Q: Suppose you deposit $469 per week in a bank account for 5 years. The interest rate(APR) is 7.2%,…
A: present value of annuity = P * {1-[1/(1+r)^n]/r} Where, r = rate of interest per period i.e. 7.2%/52…
Q: What is the present worth of P500 deposited at the end of every month for 6 years if the interest…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…
A: The size of the payment can be computed by using the PMT formula of excel. The values require for…
Q: If $3500 is deposited at the end of each quarter in an account that earns 7% compounded quarterly,…
A: Future value of annuity is: = P * ([1 + I]^N - 1 )/I, where P is annuity amount. I is equal to the…
Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for four…
A: Quarterly Payment = 4500 Time Period = Number of quarterly payments = 16 quarters Quarterly Payment…
Q: What is the interest earned in a savings account after 12 months on a balance of $4000 if the…
A: Since compounding is annually and we have to find the interest earned for 12 months, formula would…
Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: An amount of $29,200 will provide 9 years of payments of $2,518.50 at the end of every 6 months.…
A: Present Value $ 29,200.00 Time Period 9 Semi Annual Payment(P/Y) $…
Q: At what nominal rate of interest, convertible monthly, is $16,000 the present value of $290.10 paid…
A: Given: Future value = $16,000 Present value = $290.10 Years = 6 years Periods = 6*12 = 72
Q: What is the simple interest on ₱ 30,000 for six months at a simple interest rate of 12% . What is…
A: Simple interest is interest on investment without any compounding. Compound interest is the interest…
Q: What is the present worth of P500 deposited at the end of three months for 6 years interest rate is…
A: The Present value of a future deposit is the present worth of that amount. The future amount can be…
Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…
A: Future value (FV) = $150,000 Interest rate = 7.6% Semi annual rate (r) = 7.6%/2 = 3.80% Period = 18…
Q: Money borrowed today is to be paid in 6 equal payments at the end of six quarters. If the interest…
A: P =A[(1 + i)n- 1 ]/(1 + i)ni Wherein i Means Rate of Interest A Means Annuity Payment N means…
Q: Money borrowed today is to be paid in 7 equal payments at the end of each quarter. If the interest…
A: A financial measurement that calculates the worth of a potential sum of money or stream of payments…
Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…
A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…
Q: 1. What is the accumulated value of the Php 25 payment be made at the beginning of each of the next…
A: The same amount is being paid annually over three years; this is an annuity. To find the future…
Q: If a sum of $3000 is borrowed for six months at 9 percent simple interest per year, what is the…
A: A method of computing interest amounts in which the compounding effect was not considered by the…
Q: An amount of $9,250.00 is deposited into an account today, it is expected to increase to a maturity…
A: The interest rate which doesn't show the actual impact resulting because of adding interest on…
Q: Assume that 1500 Php is deposited in an account in which interest is compounded annually at a rate…
A: Deposit amount = 1500 Php Interest rate = 6% Period = 5 Years Compounding = Annually
Q: If $7,128 is deposited into an account that earns simple interest and it takes 9 years to earn…
A: Interest earned is 1796.26 No of years =9 Annual interest is = 1796.26/9 = 199.58
Q: 1. If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded…
A: This pertains to compound interest. Compound interest accrues on both the initial principal as well…
Q: If $6000 is invested in an account. After three years, the account has $7500 in it. If money is…
A: Question is based on the concept of Time value
Q: Suppose that $1,000 is invested for 4 years at an interest rate of 12%, compounded quarterly. How…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: a) Determine the present equivalent value of $10,000 paid every three months over a period of seven…
A: The present value is the addition of the discounted values of the future payments.
