Q: A deposit of $495 earns 3% p.a. interest compounded monthly, how much money will be in the bank…
A: Given information, Principal amount (P): $495 Interest rate (r)= 3% Compounding period (m): 12…
Q: QUESTION 2 a) Assume that you borrow $30,000 to purchase a new automobile and…
A: Given; Amount borrowed= $30000 Interest rate; r= 4% Time period; n= 4 years
Q: An 8-year annuity due has a future value of $1,000. If the interest rate is 5%, what is the amount…
A: An annuity is a contract between you and an insurance company in which you make a lump-sum payment…
Q: 22. You deposited $15,000 in a savings account five years ago. The account has earned 5.25% interest…
A: here we calculate the money is in the account today by using the formula which are as follow-
Q: 5. Lerios has a loan business that charges 15% simple interest. Joey borrowed P4000 from Tony; how…
A: Given information, Principal amount (P): P4000 Time period (t): 60 days Interest rate (r): 15% To…
Q: Would you rather have $1,000 today or $1,250 in 3 years at a 8% annual interest rate compounded…
A: Future value can be calculated by using the following formula.
Q: Today you deposited $10,000 in a savings account paying 7% annual interest. How much should you have…
A: Simple interest rate = (P*R*T)/ 100 where, P= principal amount R= interest rate T= time Here, P=…
Q: College Financial Sources, which makes small loans to college students, offers to lend $500. The…
A: Given: P=500 A=40 n=16 i=?
Q: Interest can be computed more frequently than one time a year Select one: O True O False
A: Interest is the price of money that is borrowed.
Q: 5. Find the present worth of a future payment of 100,000 to be made in 10 years with an interest of…
A: For the first 4 years interest at 12% , 12/4=3 then 3/2=1.5 To find the nominal interest rate…
Q: How long will it take for a money to quadruple itself if invested at 12% simple interest rate.
A: The future value in the case of simple interest is calculated by the following formula. A = P ( 1 +…
Q: Question 16 What type of annuity is represented by the graph below? P 2 3 k-1 k А, А, Аз Ak-1 Ak A…
A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…
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: You can afford a $1500 per month mortgage payment. You've found a 30 year loan at 7% interest…
A: Given:- Mortgage payment amount=$1500 Time frame=30 Years Interest rate=7% Please find detailed…
Q: *Draw the complete cash flow
A: Present worth is a comparability strategy for analysis in which a project's cash flows are limited…
Q: You borrow $120,000 today to purchase a new truck. You sign a loan agreement for 4.8% annual…
A:
Q: Laura has seven years to pay off a $23000 student loan at 6% per year, compounded monthly. a)…
A: Loans when paid back on a recurring period, the payback amount includes the basic principal and an…
Q: Alfred desired 9,000 as the proceeds of a 90-day loan from B who charges 5% interest in advance.…
A: Given, Loan amount = 9,000 Time = 90 days Interest rate = 5%
Q: Q) Joe just completed his engineering degree and started to work for an engineering firm. Joe wants…
A: Interest rate can be calculated by using the following formula.
Q: Joe just completed his engineering degree and started to work for an engineering firm. Joe wants to…
A: Given that, Annual deposit: $5,000 Future value: $3,954,750 No. of years: 30 years
Q: 1. A automobile was purchased on a 60-month installment plan with a $10,000 monthly payment.…
A: (1) Monthly Installment (Annuity)= $10,000 n = 60 months interest rate = 12.03%12=1.0025%
Q: A loan is paid off in 15 years with a total of $192,000. It had a 4% interest rate that compounded…
A: Given information, Time period (t): 15 years Compounded monthly (n): 12 times in a year Interest…
Q: How much should you pay for a $1,000 bond with 10% coupon, annual payments, and 5 years to maturity…
A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal the…
Q: You open a credit card account that charges 1.25% interest each month on the unpaid balance. the…
A: given You open a credit card account that charges 1:25% interest each month on the unpaid balance,…
Q: borrowed $25,000 with an add-on rate, 6% for three years, and I have to make veekly payments. Jsing…
A: 8832 would be for 1 year If for one week $184 184*48=8832 For 3 years 8832*3=26496 $26496 is…
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: 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 are borrowing $500,000 to buy a house. The interest rate is 4% compounded monthly. What is…
A: The per month payment is calculated by the following formula: PV=PMTi1-11+in where, PV= Amount of…
Q: Find the interest on the loan if Tim borrows $10,000 for years at a simple interest of 10%.
A: The investors as well as consumers borrow or take loans funds from banks for investment or for…
Q: You purchased a winning ticket for a $3 million lottery which pays $300,000 immediately and the rest…
A: The accepting of an offer and rejecting it depends on the comparison of the present value of the…
Q: As a borrower, would one prefer more or fewer compounding periods? a. More b. Fewer
A: Answer: Fewer Explanation: As a borrower, one would prefer fewer compounding periods. In case of…
Q: Enrico Suarez has decided to purchase a house instead of renting an apartment. He can a ord a…
A: The mortgage is an agreement between a lender and the party taking loan.
