5. Find the present worth of all the cash disbursements using gradient interest formulas if money is worth 15% per annum. Annual cash disbursements increase by 1,000 every year thereafter, until the end of the fourth year. The first cash disbursement amounts to 5,000.
Q: 7. Suppose that a man lends $1000 for four years at 12% per year simple interest. At the end of the…
A: Compound interest (otherwise called compounding interest) is the interest on a loan or deposit…
Q: 1. A investment of x pesos with interest rate of 7% compounded annually will be retired at the end…
A: The amount of money that, if invested now, will grow in value over time at a particular rate of…
Q: 1. Find the difference between simple and compound interest on a savings deposit o 50,000 at 10% per…
A: Given Deposited amount (P) = 50,000 Time= 3years r= 10%
Q: To accumulate a fund of P 80,000 at the end of 10 years, a man will make equal annual deposits in…
A: Given: The future value is = P80,000 Time period = 10 years The interest rate is = 5% compounded…
Q: What will be the amount due on February 10, 2022, if the present value on July 17, 2021 is ₱10,100…
A: Simple interest refers to a method of calculating the percentage of interest paid on an amount over…
Q: Solve by using formulas. (Round your answer to the nearest cent.) Ordinary Annuity Annuity Payment…
A: Future value of the annuity = P1+rn-1r where, P = periodic payment = $3000 r = rate per period =…
Q: If you let your friend borrow Php 50,000 for an interest rate of 5% compounded continuously, when…
A: Given: Amount borrowed=Phop 50000 Interest rate=5% compounded continuously Accumulated amount=Php 1…
Q: Suppose that $12,000 is placed in a bank account at the end of each quarter the future worth at the…
A: Given that, Bank deposit = $12,000 Rate of interest (i) = 8.5% Quarterly interest rate = 8.5%/4 =…
Q: From the following cash flow diagram, find the value of C that wll economic equivalence between the…
A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…
Q: If an investment account gives 5% interest annually. How much equal annual deposits you have to make…
A: Given information: Future value (F): $240,408 Interest rate (i): 5% Time period (N): 10 years To…
Q: For a deposit of P150000 at 8.5% interest compounded continuously over 5 years, find the interest…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: Suppose that you make a series of annual deposits into a bank account that pays 8% interest. The…
A: here we calculate how much would have immediately after the fifth deposit by following method…
Q: 3-82. Suppose that you have just borrowed $7,500 at 10% nominal interest compounded quar- terly.…
A: Quarterly nominal interest rate = 10% / 4 = 2.5% Number of quarters = 6 x 4 = 24
Q: If the effective interest rate is 24%, what nominal rate of interest is charged for a continuously…
A: An effective interest rate is defined as the real rate of return on interest-paying investment when…
Q: 4. At what rate of simple interest will the sum of money double itself in 6 years. 5. Solve for F,…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: 6. By the conditions of a willI, the sum of P25,000 is left to a girl to be held in trust by her…
A: Present value of fund = P25000 Future value of fund = P45000 Interest rate = 8%
Q: Eleanor makes year-end deposits of 500,000 the first year, 550,000 the second year, 605,000 the…
A: Given Fund 1 Deposit made in the 1st year = 500000 Rise in deposits = 10 % of deposits Time = 10…
Q: Suppose you purchased a corporate bond with a 10-year maturity. a $1,000par value, a 10% coupon…
A: The given information: Interest rate is 5% per semiannual period Number of period is 14 semiannual…
Q: 7. A nominal interest rate of 12% per annum compounded monthly is equal to what nominal interest…
A: Effective interest rate = (1+rm)m - 1where r is interest rate and m is time period.
Q: 4. At what rate of simple interest will the sum of money double itself in 6 years.
