Lia wishes to have $3000 after 3 years in an account that draws 6% nominal interest compounded monthly. How much must he deposit each month, starting in 1 month?

Q: An individual makes six annual deposits of $2,000 in a savings account that pays interest  at a…

A: Given  To solve the given problem, we need a cash flow diagram. There are six annual deposits of…

Q: Find the nominal rate compounded monthly which is equivalent 12% compounded quarterly. write your…

A: The Effective Interest Rate is utilized to work out the effective annual interest rate in view of…

Q: Explain the true effect of more frequent compounding on annual interest amounts?

A: With more frequent compounding, the returns are higher. With the increase in compounding periods,…

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Given: The interest rate is = 11% compounded quarterly The amount at 4th quarter is = $1,200 The…

Q: The price of a Universal Testing Machine doubles in  15 years. What is the compounded yearly…

A: The future value formula is given as:  F = P(1+R)n Where P : present valueF : future valueR : Rate…

Q: 43. Find the equivalent rate of interest of 9% compounded quarterly to an interest rate compounded…

A: Given interest rate = 9 % compounded quarterly Effective annual rate = (1 + rate)^time - 1 = (1 +…

Q: Would you rather have $1,000 today or $1,250 in 3 years at a 8% annual interest rate compounded…

A: Future value can be calculated by using the following formula.

Q: If you want to buy a car in two years that cost $20,000.00, how much should put away every month if…

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

Q: The price of a Universal Testing Machine doubles in 15 years. What is the compounded yearly interest…

A: Given that,    Principal (P): $1000(let assumed) Total P+I (A): $2,000(let assumed) Time (t in…

Q: Tamara Massey received $1,500,000 from an insurance company after her husband's death. She wants to…

A: Interest rate per month can be calculated as follows: Thus, the interest rate is 0.67%

Q: A bank saving account offers 4% compounded on a quarterly basis. A customer deposit $200, in this…

A: Since the bank offers 4% compounded on a quarterly basis, the interest rate is 1% per quarter. The…

Q: You borrow $700,000 at 3% interest for 30 years on a mortgage.  How much total will you pay back on…

A: Compound interest is also referred to as "interest that is not simple." Compound interest does not…

Q: Philip borrows P30,000 with interest at 7.5% compounded quarterly. He agrees to pay P600 at the end…

A: Amount Borrow = 30,000 r = 7.5% compound quarterly PMT = 600 at each quarter

Q: account today that earns 5.5% interest compounded monthly if you want to have $1500 saved in 2 years

A:

Q: How many years will it take an investment to triple if the interest rate is 8%compounded?

A: The rule of 115 can be used to calculate the number of years that take an investment to triple.

Q: Michelle Hunter received $250,000 from an insurance company after her hus- band's death. Michelle…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: 2. Which of these gives the highest effective rate of interest? 16.35% compounded twice every month…

A: An effective interest rate is defined as an interest rate, which is applied on loan or financial…

Q: a) What is the future value of a series of payments of $6,000 each, at the end of 8 years, at 6%…

A: Ordinary annuity is the equal series of payment is made at constant interval at the end of each…

Q: Tom Evers an attorney is planning for retirement. He earns $126,000 a year and estimates that he…

A: Given,  Tom earns $126,000 and estimates that he will need 80% of his salary for retirement in 10…

Q: . What is the current value of a $50 payment to be made at the beginning of each year, for three…

A: In economics, present value refers to the current value of a future stream of cash flow. The future…

Q: You are borrowing $500,000 to buy a house. The interest rate is 4% compounded monthly.  What is…

A: The per month payment is calculated by the following formula: PV=PMTi1-11+in where, PV= Amount of…

Q: You are going to borrow $30,000 to purchase a car.  You agree to repay the loan in 36 monthly…

A: The nominal interest rate is the rate of interest charged on the loan amount. It is the sum total of…

Q: To have a total of $10,000 after 8 years, what principal do you have to deposit in a 4.5 percent…

A:

Q: You borrow $6,000 for 90 days at 6.5% interest. The lender uses a 365-day year. You make a payment…

A: Simple interest refers to the borrowing cost of money without consideration for the effects of…

Q: You will deposit 11,678 at 10% compound interest for 9 years, and then move the amount you would…

A: here we calculate the amount or money would at the end of the entire period by using the given…

Q: How many quarters will it take to triple an initial investment at an interest rate of 14% compounded…

A: The interest rate is the amount a lender charges a borrower and is a percentage of the…

Q: 1. You borrowed $100,000, agreeing to pay the balance in 10 equal annual installments at 8% annual…

A:

Q: Suppose you borrow $5,000 at 7.25% interest for 14 months.  What is the maturity value?

A: Simple interest is one of the easiest method to compute the amount to be received at the end of…

Q: If you want to withdraw $10,000 at the the end of two years and $35,000 at the end of four years,…

A: At the end of two years, the cash flow is $10,000 and at the end of four years, the cash flow is…

Q: mon is planning to retire in 20 years. He wishes to deposit a regular amount every six months until…

A: Retirement in 20 years After Retirement = 80,000 for 10 years r = 8%

Q: In how many years will a sum of money triple itself at 12% compounded annually?

A: Compound interest refers to the application of the interest rate at the end of each interest period…

Q: HOW SOLUTIONS AND WRITE NEATLY THE FORMULA COMPOUND INTEREST Find the effective rate corresponding…

A: rate = 5.59% compound quarterly Quarterly (m) = 4

Q: ou want $12,000 in your IRA in 6 years. Assuming you get 8% compounded quarterly, how much will you…

A: The future value in the individual retirement account should be $12000 Interest rate =8% compounded…

Q: At 7% annual interest compounded monthly, how long will it take your P96529 to double? Round your…

A: Present value (PV) = 96529 Future value (FV) = 96529x2 = 193058 Annual interest rate compounding…

Q: What is the accumulated value of a $25 payment to be made at the beginning of each of the next three…

A: PMT = 25 n = 3 r = 9%