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- A bank lends some money to a business. The business will pay the bank a single payment of $180,000 in ten years time. How much greater is the present value (PV) of this payment if the interest rate is 6% rather than 5%? A. $11,992 B. $7,995 C. $9,993 D. 13,991A bank lends some money to a business. The business will pay the bank a single payment of $180,000 in ten years time. How much greater is the present value (PV) of this payment if the interest rate is 6% rather than 5%? A. $11,992 B. $7,995 C. $9,993 Your answer is correct. D. $13,991A bank lends some money to a business. The business will pay the bank a single payment of $180,000 in ten years time. How much greater is the present value (PV) of this payment if the interest rate is 8% rather than 7%? A. $9,754 B. $6,502 C. $11,379 D. $8,128 Please use financial calculater variable entries.
- < A friend asks to borrow $51 from you and in return will pay you $54 in one year. If your bank is offering a 6.2% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $51 instead? b. How much money could you borrow today if you pay the bank $54 in one year? c. Should you loan the money to your friend or deposit it in the bank?TEST I. PROMLEM SOLVING: A bank offers 0.25% annual simple interest rate for a particular deposit. How much interest will be earned if 1 million pesos is deposited in this savings account for 1 year? 1. Sunnose vour father denosited in vour bank account P10.000 at an annual interest rate of 0.5%Q : no 1 (A) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years? (B) you have Rs.25,000 which you deposited in a bank account, bank promised to pay you back Rs.75,000 after 8 years.what rate offered by bank? (C) you borrowed Rs.500,000 at 18% for five years. Part a) how much you will pay each year to settle this loan? Part b) If you decided to settle this loan after two years, what additional amount you will pay at the end of two years to fully payback this loan while bank is not imposing any fine on you?
- S You deposit $1,200 in your bank account. a. If the bank pays 5% simple interest, how much will you accumulate in your account after 8 years? Future value Saved b. How much will you accumulate if the bank pays compound interest? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Future value M Question 7Suppose you borrow from a bank $1,756.06 today (t=0). You agree to pay back $3,637.64 in 4 years (t=4). The interest rate (%) that the bank charge you is closest to ________%. Input your answer without the % sign and round your answer to two decimal places.1. You deposited PHP1,500 in a bank with an interest rate of 5% for 1 year. What is the future value of your deposit 2. You need to save up for P1,500 in 1 year. How much should you save now if the bank offers a rate of 5%? (Find the present value)
- Q A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6% interest rate on deposits and loans: How much would you have in one year if you deposited the $55 instead? How much money could you borrow today if you pay the bank $58 in one year? Should you loan the money to your friend or deposit it in the bank?You plan to borrow $1,000 from a bank. In exchange for $1,000 today, you promise to pay $1,130 in one year What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective? What does the cash flow timeline look like from your perspective? (Select the best choice below) O A. Period 0 1 CHEJane Smart plans to make the following deposits in an account towards cash purchase of a real estate property. ΕΟΥ 1 3 Deposit $6,000 $20,000 2 $13,000 4 $27,000 cms (a) How much money will the account have immediately after the last deposit if the account earns an interest rate of 8% per year? (b) What is the equivalent uniform annual deposit? 5 $34,000 (a) The amount in the account after the last deposit is $ 111028 (to the nearest dollar). (b) The equivalent uniform annual deposit is $(to the nearest dollar)