A: Simple interest is determined by multiplying the day to day interest rate by the principal, by the…
Q: Compute the interest for an amount of P200,000 for a period of 8 years if was made at 16% compounded…
A: Since you have posted 3 different question but as per answering guidelines, we are supposed to solve…
Q: 5 1.5% simple growth interest for 'w' ye t, 2% interest will begin for 'x' years, w compounded…
A: *Answer:
Q: The right expression to calculate how much money will be in an investment account 14 years from now…
A: Future value is the value of investment for the given time in future. It is calculated by F = P(1 +…
Q: 1. Determine the exact and ordinary simple interest on p100,000.00 borrowed at 12% interest rate…
A: Interest type Simple Interest Principal Amount (Rs.) ₹ 1,00,000 Annual rate 12 % Time period= 3…
Q: uppose P100, 000 is deposited in an account that earns 8% compound interest that is compounded…
A: Given Initial investment P=100,000 Rate of interest =8% compounded semi-annually Since you have…
Q: 11. What is the continuous compounding interest rate applied to Php200,001 that will become…
A: Given Present value of loan = Php 200,001 Value of loan after 20 years = Php 350,000 We have to…
Q: 5) You want to have $2 million 40 years from now. How much must you deposit each year (starting at…
A: Each sum is communicated in the worth of the cash at that specific time, alluded to as future…
Q: If Mr. Joe deposits $5000 every year for 30 years except year 8,13 and 21 into a savings acccount of…
A: Money deposit per year = $5000 Number of years for deposits = 27 years (since three years are…
Q: For a principal borrowed under %14 nominal interest rate, compounded annually, a bank offers two…
A: Nominal Interest rate = 14% Time period = 35 years 1st Alternative payment plan is to pay 1000 in…
Q: A bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. What is the bond's price?…
A: Compound interest Compound interest is return both on principal and interest that refers to a…
Q: Liam borrowed money from a bank worth P15,000.00 on January 11, 2020. They agreed on a simple…
A: Given: The principal amount is = P15,000 The time period is from = January 11, 2020, to March 10,…
Q: A man borrowed Php 120,000 and promised to pay annually for 5 years. The payment starts at "X'…
A: In economics, present value refers to the current value of a future cash flow. The future value is…
Q: Many persons prepare for retirement by making monthly contributions to a savings program. Suppose…
A: Given, P= 2600 R= 8% T= 23 YEARS Continuous Compounding annuity formula : FV of Annuity = PMT…
Q: A bank features a savings account that has an annual percentage rate of r = daily. Anna deposits…
A: The total of the future investment returns discounted at a specific level of rate of return…
Q: Cory Manciagli is planning to retire in 20 years. Money can be deposited at 6% compounded quarterly.…
A:
Q: Suppose that $12,000 is placed in a bankaccount at the end of each quarter over the next 15years.…
A: A. Future value when compounded quarterly=A1+rn-1rInterest rate,…
Q: Suraya is considering a few option for her saving future plans. Below are some of the…
A: Compound interest is the interest rate which calculated on the principal as well as previous…
Q: Engr. Budoy bought a bond having a face value of P 10,000 for P 9,700. The bond rate was 14% nominal…
A: *Answer:
Q: 3. How much is P5,000 worth in five years in a continuous compounded amount? 4. Considering the Item…
A: Given information Present sum= 5000 Time=5 years Interest is compounded continuously.
Q: 1.1 If you desire to withdraw the following amount in the schedule below from the savings account…
A: The deposit in year 0 can be calculated by using the following formula.
Q: For a principal borrowed under %14 nominal interest rate, compounded annually, a bank offers two…
A: We are going to use the equivalence relationship to answer this question.
Q: For a principal borrowed under %14 nominal interest rate, compounded annually, a bank offers two…
A: According to the question, Nominal Interest rate. = 14%, Time period = 35 years 1st Alternative…
Q: INSTRUCTIONS: Solve for the following and draw the cashflow diagram. A. If you borrowed P10,000.00…
A: Borrowed amount = 10,000 Interest rate = 18 % Time = 5 years Future worth to be paid = 10000 * (1 +…
Q: For the following cash flow find F for two cases , first , assume that the inter - period cash flow…
A: For the above cash flows downward arrows denote the cash outflows and the upward arrows denote cash…
Q: For a principal borrowed under %14 nominal interest rate, compounded annually, a bank offers two…
A: Given: Nominal Interest rate = 14% Time period = 35 years Alternative 1: Base payment is 1000 in 1st…
Q: By the condition of a will, the sum of 25 000 pesos is left to a girl to be held in trust by her…
A: Present value = 25000 Future worth = 45000 pesos Interest rate = 8 % compounded quarterly Quarterly…
Q: 3-82. Suppose that you have just borrowed $7,500 at 10% nominal interest compounded quar- terly.…
A: Interest rate is the rate that a lender charges from the lender to use its money for a specific…
Q: Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual.…
A: here we calculate the amount expect by Troy by calculating the present value so the calculation of…
Show your complete
solution.
