Find the simple interest rate over 6 years

Q: Using an annual effective interest rate of 7%, find X

A: To find the value of X, we need to calculate the present value of the cash flows using the given…

Q: Find the PV of an annuity that grows at a quarterly rate of 2% for the next 50 years.  Assume that…

A: PV of this growing annuity can be computed using the following formula : PV=PMT×(1-(1+g)n×(1+i)-ni-g…

Q: Find rate of interest if present value is ¥2000 l, future value is ¥9200 and time is 9 years

A: Given: Present value = ¥2000 Future value = ¥9200  Time = 9 years

Q: Question 3 Suppose you have two inyestments with the same interest rate. One investment is a…

A: We will understand this with the help of an example:Suppose the Principal amount=10000Rate of…

Q: Find the rate of interest if the principal value is $28000 with an interest value is $9000 after 5…

A: Principal value (P) = $28000 Interest value (I) = $9000 Period (n) = 5 Years

Q: The further in the future I receive any given pound amount, the higher its present value. Select…

A: Money has a time value. This means that the purchasing value of money decreases over time. Due to…

Q: Find the simple interest on a $2000 investment made for 5 years at an interest rate of 8% / year.…

A: Simple interest refers to the method of calculating interest earned on an investment where for each…

Q: The present value of an annuity is the sum of the discounted value of all future cash flows. You…

A: An annuity's present value is the current value, discounted at a certain rate, of a series of future…

Q: Case A Case B (2) In Table 2 (future value of an annuity of 1): Case A Case B Case A Case B Annual…

A: The Time Value of Money (TVM) is a fundamental financial concept that underscores the idea that a…

Q: The present value of $500 to be received 7 years from now at an interest rate of 8percent is ?

A: Calculation of Present Value:The present value is $291.75.Excel Spreadsheet:

Q: 3.12  Suppose the spot rates of interest for investment horizons of 1 to 5 years are 4%, and for 6…

A: Given: Interest for 1 to 5 years=4%Interest for 6 to 10 years=5%Time =10 yearsCash flow=$100

Q: If interest rate is 10% per year, which one of the following annuities give maximum benefit and…

A: In the given question, different set of annuities having different time periods and amounts is…

Q: what would be the interest accumulated on 1800$ after 270 days with an annual interest rate of 1.25%…

A: Accumulated interest means interest is accumulated on the loan amount or deposit for a certain…

Q: Find the present value of a 30 year annuity immediate with effective annual interest rate i = .03…

A: Present value refers to the current value of the cash flows or the annuity. Present value can be…

Q: 5. Suppose an annuity at 4% compounded semi-annually will pay $4000 at the end of each 6-month…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Find the future and present value of a 5 year GHC 1,000.00 annuity if the rate of interest is 12%…

A: FV of Ordinary Annuity= PMT[(1+i)n-1/i] = 1000[(1+0.12)5-1/ 0.12] = 1000[1.7623-1/0.12] =…

Q: a. Calculate the future value of $8,000 in 5 years at an interest rate of 6% per year.

A: In this question we require to calculate the future value from below details: Present value = $8000…

Q: Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your…

A: Compound amount = $ 200,000 Annual interest rate = 4% Period = 10 Years

Q: Find PV value of Continuous annuity that pays the annual rate of(t)= 800 t for T=20 years at…

A: The present value of the annuity will be considered to determined the value of cumulative PV…

Q: Find rate of interest if present value is ¥2000, future value is ¥9200 and time is 9 years

A: Given: Present value = ¥2000 Future value = ¥9200  Time = 9 years

Q: How many year and how many days

A: The formula for calculation of future value is as under FV = P (1+ RT) P= Principal R = Rate of…

Q: Find the future value of OMR10,000 invested now after five years if the annual interest rate is 8…

A: FUTURE VALUE FORMULA: simple interest : future value = present value ×1+N ×r compounding: future…

Q: Find the future value of the following ordinary annuities. Payments are made and interest is…

A: Future value refers to an amount of the current asset at some future date affected by interest…

Q: answer these two questions. Thank you! 1. Determine the compound interest rate per year equivalent…

A: Simple interest rate is interest rate without the impact of compounding of interest. But effective…

Q: present value = 120,000, period 7 years,  future value is 360,000 find the interest rate

A: Formula for present value (PV) is PV = FV × 1 ÷(1 + i)n. In the formula, FV is future value, i is…

Q: Construct a spreadsheet to convert a nominal interest rate compounded m times per year i(m) and…

A: The nominal rate when compounded per period gives the effective rate of interest. The effective rate…

Q: Hi there, I am trying to figure out how to calculate interest rates. If the interest rate is 3.75%…

A: Annual interest rate (r) = 3.75% or 0.0375Number of times compounding happens per year (n) = 4 (as…

Q: Find the present value of OMR7, 000 to be receive one year from now, assuming a 3 percent annual…

A: Present value is the current value of a future stream of income or cash flows. It is very easy and…

Q: Use PVOA Table to find the present value of an ordinary annuity with an annual payout of P5,000 for…

A: Following is the answer to the question

Q: Give at least 2 reasons why a buyer might only expect to benefit from the interest savings for five…

A: In case of borrowing money interest is the cost of doing so because it is said to be always on the…

Q: For a quoted annual interest rate of 5% with daily compounding, find the effective (i) annual rate,…

A: Present value refers to the current value of the annuity that is determined by discounting the cash…

Q: Suppose you will receive OMR 1 each year for the 3 coming year the Interest Rate is 10% Question:…

A: Calculation of future value annuity: Answer: Future value annuity is OMR 3.31

Q: What is the 2-year discount factor if the interest rate is 4% in both years?

A: Under the concept of time value of money discounting factor refers to the rate or percentage that is…

Q: Suppose you expect to receive periodic payments of $1,500 at the end of 3, 5, 7, and 10 years from…

A: Given information,Discount rate: Payment in period 3, 5, 7 and 10: To calculate,Present value of the…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.