 100,000 is deposited in the bank annually with a 12% per year interest rate. how long will the…
A: There is an annual deposit of 100,000 in a bank with a 12% interest rate per annum. Periodic…
Q: The compound interest on a certain sum of money for 2 years is $ 52.00 and the simple interest for…
A: GIVEN Simple Interest for two years is 50P×T×R / 100 = SimpleInterest P×2×R = 50
Q: What is the effective annual interest rate if the nominal interest rate is 6%, compounded monthly?
A: To calculate the effective annual interest rate if the nominal interest rate is given as 6%…
Q: A series of equal quarterly payments of $6,000 for IO years is equivalent to what present amount at…
A: A compound interest rate is the rate on a deposit or a loan amount and used to measure the…
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: If a one-time amount of $1000 is invested at an annual interest rate of 10% .(compounded annually),…
A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…
Q: Mario borrowed $2 million to sustain his educational needs. In an effort to pay off the loan…
A: Given that Mario borrowed $2 million i.e 2,000,000 To pay off the loan in 4 years, he made 4…
Q: You borrowed $100,000 at 6% per year compounded monthly for 48 months. Which is the number of first…
A: Borrowed amount = 100000 interest rate = 6 % compounded monthly time = 48 months therefore the…
Q: If you borrow money from your friend, Ned, with simple interest of 12%, find the present worth of…
A: Simple interest formula: A = P(1+rt) Where A is the final value P is the initial value (or present…
Q: If the interest rate is 6% compounded quarterly, how long (number of quarters) will it take to earn…
A: The interest income on any instruments such as bank deposits and bonds is the amount received over…
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: Find the compound amount after 9 years and 3 months on a principal P = $3000, if the rate is 6%,…
A: Given information: Principal amount (P): $3000 Interest rate (r): 6% Compunding period (m): 4 Time…
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- Is the cash flow broken into four parts? What are they?If you invest $ 500 on Lending Circle at a rate of 5% for 1.5 years, how much will you have earned?Bobby was desperate. He borrowed $600 from a pawn shop and understood he was to repay the loan starting next month with $100, increasing by $10 per month for a total of 8 months. Actually, he misunderstood. The repayments increased by 10% each month after starting next month at $100. Use a spreadsheet to calculate the monthly interest rate that he thought he was to pay, and what he actually will pay.
- A set aside $500 annually in a trust fund which allows interest at 5% effective. What amount does A have to his credit just after the 15th deposit has been made?How long in years will money double its amount if invested at 10% simple interest?If you wish to be a millionnaire at 35 years old, and 5% interest was paid annually, how much should you put into your savings account now?
- At what rate of interest will an investment double itself in 10 years?Mr. Benedito, a grocery store owner, borrows $50,000.00 from a loan shark, handing him a $77,000.00 promissory note with a maturity of 6 months. What is the annual and monthly simple interest rate charged by the loan shark?What is the compounding process?