5) How many years are required for P15k to increase to P20k if invested at 12% per year compounded bimonthly, and continuously? 6) Find the nominal rate compounded semi annually which is equivalent to 20% compounded quarterly. What is the corresponding effective rate?

Q: A year-end bonus of $20,000 will generate how much money at the beginning of each month for the next…

A: Bonus amount (PV) = $20,000 Interest rate (r) = 6.21% Number of compounding per year (m) = 12 Number…

Q: If you invest $5,000 now, and your investment pays 12% per annum, how much will you have in three…

A: Following information is given in the question: Investment today (Present value) = $5000 Annual…

Q: If $2500 is invested at an interest rate of 6.5% per year, compounded daily, find the value of the…

A: The formula used as follows: A=P1+rnnt

Q: Find future value of a 5 year $100,000 investment that pays 8.75% and that has the following…

A: Excel Spreadsheet: Excel Workings:

Q: How much must you invest at 12% interest, compounding quarterly, in order to see your investment…

A: The amount of investment can be calculated by discounting the future value using the appropriate…

Q: If $5,000 is invested at an annual rate of 6.5% compounded continuously, the future value S at any…

A: Information Provided; Principal = $5000 Annual rate = 6.5% compounded continously

Q: Consider the case where the Annual Percentage Rate (APR) is 15%. If the frequency of compounding is…

A: Annual Percentage rate = 15% Compounding = Quarterly Number of compounding per year = 4

Q: With a present value of $150,000, what is the size of the withdrawals that can be made at the end of…

A: We use PMT function in excel to calculate quarterly withdrawal

Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…

A: Compounding refers to the power of doubling the investment by adding interest .Compounding helps in…

Q: Find the time required for an investment of 5000 dollars to grow to 6700 dollars at an interest rate…

A: we have convert annual rate to quarter period interest and period into quarterly period also.

Q: how much more interest will be earned if $4500 is invested for 7 years at an annual rate of 11%…

A: Given information: Present value is $4,500 Number of years is 7 Interest rate is 11%

Q: An investment pays 10​% interest compounded continuously. If money is invested steadily at the rate…

A: Continuous Compounding: It is the maximum limit of the compound interest if it is calculated and…

Q: What is the present value (PV) of an investment that pays $90,000 every year for four years if the…

A: The present value of an annuity is the sum of the discounted value of the periodic cash flows.…

Q: How much will $10,000 grow to in 3 years, assuming an interest rate of 9% compounded quarterly? What…

A: As you have asked a multiple subpart question, we will answer the first three subparts for you. To…

Q: How long would it take an amount of  $4,000 invested at an interest rate of 21 % per year,…

A: Given information: Present value is $4,000 Future value is $16,000 Interest rate is 21%

Q: How many years will it take for P13,000.00 to become P20,000.00 if it is invested at 8% compounded…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: What is the compound interest if $47,000 is invested for 10 years at 8% compounded continuously?…

A: The formula used as follows: A=Pert

Q: Use the formula for compound interest with n compoundings per year to solve:How long, to the nearest…

A: Compound interest: The amount of interest received or earned for multiple-interest time periods, on…

Q: Suppose you were to receive $1,000 at the end of 10 years. If your opportunity rate is 10 percent,…

A: given, FV = $1000 N=10 R=10%

Q: If $500,000 is to grow to $700,000 over a 5-year period, at what annual rate of interest must it be…

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

Q: Suppose that $4000 is invested each quarter, for the next 10 years. What is the future worth if the…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: A year-end bonus of $23,000 will generate how much money at the beginning of each month for the next…

A: Given data; year end bonus = $23,000 interest rate = 6.33% compounded monthly number of payments =…

Q: How much will be the equivalent worth of ₱2M invested today for three years at a commercial rate of…

A: Investment amount (PV) = P 2,000,000 Annual interest rate = 10% Quarterly interest rate (R) = 10%/4…

Q: Use the formula for compound interest with n compoundings per year to solve this problem. How long,…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: Would you prefer making a $25,000 investment that will earn interest at the rate of 6 percent…

A: Given: Investment amount is $25,000 The rate of 6 percent The calculation is shown below as,

Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…

A: Interest is the cost of borrowing the money.

Q: If $19,000 is invested at 5% compounded quarterly, what is the amount after 9 years? The amount…

A: Given: Present value = $19,000 Interest rate = 5% Years = 9

Q: About how many years would it take for your investment to grow fourfold if it were invested at an…

A: A purchase of an object or thing with the intention of producing revenue or increasing in value is…

Q: If $9,000 is invested at 6% per year compounded monthly, the future value S at any time t (in…

A: Future Value(FV) is value of any present amount in future period. It is computed by compounding that…

Q: With a present value of $125,000, what is the size of the withdrawals that can be made at the end of…

A: Working note:

Q: How much should be deposited now at 7 percent compounded annually to make possible withdrawals of…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs…

A: Computation of effective annual rate when rate is 8% and compounding is semiannually is as…

Q: If an Investment of $5000 will grow to $8000 in four years with quarterly compounding the effective…

A: We will find the interest rate by applying the requisite formula where we can use the amount 8000…

Q: suppose you have$13000 to invest. which of the two rates would yield the larger amount in one year:…

A: Investment Amount (pv) = $13,000Interest Rate (rate) = 11%Type of Interest Compounded =…

Q: How long will it take P1,000 to amount to P1,346 if invested at 6% compounded quarterly?*

A: Compound interest is when we invest the interest back and earn even more interest as a result.

Q: Use the RSTUV method to obtain the solution. If P dollars are invested at r percent compounded…

A: Given, A = P*(1+r)^2

Q: Find the nominal rate if Php 25,000 is compounded continuously and will become Php 32,000 in 3…

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

Q: How much must be invested today at 6% compounded quarterly to have $8,000 in 5 years? Round your…

A: For the above calculation, we need to use the following formula   A = P ( 1 + r / n )^nt   Where  A…

Q: With a present value of $130,000, what is the size of the withdrawals that can be made at the end of…

A: Present value of an amount is $130,000. Using present value annuity formula, quarterly withdrawals…

Q: If an Investment of $5000 will grow to $8000 in four years with quarterly compounding the effective…

A: Investment = 5000 N = 4 years i.e. 16 quarters (Quarterly compounding) Future Value = 8000 Effective…

Q: How many years will it take $145,000 to grow to $645,000 if it is invested in an account with a…

A: We use NPER function in excel to calculate time taken

Q: A year-end bonus of $26,000 will generate how much money at the beginning of each month for the next…

A: Bonus amount (PV) = $26000 Interest rate = 6.36% Monthly interest rate (r) = 6.36%/12 = 0.53% Number…

Q: With a present value of $125,000, what is the size of the withdrawals that can be made at the end of…

A: Present value (PV) = $125,000 Period = 10 Years Quarterly periods (n) = 10*4 = 40 Interest rate =…

Q: What is the principal that will grow to $2600 in four years, one month at 4 5% compounded annualy?…

A: present value formula: present value =future value1+rnwhere,r=rate of interestn = number of years

Q: What will be the maturity value of P12,000 invested for four (4) years at 15% compounded quarterly?…

A: Invested amount (X) = P 12000 n = 4 years = 16 quarters r = 15% per annum = 3.75% per quarter

Q: If $7000 is invested at 3% compounded continuously, what is the amount after 5 years? The amount…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…