1. With an annual interest rate of 6%, an account earned $180 of simple interest in one year. How much money was originally deposited in the account.    2. If an investment of $2,000 accumulate $360 of interest in the account after 4 years, what was the annual simple interest rate on the savings account.    3. If a saving account of $7,000 accumulates $910 of interest in the account after 2 years, what was the annual simple interest rate on the savings account

Q: 7. You are hoping to put down $3000 on a car in 2 years. If the bank pays 4% interest, compounded…

A: FV = 3000 Interest rate = 4% compounded monthly time = 2 Years

Q: a. The present value of $25,000 each year for 4 years at a / percent interest rate b. The present…

A: The formula for calculating the Future Value is: FV= PV(1+r)nwhere,FV= Future ValuePV= Present…

Q: 2.b Determine the principal that would have to be invested to provide $200 of simple interest income…

A: 2.b Determine the principal that would have to be invested to provide $200 of simple interest income…

Q: 9. In how many years will $1,500 yield an interest of 5200 at 2% simple interest?

A: The simple interest does not include the compounding factor. Formula for simple interest: FV = P…

Q: On his sixth birthday, the boy was left with inheritance. The inheritance will be paid in a lump sum…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: 6.Compute the nominal interest rate of a continuously compounded loan if the effective interest rate…

A: In case of continuous compounding, effective interest rate is given by - r = ei - 1 where r =…

Q: H6. a. what is the present value of a two year income stream $10,000 in year 1 and $10,000 in year 2…

A: Present Value refers to the value of a series of income streams or series of cash payments…

Q: A man borrowed an amount of S10,000 to a bank. The bank agreed considering that the interest rate is…

A: Information provided is:- Amount borrowed = $10,000 Interest rate = 5% Time period will be 11 months…

Q: Compound interest means: Select one: a. That the interest is fixed regardless of unrecovered balance…

A: Compound Interest Rate refers to the interest which is charged on the loan or deposit for a specific…

Q: Find the Present Value (today) of $144 to be received in two years at the interest rate of 15%.

A: Given information,  Future value (FV): $144 Interest rate (r): 15% Time period (n): 2 years To…

Q: 2. Pretend that today is your birthday and you decide to start saving for your retirement. You will…

A: Require = $4000 per month time = 20 years Increasing $100 per month 7% interest compounded daily…

Q: What is the annual rate of interest if P300 is earned in four months in an investment of P15350?

A: Given information: Interest amount: P300 Time period: 0.33 years (4 months) Principal amount:…

Q: Suppose you take out a $20,000 fixed payment loan to purchase a car. The loan is to be repaid in…

A: The installment payments can be considered as annuities. Annuities are payments made at equal…

Q: Example 1: EOY NCF ($) 1 100 2 150 3 200 4 250 Calculate the present worth when interest rate is…

A: Following are the given information: Value of G = $50 Annuity, A= 100 Interest rate = 8%

Q: 5-02 Compute the value of the amount c in Fig.5-04 P150 P100 P50 1 10% 3.

A: Given: Interest rate-10% To find: Value of C

Q: Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual…

A: To calculate the compund interest firstly we have to calculate the future value of the investment…

Q: 2. A bond pays 4% interest for four years; has a future value of $1000. Calculate the present value…

A: Present value conveys the current worth of a future series of cash flows based on the specified rate…

Q: Chantelle is forecasting the amount of plane tickets. Based on her study, it is likely that airplane…

A: Given; Cost of plane ticket in first year= P2557 Increase in cost of ticket= 8% Annual interest on…

Q: What is the definition of Annual Percentage Rate (‘APR’) for a loan? Why is it typicallydifferent…

A: There are various methods to calculate interest rates and the amount of interest varies according to…

Q: 17. What is the effective annual interest rate if the nominal interest rate is 6%, compounded…

A: Formula used - Effective annual interest rate = (1 + (nominal rate / number of compounding periods))…

Q: 1. Consider a coupon bond that has a $1,000 par value and a coupon rate of 9%. The bond is currently…

A:

Q: . What is the value of the bank account at the end of 25 years if the initial deposit is $25,000 at…

A:

Q: In 54 months time you expect a cash flow of $3 million. Calculate it’s present value (PV) given the…

A: Present value is the amount of a normal revenue source or income limited at the current pace of…

Q: 1. Mary buys a 20 year annuity immediate for $100,000 subject to 6% effective annual interest rate.…

A:

Q: 4. A person want to have 500,000 dollars at the end of 12 years. To obtain that aim, this person…

A:

Q: savings in an account that pays an annual interest rate of 2%, a fraction 5/22 in an account that…

A: Answer in step 2.

Q: Four years ago, you opened a mutual fund account and made three deposits ($100 four years ago, $X…

A: Amount invested for four year = $100 Amount invested for three years  = X Amount invesed for 1 year…

Q: 3. If the net present value for each of the cash flows were calculated at a 10% interest rate, the…

A: The present value of a sum of money, as opposed to the future worth it will have when compound…

Q: 3. You just inherited P1,000,000. While you plan to squander some of it away, how much should you…

A:

Q: A loan of $20,000 is to be repaid in uniform monthly payments over 3 years. If the interest in 9%…

A: Principal value of loan = $2000 interest rate =9% compounded monthly  maturity time =3 years Payment…

Q: g will it take a sum of money to double at 11% annual percentage rate?

A: Given interest rate = 11 %  Rule of 72 Rule of 72  - It is the method which is used to estimate the…

Q: If the interest rate is 10% and cash flows are $1000 at the end of year one and $2000 at the end of…

A: Given,  Interest rate - 10%  Cash flow at the end of one year is $1000 Cash flow at the end of two…

Q: Find the amount needs to be invested if the investors want to receive an annual net income worth…

A:

Q: Compute the future value of $200 in the next five years, with the annual interest rate 8%

A: The formula is: FV=(1+r)n*PV Where,PV = Present valueFV = Future Valuen = Number of Yearsr = Rate of…

Q: Suppose that you put $4,500 in a savings account at the beginning of the year and that you are…

A:

Q: 1. What is the present value of $500.00 to be paid in two years if the annual interest rate is 5%?…

A: Since you have asked multiple question, we will solve the first question for you. If youwant any…

Q: In most financial and economic analyses, we use: Select one: O a. Compound interest rate…

A: Compound Interest Rate takes into account the time value of money. Compound Interest refers to when…

Q: y due an

A: An annuity is a contract entered between a person and an insurance company in which either series of…

Q: Draw cashflow diagram and use interest

A:

Q: The stated annual rate of interest is referred as __________. a. Classified rate b. Marginal rate c.

A: Question, The stated annual rate of interest is referred as __________. a. Classified rate b.…

Q: Define interest rate.

A: The price paid by the lender for the use of assets expressed as a percentage of the principal is…

Q: How much is the exact simple interest of P 6000 from February 28, 2000 to December 31, 2001 with an…

A: a. Here, given information is: Present value (P)= P6000 Time period (t)= 22 months (672 in days)…

Q: How long does it takes a principal of P25,000 at a simple interest rate of 5% per year to become…

A: Answer in step 2

Q: At your first job you take advantage of an employer match program in which your employer will match…

A: Present value means the current value of the assets or the future sum of money.

Q: per month payable in 24 equal end-of-the month payments. How much money of the loan remains unpaid…

A: *Answer:

Q: 5. A loan of P 25,000 is made for a period of 18 months, at a simple interest rate of 16% what…

A: The formula for the simple interest that is payable after the loan period is I = (P×R×T)100 ×12 as T…