1. Find the rate of interest if compound amount factor compounded bi-monthly for 5 years is equal to 1.487887. • A. 7% • B. 5% • C. 8% • D. 6%

Q: Find the compound amount and the amount of interest earned by the following deposit. $4,000 at 7.87%…

A: An interest is referred as an amount from the borrower or the deposit taking banks or the financial…

Q: 5. Find the accumulated value at the end of 3 years if P1,750 is deposited at a) 6% simple interest…

A: Given:Principal amount=1750Time period=3 yearsA) Accumulated value when interest is 6%Interest…

Q: The principal amount is P7000 at 6% compounded bi-monthly. Compute for the interest after 9 years.

A: Total interest rate for 9 years= (1+r/n)t*n -1 Where, r = rate of interest = 0.06 n = number of…

Q: 1. Assume that 1500 Php is deposited in an account in which interest is compounded annually at a…

A: Part 1: Amount = 1500 Php  Interest Rate = 6%  Time period = 5 years  Compounded annually

Q: If money is worth 12% compounded quarterly, determine the single payment at the end of the fourth…

A: Present value refers to the current value of a sum of money in the future at a specified interest…

Q: Find the present value of the following annuity: An amount of $15,806 is paid quarterly for 3 years…

A: The present value of the annuity is the current value of all payments to be received in the future…

Q: 5. A debt of $25,000, with interest payable semi-annually at the rate 6%, is to be amortized by…

A: A payment is a financial transaction in which money is transferred from one party to another.

Q: 4. Find the compound amount and interest on P360,000 for 8 years and 6 months at 10% compounded…

A: Compound Amount = P x (1 + r)^n Interest = Compound Amount - Principal

Q: 1. Find the compound amount and interest if: a. P 45 000 is invested at 5% compounded quarterly for…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: 5. A debt of $25,000, with interest payable semi-annually at the rate 6%, is to be amortized by…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: A sum of 21600 is borrowed at 5% simple interest per annum and is a paid back in 4 equal annual…

A: The question is related to the Installment. The annual Installment is calculated with the help of…

Q: find the interest earned principle 8000 rate .06 compounded annually years 3

A: The formula to calculate accumulated value is given below:

Q: Complete the table to find the compound amount of P50 000.00 invested a interest. Show your complete…

A: Compound interest means interest on loan and accumulated interest from previous periods

Q: 4. P200,000 was deposited at an interest rate of 24% compounded semi-annually. After how many years…

A: Compound Interest It is the interest on a deposit or a loan that is calculated on both the initial…

Q: Solve the following problem. 1. Compute for the compound amount and compound interest on 1, 250, 000…

A: We need to use compound interest formula given below to calculate compound amount and compound…

Q: Find the compound amount and interest on 5,500 at 4% compounded semi-annually for 8 years and 8…

A: Compound amount is calculated using the formula of future value . Future value = Present value *( 1+…

Q: 1. What is the difference between the compound interests on ₱5000 for 1 year at 4% per annum…

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

Q: 20. Use the compound interest formula to compute the total amount of accumulated and interest…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: A. Complete the table to find the compound amount of P50,000.00 invested at 10% interest. ealqmo In…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 1. An interest rate of 37% per year, compounded monthly, is nearest to year (Enter the value in…

A: Effective annual rate is the real rate that is actually earned on an investment by the investors…

Q: Find the compound amount on P15,250.00 for 4 years and 6 months at 8% compounded semi-annually.

