Which of the following changes would increase the present value of a future payment?     an increase in the amount of time that elapses before receiving the payment     a decrease in the interest rate      a decrease in the size of the payment     a decrease in the certainty of the payment actually being received

Q: A bank pays one percent interest on savings account four times a year. What is the actual annual…

A: Interest rate is charged by the lender for using its money.

Q: Problem 3 An investor bought a discount bond with face value of $1,000 at the price of $870. The…

A: Given  FV = 1,000 Price = 870

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Q: please

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A: When the project has different lives, it will be compare over the least common multiple method

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Q: Suppose a 10-year, $1,000 bond with a(n) 11% coupon rate and semiannual coupons is trading for a…

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Q: If a lender makes a simple loan of ​$800 for 4 years and charges 3%,then the amount that the lender…

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Q: Which formula is correct for the simple interest calculation? Select one: a. F = P(1+i/n) b. F =…

A: Simple interest is a cost one pays on a loan or earnings  on the savings account. The formula for…

Q: For the following questions, choose the letter of the best answer (Show any work and explanations):…

A: Using straight-line depreciation,, 99, 254); position: relative; display:…

Q: If a lender makes a simple loan of $400 for 5 years and charges 7​%, then the amount that the lender…

A: The objective of the first part of the question is to calculate the total amount that the lender…

Q: Sam promises to pay Sandy $2,000 in four years and another $3,000 four years later for a loan of…

A: Interest rate: The real interest rate is the rate of interest that is being calculated in an economy…

Q: Which of the following statements is true over the term of a fixed rate mortgage? Although monthly…

A: A mortgage is a formal arrangement wherein a bank, building society, or other lending institution…

Q: Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged.…

A: please find the answer below.

Q: 15. Justine buys a television set from a merchant who asks P 1,250.00 at the end of 60 days (cash in…

A: Let the cash price today be p. Assumption: cash price is worth 8%. 8% interest on cash price=0.08x…

Q: f an insured purchases an Annuily from which income is received, the insured is the receiver…

A: Answer is given below

Q: What is an interest “reference rate,” and how is it used to set rates for individual borrowers?

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

Q: The interest rate for a bond is always equal to its yield to maturity

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Q: Peter Scents has been given two competing offers for short-term financing. Both offers are for…

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Q: 1) for a period of two years. During the first year, the quarterly payment is for $300, while in the…

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Q: Beam Inc. Bond's are trading today for a price of 768.54. the bond pays annual coupons with a coupon…

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Q: You plan to purchase an $130,000 house using a 30-year mortgage obtained from your local bank. The…

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Q: If a lender gives you a loan for $500,000 today. You promise to pay $X a year for the next 30 years.…

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

Q: Explain Methods of Calculating Interest?

A: Answer -  Interest = It is the extra amount of money a lender which charge to a borrowers.  there…

Q: What type of annuity where the periodic payments (withdrawals) continue indefinitely?  a. Annuity…

A: Disclaimer: - Since you asked for multipart question, we are solving only first 3 subparts as per…

Q: Suppose a 3 year bond with a 6% coupon rate that was purchased for $760 and had a promised yield of…

A: Realized yield is the actual return earned during the holding period for an investment. It may…

Q: 2. You owe your best friend P2,000. Because you are short on cash, you offer to repay the loan over…

A: The amount that a lender adds to the principle to compensate a borrower for using assets is known as…

Q: A principal of $20,000 is invested at 6% for 10 years. Determine its future value if the interest…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: You are going to invest $1,500 today in a fund today. After 10 years, you want to have exactly…

A: Principal = $1,500 Time =10 years Amount =$2,500 or Principal1+R10010=2500or 15001+R10010=2500or…

Q: Offering anything such as a premium rebate, premium discount, credit, service or anything of value…

A: In economics, an assets will have some value in the market at which it is offered to exchange…

Q: You are planning to take out a 5 hundred thousand dollar fixed-rate mortgage with a 30- year term…

A:

Q: A coupon bond has two years to maturity, a face value of $1000 and a coupon rate of 2%. The yield to…

A: Given, Par value of bond =$1000 Number of years to maturity = 2 Annual coupon of bond = 2% *1,000…

Q: $500 grows to $1,500 over a certain period and interest rate, what will be the present value of…

A: Present value represents the current worth of a sum of money that is to be received or paid in the…