What is the present equivalent of a uniform series of quarterly payments of $4,500 each for 8 years and a quarterly payments $2,000 of the next 10 years if the interest rate is 8% compounded bimonthly? Draw the cash flow diagram.

Q: The monthly rent on an apartment is $950 per month payable at the beginning of each month. If the…

A: Interest rate: i=0.1212=0.01

Q: An investment company is going to place $300,000 into an annuity. Then, it is going to add $25,000 a…

A: An investment is the responsibility of money or capital to something with the expectation of profit…

Q: You deposit $10,000 in a fund that pays compound annual interest equal to 3%. One year later the…

A: The nominal rate of interest which depicts the time value of money can be any declared interest…

Q: If I loaned 167,569 today and promised to pay it back after 5 years to the bank with monthly…

A:

Q: Grandma wants to give you $420 at the beginning of each month while you are at school for 3 years.…

A: Periodic Payment (PMT) = $420 Time period = 3 years or 36 months n = 36 Interest rate = 4.8%…

Q: Find the present worth of a future payment of 100,000 to be made in 10 years with an interest of 12%…

A: To solve above question we firstly simplify the interest rates as per their compounding periods by…

Q: What is the amount of 10 equal annual deposits that can provide five annualwithdrawals, when a first…

A:

Q: You deposit $5000 each year into an account earning 8% interest compounded annually. How much will…

A: Uniform annual deposit (A) = $5000The interest rate on the deposits is 8% compounded annually. So i=…

Q: -What is the present worth of two 500 payments at the end of the fourth year and fifth year, if the…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: A student obtains a loan to pay one year of college tuition, which costs $18,000 with 6% which he…

A: Given, Cost- $18000 ROI- 6%

Q: How long your money would double its amount if you invested at 5%compounded annually?

A: By the using rule of 72  Rule of 72 Doubling times =72Interest rate

Q: If P5,000 is invested for 10 years with an interest rate of 8%, compounded quarterly, what will the…

A:

Q: Jake Werkheiser decides to invest $5000 in an IRA at the end of each year for the next 11 years. If…

A: We have the following information, Jake Werkheiser decides to invest $5000 Time period, n = 11…

Q: If $500 were deposited in a bank savings account, how much would be in the account 3 years from now…

A: Compound interest is calculated on the principal amount as well as the accrued interest.

Q: Money deposited in a certain account for which the interest is compounded continuously. If the…

A: Compound interest means the interest is generating in the previous interest also.    Formula to find…

Q: after 5 years if the account earns 8.0% interest compounded annually? Be sure to include a cash flow…

A: Cash Flow (CF) is the increase or decrease in the amount of money a business, institution, or…

Q: Solve the problem. The average cost of a 4-year college education is projected to be $120,000 in 17…

A: Future Value (FV) = $120,000Annual Interest Rate (r) = 9% or 0.09Compounding Frequency (n) = 4 times…

Q: Suppose you have a vehicle, the 1st year maintenance cost is estimated to be $100. The rate of…

A: the value in the presence of a sum of money, in contrast to some future value it will have when it…

Q: A department store has offered you a credit card that charges interest at 1.53% per month,…

A: Nominal interest rate and the effective annual rate are calculated as follows:-

Q: John borrows $10,000 at 18% compounded annually. He pays off the loan over a 5-year period with…

A: The loan amount is $10,000, the interest rate is 18%, and the time period is 5 year. Let us consider…

Q: Find the present value of deferred annuity of P 900 every 3 months for 5 years that is deferred 3…

A: Given Information A = 900i = 10% compounded Quarterly = 10/4 = 2.5% or 0.025n = 5*4 = 20 Deferred…

Q: DRAW CASH FLOW DIAGRAM Suppose that P 4500 is deposited each year into a bank account that pays 8%…

A: A series of money paid at regular intervals is known as an annuity. Monthly savings account…

Q: At 8% annual interest compounded monthly, how long will it take to become a millionaire if you…

A: The annual interest rate is 8%, compounded monthly The amount invested is $150,000 We have to find…

Q: oney is worth 14% compounded quarterly

A: Given : Amount deposited each year=10000 Duration=9 years  Rate of interest=14% or 14/4=3.5%

Q: Find the interest on the loan if Tim borrows $10,000 for years at a simple interest of 10%.

A: The investors as well as consumers borrow or take loans funds from banks for investment or for…

Q: Suppose that $100 is invested for five years at an interest rate of 8% per year, compounded…

A: Given: Amount=$100 Interest rate=8% Number of years=5 To find: Amount at end of 5 years

Q: To find the balance in the account at the end of the calendar year, we calculate the effective…

A: The cash Flow Diagram is given below

Q: Does the compounding increases the amount of interest paid over a year atthe same nominal interest…

A: The interest rate is the income earned by the investment in the economy. When the money is invested…

Q: What is the interest rate that would make $10,000 received in the first year equivalent to $3,500…

A: The objective of this question is to find the interest rate that would make a lump sum of $10,000…

Q: You invest 10,000 pesos for 3 years and get 10% interest compounded at the end of each year. What is…

A: We use the compound interest formula to calculate future value after 10 years.

Q: A series of equal semi-annual payments of $2900 for 3 years is equivalent to what present amount at…

A: Compound interest is computed on both the initial amount of money and the interest that has been…

Q: You buy a car for $27000. You get a loan at 7% interest compounded yearly. You will have 60 equal…

A: total interest refers as the total simple interest on a principal amount at a particular rate of…

Q: What is the nominal value of the interest compounded continuously for a period of 3 years if the…

A:

Q: If  $10,000 per quarter is invested in an account that earns a nominal annual interest rate of 12​%…

A: Amount invested = $10,000 Interest rate= 12% Timer period = 4 years

Q: What equal amount (Q) must be deposited at the beginning of each year for the next 5 year s in a…

A: The financial product paying out a fixed payment stream to individuals being used as a stream of…

Q: Find the amount accumulated FV in the given annuity account. HINT [See Quick Example 1 and Example…

A: The future value(FV) of $12000  that is deposited in annuity account at time 0 and if this amount…

Q: How much money would you need to deposit today at 6.36% annual interest compounded monthly to have…

A: Since the annual interest rate is 6.36%,Monthly interest rate (i) The number of months in 8 years…

Q: Suppose you borrow $3,000 at 6.75% interest for 8 months.  What is the maturity value?

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