Identify whether the given problem illustrates a simple or general annuity and then solve. 1. To pay for his debt at 12% compounded quarterly, Ruben committed for 8 quarterly payments of ₽28,491.28 each. How much did he borrow?
Q: Patrick went to a bank and obtained a personal loan with an interest rate of 4.00% compounded…
A: The real interest that an investor earns on the investment and a borrower pays on the loan after…
Q: Peter deposits $500 at the end of every month for 3 years in a savings account. The account pays 12%…
A: The formula used is shown:
Q: An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…
A: Annual receipt (C) = P 35,000 Number of annual receipts (n) = 18 Interest rate (r) = 3%
Q: If I loaned 163,085 today and promised to pay it back after 5 years to the bank with monthly…
A: Loan amount (P) = 163,085 Annual interest rate = 0.11 Monthly interest rate (r) = 0.11/12 =…
Q: Identify whether the given problem illustrates a simple or general annuity and then solve. 1. To pay…
A: Annuity is defined as a payment made in an equal interval of time and also guarantees to be paid at…
Q: Ethan deposits $750 at the end of every month for 3 years and 1 months in a retirement fund at 3.86%…
A: The series of cash flows that are equal in amount and complete series is either positive or negative…
Q: If you make quarterly deposits of $415.00 into an ordinary annuity earning an annual interest rate…
A: Future value of an annuity depends on the regular payments and interest rate applicable on the…
Q: A personal account earmarked as a retirement supplement contains $242,200. Suppose $200,000 is used…
A: Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on…
Q: Determine whether the scenario below represents an annuity. In at least one complete sentence,…
A: Annuity is fixed amount of money paid at a regular interval. The amount given in the question is not…
Q: Assume that you make monthly payments of $ 625 into an ordinary annuity paying 4% compounded…
A:
Q: What is the amount of an annuity that consists of 100 monthly payments of $250 into an account that…
A: Given: Periodic payment (P) =$250 Rate of interest per month = 5% annually Rate of interest monthly…
Q: If you make monthly deposits of $301.00 into an ordinary annuity earning 3.32% compounded monthly,…
A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…
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: If you make monthly deposits of $497.00 into an ordinary annuity earning 3.09% compounded monthly,…
A: An annuity is a series of equivalent periodic cash flows for a specific duration. In the case of an…
Q: Sam deposits $900 at the end of every 6 months in an account that pays 6%, compounded semiannually.…
A: a) Answer: Option a. Ordinary annuity. Explanation: Since the payments are made at the end of every…
Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…
A: The interest rate is 6%, compounded quarterly. The interest rate per quarter will be (6%/4) = 1.5%.…
Q: What is the value (in $) of Jorge's account after 16 months? (Round your answer to the nearest…
A: Information Provided: payment made = $150 Term = 16 months Interest rate = 6% compounded monthly
Q: open an annuity with $5,200.00 and makes monthly payments of $270.00 paid at the end of each month…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: At the end of every week, for 2 years, Carlo puts $35 into an account that earns 5.2% per year,…
A: If an individual is regularly depositing certain account at the beginning of the period it would be…
Q: Sam deposits $800 at the end of every 6 months in an account that pays 7%, compounded semiannually.…
A: Ordinary annuity is the annuity that is paid at the end of the each period whereas the annuity due…
Q: If you borrow $2,200 and agree to repay the loan in five equal annual payments at an interest rate…
A: Loan means lending money by one or more individuals or organizations to other individuals or…
Q: n the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: Annuity refers to the series of payments at regular intervals over a period of time. Future value of…
Q: Many persons prepare for retirement by making monthly contributions to a savings program. Suppose…
A: Given: Amount = $2,400 Interest rate = 8% Years = 28
Q: Mr. Delima deposited P5,500 every 6 months to an account that earns 8% interest compounded annually.…
A: Types of Annuity: In general, an ordinary annuity is a series of regular payments that are paid at…
Q: Assume that today you borrowed $30,000 at 4.25% compounded monthly and will pay off the loan with…
A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…
Q: Randall will make deposits of $3,130 at the end of every year into an account earning 3.29%…
A: Ordinary General Annuity is the annuity when payment is made at the beginning or end of each month…
Q: Robert borrowed $28,372.63 from the bank, which needs to be paid with the amount of $404.21 at the…
A: Under a loan arrangement, the money borrowed can be repaid in regular payments over a period of…
Q: Assume that you make quarterly payments of $650 into an annuity paying 8% interest compounded…
A: In this question we need to calculate the future value from following details: Quarterly payment =…
Q: Suppose that you are to make annual deposit of $3,000 into a retirement account that pays 11%…
A: Future value of the amount is the worth of the current amount in some future specified date at given…
Q: An investor desires to deposit with a trust company a sum just sufficient to provide his family with…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: Johnny has a loan for $50,000 at a rate of i(4) = 8% on which he makes quarterly payments of $2,000.…
A: Amount of deposit every 3 months: $500 starting from today at a rate of interest of 1% effectively.…
Q: How long will it be until the account balance is $0?
