Question attached QUESTION 8Orange Ltd opened a bank account 10 years ago with a principal amount of R2 000. The bank pays annual compound interest on the account. Today, the account has abalance of R3 500.If the same interest rate is offered on an account paying simple interest, the interest rate isThe value of the simple interest earned is 2The value of the compound interest earned is 15The additional interest earned over the same time period due to the bank paying compound interest rather than simple interestNote: Round off to the nearest whole number and do not include symbols in your answer i.e input 9 and not 9,13 or 9%

We can rearrange the compound interest formula and determine the annual interest rate. This is 6%…

Answered: Orange Ltd opened a bank account 10…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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QUESTION 8 A bank charges an interest rate of interest is 6% compounded annually. A customer takes a loan of $159,348.29, which is to be paid back by annual payments of S18,000 at the end of each year for 13 years. What is the outstanding balance of the loan after the 2nd year? O a. $141,963.74 Ob. $20,224.80 OC S37,080.00 d. $123,348 29 3.833,001.07
If the interest that 6000 TL will bring in 3 months over 21% interest rate is brought by the same amount of money deposited in another bank for 7 months, what is the interest rate applied by the second bank?A) 5B) 8C) 10D) 3E) 9
A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest to the EAR charged by the bank? A. 8.16% Your answer is correct. B. 9.79% C. 6.53% D. 16.32%
A man deposited P2,000 in a bank at a rate of 10% per annum for 10months and 25days. Find the ordinary simple interest. P180.56 P190.56 P170.56 P160.56
PROBLEM 6 P2,500.00 wAS DEPOSITED IN A BANK ACCOUNT, 10 YEARS AGO. TODAY IT IS WORTH P5,000.00. INTEREST IS PAID SEMI-ANNUALLY. DETERMINE THE INTEREST RATE PAID ON THIS ACCOUNT?
8. An amount of P 5000 is deposited in a bank paying an annual interest rate of 3.1% compounded cantinuously. Find the balance after 3 yeats AP8754.31 B. P 4857.31 C.P 7584 31
QUESTION 3 You just deposited $3,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now? a. $19,222.23 Ob. $13,386.91 c. $18,535.72 d. $14,245,04 Oe. $17,162.70
A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest to the EAR charged by the bank? A. 8.16% B. 9.79% C. 6.53% D. 16.32%
QUESTION 1 A bank makes a 5-year $75,000 loan with no principal payments in years 1-2 and principal payments of $25,000 in Years 3, 4 and 5. The interest rate is 8% and will be paid every year. What interest and principal is paid in year 4 $6,000 + $25,000 $6,000+$50,000 $4,000+$25,000 $4,000+$50,000
Problem #7: You deposit P dollars into an account that earns a nominal rate of i compounded semiannually. At the same time, you deposit 2.2P dollars into an account that earns simple interest at an annual rate of i. If both deposits earn the same amount of interest in the last 6 months of year 8, what is a Problem #7: Answer as a percentage, correct to 2 decimals.
TEST I. PROMLEM SOLVING: A bank offers 0.25% annual simple interest rate for a particular deposit. How much interest will be earned if 1 million pesos is deposited in this savings account for 1 year? 1. Sunnose vour father denosited in vour bank account P10.000 at an annual interest rate of 0.5%
Question Help A bank lends some money to a business. The business will pay the bank a single payment of $183,000 in ten years time. How much greater is the present value (PV) of this payment if the interest rate is 6% rather than 5%?

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