A student borrows $2,500.00 per year for eight years at 3% interest. How much will she have to repay at the end of eight years? The figure is the cash flow diagram. Explain the solution.

Q: You currently have a $4,500 balance on your credit card that you were planning to repay in 24 equal…

A: Interest is installment from a borrower or store taking monetary organization to a loan specialist…

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Q: You are willing to pay $15,625 now to purchase a perpetuity which will pay you and your heirs $1,350…

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Q: If one makes quarterly deposit of $1250 into an account that pays interest at a rate of 6%…

A: Given,  Quarterly Deposit= $1,250 Monthly Interest Rate=6% Therefore, Quarterly Interest Rate=…

Q: Describe what is the Compound-Amount Factor?

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Q: Maria loaned an amount of 100,000Php payable in 15 equal quarterly instalments. The first payment…

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Q: annuity makes six annual payments of 1,300 with the first payment coming today. What is the future…

A: Given six payments = 1300 First payment today = 1300 Interest rate = 8 % Future worth = Where P is…

Q: If $700 is invested at 11% simple interest, calculate its value after 8 years.

A: Following are the given values: Invested amount = $700 Interest rate = 11% Time = 8 years

Q: (a) Calculate the amount deposited 1 year ago to have $1000 now at an interest rate of 5% per year.…

A: (a) Total amount accumulated $1000 is equal to the actual deposit plus the interest gain. If X is…

Q: Alfred loaned a certain amount of money for his company. He promised the bank that he will pay P…

A: Alfred pays 10000 at end of month for 5 months. That means interest is calculated since the first…

Q: If the effective interest rate is 24%, what nominal rate of interest is charged for a continuously…

A: An effective interest rate is defined as the real rate of return on interest-paying investment when…

Q: An amount of 100,000 was borrowed and was to be repaid in 10 instalments at the end of every quarter…

A: * Answer :-

Q: Q5#: Mr. Masood deposits Rs. 500 at the end of each quarter so as to accumulate a sum of Rs. 10000…

A: Compound interest refers to the addition of interest to the principal amount of a loan or deposit,…

Q: Find FV: You have $2,000 in a savings account that earns 1.5% interest per year. What will be the…

A: Future value is the value of an asset present at a future date based on an expected growth rate…

Q: If you paid $90 to a loan company for the use of $1,252 for 120 days, what annual rate of interest…

A: Here, it is given that an individual pays $90 as an interest payment on a laon of 1,252 for a time…

Q: Consider a uniform series of cash flows. The first cash flow of $10,000 occurs at time 10 and the…

A: Given a uniform series cash flow in which first cash flow of $10,000 occurs at time 10 and last cash…

Q: A discount interest loan is a loan arrangement where the interest and any other related charges are…

A: The given information: Loan for 1 year is 10,000 The monthly payment is 1,400 Net fund the lender…

Q: Karen loaned P10,000 from a firm with a simple interest of 20%. The interest was deducted right away…

A: Karen borrowed an amount of P10,000 at simple interest rate 20% and interest was deducted before…

Q: Alfred desired 9,000 as the proceeds of a 90-day loan from B who charges 5% interest in advance.…

A: Given, Loan amount = 9,000  Time = 90 days  Interest rate = 5%

Q: This refers to the time unit for rate of return. a. Compound Interest b. Simple Interest c.…

A: The rate of return refers to the accumulated amount on an investment or a loan or a deposit after…

Q: What is the compound amount factor (CAF) if I is the interest rate per year, m is a number of…

A: Interest rate = INumber of periods per years = mNumber of periods = n

Q: construct a cash flow diagram to find the present worth in year 0 of a 400 expenditure in year 3 a…

A: Cash flow diagrams are powerful tools to look into expenditures and savings of a business or an…

Q: Find the present value of an annuity in perpetuity where payments are $1, 000 at the beginning of…

A: Given, Annuity payment in the first and third year and so on is $1,000, Annuity payment in the…

