2. A savings bank offered you 6% nominal interest compounded every 2 months You deposited $4,000. a) How much money will you get back after 5 years? b) What is the effective interest rate?

Q: Use the amortization table below to find the monthly mortgage payment for a $196,000 loan at 6.25%…

A: Mortgage installments includes the principal and interest payment. It is usually a a fixed payment…

Q: a. If an investor invests a sum of Rs. 6000 at an interest rate of 10% compounded quarterly. After 3…

A: a. Given An investor invests a sum of Rs. 6000 at an interest rate of 10% compounded quarterly.…

Q: You want to buy a $50,000 car.  You can finance the car for 0.9% interest for 5 years.  You decide…

A: Solved using Financial Calculator  Assuming Interest rate is 0.9% per annum compounded monthly

Q: 1, $5,200 is invested each year at 4% compounded annually for 10 years. At the end of this time,…

A: Future value is a value of an investment or asset on a specific date in the future. To put it…

Q: 1 You deposit $17,000 in a retirement account on your 25th birthday, and you plan to retire on your…

A: Here we calculate the following by using the given information , and conclude the answer so the…

Q: Annabelle loaned a certain amount from ABC bank. She agrees to pay P5000 at the beginning of each…

A: Pay = 5000 time Period = 6 years. interest rate = 10% compounding quater

Q: You deposit $10,000 in a fund that pays compound annual interest equal to 3%. One year later the…

A: The nominal rate of interest which depicts the time value of money can be any declared interest…

Q: Lany borrows money from a bank and promised to pay P5000.00 after 12 months. How much money did he…

A: Part-1) Given that: Future value (FV) = P5000 Time (n) = 1 year (or 12 months) Interest rate (i) =…

Q: On March 25, you borrow some money for 120 days.  What is the maturity date?

A: Remaining Number of Days in March - (31-25) = 6  Number of Days in April - 30 Number of Days in May…

Q: Suppose a certain manufacturer deposits $3, 000 at the beginning of each 3 month period for 8 years…

A: Given:Deposit at the beginning of each 3 months: $3,000Interest rate: 8% compounded…

Q: You purchase a car today using a loan of $19000o APR 6%. plan is to pay during 5 years with equal…

A:

Q: Each worker gets equal pay. Fill in Average Product and Marginal Product.  At what input level will…

A: Average product is the output produced by each unit of worker and marginal product is the additional…

Q: Determine the effective rates of interest for the following nominal rates of interest: a.) 9%…

A: The formula for calculating effective rate of interest is r = (1 + i/n)n - 1 where, r is effective…

Q: Determine the present worth of annuity consisting of 6 payments of 120,000 each payment are made at…

A: Annuity: An annuity could be a series of payments, or cash flows, paid at regular intervals (e.g.,…

Q: None

A: Step 1:a.We have i = 12%, n = 12$600 (P/A, 12%,12) = 600 * 6.1944 PV = $3,716.62  Step 2:b.here we…

Q: t refers to the length of time over which interest is charged or earned.   a    Compounding Period…

A: Any amount which is deposited today referred as principal and there is some interest that is earned…

Q: Find the future value and total interest of the annuity. ​(Round to the nearest cent as​ needed.)…

A: The measure that determines the value of the asset currently at a date in the future based on its…

Q: A deposit of $20,000 is made in a savings account that pays a nominal interest of 3.5% compounded…

A: The future value of cash flow refers to the value of a sum of money or a series of cash flows at a…

Q: 1.Compute for the effective interest rate. Payment period = semi-annually Interest period = 12.76%…

A: Given  Nominal interest rate =12.76% compounded monthly. We have to find the effective rate of…

Q: nterest rate... How much do you need to deposit in an account today in order to have $11,000 in…

A: Every commercial bank decides its Annual Percentage Rate (APR) range based on the interest rate set…

Q: 18.b

A:

Q: Compute for the effective interest rate per monthl Nominal rate= 2.35% compounded yearly

A: The effective annual interest rate refers to the return on an investment or the rate owed in…

Q: 1) You have a goal of saving $1500 over 6 years. Assuming bank interest rates are 5%, What annual…

A: Here we calculate the annual deposit amount by the following method as follow;

Q: automobile loan of $12,000 at a nominal rate of 12% compounded monthly for 48 months requires equal…

A: Amortization is a method for spreading out the costs for the utulize of a long-term asset over the…

Q: How much must be invested now at 6% simple interest to accumulate $1,000 at the end of 5 years?…

A: Information extracted in the question: Simple interest = 6% Future value = $1000 Time = 5 years

Q: after 5 years if the account earns 8.0% interest compounded annually? Be sure to include a cash flow…

A: Cash Flow (CF) is the increase or decrease in the amount of money a business, institution, or…

Q: Solve the problem. The average cost of a 4-year college education is projected to be $120,000 in 17…

A: Future Value (FV) = $120,000Annual Interest Rate (r) = 9% or 0.09Compounding Frequency (n) = 4 times…

Q: A department store has offered you a credit card that charges interest at 1.53% per month,…

A: Nominal interest rate and the effective annual rate are calculated as follows:-

Q: (i)  If $10,000 is needed in 12 years, how much should be deposited at the end of each year into an…

A: Given future value = 10000 $ Time = 12 years Interest rate = 5 % compounded annually

Q: 4. Sue opens a charge card account with a department store. In the charge account agreement, the…

A: The real yearly cost of borrowing is calculated using the effective interest rate (EIR), commonly…

Q: How much do you need to deposit in an account today in order to have $11,000 in the account in 6…

A: Every commercial bank decides its Annual Percentage Rate (APR) range based on the interest rate set…

Q: How many years will it take an investment to double if the interest rate is 8.4% compounded at the…

A: The formula for effective interest rate per year is i=1+rmm-1 where m is the reciprocal of the…

Q: ill deposited 100,000 pesos in bank account earning interest at the rate of 10% compounded…

A: Amount deposit = 100,000 r = 10% n = 10

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: CALCULATOR) Marianne wants to accumulate $140 000.00 in an RRSP by making annual contributions of…

A: Time required to pay back a borrowing is obtained using the formula: Future worth=P[(1+r)n-1](1+r)r,…

Q: You bought an antique car three years ago for $500 000. Today it is worth $650 000.(a) What annual…

A: Time (t =) 3 years;    Principle (P) = $500,000   Worth after 3 youlf x= $ 150,000

Q: You want to borrow $41,611. You must repay the loan in 13 years in equal monthly payments and a…

A: Loan amount (PV) = $41,611 Term of loan = 13 years Interest rate = 15% nominal per year

Q: 4) You collect rent from your tenant at the beginning of each month. Rent is $1250 in the first…

A: Here initial rent received per month = $1250 So, rent per year = $1250*12 = $15,000 every year rent…

Q: Given the cash flow below: Revenue,S 2,500 2,500 2,500 2,500 year 1 3 4 Calculate the present value…

A: Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and…