Q: Solve by using formulas. (Round your answer to the nearest cent.) Ordinary Annuity Annuity Payment…
A: Future value of the annuity = P1+rn-1r where, P = periodic payment = $3000 r = rate per period =…
Q: You want to buy a $50,000 car. You can finance the car for 0.9% interest for 5 years. You decide…
A: Solved using Financial Calculator Assuming Interest rate is 0.9% per annum compounded monthly
Q: Suppose that a $100 lump-sum amount is invested for 10 years at a nominal interest rate of 6%…
A: Interest is the cost of capital. While borrowing money, borrowers have to pay an ‘interest’,…
Q: ) A 20% compounded quarterly has an equivalent rate of 10.25%, how many times does it pay every…
A: *Answer:
Q: What is the single-payment compound-amount factor?
A: Single – payment compound amount factor: If an amount P is an investment at time 0, the amount…
Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…
A: The compound interest formula for semi annual basis is as follows: A=P(1+rn)nt Where, A is the…
Q: What will be the amount accumulated by each of these present investments? (a) $5,635 in 10 years at…
A: Answer - Need to find - amount accumulated of present investments Given in the question - P =…
Q: uppose you invested $1000 annualy over a 15 year period. If money earns an annual rate of 1%…
A: Following are the given values: Annuity amount, A = 1000 Time, n = 15 years Interest = 1%
Q: A man who won P300, 000 in a lottery decided to place 50% of his winnings in a trust fund for the…
A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…
Q: An independently owned moving company wants to have enough money to purchase a new tractor-trailer…
A: Simple interest: It is the quick and easy method for calculation of the interest charged on the…
Q: An amortization of a debt is in a form of a gradient series of ₱5,000 on the first year, ₱4,500 on…
A: Amortization of debt for First-year = 5000 Amortization of debt for Second year = 4500 Amortization…
Q: Company D expects to spend $6,000 one year from now, $10,000 three years from now and $15,000 each…
A: First find the present values of cashflows Discount rate = 10 % 1 present value of 6000 $ in one…
Q: Find the effective interest rate per payment period for an interest rate of 8%compounded monthly for…
A: The effective rate of interest is the return on a savings account or an investment, whose interest…
Q: Jake Werkheiser decides to invest $5000 in an IRA at the end of each year for the next 11 years. If…
A: We have the following information, Jake Werkheiser decides to invest $5000 Time period, n = 11…
Q: 4. What is the eauivalent rate of 12% compounded semi-annually to compounded quarterly?
A: Given interest rate i =12% compounded semi-annually. Effective interest rate formula r=1+inn-1…
Q: years that is equivalent to a pa starting with $45,000 at the er year and decreasing by $5,00C 10…
A: *Answer:
Q: 19. Each year a single payment of P5000 is deposited in an account that earns 16% compounded…
A:
Q: Michelle Hunter received $250,000 from an insurance company after her hus- band's death. Michelle…
A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…
Q: Please answer completely and clearly. , year יויויויויי in millions whatis the future worth of these…
A: We have given the cash flow in which yearly payment is made but the rate of interest is compounded…
Q: Compute the size of the final payment for the following loan. Periodic Principal $ Payment $ 8600…
A: Principle = 8600 , PMT = 580, Payment period = 6 months interest rate = 5%, Compounding period =…
Q: If the interest rate of a certain account is 6.5%, compute the (a) single payment present worth…
A: Present Worth represents the value of a future sum of money in present terms . Single payment…
Q: Compute for the iEff/bimonthly and iEff/monthly 15% Compounded semi-annually.