Q: Calculate the future value (rounded to the nearest whole number) of monthly deposits of R500, made…

A: Future value can be calculated as follows. Monthly interest rate (i) is 0.0033. Time period is 360.…

Q: A person deposits 2500$ today in the bank and he wants to get double of this amount, if the interest…

A: Simple interest formula  : Interest = [Principal * Rate of interest * Number of years] / 100

Q: A rich man put up a trust fund in the bank to give his son the earnings of P 400, 000 at the end of…

A: Trust Fund  A trust fund is a type of estate planning tool that creates a legal entity to hold…

Q: Assume you borrow $2,000 now at 7% per year for 10 years and you must repay the loan in equal yearly…

A: Given: Present value (PV)=$ 2000 Number of years (n)=10 Interest rate (r)=7%

Q: Find the interest on the loan if Tim borrows $10,000 for years at a simple interest of 10%.

A: The investors as well as consumers borrow or take loans funds from banks for investment or for…

Q: Does the compounding increases the amount of interest paid over a year atthe same nominal interest…

A: The interest rate is the income earned by the investment in the economy. When the money is invested…

Q: At what simple interest rate: a) Will $20,000.00 rise to $21,100.00 in one year? b) Will $720,000.00…

A: We have given  (a) Present value of money P= $20,000.00 Future value F= 21,100.00 and time = 1 year…

Q: What will be the exact simple interest of P 12,500.00 borrowed from January 1, 2020 up to October…

A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…

Q: Determine the principal that would have to be invested to provide $200 of simple interest  income at…

A: Simple Interest refers to the money that is paid only on principal, or the money which is invested…

Q: Calculate interest on a 90-day $5,000

A: Given,  Time = 90 days (consider 360 days in a year) Interest = 11% Principal = $5000

Q: Find that how much must be invested at the end of every year at 11% so that $15,000 will be…

A: Given: Future Value (F.V.) = $15,000 Annual interest rate (r) = 11% = 0.11% Time in years = 5 years…

Q: Shalika puts $650 into a savings account that pays 3.2% interest per year, compounded annually. What…

A: Given Shalika puts 650 into account today that means present value P= $650 Rate of interest i=3.2%…

Q: Question 2. Based on the following cash flow diagram, calculate the value of X with the interest…

A: here we calculate the value of X by using the given cashflow so the calculation of the following by…

Q: Draw the cash flow diagrams corresponding to the formulas given below. Specify the interest rates…

A: Refer the attached diagram for the cash flow diagram

Q: What factor will convert a gradient cash flow ending at t = 8 to a future value? The effective…

A: Given data: Time, t = 8 Future value = FV Present value = PV Effective interest rate, i = 10%

Q: What amount of money invested today at 15% interest can provide the following scholarships: ₱30,000…

A: Given:- Interest=15% Scholarship value=P30,000 for 6 year at each year end…

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places   What…

A: The present equivalent of a uniform series of quarterly payments = $4,500 each for four years and a…

Q: Suppose that $30,000 is borrowed today at 12% interest. The loan is to be repaid by uniform annual…

A:

Q: Draw a cash flow diagram for $10,500 being loaned out at an interest rate of 12% year over a period…

A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…

Q: Your mortgage compounds interest annually at an interest rate of 3.1%. If your loan was for…

A: Interest paid after 5 years= 115438.789

Q: If you borrow money from your friend, Ned, with simple interest of 12%, find the present worth of…

A: Simple interest formula: A = P(1+rt) Where A is the final value P is the initial value (or present…

Q: A geometric gradient that increases at f= ​8% per year for 12 years is shown in the accompanying…

A: The present equivalent value of the gradient: P=A1-(1+g)n(1+i)-ni-g

Q: Draw the cash flow diagrams corresponding to the formulas given below. Specify the interest rates…

A: a) Represent the cash flow as follows: In the below cash flow, the shaded region is the cash inflow…