1. Compare the future values of Php1,000 with an interest rate of 5% compounded: 1. annually, 2. quarterly, and 3. monthly.

Q: Complete the table below giving the principal P that must be invested at interest rate 10.5 %…

A: The Principal value is given as: P = A / (1+r/n)nt where, A = amount after t years r = compounding…

Q: Suppose you deposit $469 per week in a bank account for 5 years. The interest rate(APR) is 7.2%,…

A: present value of annuity = P * {1-[1/(1+r)^n]/r} Where, r = rate of interest per period i.e. 7.2%/52…

Q: hat is the future value of 15 periodic payments of $26,000 each made at the end of each period and…

A: Future values of payments includes the principal payment and payment of interest and present value…

Q: Determine the future value of $10,000 under each of the following sets of assumptions:…

A: Future value: It is the value of money or asset for a specific period at a future date based on the…

Q: Find the present value at 12% interest of Php 1,000 due in 5 months.

A: Present value of an amount of money in future is calculated using following equation Present value =…

Q: How much was borrowed is a simple interest rate of 2.10% was offered payable in 4 months with…

A: Simple interest = Principle * Interest * time

Q: What is the present value of $6,700 received 14 years from now using a 11% interest or discount…

A: Calculation of Present Value:The Present Value is $1,466.53.Excel Spreadsheet:

Q: Find the present worth of perpetuity of Php10,000 semi annually with an interest rate of 10%…

A: Solution Given Semiannual annuity 10000 Interest rate 10% quarterly First payment…

Q: What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded…

A: Given,Present Value (PV) = $3,100Rate of Interest (r) = 8.4% or 0.084Time Period (t) = 17 yearsType…

Q: 4. If P3,200 is invested for 1 year at 9% compounded monthly, what is the compound interest on the…

A: In this question, we are required to compute the compound interest.   Compound interest: Compound…

Q: At an annual interest rate of 7% the future value of $5,000 in five years is: $7,035 $3,569…

A: Given: Interest rate = 7% Present value = $5,000 Period = 5 years

Q: 1. By using the simple interest formula, how many months will it take for an investment of Php25,000…

A: We have to use simple interest rates formula. As policy of company three parts will be answered so…

Q: The present value is P 16,300.00, and the interest rate is 9% compounded monthly for 6 years. What…

A: Here, Present Value is P16,300 Interest Rate is 9% Compounding Period is Monthly i.e. 12 Time Period…

Q: The present value of Rp100 million in three months is Rp97 million. Compute the simple interest rate…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: d it will become $ 6,000 at the end of 4 years, determine the nominal rate of interest and the…

A: The given problem can be solved using using RATE and EFFECT function in excel. RATE function…

Q: 3. When will Php 30,000 earn interest of Php 15,000 if it is invested at the rate of 7.5% compounded…

A: Time value of money concept says that a sum of amount invested today will have more value in future…

Q: Assuming an annual effective interest rate of 5%. Which of the following annuities with 12 payments…

A: The present value of the annuity is calculated by discounting the future payments at the required…

Q: What is the future value of $2,000 deposited for one year earning 6 percent interest rate annually?

A: Given details are : Present value of deposit = $2000 Time period = 1 year Interest rate = 6%  From…

Q: A loàn of Php150, 000 with an interest rate of 6% compounded monthly payable for one year.

A: Amortization is referred to as decreasing or writing down the value of intangible assets or loans.…

Q: What is the future value of a lump sum of $1,335, in 17 years, assuming an interest rate of 8.8…

A: Given details are : Present value = $1335 Time period = 17 years  Annual percentage rate = 8.8%…

Q: What is the present value of $2,300 received 5 years from now using a 3% interest or discount rate,…

A: In the given question we need to compute the present value from below details: Future value = $2300…

Q: How much interest will be charged on P7,300 borrowed for three (3) years at a simple interest rate…

A: The simple interest method is a method where interest is calculated only on the principal amount…

