Consider the case where the Annual Percentage Rate (APR) is 15%. If the frequency of compounding is every 3 months, what will be the value of Effective Annual Rate (EAR)?
Q: If the opportunity cost rate is 8% and is compounded annually, what is the present value of Php…
A: Present value of future value is the equivalent value of money today considering the interest rate…
Q: What is the present value of 10 equal payments of $16,500 to be made at the end of each year for the…
A: Present value of equal payments = equal payments x PVIAF (10%, 10 years)
Q: How much is the sum of the present value of the expected return over those periods
A: Cash Flows (Year 1-10) (CF) = $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…
Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…
A: Compounding refers to the power of doubling the investment by adding interest .Compounding helps in…
Q: Find the time required for an investment of 5000 dollars to grow to 6700 dollars at an interest rate…
A: we have convert annual rate to quarter period interest and period into quarterly period also.
Q: About how many years would it take for your investment to grow sixfold if it were invested at an APR…
A: Using NPER in Excel
Q: $4200 is invested for 9 months at an annual simple interest rate of 12%. How much interest will be…
A: Simple interest is interest calculated on the principal investment, i.e no interest will be…
Q: A man's investment of P100,000 is expected to yield a regular income of P25,000 per year for 10…
A: Solution:- Benefit cost ratio means the ratio of present value of benefits from a project to present…
Q: Consider a 2-year investment project that provides a compound annual rate of return of 10%.…
A:
Q: What is the present value (PV) of an investment that pays $90,000 every year for four years if the…
A: The present value of an annuity is the sum of the discounted value of the periodic cash flows.…
Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?…
A: Return can be calculated as: Return = Closing Value - Opening ValueOpening Value Substituting the…
Q: At what annual rate would the following have to be invested?
A: NOTE: As per our policy, we only answer up to three sub-parts. Therefore the first three sub-parts…
Q: What is the compound interest if $47,000 is invested for 10 years at 8% compounded continuously?…
A: The formula used as follows: A=Pert
Q: Use the formula for compound interest with n compoundings per year to solve:How long, to the nearest…
A: Compound interest: The amount of interest received or earned for multiple-interest time periods, on…
Q: If 39600 dollars is invested at an interest rate of 9 percent per year, find the value of the…
A: Given: PV (Present Value ) =$39600Interest rate(i) =9% per yearNo. of years (n) =5 Abbreviation:FV…
Q: Suppose you were to receive $1,000 at the end of 10 years. If your opportunity rate is 10 percent,…
A: given, FV = $1000 N=10 R=10%
Q: assuming a rate of 10% annually, find the FV of 1,000 after 5 yearas
A: The formula for the calculation of Future value is as follows: Future value=Present…
Q: What annual interest rate must be obtained to accumulate $10,000 in 8 years on an investment of…
A: The interest rate is compounding quarterly. Hence, it is important to understand that, annual rate…
Q: If $500,000 is to grow to $700,000 over a 5-year period, at what annual rate of interest must it be…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: Suppose that $4000 is invested each quarter, for the next 10 years. What is the future worth if the…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: How much will be the equivalent worth of ₱2M invested today for three years at a commercial rate of…
A: Investment amount (PV) = P 2,000,000 Annual interest rate = 10% Quarterly interest rate (R) = 10%/4…
Q: Would you prefer making a $25,000 investment that will earn interest at the rate of 6 percent…
A: Given: Investment amount is $25,000 The rate of 6 percent The calculation is shown below as,
Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…
A: Interest is the cost of borrowing the money.
Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…
A: The present value function or concept can be used to determine the present value of a future sum or…
Q: If $19,000 is invested at 5% compounded quarterly, what is the amount after 9 years? The amount…
A: Given: Present value = $19,000 Interest rate = 5% Years = 9
Q: About how many years would it take for your investment to grow fourfold if it were invested at an…
A: A purchase of an object or thing with the intention of producing revenue or increasing in value is…
Q: Equipment that costs $15,000 and generates a $5,000 annual return would appear to "pay back" on the…
A: Given: Investment =$15000Annual return =$5000Inflation rate =30%
Q: Approximately how many years would it take for an investment to grow fivefold if it were invested…
A: Investment amount (P) = $1 Future value (FV) = $5 Interest rate (r) = 9% Number of compounding per…
Q: Use the graph below to answer the following questions. What is the approximate final value of…
A: Future value = Present value * ( 1 + Interest rate )time
Q: What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs…
A: Computation of effective annual rate when rate is 8% and compounding is semiannually is as…
Q: About how many years would it take for your investment to grow threefold if it were invested at an…
A: In the given problem we require to calculate the number of years that will make the investment three…
Q: How much was initially invested if the value of the investment is at ₱200,000 after 3 and a half…
A: Present Value: It is the present worth of the investment amount, discounted at an interest rate for…
Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?
