a. Amy invests RM30,000 in an account for 10 years. The investment account pays 10% compounded semi-annually for the first 5 years and 12% compounded monthly for the rest of the period. i. Compute the maturity value of this investment. ii. Compute the interest earned from this investment.
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- 2. A woman invests $5,000 in a 18-month CD (Certificate of Deposit) paying 5.2% compounded quarterly. A. What is the future value of the CD? B. How much interest will be earned? C. What is the annual percentage yield? D. Prepare a table that shows the growth of the investment.Assume that you deposit RM700 in a savings account that pays 5% per year over 6 years. Your savings benefits from _____ as you leave the interest earnings in your account, and your interest earnings increases every year. Select one: a. compounding b. accumulating c. discounting d. aggregatingb. Pearl is investing in a 5-year certificate of deposit that earns 3.6% APR compounded monthly. If she would like to have $6000 in the account at the end of 6 years, how much money should she initially deposit in the account? PV = PMT = FV = APR = Periods: = Compounding:
- Exercise 1. Compute the annual interest, total interest and the amount to be received or paid at the end of the term for each scenario using a simple interest assumption: 1. You invested P28,000 in govemment securities that yields 5% annually for three years. 2. Your mother obtained a car loan for P900,000 with an annual rate of 12% for 5 years. 3. You deposited P10,000 from the savings of your daily allowance in a time deposit account with your savings bank at a rate of 1.5% per annum. This will mature in 6 months. Exercise 2. Using the situations provided in Exercise 1, compute the annual interest, total interest and amount to be received or paid at the end of the term of each scenario using a compound interest ass 1. You invested P28,000 in govemment securities that yields 5% annually for three years. 2. Your mother obtained a car loan for P900,000 with an annual rate of 12% for 5 years. 3. You deposited P10,000 from the savings of your daily allowance in a time deposit account with…1. Mr. Pat Met invested in a bank having an annual payment of Php 100,000 for three years at a 4% annual interest rate. a. How much is the future value? b. Find the total interest earned on the investment.6. Find the future value on an investment of $12,000 for seven years at 6% annual interest compounded monthly. 7. Sheril borrows RM8250 for four months from a lender who charges a discount rate of 10%. Find i) ii) the discounts the proceeds
- Emily has borrowed $1 000 000 from MQ Bank for 10 years at an interest rate of j2 = 4.1% p.a. She will make 10 annual repayments. According to the loan agreement, Emily's repayments will be $87 000 for the first two years followed by payments of X per year for the remaining eight years. This loan needs to be fully repaid by the end of 10 years. (a) Assume that all annual repayments will be paid at the end of each year (the first payment will be at the end of the first year), what is the value of Emily's annual payment amount, X (rounded to four decimal places)? The correct answer is: 135498.82461. Jeremiah has 3 years to repay a $55000 personal loan at 6.55% per year, compounded monthly. a. Calculate the monthly payment and show all variables used for TVM Solver. b. Calculate the total amount Jeremiah ends up paying. c. Calculate the amount of interest Jeremiah will pay over the life of the loan.Katy invests $12,000 into an account at an annual rate of 0.3% simple interest for 36 months. 1) What is the Principal in this scenario? 3 ○ $12,000 0.003 0.3% 2) What is the interest rate for this account? $12,000 3 0.003 ○ 0.3%
- a. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments atthe end of each of the next 3 years. The interest rate is 8% compounded annually.b. What percentage of the payment represents interest and what percentage representsprincipal for each of the 3 years? Why do these percentages change over time?Asma has borrowed $1,000,000 from MQ Bank for 10 years at an interest rate of j2=4.67% p.a. She will make 10 annual repayments. According to the loan agreement, Asma's repayments will be $83,000 for the first two years followed by payments of X per year for the remaining eight years. This loan needs to be fully repaid by the end of 10 years. (b) Assume that all annual repayments will be paid at the beginning of each year (the first payment will be at the start of the first year), what is the value of Asma's annual payment amount, X (rounded to four decimal places)? Question 7Answer a. 134233.5495 b. 128177.7626 c. 127887.4496 d. 133859.7935a. If you deposit 6,000 pesos in an account that pays 4.5 simple interest, how much will you have in the account after 6 years? b. Terry's first investment is worth 30,000 pesos at 6% simple interest rate for three years. How much must he invest at 4% compounded quarterly for two years to yield the same interest?