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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.If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%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.
- Suppose you currently have $2,000 and plan to purchase a 3-year certificate ofdeposit (CD) that pays 4% interest compounded annually. How much will you havewhen the CD matures? How would your answer change if the interest rate were 5% or6% or 20%? ($2,249.73, $2,315.25, $2,382.03, $3,456.00. Hint: With a calculator,enter N 5 3, I/YR 5 4, PV 5 22000, and PMT 5 0; then press FV to get 2,249.73.Enter I /YR 5 5 to override the 4%, and press FV again to get the second answer.In general, you can change one input at a time to see how the output changes.)Suppose you have $2,200 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.9% interest, compounded annually. How much will you have when the CD matures? a. $6,358.50 b. $6,190.68 c. $5,582.22 d. $6,976.63 e. $2,439.80If Your bank _offers to lend y~u $100,000 at_ an 8.5% annual interest rate to start your new business. The terms reqwre you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2?
- 1. High Land Property Development Corp has a P10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 12% compounded monthly? PV = FV [PVFk,n] To get the PVFk,n (present value factor) = 1(1+r)t 2. Your sister borrowed P5,000 from you and promised to repay P5,550 in one year. What interest rates are implied by the lending arrangements? FV = PV [FVFk,n] or FV = PV x (1 + r)t 3. Z is purchasing an automatic washing machine in an installment basis. She is given 3 monthly installments of P6,000 per month with an interest rate of 10%. What is the price that Mrs Z is paying for the washing machine? PVA = PMT[PVFAk,n] or PMT [1 / r − 1 / r(1+r)t]25 - What is the total interest / dividend amount to be repaid at the end of 1 year for a loan of 200 000 lira withdrawn from the bank for housing needs with an annual 15% simple interest?A) 35 000B) 20 000C) 30 000D) 25 000E) 15 00013. If a person wants to get back £10,000 in an investment which pays 6.7% monthly interest after 2 years, how much the person must invest?
- (Solving for i) You lend a friend $10,000. for which your friend will repay you $27,027 at the end of 5 years. What interest rate are you charging your "friend"?If you deposit OMR 5000 in your account in a bank; if your bank pays 9.05% interest, how much will you get in 15 years? Find future value Select one: a. None of the option b. 18212.41 c. 18833.31 d. 18212.14 e. 18338.13Suppose you borrowed $38,000 at a rate of 9.0% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be? Select the correct answer. a. $11,735.41 b. $11,723.41 c. $11,726.41 d. $11,732.41 e. $11,729.41