Please help me answer the following time value of money question. Michael makes a $500 investment.  At the end of 5 years, he has 700. Assuming that the interest is compounded monthly, what is the interest rate earned on his investment?

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A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: how much must brix save in his account at the end of each month in order to have 125,000.00 at the…

A: Monthly Compounding Interest Rate = 5.88%/12 = 0.49% per month Time Period = 5 years × 12 = 60…

Q: Alex invested a certain amount to a business and promised to pay him back with 2.47 times his…

A:

Q: Determine the size of your investment account 30years from now (when you plan to retire) if you…

A: Future value of annuity , FV= P * ( (1+r)^t -1) /rwhere P =$12,000r=0.10t=30 yearsFV =?

Q: Mr. Abdullah borrows $80,000 at 14 percent interest toward the purchase of a home. His mortgage is…

A: Given: Interest rate = 14% Loan = $80,000 Years = 25

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A: In this we need to calculate present value factor monthly to get the interest rate.

Q: Mr. Ramos savings allow her to withdraw 50,000 semi-annually for 11 years starting at the end of 5…

A: Solution Concept This is the problem related to time value of money Present value is calculated by…

Q: Susan plans to make an investment today which promises to return to her $3,000 each year for ten…

A: Using excel PV function

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Q: William got a loan for 25,000 dlls to be payable in 19 years with interest rate of 1.7 percent per…

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Q: eposit $220 at the beginning of each of the 15 years, using interest at 7% per year, how much he…

A: Given information :

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Q: Beginning one year from today, Larry will begin investing $3,000 at the end of each year for five…

A: Introduction: Interest amount: Amount charged on principle value called as interest amount. Interest…

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A: Future value = $ 100,000 Period = 4 Years Period in quarters = 4*4 = 16 Annual interest rate = 8%…

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Q: Hank made payments of ​$205 per month at the end of each month for 30 years to purchase a piece of…

A: Annuity means a series of finite number of payments which are the same in size and made in equal…

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A: Time value of money concept says that a dollar amount invested today will have more value in future…

Q: Smith invests usd 10.000 in an account that pays interest. After the first year he receives 4.200…

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