- Tim has borrowed money from Lisa and proposed to pay back the money in two payments. Tim suggested two options. Option A is to pay Lisa $500 in one month and $2500 in 8 months. Option B is to pay $1000 in 3 months and $2000 in 7 months. Which option has the higher economic value today if money can earn 7% simple interest?
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- QUESTION 1 Muhammad takes out a loan of $ 2,130, at 8% simple interest, for 8 years. How much will he pay back at the end of year 8? QUESTION 2 Calculate the amount of interest on an investment of AED 103,971 at 8% simple interest for 5 years. QUESTION 3 If you deposit today $7,335 in an account for 6 years and at the end accumulate $10,885, how much compound interest rate (rate of return) you earned on this investment ? QUESTION 4 You will deposit 12,025 at 10% simple interest rate for 9 years, and then move the amount you would receive to an investment account at 12 % compound rate for another 3 years. How much money would you have at the end of the entire period ?June has a small house, on a small street, in a small town. If she sells the house now, she will likely get $110, 000 for it. If she waits one year, she will probably receive more- say, $120,000. If she sells the house now, she can invest the money in a 1-year guaranteed growth bond that pays 8% annual interest, compounded monthly. What are the 2 options worth, and which should she choose?14. When you complete your MBA, you will treat yourself to a new car. The car you want to buy costs $25,000 and you have enough to put 20% down in cash. You can take out a loan for the rest of the cost of the car. Calculate your monthly car payments assuming the auto finance department states that the annual interest rate on the car loan is 8% and you pay the loan over a 3-year period.
- 1. How much is the total value of all these presents worth today?2. How much is the future value of all these presents at the end of 12 years?3. If Tita Rhea agrees to give her these amounts annually forever, how much is its total value worth today?4. If the presents are each made continuously throughout the year at a rate of P, multiply the present value in #7 by a suitable adjustment factor (d/δ) to determine its total present value. Type the resulting amount below.1. You borrow $20,000 from a family member and agree to pay it back in 6 months. Because you are part of the family, you are only being charged simple interest at the rate of 0.5% per month. How much will you owe after 6 months? How much is the interest?URGENT! PLEASE WRITE LEGIBLE. Question Suppose we deposit $1500 into an account that pays a simple interest rate of0.5% each month. Find the amount of interest earned at the end of 3 years?
- 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) $21,350Fact 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/mathuestion 3 If you want to minimize interest payments on a loan, you'll need one that has a simple interest rate so that yo John opened an account, and knew exactly how much it would be worth at the end of the year, because it used year. What is simple interest? Oa. Interest only on original amount saved or borrowed Ob. interest on original amount saved, borrowed and other interest earned Oc. a fee paid for the use of someone else's money Od. taxes on the original amount saved or borrowed L A Moving to another question will save this response. →
- Mia is 27 years old and he saw a bank offering a time deposit plan with 6% interest. Shee does not know how often the bank calculates interest but he is interested. If she plans to take the offer and wants a sum of $ 20,000 in 10 years, how much should she start his deposit? a. $11,000 b. $10,000 c. $12,000What is cash equivalents?. Define it with the context of economics.Inez wants to have $13,500 in 5 years. Use the present value formula to calculate how much Inez should invest now at 4% interest, compounded quarterly in order to reach her goal. a. $10,800.00 b. $11,056.54 c. $11,063.85 d. $11,096.02
