What rate compounded quarterly is equivalent to (a) 10% effective, (b) 10% compounded monthly, (c) 10% simple interest for two years

Q: What is the discounted value of $1182.00 paid at the end of every year for 7 years if interest is…

A: rate of interest = 9% per annum compounded monthly converting into effective annual rate Effective…

Q: What is the discounted value of ​$899.00 paid at the end of every month for 3 years if interest is…

A: RATE (12%/2) 6% YEARS(7*2) 14 PERIOD PAYMENT  (899*6) 5394 FUTURE VALUE $0

Q: What is the present value of a stream of monthly payments of $500 each over 10 years, if the…

A: Monthly payment (P) = $500 Interest rate = 10% Monthly interest rate (r) = 10%/12 =…

Q: a) What is the present worth ofequal payments of $25,000 made semi-annually (i.e., twice every year)…

A: Semi annual payment (P) = $25,000 Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%

Q: What is the present value of $6,700 received 14 years from now using a 11% interest or discount…

A: Calculation of Present Value:The Present Value is $1,466.53.Excel Spreadsheet:

Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for four…

A: Annual interest rate = 8% Number of compounding per year = 6 Effective annual rate = (1+0.08/6)6-1…

Q: Find the effective interest rate for a $20,000 for three years if the interest is compounded…

A: Effective interest rate:Effective interest rate is also called as annual equivalent rate which is…

Q: For 10 years with total payments of $ 10000 per year, calculate the total amount accumulated at the…

A: we will only answer the first three subparts . for the remaining subparts kindly resubmit the…

Q: If money is worth 3 ½% compounded monthly, find the compound discount if 12,200 is discounted for 2…

A: Here, Amount is 12,200 Time Period is 2 years and 11 months Time Period in Months will be: =24…

Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…

A: Nominal Rate = 11.5% Continuous Compounding

Q: What rate compounded quarterly is equivalent to 10% simple discount rate for 2 years?

A: Compounding interest is the additional interest to the principal sum of the amount.

Q: Find the AV of $3,500 at the end of 10 years at an annual effective interest rate of 4.9% for the…

A: Given Information: Future value is $3500 Annual effective rate for 3 years is 4.9% For remaining…

Q: What rate compounded quarterly is equivalent to (c) 10% simple interest for two years, and (d) 10%…

A: In this we have to find out annual equivalent  rate compounding quarterly.

Q: An account pays interest at a nominal rate of 3% per year. (a) Find the effective annual yield if…

A: Effective yield refers to return on bond that has its interest payments and is calculated by…

Q: What is the annual interest rate (APR) required for $22,500 to accumulate to $50,000 in 14 years…

A: Future value =Present value (1+r)n 14 years =28 semiannual period

Q: What is the present value of $1,000 received in two years if the interest rate is 12% per year…

A: Given Detail: Future Value: $1000 Interest rate : 12%

Q: At what interest rate compounded quarterly will 90,000 amount to 100,000 in 8 years?    Choices…

A: Present Value = 90,000 Future Value = 100,000 Time Period = 8 Years

Q: or total yearly payments of $10000 for 10 years, compare the compound amount accumulated at the end…

A: Given information: Annual payments : $10,000 Time periods : 10 years Nominal Rate of interest : 20%

Q: What is the discounted value of ​$844 paid at the end of every three months for 10 years if…

A: Computation:

Q: f the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…

A: Nominal rate = 11.5% compounded continuously We need to find bi-monthly rate, where there are 24…

Q: What is the present value of a $1,500 payment made in nine years when the discount rate is 8…

A: In this question we are required to compute the present value from following details: Annual payment…

Q: At what interest rate will ₱30,750 amount to ₱44,875 in 4 years and 6 months, if interest is…

A: Data given: Description Data FV (P) 44875 PV (P) 30750 r= rate (Compounded semiannually)…

Q: What is the present value of $1,552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6…

A: Compute present value of $1,552.90 due in 10 years at 12% discount rate as shown below:

Q: A deposit of $14625 earned interest at 5% compounded quarterly. After 3 years, the interest rate is…

A: The time value of money appears to be a concept that anybody may apply to compute the value of money…

Q: What is the present value of $1,500 due in 14 years at a 5 percent interest rate

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: 1. For each of the following, calculate the interest rate per compounding period (i): a. 4% per year…

A: A compounding period refers to the time period from when the interest was compounded lastly to the…

Q: (a) Manny made a 5-year investment. The following are the interest rate earned: 15% interest…

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

Q: What is the equal-payment series for 10 years that is equivalent to a payment series starting with…

A: Given information: Initial amount is $10,000 Decreases by $1,000 over 10 years Interest rate is 7%

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

A: The future value of annuity is given by:=C×1+in-1iWhere, C=Cash flow per periodi=Intertest…

Q: Which one of the following represents the highest effective interest rate per year? Select one:…

A: Daily compounded interest means that interest is accumulated on a daily basis and is calculated by…

Q: Determine the discount rate assuming the PV of $1080 at the end of 1-year is $980? $9,800 is…

A: Future Value = Present Value * (1+r)^n Where. r = rate of interest n = no. of years

Q: If nominal rate is 10 % per year compounded bimonthly, Determine the the following effective…

A: Nominal rate = 10% Compounding = BImonthly

Q: Calculate the future value of end-of-quarter payments of $5,000 made at 6.10% compounded monthly for…

A: Given rate is 6.1% compounded monthly effective annual rate is = (1+0.061/12)^12 -1 = 6.2734% Rate…

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

A: The future value of cash flow is the future worth of a cash flow at a certain rate of interest and…

Q: What is the present value of an annual payment of $9,500 discounted back 8 years at an annual rate…

A: given, A=$9500 r=3% n=8

Q: What is the present value of $1,552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6…

A: 1 2 FUTURE VALUE 1552.9 1552.9 DISCOUNT RATE 12% 6% YEARS 10 10 PMT 0 0   ANNUALLY…

Q: What is the present equivalent of a uniform series of annual payments of $2,900 each for five years…

A:

Q: What is the discounted value of $1433.00paid at the end of every six months for 6 years if interest…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: What is the present value of an annuity due of 2,000 per year for 15 years discounted back tobthe…

A: In present value of annuity due, payment is due at the beginning of the year. We need to use formula…

Q: Determine the discount rate assuming the PV of $1080 at the end of 1-year is $980? 2. $9,800 is…

A: Present value=$980Future value=$1080Period=1

Q: Find the present value

A: Time value of money (TVM) means that the amount of money received today will be worth more than…

Q: Determine P & F for the diagram below: Immi For the first seven years, interest is 12% per year…

A: Here, Annual deposits for the first 7 years = 500 Interest rate = 12% compounded monthly Annual…

Q: Determine how much is in each account on the basis of the indicated compounding after the specified…

A: As per the guidelines we are allowed to solve the first three parts only The account value can be…

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.