You borrow £300,000 over 30 years to be repaid by level annual repayments. The rate of interest will be 5% per annum effective for the first 15 years and 6% per annum effective thereafter. Find the repayment amount. i) ii) iii) iv) What's the capital outstanding immediately after the 10th repayment is made? What is the interest content of the 10th repayment? What is the capital content of the 10th repayment?
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- 1. Which method of interest compounding will result in the highest value of theinvestment over a specified period of time?2. What is the future value of £500 invested at 4% per annum for 12 years?What rate of interest, compounded annually, will result in the receipt of P15 938.48 if P10 000 is invested for 8 years?Assume that time is measured in years. Calculate the total present value at time 0 of a payment of £257 paid at time 4 and a payment of £67 paid at time 12, using an interest rate of 5% per annum effective.
- Q.1: Using amortization payments and suppose borrow $20000 at 8% compound annual interest to be repaid over 5 years and answer the following:ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? 4 5 6 27 28 29 C. Suppose you invest St $ 570 monthly. What is the future value of the investment in 29 years, if interest at 5% is compounded monthly? Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A W +Consider a $5,000 deposit earning 10 percent interest per year for 10 years. What is the future value, how much total interest is earned on the original deposit, and how much is interest earned on interest?
- Consider a $5,000 deposit earning 10 percent interest per year for ten years. What is the future value? how much total interest is earned on the original deposit? and how much is interest earned on interest?What is the future value (at the end of 10 years) of an annuity that pays $700 a quarter over 10 years with the payments invested at 6.6% per annum (assume compounding matches payment periods, common assumption for such problems)? (enter your answer in the following format 123456.78) Answer:Suppose you have a loan of amount P, and you plan to pay off the debt in10 equal annual installments. Suppose the annual compounding rate is r. What is thepresent (t = 0) value of the 7th installment? (Express your answer in terms of thevariables in the problem P and r and simplify your answer.)
- What annuity over a 10 year period at 8% interest is equivalent to a present worth of P100,000?An investment becomes P 4,500,000 four years from now and becomes P 5,250,000 thirteen years from now. a. Assuming rate of compounded interest remains constant through time, what was the investment's value on the present time? b. What rate of interest compounded quarterly is equivalent to the interest rate of the given investment? c. What rate of interest compounded monthly is equivalent to the interest rate of the given investment?What is the present value of £100 to be received 4 years from now if the interest rate is 4%? a) £95.1 b) £74.9 c) £85 d) £115.8