A man buys a corporate bond from a bond brokerage house for $925. The bond has a face value of $1000 and pays 4% of its face value each year. If the bond will be paid off at the end of 10 years, what rate return will the man receive?

Q: If Charlie invests $50,000 in a cheese company today and is offered a 7% interest rate. How much…

A: The investment function shows the direct relationship between interest rate and investment. It means…

Q: Leon and Heidi decided to invest $32500 annually for only the first nine years of their marriage.…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: A man secured a 8,057 loan at 2% interest rate, Find the annual amortization to extinguish it in 1…

A: Loan amount = 8057 Interest rate = 2 % Monthly rate = 2 / 12 = 0.167% Time = 12 months  Therefore…

Q: Your visa card charges 1 % interest every month, what are the nominal and effective interest rates…

A: The nominal interest rate per year can be calculated as follows: Thus, the nominal interest rate is…

Q: a 6410

A: Answer R = 6%

Q: Simple and Compound Interest . Calculate the amount deposited 1 year ago to have SR1000 now at an…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: You have received a loan worth $ 380000.This money will be paid every two months with a nominal…

A: Since the interest rate has been given in per year terms, it will have to be converted into two…

Q: 1000 750 ÏILLE 500 1250 250

A: Each sum is communicated in the worth of the cash at that specific time, alluded to as future…

Q: A=1, F=25.84, n=15, draw a cash flow diagram and find i.

A: The cash flow diagram will be a graphic representation for the monetary value of cash flows at…

Q: If you borrow $500 at an interest rate of 4% per year for two years, how much interest will you have…

A: The concept of simple interest involves the calculation of interest on a fixed principal amount over…

Q: $9000 is deposited into a savings account at the end of each year for 20 years. If the account pays=…

A: here we calculate how much value will the account have at the end of the 20 years period by…

Q: YVETTE AND AARON DEPOSITED A JOINT ACCOUNT AN AMOUNT OF P1000 AT BPI AT 5% INTEREST COMPOUNDED…

A: given that,  Principal (P)= $1000 Annual Rate (R)= 5% Time (t in years)= 8 compounded annually

Q: David is planning to contribute $8,000 a year into a mutual fund that earns an average of 8% per…

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

Q: Demarcus is planning to purchase a piece of property that he anticipates will cost $455,000 in 6…

A: Given, Future Value= $455000            Rate of interest= 7%            Time= 6 years

Q: Lin is wants to earn an amount of $31350. She heard that ABC Bank is accepting investments to be…

A: Interest rate = 3.7% Present value of amount that Lin has = $4214 Future value = $31350

Q: The present value of $20,000 each year for 4 years at a 5% interest rate is approximately The…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: A person earning $50,000 annually wants to save money for a scholarship. He will save 15% of his…

A: Person's earning is 50000 per year and his salary increases 10% annually. And he saves 15% annually…

Q: Future Value of an Investment The newly opened Mario's Trattoria is expected to produce a continuous…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first question for you as…

Q: If you invest 600 at year zero, then that same amount more every subsequent year, letting it…

A: The future value of an annuity is a financial concept that represents the total value of a series of…

Q: Karen loaned P10,000 from a firm with a simple interest of 20%. The interest was deducted right away…

A: Karen borrowed an amount of P10,000 at simple interest rate 20% and interest was deducted before…

Q: 12% per year ( Annual Percentage Rate). It is charging the interest rate that is daily compounding.

A: The annual rate of interest= 12%=0.12 The daily rate of interest= 0.12/365=0.000328% number of…

Q: At 10.23% annual interest compounded semiannually, how long in years will it take to become a…

A: Compound interest is the interest calculated on the initial principal as well as on the accumulated…

Q: f you loan your friend $1500 today and she gives you $2000 back in four years what is your annual…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Mr Chen wants to get a lumpsum of 3.5 million pesos when he retires at the end of 20 years. How much…

A: In the question above, it is given that :  Amount = 3,500,000 Pesos Time period = 20 years Interest…

Q: Draw the cash flow diagram with your solution. A loan for P50,000 is to be paid in 3 years at the…

A: Given  Present value of money (P)=P50,000 This loan is to be paid in 3 years and the amount payable…

Q: Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation with…

A: Step 1: Step 2: Step 3: Step 4:

Q: e maintenance for a piece of equipment costs $300 at the end of year 1, and increases by 15% every…

A: Given Information A = Payment at EOY 1 = $300g = Gradient Percent = 15%n = Number of Periods = 5…

Q: A company showed equivalent annual cash flows of $400,000 for the first 7 years. If the cash flow in…

A: Equivalent annual cash flow (A) = $400,000Cash flow im year 1 (A1) =$320,000Uniform gradient (G) =…

Q: For an investment of$800 every 6 months at 6.2%/a compounded semi-annually for 20 years, what is the…

A: To calculate the value of the investment after 20 years, We can use the formula for the future…

Q: What will be the balance at the end of 5 years for $30,500 now at 10% annual interest, if compound…

A: Future value is the value of current cashflow at future date compounded at specified rate. formula:…

Q: The profit that Johnny got from selling fish have increased at a constant  rate of P1100 in each of…

A: A cash-flow diagram is a tool used in finance to show the cash flows related to security, "project,"…

Q: How much should be put in an investment with a 10% effective annual rate today to have $10000 in…

A: The effective annual rate = 10% Future value of an investment = 10000 dollars Time period = 5 years

Q: Compute the present value if future value (FV) = $6127, interest rate (r) = 8.2%, and number of…

A: Present value concept states that amount of money today i.e. at present will be higher when we…

Q: What interest rate is applied if P34000 becomes P87200 in 300 days?

A: Given, Amount + Principal = A+P= 87200 P = 34000 Interest = A-P = 53200 Time = t = 300 days or…

Q: Emily wants to save part of her salary for a new car in a savings account that earns 8% annual…

A: Formula for the future value:  F = P(1+R)^t Where; F: Future value P : Present value R : PA rate of…

Q: 8 years ago, a man borrowed P 150,000 from a bank with an interest rate of 8% compounded quarterly…

A: Given Borrowed amount = 150000 Time = 8 years Interest rate = 8 % compounded quarterly Present value…

Q: An electronic device is available that will reduce this year's labor cost by$13232.The equipment is…

A: The maximum amount we could justify spending for the device is the present value of the labor cost…

Q: Mr.Samuel wants to get $10 millions in the future by saving $4 millions from now. By data, bank with…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Kevin takes out a home loan for $150,000. Payments are made at the end of every month for 30 years.…

A: According to the question, Loan Amount = $150,000 Time period = 30 years Rate of Interest = 9% =…

Q: A company that manufactures air-operated drain valve assemblies currently has $85,000 available to…

A: Present value =$85000Number of periods =5Expenditure on the first year is $42000Let the company…

Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…

A: Future value of the investment can be defined as the accumulation of invested money at the given…

Q: If you had $1,000 now and invested it at 6%, how much would it be worth 12 years from now?

A: The following are the given data in the question: The current value of invested money = $1000…

Q: Rich wants to have $25 000 in 5 years for a down payment on a house. How much should he invest today…

A: Given:Face value (FV)=$25,000Interest Rate (i)=6.25%Number of Years (n)= 5yearsCompounded Quarterly…

Q: An electronic device is available that will reduce this year's labor cost by $13232.The equipment is…

A: Net present value (NPV) will be computed as a difference among present value of cash inflows and the…

Q: A loan for P 60,000.00 is to be paid in 4 years at the amount of P 75,000.00 . What is the effective…

A: Given: The present value of loan is = P 60,000 Number of years = 4 The future value of the loan…