A debt of $3000 is to be paid off in 6 years from now, but instead, it will be settled through three payments: Year 0 3 5 Payment 500 1500 X What will this final payment (X) be if we assume a 6% interest compounded annually?
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- Q1: Calculate (PW) for annual payments (900$/year) if the first payment will deposit at the present time, and the last one will deposit at begin of the ninth year? If you know that it's on deposit at the fifth year, and the interest rate is (15%)!2. It is desired to have P200,000 two years from now by depositing an initial amount P, plus P50,00 on the 6th month and another P50,000 after 1 year. What would that initial amount be if interest rate is 12% pa compounded monthly? O P57,060.33 O P 69,277.10 O P 66,038.51 O P61,990.42YouplantoborrowR389000nowandrepayitin25equalannualinstalments (payments will be made at the end of each year). If the annual interest rate is 14%, how much will your annual payments be?
- X-person has committed to a payment that needs to pay BD 80,000 every year at the end of each next eleven years. What will be the future amount of Ahmed if it were to instead settle the claim immediately with a single payment, with an interest rate of 6%?solve the problem showing cash flow, and final answer using a suitable formula.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:WHAT WILL BE THE FUTURE WORTH OF MONEY AFTER 6 MONTHS, IF THE SUM OF P100,000 IS INVESTED TODAY AT SIMPLE INTEREST RATE OF 5% PER YEAR? O a. P102,050.00 O b. P120,500.00 O c. P102,510.00 O d. P102,500.00
- In order to fund your retirement, deposit of RM X can be made into an account today. This retirement plan wishes to pay RM100, in real terms, for 15 years, with first payment occurring 6 years from now. The inflation rate would be 0.0% for the next 5 years and 1.5% per annum thereafter. The annual effective rate of return is 6.8%. Calculate X. Please explain in details and state what formula did use on how to solve the problem2 (a)Suppose you expect to receive GH¢ 2,000 per year for the next 22 years except that you will not receive any payment in year 4, 6, 11 and 18. What is the present value of this amount if the interest rate is 24% per year compounded yearly.What is the present worth of annually payments ( 2000 $ ) if the first payment will deposit after five from now , and the last one will deposit at begin of the fifteenth year ? Assume interest rate ( 7 % ) ?
- What is the future value (at the end of 8 years) of an annuity that pays $700 a quarter over 8 years with the payments invested at 9.3% per annum (assume compounding matches payment periods, common assumption for such problems)? (enter your answer in the following format 123456.78) Answer: CheckAssume that you can invest to earn a stated annual rate of return of 12%, but where interest is compounded semiannually. If you make consecutive semi-annual deposits of P500 each, with the first deposit being made today, what will your balance be at the end of Year 5? * P881.17 P6,590.40 P440.59 P1,762.34What's the future value of P1,200 after 5 years if the appropriate interest rate is 6%, compounded monthly? * 1,537.69 1,618.62 1,699.55 O 1,784.53 O 1,873.76