Q: An annuity that pays $1100 at the end of each month for 23 years sells for $120,000. What was the…
A:
Q: What is the discounted value of $1182.00 paid at the end of every year for 7 years if interest is…
A: rate of interest = 9% per annum compounded monthly converting into effective annual rate Effective…
Q: How many semi-annually payments will it take for $550.00 deposited at the end of each half year to-…
A: Formula to solve manually n = ln [(FV n x i/PMT) + 1]/ln (1+i) Explanation: FV n = PMT x [(1+i) n -…
Q: A debt can be repaid by payments of $3125.00 today, $2770.00 in two and half years and $4600.00 in…
A: To Find: Single Payment to settle debt four years from now
Q: Ten annual installments of 65,000 pesos each starting at the end of the eleventh year from now, is…
A: Annual installment (A) = 65000 pesos First payment starts at the beginning of 11th year. Number of…
Q: A $750 payment is due 8 months from today. What is the equivalent value of the $750 payment if it is…
A: The time value of money (TVM) is the concept that the money you have now is worth more than the…
Q: If P16,000 earns P480 in 9 months, what is the annual rate of interest? *
A: Interest rate for 9 months =( interest amount for 9 months/investment) ×100
Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: interest, a $20,000 payment 10 years from now is equivalent to an annual payment for 15 years. The…
A: The future value of the payment includes the amount deposited and the interest accumulated over the…
Q: Three thousand pesos quarterly for ten years accumulates to P181,205.95, find the nominal rate of…
A: Given: Particulars Amount in Pesos Amount (PMT) 3,000.00 Future value (FV)…
Q: How many semi-annually payments will it take for $550.00 deposited at the end of each half year to…
A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…
Q: 2. A P20,000 loan is to be paid off in 10 equal annual payments. The semi-annual interest is 8%.How…
A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…
Q: How long will it take $200 to double if it earns the following rates? Compounding occurs once a…
A: A study that proves that the 1value of money today is higher than the future value of money is term…
Q: A series of equal semi-annual payments of $2200 for 3 years is equivalent to what present amount at…
A: Given, Interest rate = 12 % per annum. Semi-annual Interest rate =122 = 6 %. Time period = 3 × 2 = 6…
Q: Asailboat costs $20,607. You pay 5% down and amortize the rest with equal monthly payments over a…
A: cost of boat = $20,607 down payment =5% principal amount = $20607 x (1-0.05) =$19,576.65 n=15 years…
Q: What rate compounded monthly was charged on a loan of P3500.00 repaid in monthly installments of…
A: Let the monthly rate = r Monthly payment (M) = P 107.19 Loan (L) = P 3500 n = 3 years 3 months = 39…
Q: At what effective rate, a single payment of $ 1,500.00 today is equivalent to two payments of $…
A: An annuity is a series of equivalent periodic cash flows that contain a fixed amount occurring at…
Q: A 15% compounded semi-annually has an equivalent rate of 4.9395%, how many times does it pay every…
A: Equivalent interest rate is that rate which is calculated after adjusting the nominal rate for the…
Q: How much is the present sum is equivalent to a series of P1000 annual end-of year payments, if a…
A: Annual payment (P) = P 1000 Interest rate (r) = 6% Number of annual payments (n) = 10
Q: At what nominal rate, compounded monthly, would 12,000.00 have to be invested to amount to 21,811.13…
A: Interest is the amount charged on a loan or investment. It can be calculated by simple interest or…
Q: What is the effective annual rate (EAR) of 8% per year, compounded monthly? Select one: O a. 8.66 %…
A: Nominal Interest Rate (r) is 8% Compounding Period is (m) is Monthly i.e. 12
Q: A 6% compounded monthly has an equivalent rate of 2.0151%, how many times does it pay every year? 3…
A: Compounding means interest on interest.
Q: What is the equivalent rate of 10% compounded semi-annually to compounded bi-monthly? 9.8378% O…
A: Note : It has been assumed that bi monthly means something which happens once in two months and…
Q: A payment of $700 is due in 3 years, and $5,000 is due in 5 years. What single payment made today…
A: PV=FV11+rn=$70011+4.54×1004×3+$500011+4.54×1004×5=$612.062293+$3997.59977=$4609.66206=$4609.66
Q: A sum of Rs 390200 is to be paid back in three equal annual instalments. How much is each…
A: The installment amount can be calculated with the help of present value of annuity function.
