What is the principal amount that will earn interest of RO 18.20 at 3.25% in 2 years? a. RO 200 b. RO 280 c. RO 240 d. RO 320

Q: What will be the equivalent future amount after 5 years of a sum of $1500 with compound interest…

A: Compounding is the technique to compute future value of present amount by using CVF or appropriate…

Q: 3.20 Calculate the future worth (in year 11) of the following income and expenses, if the interest…

A: Year Time to Year 11 Cash Flow = Income - Expense 0 11 9000 1 10 600 2 9 600 3 8 600 4 7…

Q: $250 $200 $150 $100 1 2 4 $50 SENELER A A A A A A 4 5. 5. 3. 3.

A: given, r=10% year cashflow 0 -50 1 0 2 100 3 150 4 200 5 250

Q: What is the future equivalent at EOY 8 of $5,000 annual payments made at the beginning of each year…

A: N = 8 years Annual Payment (PMT) = 5000 Beginning of year payments Rate (r) = 7%

Q: ncipal, Nominal (P) Interest Conversion Interest Time in Total Compo rate, (r) compounded period per…

A: In compound interest as number of compounding increases than effective rate tend to increase.

Q: 49) Find the interest on P5000 at 7% for 3 years. C. P2,142.86 D. P1,050 A. P11,666.67 В. Р10,500…

A: 49) Principal (P) = P 5000 r = 7% n = 3 years

Q: What will be the accumulated amount in an investment account

A: As per the concept of the Time value of money, today’s money value has more valuable than tomorrow.…

Q: 6. Find the value of P. 5,000 Years 2 3 4 į=12% compounded тonthly i=9% compounded monthly *P=?

A: Calculation of Principal amount is shown below:

Q: If you have $586 today and you think you can earn an interest rate of 6% per year, how many years…

A: To calculate the number of years it would take for your initial amount of $586 to grow to $982 with…

Q: 4. How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum…

A: Simple interest is interest computed on principal amount only not on interest accrued or accumulated…

Q: 006's 7,075 6% 0.943 0.890 0.840 0.792 10% 0.909 0.826 0.751 0.683 12% 0.893 0.797 0.712 0.636

A: Amount received = $25,000 Interest rate = 10% Time period = 4 Years

Q: What is the future value of $11,000 invested for one year at an interest rate of 6% p.a.? a. $17000…

A: given  interest rate = 6% PV = 11000

Q: 6. Determine the simple interest earned when $450 is Deposited for 4 years and earns 6.5% per year

A: Interest is earned on the money lent to the borrower. The lender charges interest from the borrower.…

Q: What will be the future value of $5 000 invested for six years at 8% per annum compounded annually?

A: Information Provided: Principal value = $5000 Interest rate = 8% compounded annually Years = 6

Q: If you invest $40,000 at 4% interest compounded annualy, approximately how much money will be in the…

A: PV=$40,000r=0.04n=6FV=?

Q: What is the future value of $11,000 invested for one year at an interest rate of 6% p.a.? a. $17000…

A: Given, PV = 11000 Rate = 6%

Q: What amount of money will mature to $63,750 in 3 years and 8 months at the interest rate of 6.75%…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: What is the future value of $2,000 invested at the beginning of each year for six years at 4%? a.…

A: The future worth of the investment is the amount which will be receiving in the following years that…

Q: Calculate the simple interest earned on an investment of: $2 000 at 4% per annum for three years…

A: Here, Investment Amount (P) is $2,000 Time Period (T) is 3 years Rate (R) is 4%

Q: 5. What amount should be invested now at 6% per year, compounded annually, to generate a retirement…

A: Present value will be the maximum amount that can be saved or invested now to generate a steady…

Q: What would the future value of $125 be after 8 years at 8.5% compound interest? a. $205.83 b.…

A: To caculate the future value we will use the below formula   Future value = P*(1+r)n Where P -…

Q: Find the simple interest on a $1700 investment made for 2 years at an interest rate of 6% / year…

A: Simple interest is a simple method of calculating interest on principal for a specified period of…

Q: A6) Finance If $150 is placed in an account that earns a nominal annual interest rate of 6 percent,…

A: To calculate the future value we will use the below formula   Future value = P*[1+(r/m)]t*m Where P…

Q: What is the balance in an investment account at the end of 5 years if $3,000 is deposited today and…

A: To calculate the future value of an investment with the formula to be engaged…

Q: What is the value of Po?

A: Annuity is referred to a cash payment being made at regular intervals. It is a widely used concept…

Q: FIND THE SIMPLE INTEREST AND AMOUNT IN EACH OF THE FOLLOWING: A. P = P2.600 R = 12% T = 3 YEARS B. P…

A: Simple interest is the interest earned on the account over time on the principal deposited. The…

Q: 8. What is the equivalent worth in year 5 of the following series of income and disbursements, if…

A: Equivalent worth is the value based on the time value of money which is equivalent to all expenses…

Q: How long will it take $1387.00 to accumulate to $1627.00 at 6% p.a compounded semi-annually? Sute…

A: Compounding is a technique through which FV of present amount is calculated by using appropriate…

Q: 8. What annuity is required over 12 years to equate with a future amount of 20,000? Assume i = 6% A.…

A: The time value of money is one of the core principles used in finance. It states that the sum of…

Q: What is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate…

A: The objective of this question is to calculate the present value of a future sum of money. In this…

Q: years and nine mo pounded quarterly

A: Answer : Future value = $26,500 Interest rate = 11% Time = 2  years 9 month = 2.75 Years  Compounded…

Q: Principal of 2500 OMR is invested for 3 years at rate 6.5%. Find the future value if the interest is…

A: As per time value of money concept, a sum of amount invested today will have more future value in…

Q: O O O O What is 6% loan back in f installme A. P3 O B. P7 C. P2 D. P3

A: The given problem can be solved using PMT function in excel. PMT function computes amortization…

Q: P= $140 R= 3% T= 2 Year Find the simple interest owed for the use of the money. Assume 360 days in a…

A: P = $140 R = 3% T = 2 Year

Q: What is the future value of $14,000 invested for one year at an interest rate of 5% p.a.?

A: Future value (FV) is the technique to calculate the future value of a current investment at some…

Q: What is the rate of interest if P40000 earned interest of P1200 in 140 days? (А) 2% (в) 7.82% c)…

A: Principal amount = P40000 Interest amount = P1200 Period = 140 days = 140/365 = 0.383561643835616

Q: What amount was invested at 3% if it earned an interest of P2,300 in 2 years and 3 months? A)…

A: Simple Interest, SI = P2,300 Rate, R= 3%  Time, T = 2 years 3 months = 2 years and 0.25 years = 2.25…

Q: How long (in years) will it take to quadruple it earns 7% compounded semiannually A.33.15 B.26.30…

A: The number of years it takes for amount to quadruple can be solved by applying logarithmic function…

Q: Q1 Simple Interest on a certain sum of money at 10 % per annum for 3 years is Rs. 930. Find the…

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

Q: Match the correct answer for the following questions v The present worth of $400 in year 1 and…

A: 1) First year amount (A1) = $400 Increase of $30 every year till year 5 r = 12%

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.