If an investment grew to $15,000 in 2 years and the interest amount earned was $1,000, calculate the nominal interest rate compounded monthly.

Q: If $1, 200 grows to $1, 781 in 7 years, determine the interest rate over that period.

A: In the given question we require to calculate the interest rate which grows $1200 into $1781 in 7…

Q: If an investment of $5,000 is made in an account returning 2% p.a. then how long will it take for…

A: Using excel NPER function

Q: What is the compound amount and interest if Php 10,000 is invested at 3.6% compounded monthly for 2…

A: we know that, A=P(1+rn)n×t now, A= amount after time + (future value) P= principal amount (initial…

Q: suppose that $47,700 is invested in certificate of deposit for 3 years at 6.2% annual interest to be…

A: The deposit facility provided by commercial banks in which the deposited amount is repaid only at…

Q: Determine the interest earned after 10 years if $200 is invested in each of the following accounts:…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: w much will be in an account at the end of five years the amount deposited today is $10,000 and…

A: The given problem can be solved using FV function in excel. FV function computes  future value for…

Q: Solve for the compound interest earned if 10,000 pesos is invested for  1-1/2 years at 8% compounded…

A: Compound interest refers to the interest calculation mechanism where the previous period interest is…

Q: (a) Annual: $ (b) Semiannual: $ (c) Monthly: $ (d) Daily: $

A: (A) Annual Compounding = P (1+r)n (B) Semi Annual Compounding = P (1 +r2)2n (C) Monthly Compunding…

Q: Find the effective interest rate for a $20,000 for three years if the interest is compounded…

A: Effective interest rate:Effective interest rate is also called as annual equivalent rate which is…

Q: Using​ annual, semiannual, and quarterly compounding​ periods, (1) calculate the future value if…

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

Q: P2000 is invested in a high interest account for one and half (1 1/2) years . the interest rate is…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following.…

A: Loan amortization can be defined as the procedure of amortizing the loan in such a way that the loan…

Q: An investment of $1,050 is made in an account compounded semi-annually at 6.8%. How much will the…

A: It can be calculated using FV function in excel. FV (rate, nper, pmt, [Pv], [type]) Rate The…

Q: A MAN INVESTED 1/3 OF THE SUM AT 7% , 1/4 AT 8% AND THE REMAINING AT 10% FOR ONE YEAR. IF THE ANNUAL…

A: Let the investment amount be A

Q: Find the future value of a four-year investment of $2,570 that earns 4% compounded quarterly.

A: FV = P * (1 + r/n) ^ ntWhere FV = Future ValueP = Principal = $2,570R = Rate on interest = 4%T =…

Q: If $1000 is invested for ten years at an annual rate of 7.3% compounded monthly.…

A: given information  present value = $1000 time period = 10 years interest rate = 7.3% annum

Q: Compute the compound amount and the interest on a loan of $10,500 compounded annually for four years…

A: The computation of compound amount is as follows:Hence, the compound amount of loan is $16910.355.

Q: Compute the future value of annual payments of $1,000, paid for 4 years, using an interest rate of…

A: Future value can be defined as the future worth of the present cash flow that will be received from…

Q: An amount of $12 000 is invested for a period of 9 months at 3% p.a. compounded monthly. The…

A: We need to use the FV formula to determine the value after 9 months. The formula is as below FV = PV…

Q: If 2400 dollars is invested in an account for 10 years. Find the value of the investment at the end…

A: Amount invested is $2400 Time period is 10 years To Find:  4.2% compounded semiannually 4.2%…

Q: Suppose that $1,000 is invested for 4 years at an interest rate of 12%, compounded quarterly. How…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: If $17,500 is invested at an interest rate of 10% per year, find the value of the investment at the…

A: Present Value (PV)= $17,500 Interest Rate (r)= 10% per year Time period (n)= 5 years Future Value at…

Q: a) Determine the present equivalent value of $10,000 paid every three months over a period of seven…

A: The present value is the addition of the discounted values of the future payments.

Q: n amount of $5000 was invested with an annual interest rate of 5.5% compounded monthly. Answer the…

A: Future value of amount is computed as follows:-FV = A * (1+r)nwhereFV = future value A = amount…

Q: Suppose that $2700 is invested in an account with an APR of 3.9% compounded continuously. Determine…

A: Future value = Present value*e^rate*time

Q: If $1,000.00 is invested in an account for 30 years. Find the value of the investment at the end of…

A: The conceptual formula used:

Q: A payment of $4,500 was made into an account at the end of every 3 months for 12 years. a. If the…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a future…

Q: Calculate the present value of a loan that could be cleared by payments of $3,350 at the end of…

A: Here,Semi Annual Payments (PMT) is $3,350Time Period (n) in years is 7 yearsInterest Rate (r) is…

Q: Payments of $1000 each are made at the end of every year for 6 years to a savings account. Calculate…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: Suppose that $6,300 is invested at 3.1% annual interest rate, compounded monthly: How much money…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: Using​ annual, semiannual, and quarterly compounding​ periods, (1) calculate the future value if…

A: The effective rate is the actual interest rate earned or paid on a financial. It takes into account…

Q: How much will be in an account at the end of five years the amount deposited today is $10,000 and…

A: The given problem can be solved using FV function in exceL. FV function computes amount BALANCE in…

Q: If $12,000 is invested at an interest rate of 10% per year, find the amount of the investment at the…

A: Given:

Q: If $20,000.00 is invested in an account for 15 years. Find the value of the investment at the end of…

A: Amount Invested = $20,000.00 Years = 15 years For Simple Interest Rate = 8% per annum For Compound…

Q: Calculate the initial amount that would be in a savings account at the beginning of 6 years, given a…

A: Given  Interest rate =  3.14% Number of years = 6 Years Final amount received = 256 Future value is…

Q: compounded quarterly, what was the loan principal?

A: Information Provided: Years = 20 Monthly payment = $1700 Interest rate = 5.70% compounded quarterly…

Q: Regular quarterly payments of $6000 are deposited into an account paying 3.19% interest, compounded…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: If you borrow $5000 for five years and seven months at 9% compounded quarterly. How much is owed on…

A: Formula = Principal * [ 1 + Interest rate / 4 ]Number of quarters

Q: If $6000 is invested in an account that pays 3% annual compounded interest, compare the amount in…

A: 1. Semi annual: Future value = Present value *(1+rate)^periods Future value =…

Q: A nominal interest of 3% compounded continuously is given on the account. What is the accumulated…

A: In Continuous compounding, compounding is done an infinite number of times.

Q: What interest rate would be necessary for $7,950 investment to grow to $10,400 in an account…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.