What is the real interest rate on your savings account?

Q: How can we calculate an Effective Interest Rate Based on a Payment Period?

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: What is the amount of the required annual deposit?

A: Here we have been give the following information              Funds required at the end of January…

Q: what is the difference between annuity and annuity due?

A: An annuity is a series of cash flows wherein an equal amount is paid every period which can be…

Q: How compound interest related to time value of money?

A: Compound Interest is the interest calculated on the principal that also includes the interest amount…

Q: What is an annuity?

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: What is an annuity? How does it differ from a lump sum payment?

A: Annuity:An annuity refers to a series of payments made at regular time intervals. These are…

Q: what is an annuity? Provide an example

A: Annuity is an important concept in finance especially in the context of time value of money. Annuity…

Q: What is the net present value of an annuity?

A: Net present value is defined as the temporal variation in the present value of cash inflows and…

Q: What is interest rate?

A: Answer: At a particular situation, an interest rate determines how much money a borrower promises to…

Q: How long-term deposit accounts benefit borrowers

A: A deposit account is an account that is held by the customers of a bank and financial institutions…

Q: what is the best thing to consider in solving general ordinary annuity?

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

Q: What is ordinary annuity?

A: Ordinary annuity: An ordinary annuity is a sequence of equivalent payments made at last of…

Q: Benefits of a savings account for borrowers ?

A: The saving account refers to the type of account in a bank that provides the facility to deposit the…

Q: what is the value of annuity?

A: Time value of money means that the amount of money received in the present period will have more…

Q: How the interest rate affects the release of credit card

A: Given,

Q: What’s the difference between an ordinary annuity and an annuity due?

A: Annuity is the fixed sum paid on annual basis. In other words, annuity is the series of payment…

Q: What does the annuity factor indicate?

A: Annuity factor It indicates the discounted factor’s sum for all the n maturities when all n…

Q: What is meant by annuity? What are the types of annuity? How does it differ from perpetuity?

A: Annuity is a series of regular payments that are made periodically at the end of the year or…

Q: When is it recommended to compute the effective interest rate per payment period?

A: When there is a compounding of interest, then the EIR per payment period is recommended. As it is a…

Q: What is Interest Risk and Cash Flow Risk?  What is the difference between Interest Risk and Cash…

A: Risk exists in all business operations and transactions however the business should take actions to…

Q: What is an annuity? How is it defined? What is the difference between an ordinary annuity and an…

A: Annuity is defined as payments that are made at intervals. Monthly payments of insurance, amount…

Q: What is an annuity and how do you calculate the future value of an ordinary annuity and an annuity…

A: Annuity due would be considered as payment made in a series or lumpsum at the end of the period and…

Q: Explain the Present Value of an Annuity?

A: The present worth of the regular payment or the annuity that is received or paid in the future is…

Q: What do you think about the interest rate i for

A: A recession refers to the time period which is affected by a temporary economic decline during which…

Q: It is the difference between the present value and the worth of money at some time in the future.

A: Money has the power to earnt interest. A sum of money that you put in your bank's savings account…

Q: What does the Times Interest Earn ratio state? Provide an example

A: Times interest earned ratio tells about the ability of the company to pay it's obligations which is…

Q: What is future value interest factor for an annuity?

A: The concept that helps to evaluate the future or present value of the cash flow is term as the time…

Q: What is the Rate of Interest?

A: Given  P= 10000 A=5000 n=1year r=?

Q: How does the present value of a future payment change as the time to receipt islengthened? As the…

A: Present Value of a future payment is calculated  based on the length of time and the interest rate…

Q: What are the essential differences among demand deposits, savings deposits, and time deposits?

A: Deposits refers to the sum of money that are deposited with banks or any financial institution.…

Q: What is the difference between an ordinary annuity and an annuity due?

A: Annuity is the regular series of deposit of money. It is paid in regular intervals by a person to a…

Q: How Do We Manage our Credit Card Debt?

A: There are many ways to manage the credit card debt. Some of them are below: Pay more than the…

Q: What is personal finance?

A: Personal finance is all about managing savings, investments, expenditure, and taxes. It is about…

Q: ctive interest rate

A: The objective is to find the name of the interest that is defined as the interest paid on the…

Q: payments. What is her effective rate of interest?

A:

Q: How much is the VAT Payable?

A: VAT payable is the amount of vat tax which is to be paid to the tax authority of the country and…

Q: if you were to invest your money which term will you use to compute for the interest in your…

A: Exact and Approximate times are two interest calculation times that take into two time periods. One…

Q: What is the interest rate the borrower will pay after the first rate adjustment?

A: Data given: Start rate = 3.50% Maximum cap for the first year=3% MTA index at the end of the first…

Q: How VAT affects the interest rate?

A: Solution-Value Added Tax  A value-added tax (VAT) is a consumption tax placed on a product whenever…

Q: Why is knowledge of changing interest rates a significant aspect of personal financial planning?

A: Personal financial planning is very important for the purpose of increasing the rate of return. If…

Q: Which factor sets an upper limit on how much can be paid for savings?

A: The expected return seems to be the benefit or disadvantage anticipated by a participant on…

Q: why simple interest is important to use when borrowing money

A: Simple interest is also referred to as interest. It refers to the payment that is received from a…

Q: What is mutual savings bank?

A: The mutual savings bank give loan to those people who are ignored by large financial institutions…

Q: What is the relationship between the present value of a single amount and the present value of an…

A: Solution-   The present value of an annuity is that the current price of future payments from an…

Q: What is the Cumulative interest payment?

A: Cumulative interest payment is the sum of all previous interest payments that are made for an…

Types of Money Market Instruments