Step by step
Solved in 2 steps
- Suppose you purchased a corporate bond with a 10-year maturity, a $1,000 par value, a 9% coupon rate ($45 interest payment every six months), and semiannual interest payments. Five years after the bonds were purchased, the going rate of interest on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (five years after the purchase)?(a) P = $890(b) p = $1,223(c) P = $1,090(d) p = $1,128you received a loan from a bank on March 12, 2013, and you are required to pay P586,875 on august 16, 2024 to fully exhaust your obligation. if the simple interest rate offred by the bank is 10.355%. how much money did you receive from the bank? use ordinary simple interest a. 269,898.370 b. 301,994.611 c.215,654.630 d. 296,412.882Find the spot rate for a theoretical 2 year zero coupon bond using the following information: 6 month T-bill rate = .5% 1 year T-Bill rate = .75% 1.5-year T-Note rate = 1.10% 2-year T-Note rate = 1.65%
- Today, you invest ₱100,000 into a fund that pays 25% interest compounded annually. Three years later, you borrow ₱50,000 from a bank at 20% annual interest and invest in the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal you start taking ₱20,000 per year out of the fund. After five withdrawals, you withdraw the balance in the fund. How much was withdrawn? Note: Draw the cashflow diagramToday, you invest ₱100,000 into a fund that pays 25% interest compounded annually. Three years later, you borrow ₱50,000 from a bank at 20% annual interest and invest in the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal you start taking ₱20,000 per year out of the fund. After five withdrawals, you withdraw the balance in the fund. How much was withdrawn? Note: Draw the cashflow diagram and solve using the formula of annuitiesWhat is the discount yield, bond equivalent yield, and effective annual return on a $7 million commercial paper issue that currently sells at 98.75 percent of its face value and is 122 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your percentage answers to 3 decimal places. (e.g., 32.161))
- Give typing answer with explanation and conclusion 41. A man inherited a regular down payment of P200,000 every end of 3 months for 10 years. However, he may choose to get a single lump sum payment at the end of 4 years. How much is this lump sum if the cost of money is 14% compounded quarterly? a. P 3,702,939.73 b. P 7,405,879.46 c. P 2,188,122.11 d. No correct answer in the choicesIf $500 is deposited in a savings account at the beginning of each quarter for10 years and the account earns 8% interest compounded quarterly, what will bethe balance in the account at the end of 10 years?(a) $28,933 (b) $30,201(c) $31,421 (d) $30,805Suppose that on September 30, 2021, a person opened an investment account with an initial deposit of $20,000. The account guarantees to pay interest at a nominal annual rate of 6%, compounded monthly. The person plans to deposit $3,000 into the account at the end of each and every month starting on October 31, 2021 and ending on March 31, 2024 (a total of 30 additional deposits). (a) How much money will be in the account after the 30th additional deposit is made? (b) What is the total amount of interest that will be earned over the 30-month planning horizon? (c) What is the effective annual interest rate that will be earned? Express your answer to the nearest tenth of a percent, i.e., in the form xx.x%.
- P 2530 is deposited in a bank at 7% interest. What is the value of the money after 25 years, assuming that nothing was deposited after the initial deposit? a) ₱6,957.05 b) ₱6,597.50 c) ₱6,975.50 d) ₱6,957.50100,000 invested today in a fund that pays 25% interest compounded annually. 3 yrs later, you borrow 50,000 with interest of 20% annually in a bank and invest to the fund. 2 yrs later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. 3 yrs from this withdraw you start taking 20,000 per year in the fund. After 5 withdrawals, you withdraw the balance in the fund. How much was withdrawn? a. 1.9 Million b. 1.3 Million c. 1.6 Million d. 1 MillionAn insurer needs to make the following annuity payments to an individual: £2176 paid at the end of each year for the first 15 years and then £2177 paid at the end of each year for the following 12 years. Calculate the total amount of fund the insurer needs to hold today in order to meet these payments, given that the effective rate of interest is: 5.8% pa for the first 7 years and then 6.2% pa thereafter. Express your answer in £s to 2 decimal places. (correct answer = 28787.58)