Q: You have just received a windfall from an investment you made in a friend's business. He will be…
A:
Q: Suppose you borrowed Php 30,000 on a student loan at a rate of 8% and must repay it in three (3)…
A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…
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A: Here, Monthly investment = $3,000 Time period = 2 years Nominal Interest rate = 9% per year…
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A: FVA FORMULA FVA=A×1+RMM×N-1RM where, r=rate of interest m=frequency of compounding n=number of years…
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A: Simple interest is an easy method of calculating the interest amount. Simple interest is calculated…
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A: Gien Information, Deposit = $3,000 Interest Rate = 8% Compounding Frequency = quarterly Formula…
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A: Solution: With the Time value of money concept (Future value) we will be calculating amount of money…
Q: You have just received a windfall from an investment you made in a friend's business. She will be…
A: We need to use the following equation to calculate present and future value FV=PV(1+i)n where FV…
Q: At the end of each quarter, a life insurance client deposits PhP 9,174 for 5 years. If money is…
A: The amount of saving can be calculated as future value of annuity.
Q: how much must you repay at the end of the 3 months?
A: While charging interest on the principal amount, there are two ways to calculate it- Simple interest…
Q: Hanna invests $8400 for 8 years and 10 months. The account earns 5% semiannually. a) What is n for…
A: Basic Details: 1. Investment = $8400 2. Time = 8 years and 10 Months 3. Interest rate = 5 %…
Q: Timothy invests $5,000 at 17% interest compounded daily for three years. How much does he have in…
A: Future value = Present value(1 + Rate)^Time
Q: Suppose you borrowed Php 30,000 on a student loan at a rate of 8% and must repay it in three (3)…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Alice Reed deposits $16,500 in Rye Bank, which pays 10% interest compounded semiannually. What will…
A: In this we have to calculate the future value of the present value.
Q: If you make monthly $500 deposits into your investment account paying 9.58% interest annually, how…
A: Interest is an amount which is received on the deposited amount for the period. It increases the…
Q: Using the situations provided in Exercise 1, compute the annual interest, total interest and amount…
A: Under Compound interest, interest is computed on principal as well as interest earned during the…
Q: The owner of Oak Hill Squirrel Farm deposits $3,000 at the end of each quarter into an account…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: You plan to prepare for retirement by making monthly contributions $1,500 to a savings account that…
A: Accumulated savings is defined as the savings, which amount for putting the back or investment each…
Q: A student invests $1000 in a bank account that pays an interest rate of 3.25% compounded monthly. a)…
A: given, A=$1000 r=3.25% m=12
Q: nifer deposited $54,000 at Bank of America at 20% interest compounded quarterly. a) What is the…
A: In this we need to find out the effective annual rate.
Q: Wen is making deposits of $300 each quarter into an account earning 6% interest compounded…
A: future value of an ordinary annuity is a value of payments at a point of time in future it shows the…
Q: Use technology to compute the balance in each of the following accounts. a. An account with monthly…
A: The compounding formula is, Principal * (1+Annual Interest rate/number of periods in a year)number…
Q: Morgan opened an RRSP account and deposited $2,800.00 into it. She then deposited $900.00 at the end…
A: Deposit at year-0 = $ 2800 Deposit at year-1 = $ 900 Deposit at year-2 = $ 575 Interest rate = 2.20%…
Q: If you were to use the TVM Solver to determine how much money would be in an account (that earns…
A: Future value(FV) is value of current amount at future date that is computed by compounding current…
Q: Grace and Donna deposited PHP 8,000 in a saving account at 5 3/4%. if interest is compounded…
A: a. The interest rate in the problem is 5 3/4% or 5.75%. b. Php 8000 is the amount of deposit…
Q: l invest $500 per month at the end of each month for my retirement at 7.3% compounding monthly for…
A: The given problem can be solved using FV function in excel. FV function computes amount required in…
Q: Cameron opened an RRSP account and deposited $3,800 into it. He then deposited $800 at the end of…
A: Deposit now = $ 3800 Deposit at the end of year 1 = $ 800 Deposit at the end of year 2 = $ 475…
Q: You make a one-time investment of $500 and leave it for 5 years, earning an annual interest rate of…
A: In this question we need to compute the amount of interest we have earned after 5 years and also…
Q: You invest $800 in an account that pays simple interest of 4% for 5 years. Calculate the amount of…
A: Amount invested(P) = $800 Interest Rate(R) =4% Years(T) = 5 years Interest = P *R *T
Q: Brian opened an RRSP account and deposited $3,300 into it. He then deposited $800 at the end of the…
A:
Q: At the end of each quarter, a life insurance client deposits PhP 7,076 for 5 years. If money is…
A: Quarterly deposit (P) = Php 7076 Period = 5 Years Number of quarterly deposits (n) = 5*4 = 20…
Q: You have just received a windfall from an investment you made in a friend's business. She will be…
A: Present value shall be computed by discounting the cash flows at the required rate. Future value…
Q: You have just received a windfall from an investment you made in a friend's business. She will be…
A: First payment (P1) = $13703 P2 = $27406 P3 = $41109 r = 4.2%
Q: Determine the size of your investment account 23 years from now (when you plan to retire) if you…
A: Future value: It is the value of the current asset, depending on the assumed rate of the growth, at…
Q: You have just received a windfall from an investment you made in a friend's business. He will be…
A: Money’s value declines with the passage of time due to various market factors like inflation rate.…
Q: l invest $500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. What will be…
