HW4 sol

An environmental soil cleaning companydeposits $2,000 quarterly in a fund that earns 8%compounded quarterly over a five-year clean-up period.How much money is in the funda. at the end of five years?b. at the end of 10 years?

1. a)  A 20% compounded quarterly has an equivalent rate of 10.25%, how many times does it pay every year?Group of answer choices 3 4 2 1 b) How long in years will a certain sum of money to doubles its amount when deposited at a rate of 7% compounded bi-monthly?Group of answer choices8.96 yrs 10.96yrs 9.96 yrs 11.96yrs   Answer both parts correctly. I ll rate

A series of equal quarterly deposits of $8,000 extends over a period of threeyears. It is desired to compute the future worth of this quarterly deposit seriesat 8% compounded monthly. Which of the equations shown is correct for thisoperation?(a) F= $8,000 (FIA, 8%, 3).(b) F= $8,000 (FIA, 2.01%,12).(c) F= $8,000 (FIA, 1%,12).(d) F= $8,000 (FIA, 3.03%, 12).

Assume you graduate from college with ​$26000 in student loans. If your interest rate is fixed at 4.5​% APR with monthly compounding and you repay the loans over a ​10-year ​period, what will be your monthly​ payment? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

K What is the accumulated value of $200 invested for 12 years at 3.8% p.a. compounded (a) annually? (b) semi-annually? (d) monthly? (c) quarterly? Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.

A bank offers to lend you $1,000 if you sign a note to pay K1,610.50 at the end of 5 years. What rate of interest is the bank charging you?    b) Basket Wonders (BW) has a $1,000 Cash Deposit (CD) at the bank. The interest rate is 6% compounded quarterly for 1 year. What is the Effective Annual Interest Rate (EAR)?  c) Prepare an amortization schedule for a K1, 000 loan to be paid in 3 equal installments at the end of each of the next 3 years. Interest is charged at a rate of 6% per annum.

EesE family borrows P600,000 for the annual JS Promenade, money is 12% compounded annually, agreeing to repay the loan in 15 equal payment. What is the value of equal payment?  a. P214,285.71 b. P109,617.75 c.  None of these d. P88,094.54

Given 12% annual interest, covert this into the ff periodical basis. monthly quarterly semi annual bi-monthly semi-monthly

Show the use formula and please show the step by step solution to get the correct answer! Dont forget the cash flow diagram. Thank you, God bless :) 2. A man borrowed Php 120,000 and promised to pay annually for 5 years. The payment starts at "X" pesos. The man intends to increase his payments by Php 5,000 at the end of each successive year. If the interest rate is 8% compounded annually, how much will the first payment be? If the man decides to pay annually with 8 equal payments with the first payment to be made after 4 years, what will be the amount of the annual payment? Construct the cash flow diagram for both cases.

A student takes out a $10,000, 10-year loan with two possible repayment plans, (i) immediate repayment or (ii) a grace period during the college years. The student takes 5 years to graduate. The interest rate is 8%, compounded annually and the loan is paid off as a yearly lump sum. Since the bank is a for-profit business (beholden to its shareholders and required to maximize profit), the bank intends to receive the same return on this loan either way. How much are the annual payments under option (i) and option (ii)

A certain property is being sold and the owner receives two bids. The first bidder offered to pay P400000 each year for 5 years and the payment is to be made at the beginning of each year. The second bidder offered to pay P240000 fest ysar, P350000 the second year, and P540000 each year for the next 3 years, all payments to be made at the beginning of each ysar, If money is worth 20% compounded annually, which bid should the owner of the property accept?

Problem 1. Find the interest rate for each deposit and compound amount.  (i)  $8000 accumulating to $11,672.12 compounded quarterly for 8 years. (ii)  $6725 accumulating to $10,353.47 compounded monthly for 7 years. Problem 2. Find the amount needed to be invested now to accumulate the following amount if the money is compounded as indicated.  (ii) $4500 deposited at 3.6% compounded monthly to reach at least $11,000.    Problem 3.  (i)  If $1000 are deposited into an account paying 3% compounded annually for 5 years, how much money is in the account at the end of the last deposit? (ii)  If $800 are deposited into an account paying 6.51% compounded semiannually for 12 years, how much interest is earned at the end of the last deposit? Problem 4.  (i)  If $10,000 is needed in 12 years, how much should be deposited at the end of each year into an ac- count paying 5% compounded annually? (ii)  If $150,000 is needed in 15 years, how much should be deposited at the end of each month…

Set up expressions initially with functional notation like P/F,i,n 1) let i = k%, where i represents the interest rate for interval k (e.g., i1 = 1%). Suppose that there is a single $100 cash flow at the EOY 5. Find the equivalent uniform series amount spanning EOYs 2-5 (to the nearest cent).

A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly deposit is equal to $2100. The first monthly deposit occurred on June 1, 2012 and the last monthly deposit will be on January 1, 2019. The account (the series of monthly deposits, 12% nominal interest, and monthly compounding) also has equivalent quarterly withdrawals from it. The first quarterly withdrawal is equal to $5000 and occurred on October 1, 2012. The last $5000 withdrawal will occur on January 1, 2019. How much remains in the account after the last withdrawal?

3. The generator set requires no maintenance until the end of 2 years when 60,000 will be needed for repairs. After this, 90,000 will be needed for repairs at the end of each year for 5 years, then 120,000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12 year period? (Show solution) a. 97, 246 b. 79, 246 c. 72, 946 d. 67, 246

SITUATION 3: Dana wants to accumulate money for their anniversary celebration with her husband in a yacht. At 5% rate of interest  compounded monthly and at P9000 periodical payments, what will be the future worth:  6. if she will withdraw the accumulated money at the end of 7th month.   7. if she decides to withdraw the money 2 months after making 5 payments.   8. if she made 5 equal payments at the start of 5th period

The buyer of a certain machine may pay either a $2,000 cash down payment and $2,500 annually for the next 6 years or $3,500 cash and $2,500 annually for the next 5 years. If money is worth 12% compounded annually, which method of payment is better for the buyer and by how much? All annual payments are made at the beginning of every period.

A nominal interest rate of “12% per year compounded yearly” is closest to: (a) 1% per month effective rate (b) 3% per quarter effective rate (c) 6% per 6 months effective rate (d) 12% per year effective rate

IP 100,000.00 is loaned for 10 years at a simple interest rate of 15% per annum, determine the total amount due at the end of 10 years. Complete solution.

In the CF diagram shown below, compute the Future amount F at the end of 6 yrs if i = 6% compounded annualy.

You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 4 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 5.5% per year compounded semiannually, what will be your minimum selling price for the bond?

American Express Corp. charges 1.5% interest per month, compounded continuously on the unpaid balance purchases made on this credit card. Compute the effective rate of interest.

An electronic device is available that will reduce this year’s labor cost by$16901.The equipment is expected to last for eight years. If labor cost increase at an average rate of 7% per year at interest rate is 12% compounded bimonthly. What is the maximum amount that we could justify spending for the device?  note: with formula

A wealthy business Mr. Tan wants to start a permanent fund for supporting research directedtoward sustainability. The donor Mr. Henry plans to give equal amounts of money for each of thenext 5 years plus one now, so that P100,000 per year can be withdrawn each year forever. Beginning inyear 6. If the fund earns interest at a rate of 8% per year. How much money must be donated eachtime?   What would be the formula and the cashflow diagram?

Bright Inc. will be receiving $5,500 at the end of every month for the next 3 years. If these payments were directly invested into a fund earning 5.50% compounded semi-annually, what would be the future value of the fund at the end of 3 years?   Round to the nearest cent