Q: If $19,000 is deposited in an account earning interest compounded weekly at 5.87% for 13 years, what…
A: Effective Rate of Interest: It is the annual rate on a loan or investment considering the effects…
Q: How much must be deposited at the beginning of each quarter in an account that pays 5% compounded…
A: In this question payment per quarter has to be find out. Future value , rate of return and number of…
Q: What is the present value of 5,275 due in 6 months if 11% interest is paid
A: Future Value = (P * R * T) + PWhere P = Present ValueR = Rate of InterestT = Time Period
Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…
A: The amount which is deposited at the beginning of every period for a specified duration is known as…
Q: If you borrow $5000 for five years and seven months at 9% compounded quarterly. How much is owed on…
A: Formula = Principal * [ 1 + Interest rate / 4 ]Number of quarters
Q: If you make quarterly deposits for 3 years into an account that compounds interest at 1% per…
A: The formula of future value of an annuity: FV =A × (1+r)n-1r where A = Annuity amount FV =…
Q: Suppose that $1,500 is placed in a bank account at the end of each quarter over the next 20 years.…
A: Use the following formula to calculate the effective interest rate (EIR). Where i is the effective…
Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: What is the value today of $500 received at the beginning of each period of six months for 12 years…
A: The following formula will be used to calculate today value as follow:
Q: Suppose that $ 1,500 is placed into a bank account at the end of each month over the next 8 years.…
A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…
Q: what annual interest rate compounded for two months is it doubled to
A: Time value of money (TVM) means the amount of money received in the present period will have more…
Q: Merchandise is received for $25,000 now and $50,000 in 6 months. If $10,000 is paid within a month,…
A: Solution:- Balance due in three months means the value outstanding at third period.
Q: If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: MONEY BORROWED TODAY IS TO BE PAID IN 6 EQUAL PAYMENTS AT THE END OF 6 QUARTERS. IF THE INTEREST IS…
A: Borrowing is defined as the term, which used to allow the person to spread their funds around with…
Q: What is the nominal annual rate of interest compounded quarterly if a loan of $22,500 is repaid in…
A: The nominal interest rate is the stated interest rate. The nominal interest rate doesn't consider…
Q: Suppose that $500 is deposited at the end of every quarter for 6 years in an account that pays 8%…
A: To calculate the value of the annuity, we can either use excel or fv calculator where R= RATE OF…
Q: How much is ₱1,200 worth at the end of 1 year if the interest rate of 5.5% is compounded quarterly?
A:
Q: If you deposit $2000 in an account that pays 3.6% with quarterly compounding, what is the balance…
A: given, pv = $2000 r = 3.6% m =4 n= 6
Q: How much do ten ₱ 6,945 quarterly payments amount at present,
A: Time Value of Money (TVM) concept is used to discount the future cash flows or to compound the…
Q: What is the accumulated value of periodic deposits of $60 at the beginning of every month for 22…
A: Monthly deposit (P) = $60 Interest rate = 2.59% Monthly interest rate (r) = 2.59%/12 =…
Q: at is the present worth and future of P6000 deposited at the end of every month for 4 years if the…
A: The more is compounding more is future value and less is the present value of money due to the fact…
In a certain account providing an interest rate of r compounded quarterly, P2, 500 is deposited every end of the quarter. What value of r will make the
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- If you deposit 2500 into an account paying 11% annual interest compounded quarterly, how long until there is 4500 in the account?What is the nominal annual rate of interest compounded quarterly if a loan of $21,500 is paid in seven years by payments of $2,000 made at the end of every six months?If you deposit $2000 in an account that pays 3.6% with quarterly compounding, what is the balance after six years? How much interest is earned?
- An amount of $29,200 will provide 9 years of payments of $2,518.50 at the end of every 6 months. Find the corresponding interest rate as a percentage with 2 decimals, e.g., 9.87 a) What is the monthly compounded nominal rate? Mode N = P/Y = Rate = b) What is the effective rate?Compute the future value of a $1500 deposit, after eight years, in an account that pays an interest rate of 7% that compounds monthly. How much interest will be paid to this account?. If the sum of P12,035 is deposited in an account earning interest at the rate of 9% compounded quarterly, what will it become at the end of 8 years?
- Regular equal amounts of R1200 are deposited into a savings account every three months for six years. If the amount in the savings account nine months after the last deposit is equal to R42 000 then, using Newton's method, the effective quarterly interest rate can be calculated from the iterative equation:Suppose that you deposit $15 at the end of each month into a savings account that pays 2% interest compounded monthly. After a year, ------ is in the account.You deposit $4000 in an account that pays 6% interest compounded semiannually. After 3 years, the interest rate is increased to 6.28% compounded quarterly. What will be the value of the account after a total of 6 years?
- If a credit card charges 1½% interest every month, what are the nominal and effective interest rates per year?What payment is required at the end of each quarter for five years to repay a loan of $5600 at 6% compounded quarterly?What is the size of the payments that must be deposited at the beginning of each 6-month period in an account that pays 6.4%, compounded semiannually, so that the account will have a future value of $100,000 at the end of 18 years? (Round your answer to the nearest cent.)