A: The given problem can be solved using FV function in excel. FV function computes amount required in…
Q: How much would you need to deposit in an account each month in order to have $30,000 in the account…
A: Future value = $ 30,000 Time = 7 years Interest rate = 2% Let, the monthly deposit = $P Then,…
Q: You deposit $4,034 into a 9% account today. At the end of two years, you will deposit another…
A: solution given rate of interest =9% deposit today =$4034 at end of two years another deposit…
Q: You invest $1,000 in a certificate of deposit that matures after 10 yaers and pays 5 percent…
A: Principal amount (P)=$1,000 No. of years (n)=10 Interest rate (r)=5% (compounded annually) A.…
Q: interest
A: Formula to calculate rate of interest is: r = n*[(A/P)^1/nt - 1] where n i the no of compounding…
Q: a business owner plans to deposit annual profits in an investment account earning a 9% annual…
A: Annual interest rate (r) = 9% Annual investment (P) = 22,000 Number of annual deposits (n) = 1+7 = 8
Q: You are planning to start a business in 5 years. You have decided to deposit Shs. 400,000 in a…
A: As the amount is required in future, future value formula will be used to calculate the amount…
Q: You have just received a windfall from an investment you made in a friend's business. She will be…
A: Year 1 Cash flow = $26016 Year 2 Cash flow = $52032 Year 3 Cash flow = $78048 Interest rate = 0.114…
Q: You have just received a windfall from an investment you made in a friend's business. He will be…
A:
Q: 0 per quarter at the beginning of each quarter for my retirement at 7.3% compounding quarterly for…
A: The given problem can be solved using FV function in excel. FV function computes amount required in…
Q: Please help me answer the following time value of money question. Michael makes a $500 investment.…
A: Investment = Present value = $500 Value of investment after 5 years = Future Value = $700 Time…
Q: Jacqueline invests $12000 for 8 years and 8 months. The account earns 11% semiannually. What is n…
A: Investment = $12000 Time of Investment = 8 Years and 8 Months Interest Rate = 11% per year…
Q: Under your six-year savings plan, you deposit P1,000 now and P1,000 at the end of the fourth year,…
A: Future value is a value of an investment or asset on a specific date in the future. Compound…
You decide to invest $7,500 into an account that pays 1.1% annual
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- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Suppose that you deposit $7000 in a savings account that pays 4% annual interest, with interest credited to the account at the end of each year. Assuming that no withdrawals are made, complete the following: a. Find the balance in the account after 5 years. b. Find the balance of the account after 9 years and 10 months.
- You deposit $700 in an account paying 7.3% simple interest. Find the future value of the investment after 4 years. (Round your answer to two decimal places.There is an investor stating they will pay out $84,000 at the end of 4 years. In order to invest into the opportunity, you'll need to make a deposit of $10,000 to thier indicated bank account. What is the average annaul return rateYou plan to deposit $500 in a bank account now and $600 at the end of the year. If the account earns7% interest per year, what will be the balance in the account right after you make the second deposit?
- You initially invest $400 in a savings account that pays a yearly interest rate of 3%. (a) Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment. (Let B be the account balance in dollars and t be the number of years since the initial investment.) 8(t)= dollars (b) What monthly interest rate best represents this account? Round your answer to three decimal places. % (c) Calculate the decade growth factor. (Round your answer to two decimal places.) (d) Use the formula you found in part (a) to determine how long it will take for the account to reach $536. (Round your answer to the nearest whole number.) yr Explain how this is consistent with your answer to part (c), At the end of one decade, there will be $ where the account reaches $536 at the end of This --Select-- o the answer found above years,Calculate the final balance on each bank account after making deposits in them with the following terms: A) A bank account that pays 3.5% per yearly period (i.e. the EAR) for the next 3 years in total. If you deposit $1 into a bank account that pays 3.5% per year for 3 years, the amount you will receive after 3 years is $ (Round your answer to five decimal places) B) A bank account that pays 2.3% every 6-month period for the next 3 years in total. If you deposit $1 into a bank account that pays 2.3% every 6 months for 3 years, the amount you will receive after 3 years is $ (Round your answer to five decimal places) C) A bank account that pays 8.0% per 18-month period for the next 3 years in total. If you deposit $1 into a bank account that pays 8.0% every 18 months for 3 years, the amount you will receive after 3 years is $ (Round your answer to five decimal places)You open a savings account with $1,000. At the end of each year you earn 3% interest on your savings and then you deposit $1,000 into the account. Let An be the amount in the account after n years. 1. Explain why A₁ = 2,030. 2. Calculate A2 and A3. Round to the nearest penny if necessary. 3. Write a recurrence relation for An+1 in terms of An. What is the first term A₁?
- You plan to deposit $700 in a bank account now and $900 at the end of one year. If the account earns 2% interest per year, what will the balance be in the account right after you make the second deposit? There will be $ in the account right after the second deposit. (Type an integer or a decimal.)Find the interest rates earned on each of the following. Round your answers to the nearest whole number. You borrow $680 and promise to pay back $782 at the end of 1 year. %Ian deposits $1200 into a savings account that earns 4% per year, simple interest.a) Write an equation to relate the amount of the investment, A, to time, t, in years.b) Graph the function.c) How long will it take, to the nearest month, for the investment to grow to $1500?