A: Future value is value of a cashflow at a later or future date .It is calculated as below FV =…

Q: Can you please show me how we get the number, 1.242381   In this sum , A = $ 2,500 P = ? Time =…

A: Below is the extended calculation for better understanding: A=P×…

Q: What is $425 to be received at the end of the year worth on January 1, assuming 6% interest…

A: Amount = Principal*(1+r/n*100)^nt where, r = rate of interest n = no. of period t = no. of year

Q: A sum of £100 is invested in a savings account at the end of each quarter for seven years.  Interest…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Find the amount that must be invested at an effective rate of interest of 4% in order to accumulate…

A: Present Value = Future Value / (1+r)^nWhere,r = rate of interest per period i.e. 4%n = no. of…

Q: Calculate the accumulated amount of end-of-quarter payments of $9,500 made at 6.64 compounded…

A: Quarter Payment  $                 9,500.00 Interest Rate 6.64% compounded monthly Time Period 6…

Q: P7500 is deposited in a savings account at a 6.5% rate of interest compounded quarterly for 25…

A: Future Value: = Principal×(1+r)nt   Where,  Principal = P7500 r = Quarterly rate = 6.5% ÷ 4 quarters…

Q: Find the balance of the account earning compound interest annually $7000 at 2% for 4 years. S7000 at…

A: Solution:- Future amount means the amount after the effect of compounding after specified years.…

Q: A certain amount is invested 5 years and 6 months ago at an interest rate of 8% compounded semi -…

A: Amount invested can be calculated as: = Future value / (1 + rate per period) ^ number of periods

Q: Principal of 2500 OMR is invested for 3 years at rate 6.5%. Find the future value if the interest is…

A: As per time value of money concept, a sum of amount invested today will have more future value in…

Q: Find the simple interest and the total amount after three years. Principal = Php 11,750 Annual rate…

A: The method which charges interest rate only on the principal amount is known as simple interest rate…

Q: A debt of $1908 with interest at 6.3% compounded annually is to be repaid by equal payments at the…

A: Solution:- When a loan is taken, it is to be repaid in lump sum or in installments. If it is paid in…

Q: 5. A deposit of $2450 is made into an account drawing 4.26% interest compounded quarterly. Find the…

A: Interest is an extra amount which is received or paid on deposited or borrowed amount. Interest…

Q: m Converted interest rate (i) 1. Monthly payments of 2000 for 5 years with an interest rate of 12%…

A: Question is based on the concept of time value of money which says that value of money now is more…

Q: Find the accumulated value of ₱ 5,000.00 in 3 ¼ years if it is invested at 15% compounded…

A: Given,  Invested amount = 5,000 I/Y = 15/2 = 7.5% per semi annual N =3.25 *2 = 6.5 semi annuals

Q: Compare the interest earned by P dollars at i% per year simple interest with that earned by the same…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: find the nominal rate of interest converted monthly at which P60,825.00 accumulates to P87,104.00 at…

A: Future value (FV) = P 87,104 Present value (P) = P 60,825 Period = 6 Years Period in months (n) =…

Q: A $10,000 certificate of deposit earns interest of 8 percent per year, compounded Semiannually. Find…

A: Time value tells that money received today has more value than that of receiving the exact amount…

Q: Compare the interest earned by $9,000 for five years at 8% simple interest with interest earned by…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: 1. Complete the table for a compound interest involving P 50 000 loaned for a period of 5 years with…

A: Loan amount = P 50,000 Annual interest rate = 8% Period = 5 Years

Q: A nominal interest of 3% compounded continuously is given on the account. What is the accumulated…

A: Given Information: Interest rate is 3% Compounded continuously Present value is 10,000 Number of…

Q: 2.) Find the interest on P25,750.00 for 3 years at 8% compounded quarterly.

A: Solution for Number 2: Compound interest is calculated by subtracting principal amount from final…

Q: For a sum of money interetsed at 4% compunded semi- annually for 5 years. a) nominal rate of…

A: a) Nominal rate of interest is the stated rate on the investment Nominal rate of interest “j” = 4%…

Q: a. 12% nominal rate, semiannual compounding, discounted back 5 years b. 12% nominal rate, quarterly…

A: Present Value is known as the current value of the amount invested.  Present Value =Future…

Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

Q: Find the time t, in years, for the principal P = $715 to reach the future value F = $740 under r =…

A: Principal (P) = $715 Future value(F) =$740 Rate = 1.89% compounded quarterly So, quarterly compound…

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.