An advertisement of an investment firm states that if you invest P500 in their firm today you will get P1,000 at the end of 4,5 years. What nominal rate is implied if interest is compounded quarterly? Determine also the effective rate of interest.

Q: If you have $5500 to invest now, and will need a total of $25,000 -- 10 years from now, determine…

A: Present Value  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Your business requests a 3-month loan for $500,000. What will be the interest paid at the end of the…

A: The annual percentage rate refers to the yearly rate of interest paid for a loan or received from an…

Q: You are considering taking out a loan of $6,000.00 that will be paid back over 11 years with…

A: Loan amount (L) = $6000 Quarterly payment (Q) = $185.41 r = 5.8% per annum = 1.45% per quarter

Q: An investor deposits a sum of Rs 100,000 in an investment company with a promise of a rate of return…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: money is worth 7.3%, compounded quarterly?

A: Present Value of future cash flow means the cash flows discounted at a given rate of return. FV*…

Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…

A: To calculate the present value we will use the below formula   Present value = FV/[1+(r/m)]n*m Where…

Q: A firm is scheduled to receive payment of $68,000 in 2 years.  What is the present value of this…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Nominal annual interest rates are 7.3%. If a businessperson has an opportunity to invest $40,000…

A: Option 1: If 40,000 invested at 7.3% for 5 years: Future Value = Present Value * ( 1 + Interest…

Q: If you have $4500 to invest now, and will need a total of $25,000 -- 10 years from now, determine…

A: Amount available now (PV) = $4500 Period = 10 Years Monthly period (n) = 10*12 = 120 Interest rate =…

Q: Suppose that you deposit $200 at the end of each month into an account paying an expected annual…

A: given, monthly compounding N    =10 x 12 = 120I    =3%12PV   =0PMT =200   FV    = need to find

Q: If the current rate of interest is 6% APR, what is the future value of an investment that pays…

A: Interest rate = 6% Payment every two years = AED 15,000 Future value period = 20 Years

Q: d it will become $ 6,000 at the end of 4 years, determine the nominal rate of interest and the…

A: The given problem can be solved using using RATE and EFFECT function in excel. RATE function…

Q: Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is…

A: The Future Value of annuity is the total value of all the payments which occurred regularly at a…

Q: How long would it take you to double your money in an investment if it earns 5.75% compounded…

A:

Q: Your business requests a 3-month loan for $450,000. What will be the interest paid at the end of the…

A: A loan is a type of debt that a person or another entity assumes. The lender, which is often a…

Q: How much would an investor be willing to pay for an investment that guaranteed payments of $4,000 at…

A: Using excel PV function Where  PMT is a periodic payment NPER is no. of periods RATE is rate per…

Q: Give your answer to this question correct to the nearest rand. Phindile invests R12 795,00 now and…

A: Under stock market, investor is figuring out the best investment in order to gain maximum returns.…

Q: Your business requests a 3-month loan for $550,000. What will be the interest paid at the end of the…

A: LIBOR rate is taken into consideration for calculating interest as it covers all risks associated…

Q: A company wants to deposit $500,000 per year in an investment which earns interest of10 percent per…

A: The value at the end of the 10 deposit is the future value of the first 10 deposits.

Q: A firm is scheduled to receive payment of $32,000 in 2 years.  What is the present value of this…

A: Present value of future cash flow can be calculated as follows: = Future Value/ (1 + rate)^number of…

Q: You are considering taking out a loan of $14,000.00 that will be paid back over 8 years with monthly…

A: Equity in a home refers to how much of that home's value a person has already invested in it.

Q: a. What is the effective annual interest rate based on a 6 percent nominal annual rate and monthly…

A: Effective Annual Rate: It is the annual rate of the investment considering the effects of…

Q: If you borrowed P10,000 from a bank with 18% interest per annum, what is the total amount to be paid…

A: A bank is a financial institution that provides loans and borrowings to the borrowers or the…

Q: If a firm borrowed $500,000 at a rate of 10% simple interest withmonthly interest payments and a…

A: Given data; Principal amount = $500,000 interest rate = 10%   First we will calculate interest…

Q: An investor deposits a sum of Rs 100,000 in an investment company with a promise of a rate of return…

A: Investment = 100,000 Return = 18% Time Period = 5 years

Q: If the current rate of interest is 6% APR, what is the future value of an investment that pays AED…

A: Because of time value, the true worth of funds keeps on changing because  of interest rate,…

Q: Assume a firm makes a $2,500 deposir into its money market account. If this account is currently…

A: Future value Function in excel

Q: what would be the required interest payment for a 30-day mont

A: Hi student ! Requirement is assumed.

Q: How much should an investor be willing to pay for an investment product that offers to pay 25,000…

A: Annuity refers to the equal amount of payments/deposits at equal intervals for a definite period at…

Q: What is the value of today of an investment that will pay $100 per year for 5 years. Assume first…

A: Present value of annuity is the present value of recurring cash flows with regular intervals at a…

Q: If $0,000 per quarter is invested in an account that eams a nominal annual interest rate of 9%…

A: The amount in the account at the end of the 6 years is the future value. The nominal annual rate…

Q: Star. An advertisement of an investment firm states that if you invest P500 in their firm today you…

A: Investment (PV) = P500 Future value (FV) = P2000 Period = 10 Years Quarterly period (n) = 10*4 = 40…

Q: How many years will it take $145,000 to grow to $645,000 if it is invested in an account with a…

A: We use NPER function in excel to calculate time taken

Q: If you make quarterly deposits for 3 years into an account that compounds interest at 1% per…

A: The formula of future value of an annuity:  FV =A × (1+r)n-1r  where  A = Annuity amount  FV =…

Q: Suppose we invest £100,000 at a semi-annually compounded interest rate of 6% for 1 year. What are…

A: Net ROI (return on investment) is calculated by subtracting the initial amount of investment from…

Q: Suppose that you have opened a saving account with an initial deposit of $10,000. The account offers…

A: Initial deposit (P) = $10000 Final amount needed (F) = $15000 n = 10 years Let the annual interest =…

Q: What is the future value of an investment that pays P2,500 at the beginning of each period with an…

A: In this we have to find out the future values of payments.

Q: You just signed a business consulting contract with one of your clients. The client will pay you…

A: Inflation free interest rate is that rate which has been adjusted for inflation. It is calculated…

Q: You make an investment into a money market account at time T=0. In year T=5, the value of the money…

A: Given: Time period: 5 years Future value: $5000 Rate of interest: 5% compounded quarterly To…

Q: You just signed a business consulting contract with one of your clients. 1l1e client will pay you…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: How much would a company have to invest now in order to sufficiently provide for annual payments of…

A: Solution:- Calculation of the How much would a company have to invest as follows under:-

Q: Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is…

A: We need to use future value of annuity formula to calculate annuity amount after 5 years. Future…

Q: You have just received a windfall from an investment you made in a friend's business. He will be…

A:

Q: An investor deposits a sum of Rs 100,000 in an investment company with a promise of a rate of return…

A: The effective annual rate is the rate of interest an investment generates after taking all the…

Q: at is the present worth and future of P6000 deposited at the end of every month for 4 years if the…

A: The more is compounding more is future value and less is the present value of money due to the fact…

Q: An investment promises to pay into an account that pays you 6%  annually, $150 per month for the…

A: In this question, first, we will calculate the future value of annuity after 22 years and then the…

Q: A company estimates that it must make annual investments of $ 53828 over a 23-year period after 4…

A: Step 1 The worth of a series of periodic payments at a future date, assuming a specific rate of…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.