Q: A student puts $10,000 in a savings account that pays 16% annual interest, compounded quarterly.…
A: Amount put in savings bank = $ 10,000 Interest Rate(r) = 16% compounded quarterly = 16/4 = 4% Total…
Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…
A: An annuity is a type of financial product offered by insurance companies and financial institutions.…
Q: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…
A: Interest rate is the rate that is charged on the money (Principal) lent by the lender to the…
Q: You make two annual payments of $2,000 each (the first payment is made one year from today) into a…
A: Number of annual payments (N) = 2 Payment = 2000 Interest rate = 10%
Q: . Your client deposits $5 million in a savings account that pays 5 percent per year compounded…
A: Following is the answer to the question
Q: put 5,000 in a savings accont that 0.25 percent, pays inkest at the rate Componnded in 5 tears . How…
A: Compound interest is a concept where the interest earned in a period is not withdrawn and the added…
Q: You deposit $600 in an account earning 7% interest compounded annually. How much will you have in…
A: Future value of a value is the amount which the grow from the principal amount to future amount with…
Q: heds R Us sells $900 sheds on a monthly payment plan over 4 years. a. If the interest rate is 2% per…
A: Given information: Present Value : $900 Time period : 4 years The monthly payment can be computed in…
Q: A person buys a piece of lot for P110,000 down payment and 10 deferred semi-annual payments of P…
A: Present value of all payments is calculated by using discount rate factor and then multiplying the…
Q: You invest $17,000 at 6% interest, compounded monthly, for 2 years. Use the compound interest…
A: Compound Interest- It is interest which is earned on the principal amount invested and interest…
Q: You receive annual payments of $4,800 at the beginning of each year for 7 years. The discount rate…
A: The total value of yearly payments at a particular date in future for a given discount rate is…
Q: What rate compounded quarterly is equivalent to (a) 10% effective, (b) 10% compounded monthly, (c)…
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: What is the future Value of m Ordinary ity at the end of 5years if $370 Tsdeposited each month into…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Find the present value of deferred annuity of P 900 every 3 months for 5 years that is deferred 3…
A: Deferred annuity is a series of payments which starts after a certain period of time called…
Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two…
A: Amount borrowed= $1,000,000 Rate= 3% compounded semi-annually Time (n)= Bi weekly over 25 years
Q: What
A:
Q: What should be the amount in an RRSP that is earning 5.50% compounded quarterly if it can be…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: You are offered payments of P1500.00 at the end of each quarter for 6 years. You feel that the…
A: The cash value is the present value of annuity calculated on the basis of a specified rate. Annuity…
Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi- weekly (every two…
A: There are two methods to charge interest on the loan taken. One is the simple interest method and…
Q: You borrow $11,000 and promise to make payments of $3,359.50 at the end of each year for 5 years.…
A: The question gives the following information:
Q: A payment of $700 is due in 3 years, and $5,000 is due in 5 years. What single payment made today…
A: PV=FV11+rn=$70011+4.54×1004×3+$500011+4.54×1004×5=$612.062293+$3997.59977=$4609.66206=$4609.66
Q: You invest $13,000 at 18% interest, compounded monthly, for 2 year
A: Future value of investment under compound interest method: Future value = P×(1+rf)n×f Where, P =…
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: If you were offered $1000 today of $1050 in one year which would you accept if money can be invested…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: You invest $5,000 into a money market account that pays interest monthly (e.g., interest is…
A: Future Value = Present Value * (1+r)^n Where, n = no. of compounding period i.e. 3 years * 12 = 36 r…
Q: Assume you make a single deposit of $1000 into a savings account that pays interest at 0.5% per…
A: Monthly compound interest relates to the compounding of interest on a monthly basis, which indicates…
Q: amount due
A: Formula to calculate amount due is: A = P(1+rt) Where A is the accrued amount, P is the principal…
Q: You borrow $10,000 at 8% for 4 years. The loan is repayable in four equal instalments at year end.…
A: Yearly installment will be calculated by amount of borrowing divided by present value factor of $1…
Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…
A: GIVEN, PRESENT VALUE=$1000 future value=$1276.30 n=5
Q: You borrow $5000 now and agree to pay this whole amount back in three payments: Payment 1. $X in 3…
A: Amount borrowed (B) = $5000 P1 = X in 3 months P2 = 2X in 7 months P3 = 2X in 12 months
Q: If money is worth 9% compounded quarterly, find the amount of an annuity of P2,000 payable every 3…
A: Quarterly payment (Q) = P 2000 r = 9% per annum = 2.25% per quarter n = 10 years = 40 payments We…
Q: If P dollars is borrowed at a rate or r per year to be paid back in t years, the monthly payment…
A: The amount borrowed as a loan needs to be repaid back to the lender along with the interest.…
Q: A car is purchased for $6,738.81 with $2,000 down and a loan to be repaid at $100 a month for 4…
A: The balloon payment is the payment of the leftover principal amount.