Q: If a one million peso loan is to be paid annually in 10 years at an interest rate of 8.0% pa…
A: Loan = 1,000,000 N = 10 Interest Rate = 8% Monthly Compounding Number of compounding periods = 12…
Q: A 15% compounded semi-annually has an equivalent rate of %,15.5625, how many times does it pay every…
A: EAR is the effective annual rate which is considered to evaluate the real adjusted required rate of…
Q: The annual cost of a certain service is $42,000 at EOY 1 which decreases by 5.5% per year for a…
A: Annual Cost at end of year 1 = 42,000 Growth Rate = -5.5% Time Period (N) = 12 years Interest Rate =…
Q: What single payment two years from now would be equivalent to these original payments? Assume that…
A: In this Type of Questions, We Use Equivalent Amount Concept which is basically use of Time Value of…
Q: Aprincipal of $4000 earns 6% per year simple interest. years
A: Simple interest is the simplest and easiest method of calculating the interest on the loan. The…
Q: What is the EAR corresponding to a nominal rate of compounded semiannually? Compounded 10%…
A: EAR is effective annual rate i.e. equivalent interest rate for interest rate which are compounded…
Q: 3. GMA pays 8% interest compounded semi-annually. GTV pays 8% compounded monthly.Which financing…
A: Effective Annual Rate (EAR) = (1 + i / n) n - 1 Where, i = Stated annual interest rate n = Number…
Q: A 15% compounded semi-annually has an equivalent rate of 7.5%, how many times does it pay every…
A: In semi-annual compounding, the interest is levied twice a year with a 6 month gap in between. The…
Q: FV of $100 paid each 3 months for 5 years at a nominal rate of 15% compounded quarterly. Do not…
A: Nominal rate (15%/4) 3.75% Period (NPER) (4*5) 20 Present Value 0 PMT 100
Q: What is the present equivalent of a uniform series of annual payments of 64000 USD each for six…
A: Answer: Uniform annual payments = 64000 USD Time = 6 years Interest rate = 9% compounded…
Q: A 6% compounded monthly has an equivalent rate of 2.0151%, how many times does it pay every year? O…
A: Given information: Interest rate is 6% compounded monthly Equivalent rate is 2.0151%
Q: 6. What size monthly payments should occur when $10,000 is borrowed at 6% per year compounded…
A: Borrowings: Borrowings are the loan which is taken by the individual to meet its financial…
Q: A loan of P50,000 is to be amortized by paying quarterly in 1 year. If money is worth 10% compounded…
A: Quarterly payment = Q Loan amount (L) = P 50000 r = 10% per annum = 2.5% per quarter n = 1 year = 4…
Q: What is the equal-payment series for 10 years that is equivalent to a payment series starting with…
A: Given information: Initial amount is $10,000 Decreases by $1,000 over 10 years Interest rate is 7%
Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…
A: Given: Interest rate = 12% Semi-annual payments = $1000 Number of years = 3 Number of payments = 3*2…
Q: what present amount at an interest rate of 12% compounded annually?
A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…
Q: If 8% per year is compounded bi-annually, what is the effective annual rate?
A: The effective annual rate is the rate that has an annual compounding frequency. It is calculated to…
Q: What are the effective annual rates of the following: a) 12% APR compounded monthly? b) 16% APR…
A: Effective Annual Rates (EAR) = ( 1+ APR/m)m - 1 APR = Annual Percentage Rate n = number of…
Q: What is the equal payment series for 8 years that is equivalent to a payment series of $15,000 at…
A: Given information: Payment series: $15,000 Increasing amount: $1,500 Period: 10 years Interest…
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- A 15% compounded semi-annually has an equivalent rate of 7.5%, how many times does it pay every year?A $183900 Ioan is repaid by 23 payments of $2500 each at the end of quarter, followed by 29 payments of $6900 each at the end of month. What interest rate il is being charged?If you borrow $10,000 over three years at 10% annual interest, what is the interestpayment in the 2nd year? You are making three equal annual payments where theannual payment size is $4,021.15.(a) $1,000 (b) $698(c) $366 (d) $3,323
- FV of $100 paid each 3 months for 5 years at a nominal rate of 15% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent.$P.nil Two payments of $8,000 and $2,400 are due in 1 year and 2 years, respectively. Calculate the two equal payments that would replace these payments, made in 9 months and in 4 years if money is worth 4.5% compounded quarterly.$0.00Round to the nearest centPayments of $4,000, $5,200 and $6,500 are due infourmonths, sixteen months and eighteen months respectively. What is the equivalent payment one year from now if money is worth 12% compounded quarterly?
- What rate of interest, compounded annually, will result in the receipt of P15 938.48 if P10 000 is invested for 8 years?A P28,000 debt at 15% interest compounded semi-annually is to be amortized at P2,250 every 6 months. A final smaller payment is to be made after the last regular payment. How many regular payments are needed? When will the final smaller payment be due? How much is the final payment?A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at an interest rate of 12% compounded annually A.$2,402 B.$4,944 C.$4,804 D.$4,111
- At what nominal rate, compounded monthly, would 12,000.00 have to be invested to amount to 21,811.13 in 6 yearsWhat is the discounted value of $899.00 paid at the end of every month for 3 years if interest is 12 % per annum compounded semi -annually? The discounted value is $A payment of $1,750 is due in 2 years, and $5,800 is due in 5 years. What single payment made today would be equivalent to these original payments? Assume that money earns 4.25% compounded semi-annually.