Q: You borrowed money from the bank with a simple interest 8%, find the present worth of P25,000, which…
A: In Simple Interest Case, FV = PV + (PV x r x n) FV = PV x {1 + (r x n)} Therefore, PV = FV / {1 + (r…
Q: How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum,…
A: Compound Interest: It is the interest on a deposit or loan computed based on the initial principal…
Q: Suppose you invest $103 nin a bank account, and five years later it has grown to $137.91. a. What…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: Mr. Ayala borrows P1,000. In 4 years, the money become P2,500 compounded bimonthly. Find the nominal…
A: Borrowed amount (P) = P 1000 Period = 4 Years Number of compounding per year (m) = 6 Number of…
Q: A man buys a house for $330,000. He makes a $150,000 down payment and amortizes the rest of the…
A: Given:
Q: You deposited PHP1, 500 in a bank with an interest rate of 5% for 1 year. What is the future value…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: A man borrowed an amount of P150,600 to bank that offers an interest rate of 5.36% compounded…
A: Given, Loan borrowed is P150,600 Interest rate is 5.36% compounded annually
Q: ou deposit $500 in an account earning 7% interest compounded annually. How much will you have in…
A: Given information: Present Value of deposited money : $500 Interest rate : 7% Time period : 10 years…
Q: 4. Able borrowed 1000 with an interest rate of 10% compounded monthly which he borrowed from…
A: a) Determine the amount payable in 4 months (A) by the compounding amount formula. Where 'P' refers…
Q: A man invested P1,000 per month on a bank that offers 6% interest compounded annually. How much can…
A: The Concept is of Annuity. Annuity is a series of fixed payments/receipts made at regular interval…
Q: 3. If Php 10,000 was borrowed by Alan at an annual interest rate of 11%, and must be paid in 1 year…
A: Future value refers to the amount of the current asset at the future date which is grounded on the…
Q: A bank loans a family $90,000 at 4.5% annual interest rate to purchase a house. The familyagrees to…
A: Information Provided: Present value of loan = $90,000 Interest rate = 4.5% Term = 15 years Interest…
Q: What is the total interest / dividend amount to be repaid at the end of 1 year for a loan of 200 000…
A: simple interest formula: interest = principal×rate×time
Q: Suppose a bank pays you 2% annual interest compounded quarterly. You deposited $2,350. How much will…
A: Computation:
Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…
A: The future value of annuity refers to the future value of a series of payments. The future value can…
Q: If Christine borrowed P 75 000 from the bank at an interest rate of 3.5%, how much is the interest…
A: Solution 1: Interest in 8 months = P * R * T
Q: 1. An employee obtained a loan of P 10,000 at the rate of 6% compounded annually in order to build a…
A: Since you have asked multiple questions, we will solve the first question as per policy. Please ask…
Q: a businessman borrowed Php4000 to be paid after 1 1/2 years with interest at 10% compounded semi-…
A: Loan 1 value = Php 4000 Interest rate = 10% per annum = 5% semiannually Duration = 1.5 years = 3…
Q: Suppose you borrowed $37,000 at a rate of 9.0% and must repay it in 4 equal installments at the end…
A:
Q: A man obtained a loan from the bank worth P 400,000.00 payable within 4 years from the time the loan…
A: Mortgage payments are the monthly payments of the loan amount borrowed for a certain period of time.…
Q: A couple who borrow $60,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of…
A: Loan is a value which is borrowed from external sources like banks and this amount is repaid later…
Q: A laptop was purchased worth Php 90000. This is through an installment of 2 year and there is also…
A: Time value of money is used in the calculation of the monthly instalment to be paid, the future…
Q: За. Sophia pays $200 into a bank account at the end of each month. The annual interest paid on money…
A: We need to use future value of annuity formula to calculate value of investment after 5 years.…
Q: What is the total amount of money to be paid back at the end of 3 years for a loan of 200 000 lira…
A: Using excel FV function
Q: 3. Mr. Bainto has a loan that is to be amortized by paying monthly payments of P 3,200 for 1 year.…
A: Monthly payment (P) = P 3,200 Number of payments (n) = 6 Interest rate = 12% Monthly interest rate…
Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…
A: Present Value is referred to as the current value of future sum of the funds or the cash flows…
Q: A couple who borrow $70,000 for 20 years at 7.2%, compounded monthly, must make monthly payments of…
A: a) Unpaid Balance= Beginning balance - principal repayment
Q: 1- Find the accumulative amount in a bank by down payment of 500000 ID now and ten cqual payments at…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: Engr. Tongol borrowed money from a loan shark. He receives from the loan shark an amount of P…
A: Simple interest = Amount borrowed * Interest rate * (Number of months / 12)
Q: 3. An individual makes 6 annual deposits of P2,000 in a savings account that pays interest rate of…
A: Future Value is used to determine the bank account balance after certain period in which deposited…
Q: A sum of 2500 TL is deposited in a bank and cashed back at the end of 3 year as 5000 TL. Find the…
A: Deposited amount (PV)= 2500 TL Cashed amount (FV)= 5000 TL Time period= 3 years Monthly and annual…
Q: 1. The Lexington Property Development Company has a RM10,000 note receivable from a customer due in…
A: Present value is the value of an investment in today’s time. It helps to make decisions better.
Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments starting at the end 2…
A: The amount borrowed can be calculated with the help of present value of annuity function. The…
Q: Suppose an investor deposits $28,000 into a savings account for 4 years at 6.75% interest. Find the…
A: Dear student as per answering guideline we can answer only three sub parts if a question have more…
Q: C.) If you borrow cash from your neighbor at 12% simple interest, determine the present worth of…
A: Present value is the current value of a future sum of money given at a specified rate of return.…
Q: If I loaned an amount of P10,000.00 with an interest rate of 8.44 % compounded monthly for 5 years.…
A: Loan amount = P 10,000 Annual interest rate (AR) = 8.44% Number of compounding per year (m) = 12
Q: A
A:
Q: John bought a condo for RM 630,000. He made a 15% down payment and financed the balance through a…
A: MONTHLY PAYMENT: PMT=P×rm1-1+rm-m×n p=loan amount (principal) m=frequency of compounding n=number of…
Q: n annual interest of 4% on 2-year CDs and you deposit $10,000. What is your balance two years later?
A: Given, Annual interest rate , i = 4% No. of years, t = 2 Amount deposited, A = $10,000
Q: Suppose you borrowed $15.000 at a rate of 11.1% and must repay it in 5 equal installments at the end…
A: Interest is the amount given by the borrower of money to the lender of money. Interest is usually…
Q: How much do you need to deposit into a bank in order to receive proceeds of $200,000 in 5 years if…
A: The equation is, PV=FV÷1+in Where, Present value is represented by PV Future value is represented by…
Q: A deposit of $3,000 is made in a savings account that pays 7.5% interest compounded annually. How…
A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…
Q: Mary bought an LCD television and paid RM300 as a down payment. The balance was to be paid by…
A: Down payment = RM 300 Monthly payment (P) = RM 112 Annual interest rate = 10% Monthly interest rate…
Q: 1. At the beginning of each quarter, P36,000 is deposited into savings account that pays 6%…
A: Honor code: Since you have asked multiple questions, we will solve the one question for you. If you…
Q: Student B placed his allowance amounting to P 5000 in a savings account with a nominal interest rate…
A: The future value is the amount that will be received at the end of a certain period. In other words,…
Q: A couple who borrow $100,000 for 30 years at 8.4%, compounded monthly, must make monthly payments of…
A: Loan amount is $100,000 Time period is 30 years Interest rate is 8.4% Monthly payment is $761.84
Q: 2. Deposit the principal amount of P10,000 into a savings account that pays interest at the rate of…
A: Compound interest formula: A = P[(1+r/n)^nt] Where A is the future amount P is the principal r is…
Q: What monthly payments must you make to pay off the $50,000 loan at 8.4% compounded monthly over 3…
A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…
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- You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
- Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions Kristen Quinn makes equal deposits of $500 semiannually for 4 years. Required: What is the future value at 8%? (Note: Round answers to two decimal places.)Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
