Q: Every year you deposit $2,000 into an account that earns 2% interest per year. What will be the…
A: Answer; Correct Option is (b) 180000
Q: At an interest rate of 10% compounded continuously, how will be a deposit of P15,000 be in 15 years.…
A: Here we calculate amount will be deposit with continuous compound , so calculation as follow-
Q: Consider the cash flow series given in the accompanying table. What value of C makes the deposit…
A: The money interest which represents the time value of money can be any given or declared rate of…
Q: How long will it take for an investment of $32,000 in a mutual fund to mature to at least $100,000…
A: Initial investment = $32,000Mature amount =$100,000Growing rate = 12% compounded semi…
Q: If you buy a computer directly from the manufacturer for $2,923 and agree to repay it in 36 equal…
A: here we calculate the given by following method as follow;
Q: John takes out a 50 000 mortgage on a home at 12 % % convertible semiannually. He pays off the…
A: The term mortgage refers to a loan used to purchase or maintain a home, land, or other types of real…
Q: What are the present worth and the accumulated amount of a 10-year annuity paying $10,000 at the end…
A: here we calculate the present worth by using the given information which are as follow-
Q: What is the equivalent of a current deposit of $32,000.15 years from now at 8.5% interest compounded…
A: Given: Present Value (PV) = $32,000 Interest rate = r= 8.5% = 0.085 Time Period = n = 15 years…
Q: You are buying a home for $500,000. If you make a down payment of $80,000and take out a mortgage on…
A: Mortgage amount and number of years can be calculated as follows:
Q: You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be…
A: According to question, given that Borrowing amount $28,000@12%/year a) AP represented annual…
Q: If you borrow $3,000 at 6% simple interest per year for seven years, how much will you have to repay…
A: Answers Q1. Option (b) is correct Here we need to use the simple interest formula as below:…
Q: You are planning to make 18 monthly withdrawals beginning at the end of the sixth month. You plan to…
A: Given, sixth month withdrawal, A = $ 101 Every time amount withdrawal increases by , G =$ 16…
Q: If $18,000 is invested at 9% for 15 years, find the future value if the interest is compounded…
A: The formula to be used is At = Ao [1 + r / 2 ]2t Where, At = future valueAo = 18,000r = 9% or 0.09t…
Q: Troy Long wishes to deposit a single sum of money in a savings account so that five equal annual…
A: An annuity is a series of payment/cashflows that a paid/received at equal intervals. The formula for…
Q: If you obtain a loan of ₱1,000,000 at the rate of 12% compounded annually In order to build a house,…
A: Loan Amount = 1000000 Interest Rate= 12% N=10 Years Equal Payment Series =?
Q: Determine the current yield on a bond with a $200 annual interest repayment as well as a $1,550…
A: Bonds are a type of debt instrument that stand in for loans given to the issuer. Bonds are a…
Q: You borrowed $22,000 to buy a new car from a bank at an interest rate of 9% compounded monthly. This…
A: To calculate present worth use the following formula. Here A = an annual payment, n = the number…
Q: Find the present value of a deferred annuity of P6362 every six months for 3 years that is deferred…
A: Given deferred annuity (A) =6362 every six months Time =3 years rate of interest =4% compounded…
Q: The value of annual(A) uniform payments over years 1-5 is equivalent to a payment schedule of 200,…
A: The time value of money refers to the concept that money you have now is worth more than the same…
Q: What is the nominal rate of interest compounded continuously for 10 years if the compound amount…
A: Nominal interest is the interest before adjusting inflation.
Q: If I loaned an amount of 27,292 with an interest rate of 10% for the three and half years compounded…
A: Present value = 27292 r = 10% Time = 3.5 years
Q: If the effective interest is equal to 19.56%, compute the nominal rate if money is compounded…
A: The effective rate of interest is that rate that takes into consideration the change of integrity…
Q: What is the amount $R that makes the two cash-flow diagrams below equivalent? The interest rate is…
A: Present value (PV) is the current worth of a cash flow at a given interest rate and time period. The…
Q: What is the nominal interest rate in continuous compounding that is equivalent to an effective…
A: Considering the period of compounding and also the base (nominal) rate of interest, it is possible…
Q: Find the effective interest rate per payment period for an interest rate of 8%compounded monthly for…
A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…
Q: A large bank has increased its annual percentage rate (APR) on credit cards to 30%. This move was…
A: Meaning of Annual Percentage Rate (APR): The term annual percentage rate refers to that rate that…
Q: What is the total payment required to pay off a promissory note issued for $800.00 at 10% ordinary…
A: Answer: Option D ($840.00) Explanation: The term is of 180 days. 180 days means 6 months. Interest…
Q: principal of P27,723 is placed in a saving account at 5.23% per annum compounded annually. How much…
A: Principal = P27,723 r = 5.23 n = 3
Q: What is the present worth of each of the given series of payments?(a) $2.700 at the end of each…
A: The present worth can be calculated using following formula: Here, FV is the future value. r is the…
Q: On January 1, you deposit $5,000 in a credit union that pays 8% nominal annual interest, compounded…
A: Interest rate is the amount charged on an amount of money by a lender from a borrower to use the…
Q: You deposit $100 today, $200 one year from now, and $300 three years from now. How much money will…
A: Cash flow refers to the quantity of cash or cash-equivalent that a corporation gets or expends as…
Q: What is the total amount available upon the deposit of the sixth payment if P500.00 is invested at…
A: In economics, present value refers to the current value of a future stream of cash flow. Future…
Q: WHAT ARE THE PRESENT WORTH AND THE ACCUMULATED AMOUNT OF A 10-YEAR ANNUITY PAYING $10,000 AT THE END…