A: Future value is the value of assets at a future date given a growth rate. This is used for financial…
Q: About how many years would it take for your investment to grow fourfold if it were invested at an…
A: We require to calculate the time period i.e. number of years that will make out investment four fold…
Q: Find the nominal rate if Php 25,000 is compounded continuously and will become Php 32,000 in 3…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: uppose that $5000 is invested each quarter, for the next 20 years. what is the future worth if the…
A: An annuity is a sum of series of payments after every year or after every quarter. An annuity can be…
Q: What is the difference in future value if $20,000 is invested at 5% over ten years, with one option…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: You are comparing two investments. The first pays 3 percent interest per month, compounded monthly,…
A: a) i) First investment: Rate of interest i =3% per month Number of compounding periods in one half…
Q: With a present value of $110,000, what is the size of the withdrawals that can be made at the end of…
A: We need to use present value of ordinary annuity(payment due at end) formula to calculate the size…
Q: what is the internal rate of return of $10,000 investment that yields an annual benefit of $2,400…
A: Using IRR function in excel
Q: What interest will be earned if $6500 is invested for 7 years at 10% compounded monthly? (Round your…
A: Compound interest is a method of calculating the interest to be paid for using the money lent in a…
Q: Consider an investment where $45,000 is invested for 15 years at 8% compounded continuously. How…
A: Continues compounding is a limit that a compound interest can reach. It can be calculated through…
Q: A sum of money is invested at a rate of 7 percent per year compounded annually. How long it will…
A: Rule 72 refers to the rule which makes it a simple calculation for the person to determine that in…
Q: (Solving for n with nonannual periods) About how many years would it take for your investment to…
A: We require to calculate the the number of years that make the investment twofold i.e. two times.…
Q: Calculate if $10,000 is invested at interest rate of 12% per annum, what is the amount after 3 years…
A: The provided information are: Present value (PV) = $10,000 Interest rate (r) = 12% = 0.12 Number of…
Q: For this investment, an initial amount of $25,000 should be paid this year (t=0). As of next year…
A: The present value method is a method of finding the productivity of the project by discounting the…
Q: What is the future value if the amount invested is 10,000 at 10% compounded quarterly for 5 years?…
A: Solution Given Present value 10000 Rate of interest 10% Compounding Quarterly…
Consider the case where the Annual Percentage Rate (APR) is 15%. If the frequency of compounding is every 3 months, what will be the value of Effective Annual Rate (EAR)?
What is the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- If $5,000 is invested at an annual rate of 6.5% compounded continuously, the future value S at any time t (in years). a. Write the equation for future value. the he n b. What is the amount after 18 months? Round your answer to the nearest cent.5) How many years are required for P15k to increase to P20k if invested at 12% per year compounded bimonthly, and continuously? 6) Find the nominal rate compounded semi annually which is equivalent to 20% compounded quarterly. What is the corresponding effective rate?What is the value of today of an investment that will pay $100 per year for 5 years. Assume first payment is made 1 year from today and the interest rate is 7%?
- What interest rate, when compounded annually, is involved if an initial investment of $4000 turns into $10000 in 6 years?If the annual interest rate is 3 percent, how long would you have to wait before a $24,000 investment at least doubles in value?Assuming annual compounding, compute the minimum number of years requiredWhat annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?
- What is the present value of 10 equal payments of $16,500 to be made at the end of each year for the next 10 years? The annual interest rate is 10%. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.)Suppose that $4000 is invested each quarter, for the next 10 years. What is the future worth if the investment earn an annual rate of 9% compounded monthly?What will be the future value of $1,000 at the end of ten years, if the annualized interest rate is 8% and the frequency of compounding is continuously?
- Find the future value if $5000 is invested for 6 years at 10% compounded annually. (Round your answer to the nearest cent.)If the current rate of interest is 6% APR, what is the future value of an investment that pays AED 15,000 every two years and lasts 20 years.(Solving for n with nonannual periods) About how many years would it take for your investment to grow threefold if it were invested at an APR of 11 percent compounded annually? If you invest $1 at an APR of 11 percent compounded annually, about how many years would it take for your investment to grow threefold to S3? lyears (Round to the nearest whole number.)