A: Information Provided: Retirement Supplement = $342,000 Amount used to establish annuity = $300,000…
Q: n the following ordinary annuity, the interest is compounded with each payment, and the payment is…
A: In this we need to calculate monthly payment required for one million future value.
Q: Leanne Simon made ordinary annuity payments of $100.00 per month for 15 years earning 4.5%…
A: The future value of the regular payment made at the end of every period is called the future value…
Q: Assume that you make quarterly payments of $ 400 into an annuity paying 6% interest compounded…
A: Future value of annuity formula is: Future value of annuity is calculated in excel with function…
Q: If you make monthly payments of $527.00 into an ordinary annuity earning an annual have in the…
A: As there is more compounding the more interest is being accumulated and more is future value of…
Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…
A: given, annuity due, monthly payment = $130 number of period= 16 the table given in the question is…
Q: Assume that you make monthly payments of $ 475 into an ordinary annuity paying 8% compounded…
A: Future value of ordinary annuity formula is: Future value of ordinary annuity is calculated by…
Q: Every three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which…
A: An Annuity:- An annuity is a fixed amount of perodic payment that an individual receive or pay for a…
Q: If I loaned 167,871 today and promised to pay it back after 5 years to the bank with monthly…
A: N = 5*12 FV = 0 rate = 14%/12 PV = 167,871 use PMT function in Excel with type as 1
Q: Identify whether the given problem illustrates a simple or general annuity and then solve. 2) To…
A: Annuities are the payments of an equal sum of money that are paid to an individual or company for an…
Q: a personal account earmarked as a retirement supplement contains 242,400. suppose 200,000 is used to…
A: Excel Spreadsheet:
Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…
A: Month deposit (P) = $ 130 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period (n) =…
Q: . Mr. Formento pays at the end of every month for a loan that charges 5% inter ompounded quarterly.…
A: There are many types of annuities depending on the payment at the end or beginning or whether it is…
Q: An investor is currently making a regular deposit of PHP 4,125.27 at the start of each period, to…
A: The worth of money gets depreciated over a period of time states the concept of the time value of…
Q: A personal account earmarked as a retirement supplement contains $342,200. Suppose $300,000 is used…
A: Given data; Payment amount = $5500 annuity amount = $300,000 annual interest rate = 5% As the…
Q: Student B placed his allowance amounting to P 5000 in a savings account with a nominal interest rate…
A: The future value is the amount that will be received at the end of a certain period. In other words,…
Q: (Solving for i of an annuity) You lend a friend $30,000, which your friend will repay in five equal…
A: We can solve the rate of return using the Financial calculator or excel. I will demonstrate both the…
Identify whether the given problem illustrates a simple or general
1. To pay for his debt at 12% compounded quarterly, Ruben committed for 8 quarterly payments of ₽28,491.28 each. How much did he borrow?
Step by step
Solved in 2 steps
- Identify whether the given problem illustrates a simple or general annuity and then solve. 2) To pay for his debt at 12% compounded semi-annually, Ruben committed for 8 quarterly payments of ₽24,491.28 each. How much did he borrow?Every three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which formula to compare with cash payment? A. Future value of IB. FV of AnnuityC. Present Value of ID.(a) You deposit $135.29 monthly into an account paying 8.75% for 27 years. Find the future value of the annuity. Show your work in detail. (b) If you deposit $140 instead of $135.29 under the same circumstances how much more will your annuity be worth? Show your work in detail.
- a) You deposit $135.29 monthly into an account paying 8.75% for 27 years. Find the future value of the annuity. Show your work in detail.Mr. Delima deposited P5,500 every 6 months to an account that earns 8% interest compounded annually. What type of annuity does this problem illustrate?Identify whether the given problem illustrates a simple or general annuity and then solve. 1. To pay for his debt at 12% compounded quarterly, Ruben committed for 8 quarterly payments of ₽28,491.28 each. How much did he borrow? 2. To pay for his debt at 12% compounded semi-annually, Ruben committed for 8 quarterly payments of ₽24,491.28 each. How much did he borrow?
- In the situation where Ahmad are depositing $1,000 per month in a savings account that pays 6 percent interest per year compounded quarterly. Here payment period is greater than compounding period. Select one: O True O FalseDetermine whether the scenario below represents an annuity. In at least one complete C. sentence, explain your reasoning and justify your answer. A debt of four quarterly payments in the amounts of $100, $200, $300, and $400.Find each future value of single deposit by using the future value of a single deposit formula. 8. John opens a passbook savings account with $100. It pays 3.5% interest compounded quarterly. What will be the balance after one year?
- a man borrows money from a bank . he receives the money in 5 equal annual installment of X commencing at t=1 with t in years.He repays the loan with twenty equal annual payment of 100 . if the first payment is due one year after the last installment and the interest rate is i=0.13 the find an equation for XIf you deposit $250 each month into an individual retirment account that earns 4.8% interest compounded monthly, a.) How much will you have in the account 30 years from now ? b.) What is the interest earned on the account ?a. Use the appropriate formula to find the value of the annuity b.how much of the financial goal comes from deposit and how much comes from interest? periodic deposit-$? at the end of the month Rate-5% compounded monthly Time-16 years Financial goal-$140,000