Calculate the value of the fund after 13 years

Q: You need $24,856 at the end of nine years, and your only investment outlet is a 10 percent long-term…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: A 20 year loan of $100, 000 at i = 6% is paid off by paying 125% of each year’s interest at the end…

A: Term of Loan20yearsLoan amount100000Interest rate6%

Q: What is the accumulated value of periodic deposits of $3,500 made into an investment fund at the…

A: The Future Value of Annuity Due refers to the concept which determines the sum total of all the cash…

Q: An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a…

A: Loan amount (L) = 50000 r = 10% Let CFn be the payment in year n. Let size of first payment = X CF1…

Q: Wasup Corp. is thinking of borrowing $190,000 from its bank at 8% annual interest rate. The amount…

A: The objective of the question is to determine the number of years it will take for Wasup Corp. to…

Q: A sum of GH¢100 is to be paid at the end of each year for 20 years. The effective compound interest…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: financial institution is offering a six-year term deposit that will pay 7% per annum compounded…

A: 1) Value at end of 5 years  Solved using Financial Calculator  PV = -125,000 I/Y = 7/4 = 1.75 N = 5…

Q: A sinking fund is established to discharge a debt of $70,000 in 15 years. If deposits are made at…

A: Compound = Semiannually = 2Future Value = fv = $70,000Time = t = 15 * 2 = 30Interest Rate = r = 4 /…

Q: £6,000 is invested at the outset (t=0). Calculate the total amount of interest collected after 18…

A: Here,Amount invested today is £6,000Nominal Interest Rate for first five years is 3.0%Compounding…

Q: An investment of $7000 at 1% is compounded semiannually for three years. Find the future value and…

A: Formula for Future value: FV = PV (1+R)n PV = present value R = rate of interest n = number of…

Q: An investment of $11,550 is deposited for 3 years at 2.2% compounded monthly. At this point, the…

A: Deposit=$115503 years , interest rate is 2.2% compounding monthly5 years, interest rate is 1.95%…

Q: A personal loan of RM100,000 is offered with two repayment options as follows: First option is to…

A: Given:

Q: You invest the sum of ¢1,750,000.00, you generate the sum of ¢625,500.00, at an interest rate of…

A: It is related to the concept of time value of money. The concept says that the certain sum of money…

Q: An investment of $7000 at 3% is compounded semiannually for six years. Find the future value and…

A: Interest is an additional amount which is paid on amount borrowed by considering time period. There…

Q: A promissory note will pay $52,000 at maturity 8 years from now. If you pay $25,000 for the note…

A: A promissory note is a written promise made by one party (the "issuer" or "maker") to pay a specific…

Q: You will deposit $5,000 today. It will grow for 9 years at 12% interest compounded semiannually. You…

A: A regular, periodic contribution of money or funds that is made once a year, often on an annual…

Q: 5) Determine the present value at time 0 of payments of $1,000 at the start of each month for 5…

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

Q: What is the present value of a stream of $800 cash payments, each to be made at the end of the next…

A: Given:

Q: A debt of ₱75,000 was paid for as follows: ₱15,000 at the end of 18 months, ₱25000 at the end of 24…

A: Equation of value : It is a concept where a sum of money has different values at different times.…

Q: A $15,000 investment will be allowed to grow at 5.5% compounded semiannually until it can support…

A:

Q: Ferris Bueller has borrowed from the Ferrari Bank at a rate of 7% and will repay the laon with…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: An ARM is made for $150,000 for 30 years with the following terms: Initial rate=7% Index=1-year…

A: All the details about an ARM are known. There is a payment cap of 5%. End of year 2 loan balance is…

Q: fund of P 30,000 is invested at 14 % compounded quarterly. A withdrawal of 000 is agreed upon. How…

A: The fixed amount of annuities can be withdrawn from the accumulated and that carry the interest and…

Q: A 20 year/$10, 000 loan with interest i = 9% is to repaid with 12 payments of X at the end of each…

A: To solve this problem, we first need to find the value of X, the annual payment for the first 12…

Q: An ARM is made for $160,000 for 30 years with the following terms:       Initial interest rate = 7…

A: Part B: Compute Yield for the ARMTo compute the yield:Consider the initial loan amount, discount…

Q: A bond issued by the national government pays 1000 Php at the end of each year for 6 years, plus an…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: A one million peso loan is to be paid annually at an interest rate of 8.00% pa compounded monthly.…

A: Loan amount (L) = P 1 million Interest rate = 8% compounded monthly. We need to find the annual rate…

Q: An amount of P14,000 is borrowed at a discount rate of 10%, find the proceeds if the length of the…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly…

A: End of period payments N = 3.5 years i.e. 14 quarters Interest rate = 8%/4 = 2% per quarter Future…

Q: A trust fund with a beginning balance of $24,000 earns interest at 5.0% compounded quarterly. If…

A: Trust funds are legal agreements that let people put money in a specific account for the benefit of…

Q: Calculate the outstanding balance on the loan after three years

A: An adjustable-rate mortgage (ARM) is a type of mortgage loan where the interest rate can fluctuate…

Q: If 28200 dollars is invested at an interest rate of 5 percent per year, find the value of the…

A: Expected value of the investment at the future date is known as the Value of Investment. Cash flow…

Q: A debt of $5250.56 is repaid by payments of $1085.37 in 4 months, $1063.35 in 13 months, and a final…

A: Here,Question 1:ParticularsValuesPresent value of debt  $        5,250.56Amount repaid after 4…

Q: If you make quarterly deposits of $1000 for 15 years into an account that compounds interest at 1.5%…

A: Quaterly deposit is $1000 Time period is 15 years Interest rate is 1.5%   To Find: Future Value

Q: What is the accumulated value of periodic deposits of $6,000 made into an investment fund at the…

A: Solution:- When an equal amount is deposited each period at beginning of period, it is known as…

Q: Consider an EOY geometric sequence of cash flows in which the first payment made was P2,000. This is…

A: Annuity refers to a constant stream of payments made at regular intervals for a defined period. The…

Q: An investment of $9000 at 2% is compounded semiannually for three years. Find the future value and…

A: To find the future value and compound interest for an investment compounded semiannually, we use the…

Q: An amount of 50,000 was borrowed at an interest rate of 10% per year and repaid over a 5-year period…

A: Present value of all of future payments considering the interest rate and time period should be the…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.