Q: Find the nominal interest compounded quarterly equivalent to 12.00% effective interest?
A: Effective annual interest rate is rate that is regarded as the real return on a loan or savings for…
Q: What is the future worth of the following series of payments? (a) $9,000 at the end of each year for…
A: Annuity value = $9000 Time period = 6 years Interest rate = 11.25%
Q: Find the nominal rate compounded monthly which is equivalent 12% compounded quarterly. write your…
A: The Effective Interest Rate is utilized to work out the effective annual interest rate in view of…
Q: With interest rate of 9% compounded continuously, what is the present worth of a perpetuity of P8000…
A: A perpetuity is a type of insurance policy that pays out for the rest of your life. Perpetuity in…
Q: What are the present worth and the accumulated amount of a 10-year annuity paying $10,000 at the end…
A: here we calculate the present worth by using the given information which are as follow-
Q: Every three months, Mahmood deposits $1100 into an account paying 6% compounded quarterly. Find the…
A: Given Mahmood deposits $1100 into an account in every 3 months. The bank pays him 6% compounded…
Q: With a $500,000 home mortgage loan with a 20-year term at 4% APR compounded semiannually compute the…
A: Given information i = 4% compounded semiannually = 4% /2 = 2% per semiannual period Effective int…
Q: Find the present worth of a future payment of 100,000 to be made in 10 years with an interest of 12%…
A: To solve above question we firstly simplify the interest rates as per their compounding periods by…
Q: What will be the amount accumulated by each of these present investments? (a) $5,635 in 10 years at…
A: Answer - Need to find - amount accumulated of present investments Given in the question - P =…
Q: How many years will it take for an investment to be twice its value if it earns 8% compounded…
A: We use the rule of 72 here. No. of years needed to double any investment = 72/ interest rate
Q: The effective interest rate is 9.38%. If interest is compounded monthly, what is the nominal…
A: Monthly interest rate (i) can be calculated by using the following formula.
Q: A mortgage of 190000 is required to purchase a house. The mortgage will be repaid with equal monthly…
A: The mortage amount (present value) = $190000 Total intallment period (n) = 25 years x 12 Months =…
Q: If the nominal interest is 12% compounded continuously, compute the effective annual rate of…
A: The effective annual interest rate is the genuine interest rate on an investment or loan since it…
Q: An investor needs 41,000 in 15 years. What amount should be deposited in a fund at the end of each…
A: Fund: It refers to the amount of that is deposited by people at various places that provides them…
Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…
A: semi annual payments = 1000 Time = 3 years Interest rate = 12 % Semi annual rate = 12/2 = 6 %…
Q: Find the effective interest rate per payment period for an interest rate of 8%compounded monthly for…
A: The effective rate of interest is the return on a savings account or an investment, whose interest…
Q: You deposit $2000 in an account earning 8% interest compounded continuously. How much will you have…
A: When you earn compound interest, you earn interest on both the money you've saved and the money…
Q: A car loan requires 30 monthly payments of $199.00 starting today. At an annual rate of 12%…
A: The measure that depicts that the value of money in the present is considered to have much more…
Q: How long will it take money to quadruple itself if invested at 13% compounded annually?
A: Money quadruples meaning current value becomes four time in n years.
Q: What are the present worth and the accumulated amount of a 5 - year annuity paying P 6,000 at the…
A: Given information, Annuity (A): P 6000 Interest rate (i): 12% Time period (N): 5 years To find:…
Q: Determine the value of each of the following annuity factors. а. (P/A, 4%, 8) b. (A/P, 14.5%, 10) с.…
A: * SOLUTION :- Based on given information the calculation are as follows.
Q: A series fequal quarterly payments of $5,000 for 10 ears is equivalent to what present amount t an…
A: here we calculate the given by following method as follow;
Q: Which of the two rates would yield the larger amount in 1 year? (A) 2% compounded quarterly B) 2.02%…
A: Answer to the question is as follows:
Q: Find the difference between simple interest and compound interest on a savings deposit of P50 000 at…
A: In simple interest uses the principle amount only while the compound interest includes principle and…
Q: If an investor invests a sum of $1000 in a bank for 1 year with an interest rate of 10% compounded…
A: Given the invested amount = $1000 The investment made for a time period = 1 year Interest rate = 10%…
Q: Does the compounding increases the amount of interest paid over a year atthe same nominal interest…
A: The interest rate is the income earned by the investment in the economy. When the money is invested…
Q: 37. A nominal rate of 15% compounded monthly is equal to what effective rate of interest. 18.95%…
A: Answer- "Thank you for submitting the questions.But, we are authorized to solve one question at a…
Q: You invest 10,000 pesos for 3 years and get 10% interest compounded at the end of each year. What is…
A: We use the compound interest formula to calculate future value after 10 years.
Q: Accumulate P3, 000 for 9 years at 6% compounded quarterly? What is the compound interest earned?
