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A: Repaying debt in equal instalments is a type of annuity. That is any number of payments of equal…
Q: At what nominal rate, compounded every 2 months, would $14,000.00 have to be invested to amount to…
A: Nominal rate = r 2 Months rate = r/6 = 0.166666666666667r Investment (PV) = $ 14000.00 Future value…
Q: 5) How many years are required for P15k to increase to P20k if invested at 12% per year compounded…
A: Since you have asked multiple questions, we will solve the first question for you. Please ask…
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A: FV = PV * (1 + i/n)^(n * Years) Where FV = Future Value = $18276.04 PV = Present Value = $15000 i =…
Q: A 15% compounded semi-annually has an equivalent rate of 2.0878%, how many times does it pay every…
A: Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other…
Q: a) What is the present worth ofequal payments of $25,000 made semi-annually (i.e., twice every year)…
A: Semi annual payment (P) = $25,000 Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%
Q: A series of year end payment extending over ten years are as follows 5000 for the first year 10000…
A: N = 10 Payments: Year Payment 1 5000.00 2 10000.00 3 20000.00 4 20000.00 Interest rate…
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A: The time value of money (TVM) is the concept that the money you have now is worth more than the…
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A: The future value of the payment includes the amount deposited and the interest accumulated over the…
Q: What rate of interest, compounded annually, will result in the receipt of P15 938.48 if P10 000 is…
A: Let the interest rate = r Final amount (F) = P 15938.48 Invested value (P) = P 10000 n = 8 years
Q: A payment of $15,000 is due in 1 year and $11,000 is due in 2 years. What two equal payments, one in…
A: Compounding is a technique which is used to compute the future value (FV) of the present amount by…
Q: What is the nominal rate if the effective rate is15.32% compounded semi-annually?
A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…
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: Payments of $4,000, $5,200 and $6,500 are due infourmonths, sixteen months and eighteen months…
A: In this we need to calculate all values after 1 year.
Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Nominal Rate = 11.5% Continuous Compounding
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A: cost of boat = $20,607 down payment =5% principal amount = $20607 x (1-0.05) =$19,576.65 n=15 years…
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A: The question is based on the concept of compounding interest rate calculation. Compounding interest…
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A: Let the money to be invested now = X Semiannual payment (A) = $1500 Number of payments (n) = 16 r =…
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A: An annuity is a series of equivalent periodic cash flows that contain a fixed amount occurring at…
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A: Equivalent interest rate is that rate which is calculated after adjusting the nominal rate for the…
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A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
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A: The given problem can be solved using PV function in excel. PV function computes present worth/…
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A: Present Value of Annuity: It represents the present worth of the future stream of cash flows. It is…
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A: Nominal Interest Rate (r) is 8% Compounding Period is (m) is Monthly i.e. 12
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A: Compounding means interest on interest.
Q: $25,000 is borrowed at an annual compound rate of 8%. The loan is repaid with 5 annual payments,…
A: P= $25,000 Rate= 8% compounded annually Time= 5 year (annual payments)
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.
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A: EAR is the effective annual rate which is considered to evaluate the real adjusted required rate of…
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A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as…
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…
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A: To replace the payments of different periods, we will first compute the NPV of payments to be…
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A: Compounding refers to the power of increasing the interest on the total investment . It actually…
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A: Present Value refers to the value of cash flows today which is to be received at some future time…
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A: Given information: Interest rate is 6% compounded monthly Equivalent rate is 2.0151%
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A: Compounding is a process that uses an appropriate rate or CVF to calculate the future value (FV) of…
Q: How many monthly payments of $270 will it to save up $4861 when interest is 3.67% compounded…
A: Monthly payment (P) = $270 Interest rate = 3.67% Monthly interest rate (r) = [{1+0.0367/2}2]1/12-1…
Q: A scheduled payment of $5,500 due in one year is to be replaced with two payments: the first due in…
A: Time value of money shows that the money available today is worth than the money in the future.
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A: The present value of future and periodic cash flows is the value of these cash flows at the present…
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A: The total present value of all future installments to be paid is equal to the current value of loan.…
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A: Given: Loan = 350,000 Years = 1 Interest rate=10%
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A: Formula used to compute present equivalent worth: Formula to compute effective interest rate:
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A: Effective Annual Rate = 1+Nominal RateNumber of PeriodsNumber of Periods-1
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A:
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A 15% compounded semi-annually has an equivalent rate of 7.5%, how many times does it pay every year?
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- At 10% interest, a $20,000 payment 10 years from now is equivalent to an annual payment for 15 years. The equivalent uniform annual payment is approximately?Payments 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?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi month
- what size payments should occur when 8000 is borrowed at 8% per year compounded quarterly and the loan is repaid with 24 equal monthly payments?At what nominal rate, compounded monthly, would 12,000.00 have to be invested to amount to 21,811.13 in 6 yearsIf a Condura Ref. costs P 24,830 will have an interest of P 2505 monthly that is payable for a year, what will be its interest rate?
- 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?What is the equivalent rate of 10% compounded semi-annually to compounded bi-monthly?How many semi-annually payments will it take for $550.00 deposited at the end of each half year to amount to $12500.00 at 6% compounded monthly?
- What are the effective annual rates of the following: a) 12% APR compounded monthly? b) 16% APR compounded annually? c) 6% APR compounded daily?What is the equal-payment series for 10 years that is equivalent to a payment series starting with $10,000 at the end of the first year and decreasing by $1,000 each year over 10 years? Interest is 7% compounded annually.What 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 $