Jones plans to deposit $500 at the end of each month for 10 years at 12% annual interest, compounded monthly. The amount that will be available in 2 years is closest to:

Q: Bill Mitselfik borrowed ​$16,000 to be repaid in quarterly installments over the next five years.…

A: Present value refers to the value of cash receipts of payments (PMTs) in future expressed as it to…

Q: Regular payments of $2000 are made at the end of each compounding period. The account earns a rate…

A: The future value of an investment is the returns received by an individual at the given interest…

Q: Determine the present worth of the following cash flows if the interest rate is 4% per year: 2 Year…

A: The present value of a cash is the amount of money that would need to be invested today in order to…

Q: A housewife bought a brand new washing machine costing Php 15,000 if paid in cash. However, she can…

A: The formula for the Present Value Factor (PV factor):PV factor = (1 / (1 + interest rate)) ^ number…

Q: What is the effective annual interest rate for 10% compounded (a) semi- annually, (b) every four…

A: The effective rate of interest is the return on a savings account or an investment, whose interest…

Q: Joshua's family that claimed a 1,000,000 peso prize on a Christmas party raffle decided to put…

A: Compound interest occurs when the interest earned on the principal of an investment (or loan) is…

Q: Covido deposits $750 in a savings account at the beginning of each year, starting now, for the next…

A: Solving questions with the help of formula

Q: A bond with a face value of $10,000 pays interest of 7% per year. This bond will be redeemed at its…

A: Formula used- Pv = fv(p/f,i,n) + coupoon payment(p/a,i,n)

Q: A system costs $3 million to install year 0 and a quarterly operation cost of $200,000 for quarter 1…

A: Calculating the present value of the costs and using an annuity formula to determine the…

Q: You plan to deposit $100 per week into a fund that pays interest of 6% per year, compounded…

A: The rate of return on cash deposits paid by a bank or financial institution is referred to as the…

Q: How much money will be in an account in 5 years if $20,000 is deposited now at an interest rate of…

A: Given  Principal = 20,000  Interest rate = 1.5% per month compounded yearly therefore  Interest rate…

Q: How much would your parents have to deposit each month into an account that grows at a rate of 10%…

A: Interest rate  = 10% compounded annuallyNumber of year =  3 Final amount expected = 90,000

Q: 4. An effective 12.68% per year, compounded monthly, is the closest to: B) 12% per year, A) 12% per…

A: The effective interest rate is simply the interest rate charged yearly or compounded monthly. It is…

Q: Ronny borrowed a sum of $5,000 from his uncle Dennis and after three years paid a sum of $5,000 and…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Determine the number of times interest is compounded in a year for an interest rate of 1% per…

A: When talking about frequency of compounding, it can be said that it is the number of periods,…

Q: What effective interest rate per quarter is equivalent to 10% per year compounded monthly

A: Meaning of Effective Interest Rate: The term effective interest rate is the payback…

Q: 2. For the rates a through d below, what are the effective annual rates? For e, what is the…

A: The interest rate that accounts for compounding over a specific time period is called the Effective…

Q: Calculate the amount of simple interest and the amount for: a)$40,000 at 36% per year in 3 years and…

A: To calculate the Simple interest we need to solve for separate time periods . We need to solve for…

Q: nd the present worth of a perpetuity of 13,000 payable every 3 months if money is worth 12%…

A: Given that, Periodic payment = 13,000 Money worth 12% compounded monthly. Periodic rate = 12% or…

Q: A new oven wil save $150 per year in electricity expense How much can we afford to pay for this oven…

A: Here the $150  expense is saved by oven each year and oven life is 12 years . It is equivalent as…

Q: Peter has decided to make a deposit of $500 each quarter (starting next quarter) for 5 years. If the…

A: In the future value calculation there are several variables that will be considered such as present…

Q: don't use excel only formula used.   For an interest rate of 8% per year compounded quarterly,…

A: The objective of the question is to determine the number of times interest would be compounded in…

Q: For an interest rate of 12% per year compounded continuously, find the effective interest rate…

A: Given that,  Interest rate(i ) = 12% or 0.12

Q: Determine the present value of a perpetuity of Php719.64 payable every 6 months if the money is…

A: Given perpetuity  for 6 months = 719.64 Php Interest rate = 8 % compounded semi-annually Semi annual…

Q: which will be paid after 10 years at an interest rate of 12% compou

A: Interest rate = 12% compounded annually Debt after 10 years = 300,000 * (1 + 0.12)^10 = 931,754.5…

Q: For an APR of 11.00% per year, if the interest is compounded weekly determine the nominal rate per…

A: The Annual Percentage Rate (APR) is the annual rate charged for borrowing or earned through an…

Q: Calculate the effective annual interest rate for each of the following cases: (a) 12% per year…

A: The effective annual rate of interest is the genuine/real return for an investment account or any…

Q: Maintenance costs for a particular production machine increase by $1,000/year over the 5-year life…

A: Given,   Rise in maintenance cost = $1000/year  Time = 5 year  Initial maintenance cost = $3,000…

Q: Samson entered into an agreement with "Lovey A & Handsome B Bank" whereby the former shall pay the…

A: Given that Samson shall pay "Lovey A & Handsome B Bank" double the amount after n years. This…

Q: Consider the following schedule of cash flows. If interest is 4% per year, compounded continuously,…

A: here we calculate the equivalent value of the cashflow by using the given cashflow so calculation as…

Q: A bank quotes an interest rate of 4.5% per annum with quarterly (four times a year) compounding.…

A: a. The rate of continous compounding    = 4In1+0.0454   =0.045

Q: A recent government study reported that a college degree is worth an extra Php 35680 per quarter…

A: A series of cash flows future value will be computed as sum of the future value for the individual…

Q: An award is being established, and it will pay $9,200 every four years, with the first installment…

A: Perpetuity:In financial economics, when trying to establish the present worth of a given cash flow…

Q: What is the Present Worth of $2,000 costs in year one, increasing by $500 per year for years 2 thru…

A: Cost in year 1 = 2,000 Increase by 500 each year time period 6 Years

Q: If $150 is deposited in a savings account at the beginning of each year for 11 years and the account…

A: In this question we have to find out the value of the account at the end of 11 years with the help…

Q: Payment of $883 due 2 months ago and $435 due today are to be repaid by a payment of $400 one month…

A: Here, Future value = Present value (1+r)t here, t =monthly interest = 6%/12 = 0.5% = 0.005

Q: u plan to deposit $100 per week into a fund that pays interest of 6% per year, compounded quarterly.…

A: Given data: plan to deposit 100 dollar per week Interest rate is 6% per year Then the Interest…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: Answer: To find the present value (PV) of the given cash flow series, we need to break down the…

Q: Joseph Ray just received an inheritance of $50,000 from his great aunt. He plans to invest the funds…

A: The concept of Interest is the cost of taking money or the return on investment for money lending.…

Q: How long does it take an investment to quadruple at 5% with m = 7 compoundings per year?

A: Compound interest formula: A=P(1+rn)nt Investment to quadruple: A = 4P4P = P…