3-75. Compute the effective annual interest rate in each of these'situations: . a. 10% nominal interest, compounded semian. nually. b. 10% compounded quarterly.
Q: 7. You are hoping to put down $3000 on a car in 2 years. If the bank pays 4% interest, compounded…
A: FV = 3000 Interest rate = 4% compounded monthly time = 2 Years
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A: i=10%
Q: 8. A businessman invests P 10000 today to be repaid in 5 years in one lump sum at 12% compounded…
A: Current Investment = 10,000 n = 12%
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A:
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A: Part A. Annuity amount = $3000 Time = 10 months Interest = 7% per month Total amount at the end of…
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A: Present worth refers to the sum of money in contrast to some FV it will have when it has been…
Q: 9. In how many years will $1,500 yield an interest of 5200 at 2% simple interest?
A: The simple interest does not include the compounding factor. Formula for simple interest: FV = P…
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A: A mortgage loan basically refers to type a secured loan that enables you to borrow money by pledging…
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A: Given, r = 8% = 0.08 First withdrawal is 3000 Increased by 200 each year
Q: .d What is the annual interest rate on a $1,000
A: The future value (FV) provides the value of an asset at a later date assuming some rate of growth…
Q: 4- Assume an 8% interest rate and find S, T, and X. 52 1800 A 800 1200 600 400 600 200 0-1-2–3- 0-1-…
A: An arithmetic gradient series is an income series that either increments or diminishes by a…
Q: 9. A man wishes to have P 40,000 in a certain fund at the end of 8 years. How much should he invest…
A: Here, given information is: Future value (FV)= P40,000 Interest rate (i)= 6% compounded…
Q: 74. Peggy Sue was left $50,000 by She has decided to put it into a savings ac count for the next…
A:
Q: Determine the value of X that would give the following infinite cash flow series a present worth of…
A: Present Worth = $1600 Interest Rate (i) = 12% n= infinite 1st cost = 0
Q: IImust you V p 2.38 You want to save the down payment required to purchase a vacation home at the…
A: Given Down payment = 75000 $ Time = 4 years Interest rate = 6 %
Q: 3. How much do you need to deposit today (P) to withdraw BD25,000 at n=1, BD3,000 at n= 2, and…
A: Given amount to withdraw in year 1 = 25000 Year 2 = 3000 Year 4 = 5000 Interest rate = 10 %
Q: You are paying into a mutual fund that earns7% compound interest. If you are making an…
A: Mutual fund is a firm that gets money from lender/investors & invest them in marketable…
Q: Consider a coupon bond that has a par value of $800 and a coupon rate of 5%. The bond is curently…
A: Given:Par value=FV=$800Present value=PV=$792.61Coupon rate=5%Number of compundings=n=2…
Q: 0.1 x (0.8) fort = 1, 2, Problem 5. The spot rate of interest is defined by st = 3, 4, 5. Find the…
A: In this question:- The spot rate of interest is st=0.1×0.8t and t=1, 2, 3, 4, 5 first payment=$1,000…
Q: What's the future value of an 11%, 5-year ordinary annuity that pays $800 each year? If this was an…
A: here A=$800 n= 5 year r = 11% so here we can use the Future Value of Ordinary Annuity and Future…
Q: (1 point) A sum of $9500 is invested for the months of June and July at 7,8% simple interest. Find…
A: Principle(P)=$9500 r=7.8% Time=Months of june and july Days in June=30 Days in July=31 Time =31 days…
Q: a. You plan to take a credit with $1500 installment size per year with an annual interest rate of 8%…
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Q: economics A debt of P100,000 is to be discharged by six (6) semi-annual payments, the first to be…
A: We are going to use Present Value of money approach to answer this question.
Q: With a 12% interest rate, approximately how much money you invested today and its future worth in…
A: Hi! thanks for the question but as per the guidelines we answer only one question at one time.…
Q: Determine the value of X that would give the following infınite cash flow series a present worth of…
A: Present Worth = $1600 Interest Rate (i) = 12% n= infinite 1st cost = 0
Q: 2.2) You have a bank deposit now worth $5000. How long will it take for your deposit to be worth…
A: a. Present value = $5000 Future value = $8000 FV = PV 1+ rn8000 = 5000 1+5%n80005000=1.05n1.6…
Q: If you could afford to pay $850 per month for a house mortgage, and you plan on financing it at…
A: Compound interest is usually known to be as the interest which is exactly calculated by multiplying…
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Q: Suppose you deposited $200 at the end of every year for seven years in an account that earned 6%…
A: Compound interest formula: A =P (1+r)t
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Q: (LG 2.2) You have a bank deposit now worth $5000. How long will it take for your deposit to be worth…
A: Answer: a) Working
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A: ▪︎TVM :- Time Value of Money (TVM) implies that cash got in present is of higher worth than cash to…
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A: Current yield is an investment's annual income (interest or dividends) divided by the current price…
Q: 5. Sam borrowed P4,500 for 2 years and had to pay P630 simple interest at the end of that time. What…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: g will it take a sum of money to double at 11% annual percentage rate?