Q: What is the equivalent present value of the following series of payments: $10,000 the first year,…

A: Calculate the equivalent present value as follows:

Q: Calculate the future value and the compound interest of PHP 20,500.00 corresponding to each of the…

A: Future value of the company would be considered as the value determined with the interest rate…

Q: ank pays a simple interest rate of 4.1% on 30 to 179-day GICs of at least $100,000. What is the…

A: Simple interest rate is interest rate without compounding and is lower than the compounding…

Q: What is the present worth of P5000 deposited at the end of every three months for 5 years if the…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: What is the present value of $5,500 received 9 years from now using a 12% interest or discount rate,…

A: Given details : Future value = $5500 Time period (n) = 9 years Interest rate (r) = 12% = 0.12…

Q: at what interest rate will a principal of P9,500 accumulate to P15,000 in 2 years compounded…

A: Future value = Present value*(1+interest rate/k)^(n*k) where n = number of years = 2 k = compounding…

Q: Find the present and the future value of quarterly payments of $2,000.00 for 5 years with interest…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: What is the term if the final amount is P7,321 and the principal is P2,500 at 15% compound interest…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: and has a loan of $8,500 compounded quarterly for four years at 10%. What is the eff ere to view…

A: Effective interest rate is interest rate considering effect of compounding.

Q: What is the nominal rate of interest if Php12,000 accumulates Php30,000 in 10 years with interest…

A: Solution: Present value (PV)    12,000.00 Future value (FV)    30,000.00 Period (Nper) 40…

Q: What is the present value of $1,500 due in 14 years at a 5 percent interest rate

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: What is the effective rate of interest if Php12,000 accumulates Php30,000 in 10 years with interest…

A: Solution: Present value (PV)       12,000.00 Future value (FV)       30,000.00 Period (Nper)…

Q: Which one of the following represents the highest effective interest rate per year? Select one:…

A: Daily compounded interest means that interest is accumulated on a daily basis and is calculated by…

Q: What amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: If you borrow $20,000 at an interest rate of 8%, compounded annually with the following repayment…

A: In the given sum we are given loan amount and  interest rate. We must find the value of A which is…

Q: A. find the monthly payment of an ordinary if the present value is P18,500 with an interest rate of…

A: A) Present value of annuity = P 18500 Interest rate = 10% quarterly compounded n = 6 years = 72…

Q: Complete the table below giving the amount P that must be invested at interest rate 7 % compounded…

A: In this question we need to calculate the P i.e. Present value of investment to obtain $50000 in…

Q: Given an interest rate of 6.5 percent per year, what is the value at date t = 8 of a perpetual…

A: Annual interest rate = 6.5% Annual payment = $ 900

Q: 1. What is the future amount of my Php 100, 000 after 5 years if I invest today at a rate of 12 %…

A: Invested amount (X) = Php 100000 n = 5 years Interest rate = 12% Inflation rate = 8% Let the actual…

Q: Determine the discount rate assuming the PV of $1080 at the end of 1-year is $980? 2. $9,800 is…

A: Present value=$980Future value=$1080Period=1

Q: A deposit of $1000 compounds to $2500 in 5 years. The interest on this account compounds quarterly.…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: If I loaned an amount of P10,000.00 with an interest rate of 8.60% compounded MONTHLY for 5 years.…

A: Annual interest rate (r) = 8.60% Compounding = Monthly Number of compounding per  year (m) = 12

Q: What is the future value of an investment that pays P2,500 at the end of each period with an…

A: future value of an investment that pays P2,500 at the end of each period with an interest rate of…

Q: The present value of $64,000 to be received in one year, at 6% compounded annually, is _____…

A: Present value = Present value of principal where,                         Present value of principal…

Q: At what simple interest rate per annum will Php25,000 accumulate to Php33,000 in 5 years? Round off…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: If compounding is quarterly, what effective annual interest rate will make the following values of P…

A: Future value of a present value is the value of that amount after taking into account the time value…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.