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- Kathy buys a tv set fir 12,500 cash after 60 days. Kathy wishes to pay immediately and the seller needs to compute the cash price on the assumption that money is worth 8% simple interest. What is the cash price today?Which of the following is different? A. present value B. accumulated amount C. Future Value D. Maturity ValueDefine interest rate.
- What type of interest is the capital invested in a transaction is principal and at any time after the investment of the principal, the sum of the principal and the interest due is future amount?See the attached and help me determineA person deposits $1,000 in an account each year for five years (starting at the end of year one). At the end of the fifth year, one-half of the account balance is withdrawn; $2,000 is deposited annually for five more years (starting in the 6th year), with the total balance withdrawn at the end of the fifteenth year. There are no additional payments in years 11-15. a. Choose the correct cash flow diagram. b. If the account earns interest at the rate of 7% per year, how much is withdrawn at the end of five years? c. If the account continues to earn interest at the rate of 7% per year, how much is withdrawn at the end of 15 years? Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. a. Choose the correct cash flow diagram below. O A. O C. F5/2 1 2 3 4 5 ' 1K 1K 1K 1K 1K 2K 2K 2K 2K 2K 6 7 8 9 10 11 12 13 14 15 F6/2 2 3 4 56 . 1K 1K 1K 1K 1K F15 2K 2K 2K 2K 2K F15 7 8 9 10 11 12 13 14 15 Q C O B. O D. F5/5 2 3 4 5 1K 1K 1K 1K 1K 1 1K 1K 1K…
- Subject - advanced math Frank's loan pay off is to be made in two installments: $2500 in a year, and $3500 in 3 ½year. After talking to his loan officer, it was decided that he could pay both installments in 20months. How much would he pay if his loan is processed at 7 ¼ simple interest. Draw a timelineto illustrate your solution.It refers to the professed interest rate. a Nominal b Effective c Ordinal d Actual6. The buyer of a set of computer was offered the options of paying P 35,000.00 cash or P 40,000.00 at the end of 2 months. If the buyer agrees to pay at the end of two months, at what rate is he paying simple interest?
- 14. When you complete your MBA, you will treat yourself to a new car. The car you want to buy costs $25,000 and you have enough to put 20% down in cash. You can take out a loan for the rest of the cost of the car. Calculate your monthly car payments assuming the auto finance department states that the annual interest rate on the car loan is 8% and you pay the loan over a 3-year period.Please help me correct a. Thankspresent worth method. purchase or rent