A: Given interest rate = 11 % Rule of 72 Rule of 72 - It is the method which is used to estimate the…
Q: se you make an annual bution of P11,036 each year t e fund for a niece. He is 5 yea nd you will…
A: Introduction,
Q: We 20 O Wle e going to put $2500 inte on account of 12%. 1f we when we close it, how long should we…
A: Disclaimer :- as you posted multiple questions we are supposed to solve the first one only as per…
Q: 2) Two annuity dues in perpetuity have a common present value of $2,000 and a common effective…
A: Given Informaion Effective Annual rate C = $100 Present value = 2,000 Present value of perpetunity…
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A: "Since you have asked multiple questions,we will solve first question for you.If you want specific…
Q: 1. What is the present value of $500.00 to be paid in two years if the annual interest rate is 5%?…
A: Since you have asked multiple question, we will solve the first question for you. If youwant any…
Q: 1. She has been offered two choices. The first is a fixed salary of $80,000 per year. The second has…
A: According to the question, it is given that .. The First fixed salary = $80,000 per year [Option -1]…
Q: If your credit card calculates interest based on17.85% APR, compounded monthly:(a) What are your…
A: APR = 17.85% (compounded monthly) Since APR is compounded monthly, hence Compounding Period = 12…
Q: 5. For an interest rate of 8% compounded annually, find: a. How much can be loaned now if $5,000…
A: here we calculate the present value of the loan by using the amount of loan given at end of 5 year…
Q: 15.) A man is required to pay P200 at the end of 160days or P190 at the end of 40days. Determine the…
A: Rate of interest: The interest rate is simply the percentage of a loan that is charged to the…
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A: The Bankers Trust, a renowned American Financial Institute was initially set up by banks which…
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- 1. Compute the present worth at time zero of deposits of $1,000 a year for 10 years with nominal interest of 18.23% for: a) End-of-year deposits and continuous interest. b) Continuous-through-the-year deposits and continuous interest! Pls answer !bartleby = 3 max questions 1. If the proceeds of P 2000 will be paid w/ P2400 at the end of 10 months, find the discount rate. 2. At certain interest rate compounded quarterly, an amount worth P8000 will be P20000 after 5 yrs. How much would it be at the end of 10 years? 3. For a deposit of $1023 at 7.8 % interest compounded continuously over 4 years, find the interest earned?Answer both part 1 &2 i will rate PART A: Ahmed make an annual contribution of $3,000 to his savings account at the end ofeach month for 10 months. If the account earns 7% interest monthly, how much can be atthe end?PART B:Ahmed buy a gold for $2000 and sell it for $2500. it takes 7 years, what would bethe compound annual rate of return on your investment?
- Asap The coupon bond pays a coupon of 5% per year, paid semi-annually. It has 3 years to maturity. If the current Yield-to-Maturity is 2.5% semi-annually, what is the price of the bond? Assume Face value of BOND = 100! Use the given Data ! bartleby = 3 max questionsFor a deposit of P150000 at 8.5% interest compounded continuously over 5 years, find the interestearned. Jonal is left with an inheritance which amounts to P 30000 trusted to her guardian until it reachesto P 60000, how long would she wait for her money if it is invested at 10% compounded quarterly?N=You take out a 30 year mortage at an annual interest rate of 6% which you will repay in monthly installments if the loan was for a total of 301, 251 how kuch will your monthly payment be? ( Please currect answer)
- Determine the periodic deposit. Round up to the nearest dollar. How much of the financial goal comes from deposits and how much comes from interest?Periodic Deposit: $? at the end of each yearRate: 8% compounded annuallyTime: 12 yearsFinancial Goal: $20,000A child is promised to be given by his mother Ᵽ 5000.00 7.5 years from today. The interest rate is 7.25%. What is the present value of the amount? What is the present value of a 15 year investment amounting to Ᵽ 45,670 if the prevailing interest is 2.5%? Based on Item No. 2 compute for the present value of Ᵽ 45,670 in 20, 22 and 25 years if the interest rates are 5.5%, 6.8% and 9.80% respectively.10.You now have $20,000 which can be invested at 9% per year. c.If you borrowed that $20,000 to be paid back over13 years at 9%, what are your annual payments? d.How much must you save per year for 13 years at 9% to accumulate $20,000?
- If your credit card calculates interest based on17.85% APR, compounded monthly:(a) What are your monthly interest rate and annualeffective interest rate?(b) If your current outstanding balance is $2,500 andyou skip payments for two months, what wouldbe the total balance two months from now?11. What is the value of the bank account at the end of 25 years if the initial deposit is $25,000 at a rate of interest of 7% per annum.Enrico Suarez has decided to purchase a house instead of renting anapartment. He can a ord a monthly payment of $800, and he has saved $6,000 to use as a down-payment on a house. If the mortgage is 4% nominal interest (compounded monthly) on a 30-yearloan, how much can Enrico a ord to spend on a house?