A: There is an annuity payment of $10,000 at the end of each year for the next 10 years. The interest…
Q: Determine how much is "X" payment to be made 8 years from now, that is equivalent to a payment of…
A:
Q: An investor wishes to deposit an amount of money next year so that at the end of ten years from now…
A: The compound interest refers to a situation whereby interest income corresponding to an…
Q: Suppose that, to cover some of your college expenses, you are obtaining a personal loan form your…
A: The expense of getting can come in many structures. It is consistently to the greatest advantage of…
Q: A man makes a series of ten annual deposits starting at P2, 000 at the end of the first year and…
A: Given: Ten Annual deposits (A)=P 2000 Increase each year (g)=10% Rate of interest (i)=8%
Q: If the interest rate is 7% compounded continuously, what is the required quarterly payment to repay…
A: Interest is the cost of capital. We can use interest in the context of either borrowed funds,…
Q: Find the present value of 10% interest of the series of payment starting at year 1 of $100 and…
A: According to the question, Interest rate = 10%, number of years = 10 Cashflows series Year 1…
Q: The nominal annual Interest rate, compounded semi-annually, for a bank with an effective annual…
A: Answer: 30.10% The effective annual interest rate is the real return on a loan or a saving account,…
Q: What equivalent annual equal payment series is necessary to repay a uniform gradient series of 9…
A:
Q: Suppose that the interest rate is 10% per year, compounded annually. What is the minimum amount of…
A: Compound interest formula: CI = P(1 + r / n)nt - P Where CI is compound interest P is Principal,…
Q: Q1) what lump sum of money must be deposited into bank account at present so that $600 per month can…
A: The Interest Rate is given as(i) 9% per monthMonthly Payment(PMT) = $600The Annuity is due for 4…
Q: What amount should be deposited at 6% in order to withdraw out P400 at the end of each year for…
A: Interest rate = 6% Amount withdraw = 400 each year time = 7 years
Q: Suppose that the interest rate is 10% per year, compounded annually. What is the minimum amount of…
A: please find the needed answer below.
Q: What is the equal payment series for 10 years that is equivalent to a payment series of P12,000 at…
A: The present value (PV) of the future cash flow can be calculated by the following formula: i=8%…
Q: A car was bought on an installment basis with a monthly installment of $25,000 for 60 months. If…
A: The present worth refers to the value of sum that is received in the current period. Given, Monthly…
Q: The two cash flow transactions shown in the accompanying cash flow diagram are said to be equivalent…
A: Given in Question Rate of interest = 8% The present value of the all-cash flow is given byPV =…
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- A child receives $100,000 as a gift which is deposited in a 6% bank account compounded semiannually. If $5,000 is withdrawn at the end of each half year, how long will the money last? a. 21.0 years b. 15.5 years c. 25.0 yearsd. 18.0 years.In saving for a future major purchace, Oksana has been making uniform deposits of $5,000 per year in an account that has earned variable annual interest rates of in-12-13-5% and i=15-7% (see cash flow diagram below). How much does she have in the account immediately after making the last deposit? ATT The account will have ! (Round to the nearest dollar) GUILD14 - Find the amount to be repaid at the end of 10 years for the loan of 150 000 lira withdrawn from the bank for housing need with an annual compound interest of 15%. How much less would be paid if this payment had been made on a simple interest calculation?A) 232 105B) 231 834C) 235 000D) 233 575E) 234 271
- A firm borrows $2000 for 6 yr at 8%, to be repaid in a lump sum at the end of 6 yr. At the end of 6 year, the firm renews the loan for the amount due plus $3000 more for 2 yr at 8%. What is the most nearly the amount of the loan renewal? 7021 6376 7201 6673How much must be deposited now at 5.875% annual simple interest so that in 2 years and 7 months an account will contain $3000? a.$ 2,578.51 b.$2,640.68 c.$2,604.68 d.$2,588.64An investment on a machinery can yield following cash flow for 8 years and in the end of the 8th year resale value will be 15,000 dollars. How much can be invested on this machinery at the present time, considering the interest rate of 10% compounded annually. Please explain your work in detail. C-? 1-2000 1-2000 -2000 -2000 -1000 -1000 1-1000 -1000 L-$15,000 2. 4. 7. C: Cost, I: Income, L: Salvage Value
- To pay off $75000000 worth of new construction bonds when they come due in 25 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting three months from now. If the interest rate for the sinking fund is 6.4% compounded quarterly, how much will each deposit be?" a. 111647.29 b. 308427.99 c. 236190.88 d. 137843.63 e. 179381.31A rich folk singer has donated $500,000 to endow a university professorial chair in BohemianStudies. If the money is invested at 8.5%, how much can be withdrawn each year, ad infinitum, topay the Professor of B.S.?5:32 A O N 23% ( Title A man purchased a car with a cash price of P350,000. He was able to negotiate with the seller to allow him to pay only a down payment of 20% and the balance payable in equal 48 end of the month installment at 1.5% interest per month. Once the day he paid the 20th installment, he decided to pay the remaining balance. What is the remaining balance that he paid? (10 points) 1/1 ET T 17 II
- If a credit card pays 5% interest compounded quarterly, what is the effective annual interest rate? Oa. 6% Ob.5% Oc 5.4% Od.5.09%What is the current value of a security that pays $500 per year for 7 years if similar investments now earn 12%A loan of $245,000 is to be repaid in equal quarterly payments ovr a period of 6 years. if the interest rate in 14.5 compounded quarterly, what is the amount of unpaid principal at the beginning of the third year Oa S148,281 Ob. S147.044. Oc $247325 Od. SI84.203 O SI85.206