Q: To have a total of $10,000 after 8 years, what principal do you have to deposit in a 4.5 percent…
A:
Q: 1. Mary buys a 20 year annuity immediate for $100,000 subject to 6% effective annual interest rate.…
A:
Q: Jocelyn wants to buy a 72 inch flat screen TV to enjoy her birthday video highlights. It sells for…
A: Given: Selling price of TV = $2000Down payment = $1000Installment for the time period = 6 months
Q: If the interest rate is 7.0%, what is the present value of a perpetuity paying $210 per year? (A…
A: Present Value of perpetuity-Perpetuity is used in accounting and finance, represents a business or…
Q: Joseph buys a new home using an interest only loan where he pays only the interest on the value of…
A: The value of home (P) = $200000 Interest payment on home (r ) = 5% Time (t) = 1
Q: Why would people prefer to pay by credit card and pay 12% interest when they have a savings with a…
A: Credit card is a plastic card which is issued by a particular bank that allows the holder of the…
Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 10% interest. How…
A: Given: Amount at retirement=$600,000Time=25 yearsRate of interest=0.10
Q: A $700,000 mortgage loan is written with a 25-year amortization period, a five-year term, and an…
A: The amortization period is the time it would take to pay off a mortgage completely if payments were…
Q: Jesse wanted to double his money at 3% annual interest compounded monthly. How long will it take to…
A:
Q: Leo has $7 in a savings account. The interest rate is 5%, compounded annually. To the nearest cent,…
A: Compound Interest formula= Final Amount−Initial amount Final amount formula:-…
Q: You deposited a $1,000 in your account in a bank that gives a dailly interest of i where interest is…
A: Here we calculate the rate of interest by using the given information and choose the correct option…
Q: You borrow $500 from a family member and agree to pay it back in six months. Because you are part of…
A: Interest rate: It refers to the rate at which the person who had borrowed money from any person has…
Q: 2) An account earns (12) 2% for the first two years, (12) 3% for the net two years, and (12) -6% for…
A: Given; Interest in first 2 years;i=2%Next 2 years; i=3%Next 1 year; i= 6% Time; n=5 yearsMonthly…
Q: How long would it take an investment to triple if the interest rate is 6% compounded annually?
A: Answer Given in the question - Interest rate = 6% = 0.06 Need to find - Time for investment to…
Q: a
A: An income annuity allows for conversion of part of retirement funds into a stream of guaranteed…
Q: 54% compounded quarterly, and 5%% com- pounded continuously. She wishes to select the savings…
A: With quarterly compounding at 5.25%, Effective annual rate = [1 + (0.0525 / 4)]4 - 1 = [1 +…
Q: If you borrow money from your friend, Ned, with simple interest of 12%, find the present worth of…
A: Simple interest formula: A = P(1+rt) Where A is the final value P is the initial value (or present…
Q: 1. Jocelyn wants to buy a 72 inch flat screen TV to enjoy her birthday video highlights. It sells…
A: Selling price of TV = $2000 Down payment = $1000 Installment for the time period = 6 months…
b. How much would you expect to pay per month on a $20,000 auto loan if you pay the loan back for 48 month and pay 10% interest?
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- You can afford a $800 per month mortgage payment. You've found a 30 year loan at 7% interest. a) How big of a loan can you afford? b) How much total money will you pay the loan company? c) How much of that money is interest?Bobby was desperate. He borrowed $600 from a pawn shop and understood he was to repay the loan starting next month with $100, increasing by $10 per month for a total of 8 months. Actually, he misunderstood. The repayments increased by 10% each month after starting next month at $100. Use a spreadsheet to calculate the monthly interest rate that he thought he was to pay, and what he actually will pay.How much will a bank deposit of $2,000 that pays 10% compound interest be worth at the end of 3 years?
- A mortgage of $175,000 is offered at 5.25% interest for 25 years a) find the monthly paymentCollege Financial Sources, which makes small loans to college students, offers to lend $500. The borrower is required to pay $40 at the end of each week for 16 weeks. (Compounding Period: Week) a) Find the interest rate per week. b) What is the nominal interest rate per year? c) What is the effective interest rate per year?You opened a savings yesterday by depositing $10,000. You would like to be able to withdraw $2,000 per year for each of the next 4 years of college and still have $3,000 left in the account when you graduate. What interest rate does this account need to earn? (HARD)
- Draw cash flow diagram and use interest tablesA set aside $500 annually in a trust fund which allows interest at 5% effective. What amount does A have to his credit just after the 15th deposit has been made?Ella Stein paid $187.50 interest on a loan of $12,000 for 3 months. What was the rate of interest she paid?
- Zeke bought a $2,250 shed on the installment plan. He made a $400 down payment, and he has to make monthly payments of $91 for the next two years. How much total interest will he pay?Assume, you want to get $1,000 after 5 years. How much equal amount of money do you need to deposit in an account that earns 12% annual interest to get that money? Check you answer with interest table.Money deposited in a certain account for which the interest is compounded continuously. If the balance doubles in 6 years, what is the annual percentage rate?