A: Answer: iEff/bimonthly = 14.64% iEff/monthly = 14.55%
Q: 10. If money is invested at a nominal rate of interest of 8% for a period of 4yrs. (a) What is the…
A: a) The successful interest rate aims to absorb the entire cost of borrowing. It accounts for…
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: Vince loaned P30,000.00 from a cooperative and promised to pay it back with x times his original…
A: Solving completely
Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…
A: We are required to accumulate an amount of $80,000, therefore, this amount is the future value. FV =…
Q: 37. A nominal rate of 15% compounded monthly is equal to what effective rate of interest. 18.95%…
A: Answer- "Thank you for submitting the questions.But, we are authorized to solve one question at a…
Q: What is the future worth of these payments for 16 years if interest is 9% in the first year and…
A: The future value if the compounding is done annually is: FV = P (1 + R)t R : Interest rate PA…
Q: Many persons prepare for retirement by making monthly contributions to a savings program. Suppose…
A: Given, P= 2600 R= 8% T= 23 YEARS Continuous Compounding annuity formula : FV of Annuity = PMT…
Q: At certain interest rate compounded quarterly, an amount worth P8000 will be P20000 after 5 yrs. How…
A: Given Present value P=8000 Value after 5 years =20,000 Compounded period = quarterly. First we will…
Q: You will deposit 11,678 at 10% compound interest for 9 years, and then move the amount you would…
A: here we calculate the amount or money would at the end of the entire period by using the given…
Q: al interest rate compounded quarterly if the effective interest rate is 9% per year is
A: Solution os given below
Q: How much do eight P 76,990 quarterly payments amount at present, if the interest rate is 3…
A: Given information, Annuity (A): ₱ 76,990 Interest rate (i): 3% Time period (N): 8 (8 equal…
Q: In an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8% compounded…
A: Capital Recovery Factor is referred as a ratio which gives one an idea about the present value of an…
Q: An investor bought stock for $40,000. Fourteen years later, the stock was sold for $50,000. If…
A: The inflation rate that is measured by taking into account inflation is referred to as the nominal…
Q: What annual nominal rate compounded semiannually has the same annual percentage yield as 13%…
A: Let r be the annual nominal rate of interest compounded annually. Therefore, APY=1+rnn-1 And APY of…
Q: ngr. Odon is paying a loan five thousand pesos 5% monthly for 3 years. If the payment is to start…
A: Monthly payment of the loan = 5000 pesosMonthly rate R = 5%Time for the loan payment = 36 months ( 3…
Q: cash flow consists of $100 income at the end of Year 1, $200 at the end of Year 2, $300 at the end…
A: Equivalent Uniform Annual Cost is the payment required to fund the Life Cycle Cost over the service…
Q: Four years from now you will start depositing 5,588 AED of your salary into a savings account that…
A: Deposit made after years = 5588 Interest rate = 17% The annual decrease is 6% per year. Total time…
Q: What is the Single Payment Compound Amount Factor at 10% interest rate? a 0.909 b 1.000 c…
A: The economies around the globe are involved in various economic, and financial activities. The…
Q: An environmental soil cleaning company deposits $2,000 quarterly in a fund that earns 8% compounded…
A: Given - Quarterly Deposit Amount = $2000 Rate of interest = 8% Rate of interest per quater = 2% =…
Q: In an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8% compounded…
A: Capital recovery factor is a ratio that measures that present value of an ordinary annuity or a…
Q: I deposit £250 in a high-earbing account paying 9% compound interest and leave it for three years.…
A:
Q: Some time ago, you put £500 into a bank account for a "rainy day." Since then, the bank has been…
A: The interest signifies the interest earned on an initial amount of deposits in a bank or other any…
Q: How long will it take $500 to double if it earns the following rates? Compounding ocu once a year.…
A: Here, we calculate the given as follow;
What is equal-payment-series present-worth factor?
Step by step
Solved in 2 steps
- An annuity is a series of equal payments occurring at equal time intervals, normally at the end of the period Select one: O True O FalseWhat is the effective annual interest rate?A department store has offered you a credit card that charges interest at 1.05% per month, compounded monthly. a. What is the nominal interest (annual percentage) rate for this credit card? b. What is the effective annual interest rate?
- Investments Jack invests $1000 at a certain annual interest rate, and he invests another $2000 at an annual rate that is one-half percent higher. If he receives a total of $190 interest in I year, at what rate is the $1000 invested?Define the term effective semiannual interest rate?Describe what is the Compound-Amount Factor?
- At what rate of interest will an investment double itself in 10 years?Does the compounding increases the amount of interest paid over a year atthe same nominal interest rate?What type of interest is obtained when the nominal interest rate is divided by the number of compounding periods in a year? a effective interest rate per year b nominal interest rate per compounding period c effective interest rate per compounding period d nominal interest rate per year
- What is the single-payment compound-amount factor?What effective annual interest rate corresponds to the following situations? nominal interest rate of 5% compounded semi annually b. nominal interest rate of 6% compounded monthly а.Mr. Benedito, a grocery store owner, borrows $50,000.00 from a loan shark, handing him a $77,000.00 promissory note with a maturity of 6 months. What is the annual and monthly simple interest rate charged by the loan shark?