Q: You are offered payments of P1500.00 att he end of each quarter for 6 years. You feel that the cost…
A: The present value of future and periodic cash flows is the value of these cash flows at the present…
Q: A payment of $14,455 is due in 2 year, $18,000 is due in 4 years, and $8,450 is due in 7 years. What…
A: The question is based on the concept to calculate present value of expected future cash flows at…
Q: If you were to borrow $9,400 over five years at 0.10 compounded monthly, what would be your monthly…
A: Given data, Monthly rate=0.1012No of periods=5 years×12=60 months
Q: Find the present value of 20 bimonthly payments of P1,700 each if the first payment is done at 1…
A: Money has a time value. That is, the purchasing power of money changes over time. Annuity can be…
Q: Find the size of monthly payment for 2 years on P85,000 if money is worth 12% compounded monthly and…
A: N = 2 years or 24 months Loan = 85000 Nominal Rate = 12% Compounded Monthly Number of compounding…
Q: A student will receive P 3,000 at the beginning of each 3 months for 4years. What is the sum of the…
A: Quarterly payment (P) = P 3,000 Period of payment = 4 Years Number of payments (n) = 4*4 = 16 Annual…
Q: What is the present value of a perpetuity of P15,000 payable every end of 3 months if money is worth…
A: The current value of the future amount after considering the discounting factor is considered as the…
Q: If P 1,000 is saved for a year at a rate of 10% interest compounded quarterly, calculate the…
A: The interest on a mortgage or bank that is calculated based on both the initial principle and the…
Q: present value of the investment if the rate of interest is 12% compounded semi-annually?
A: A deferred annuity is a term that is used to refer to the present value of the series of periodic…
Q: You borrow $5000 now and agree to pay this whole amount back in three payments: Payment 1. SX in 3…
A: The value of a certain amount of money at the current time will not be the same as the value of the…
Q: You borrow $3,000 at an annual effective discount rate of 6% for two years. How much extra money do…
A: Time value of money(TVM) means the amount of money received in the present period will have more…
Q: If you borrow $1,000 and pay back $1,728 in three years, what annual rate of interest are you…
A: Annual Percentage rate (APR) is the percentage rate that shows the interest calculates on the…
Q: A student will receive P3,000 at the beginning of each 3 months for 4 years. What is the sum of this…
A: Future of Annuity Due = Annuity * [ { ( 1 + Quarterly rate )Number of quarters - 1 } / Quarterly…
If money is worth 3 ½% compounded monthly, find the compound discount if 12,200 is discounted for 2 years and 11 months
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- if the money is worth 6% compounded semi-annually, find the present value and the amount of annuity whose annual rent is $600, which is payable semi-annually for 15.5 years.If you were to borrow $9,400 over five years at 0.10 compounded monthly, what would be your monthlypayment?If you were to lend Rs. 1,700,000 for 1 year, 2 years, 3 years, 4years and 5 years and charged 12%. Calculate your return in eachyear?
- Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is 10% converted monthly. How much of the 47th payment goes to pay the interest? How much of the 47th payment goes to pay the principal?How much should be deposited into an account to set up an annuitv that will provide equal payments of $100per month over the next 4 years? The annuity will earn 4.8%/a compounded monthly.What is the future value of $1,100 placed in a savings account for 4 years if the account pays 7% compounded quarterly?
- You have been offered a 7-year annunity of $2,000 beginning four years from now. If the discount rate is 8%, what is the value of the annuity todayFind the NPV and PI of an annuity that pays $500 per year for eight years and costs $2,500. Assume a discount rate of 6%. Show the calculations.What iS the fair market price today for an annuity that pays you $350 at the beginning of each month for 3 years and an additional amount of $1,000 at the end of the 3 years? The rate of return is 7.5% compounded monthly.
- Find the present values of these ordinary annuities. Discounting occurs once a year. $400 per year for 5 years at 0% Rework Part a. b, and c assuming they are annuities due.Assume that you want to have $ 2900 saved in a sinking fund in 1 year. The account pays 5% compounded monthly. What should be your monthly payments? Monthly Payment =Calculate the future value after 3 years if $1,000 is deposited at 1.2% interest compounded monthly.