5.000 TL invested for 6 years with compounded interest brings 3100 TL more than investing with simple interest. Find the interest rate. (Explain how to solve it)
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- If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A = $19,000, r = 11.5%, t = 4 years The present value that must be invested to get $19,000 after 4 years at an interest rate of 11.5% is $. (Round up to the nearest cent.)2. Find the future value of OMR10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the future value if the interest rate is a simple interest rate? b. What would be the future value if the interest rate is a compound interest rate?
- You have RM 5,000.00 you want to invest for the next 45 years until retirement. You are offered an investment plan that will pay you 6 percent per year for the next 15 years and 10 percent per year for the last 30 years.a) Explain the time value of money principleb) Identify the underlying assumption of the time value of money principlec) Draw a graph that illustrates the relationship between interest rates and the present value of RM 1,000.00 to be received in one year.d) Suggest how you can minimize the amount of cash you must invest in order to reach your retirement goal.e) Compute the amount you will have at the end of the 45 years.f) Calculate the amount you would have if the investment plan pays 10 percent for the first 15 years and 6 percent per year for the next 30 years.Suppose you are offered an investment that will allow you to double your money in 9years. You have R20 000 to invest. What is the implied rate of interest?which of the following investments that pay will $5000 in 12 years have a higher price today? A. The security that earns an interest rate it 8.25% B. The security that earns an interest rate of 5.50%?
- Q3. You borrow $5000 today. The loan is due in 5 years, with interest at ji = 7%. It is agreed that you can instead pay $1000 one year from now, $X two years from now and $2000 three years from now. If money is worth j4= 8%, what is the value of X?1. Ati= 10% per year and a loan amount of $10,000. If N = 20, what are the payments and future value? Solve this problem using %3! a. Excel b. FormulaAn investment pays $16651.42 today, $20147.83 in 200 days and pays $23051.92 in 300 days at a rate of simple interest is 4.05%. What is the value 160 days from today of the investment?
- Q7: You have just received OMR200M from a bank by requesting a loan. Without any deduction you have intended to invest the amount in a project. At the end of investment period the project will provide you 250M with the interest rate of 10%. a) Find out the number of years for this investment. b) What will be future value from the founded number of years in part (a) if the interest rate changes from 10% to 8%. c) What will be present value if the interest rate is 12%? d) What will be the future value if the number of year is 8 and interest rate is 9%? e) What will be present value if the interest rate is 5% and number of period is 8 compounded Semi-annually?Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A = $14,000, r = 7.5%, t = 8 yearsAnswer the following Compound Interest problem using the provided formula ONLY. Show your complete solution. 10. Compound Interest An investment of P3M earns interest of 9% compounded continuously. What is the effective rate of interest?