A: P = P3,000 n= 4 (because it is compounded quarterly) t = 9 r = 6% = 0.06 A = P(1+r/n)nt = 3000 x…
Q: A debt is amortized for 4 years by a series of payments that decreases annually by P 500, the first…
A: Initial Payment = 5,000 Interest rate= 5% Decreases by 500 every year n = 4 years
Q: How many years will it take an investment to triple if the interest rate is 8% compounded…
A: Compound interest refers to the adding of interest to the principle amount of a loan or deposit, or…
Q: John borrows $10,000 at 18% compounded annually. He pays off the loan over a 5-year period with…
A: A loan helps an individual to borrow and spend on his/her current needs. However, an interest rate…
Q: Suppose you make equal quarterly deposit of $ 1,000 into a fund that pays interest rate of 12%…
A: Quarterly deposit = 1000 Interest = 12% Balance at the end of 3 years = ?
Q: What value of F3 would be equivalent to the payments shown in the cash flow diagram below the…
A: Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and…
Q: What uniform annual amount should be deposited each year in order to accumulate 1,000,000 at the end…
A:
Q: the desired accumulated amount is $70,000 after 14 years invested in an account with 2% interest…
A:
Q: The compound interest on a certain sum of money for 2 years is $ 52.00 and the simple interest for…
A: GIVEN Simple Interest for two years is 50P×T×R / 100 = SimpleInterest P×2×R = 50
Q: A series of equal quarterly payments of $6,000 for IO years is equivalent to what present amount at…
A: A compound interest rate is the rate on a deposit or a loan amount and used to measure the…
Q: In an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8% compounded…
A: Capital recovery factor is a ratio that measures that present value of an ordinary annuity or a…
Q: M purchased a small lot in a subdivision. paying P200 000 down and promising to pay P15 000 every 3…
A: Given: A = P15000 Down payment = P200000 n = 10*4 = 40 i = 12% compounded quarterly. i = 12% / 4 =…
Q: A series of 10 annual payments of $7,500 is equivalent to three equal payments at the end of years…
A:
Q: If the interest rate is 6% compounded quarterly, how long (number of quarters) will it take to earn…
A: The interest income on any instruments such as bank deposits and bonds is the amount received over…
Q: How long will an account invested at 11.5% compounded yearly be tripled?
A:
Q: how long does it take for an investment to double at 1.4% compounded continuously
A: Continuous compounding is the numerical furthest reaches that accruing funds can reach if it's…
Q: What amount a man deposit each year so that he can withdraw P 50 000 at the end of ten years. If the…
A: Given information, Future value (F): P 50,000 Time period (n): 10 years Interest rate (r): 6%…
Q: A total of $50,000 is borrowed and repaid with 60 monthly payments, with the first payment occurring…
A: Given: The total amount borrowed = $50,000 The amount repaid with = 60 monthly payments The first…
Q: A series of equal quarterly payments of $5,000 for 10 years is equivalent to what present amount at…
A: Given values in the questions: Payment made quaterly = $5000 The time period for which the payment…
Q: What interest compounded monthly is equivalent to an interest rate of 78.9% compounded. quarterly?
A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…
Q: What interest compounded 10 times a year is equivalent to an interest rate of 5% compounded…
A: Compounding Interest rate = 5% quaterly
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- A dealer advertises that a tape recorder is sold at P450.00 cash down followed by two yearly installments of P680.00 and P590.00 at the end of the 1st year and 2nd year respectively. If the interest charged is 18% p.a. compounded annually, find the cash price of the tape recorder.If the sum P15, 000.00 is deposited in an account earning 4% per annum compounded quarterly, what will be the deposited amount at the end of 5 years?Semiannual deposits, beginning with $500 and increasing by $100 with each subsequent deposit, are made into a fund paying a nominal 10% per year compounded continuously. Solve, a. What will the fund amount to after 7 years? b. What is the present worth equivalent of the total set of deposits? c. What is the equal semiannual equivalent amount of the deposits?
- A payment of P2000 is due today, and another one for P3000 is due in the 6th year. If 6% interest rates are compounded quarterly, find two equal payments, one in two years and the other one in 4 years, that will replace your original payments.Assume you receive a $10,000 payment at year 4. The interest rateequals 6%, compounded annually. The appropriate CFD is:A man wishes to bequeath to his daughter P500k twenty yrs from now. What amount should he invest now if it will earn interest of 18% compounded annually during the first 5 yrs & 16% compounded quarterly during the next 15yrs?
- For an investment of$800 every 6 months at 6.2%/a compounded semi-annually for 20 years, what is the value of the last investment at the end of 20 years?.What will be the amount after 4.75 years if P3, 600 will be deposited at the end of each quarter invested to earn interest of 14.5% per quarter?What will be the balance at the end of 5 years for $30,500 now at 10% annual interest, if compound interest is :a. weekly b. continuously
- Mr. Rankine bought a piece of property for P100,000 down payment for 10 years deferred semiannual payments of P8,000 starting 3 years from now. If the interest rate is 12% compounded semi-annually, what is the present worth of the property?What are the present worth and the accumulated amount of a 12-year annuity paying BD 25,000 at the end of each year with interest of 18% compounded annually? Find Present worth only.What is the future worth of P600 deposited at the end of every month for 4 years if the interest rate is 12% compounded quarterly?