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…
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: What series of equal payments are equivalent to this future amount of P72,167 in 8 years at 24% cpd.…
A: Payment per period can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv],…
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: An amount of $29,200 will provide 9 years of payments of $2,518.50 at the end of every 6 months.…
A: Present Value $ 29,200.00 Time Period 9 Semi Annual Payment(P/Y) $…
Q: How long will it take for P 1,000.00 to amount to P 1,346.00 if invested at 6 compounded quarterly?
A: Interest is the amount charged or received by investing or borrowing some amount. It can be simple…
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 much do ten P 4,533 quarterly payments amount at present, if the interest rate is 2 compounded…
A: The amount of payments made at the beginning of each year is termed as an annuity due. It indicates…
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: Money borrowed today is to be paid in 6 equal payments at the end of six quarters. If the interest…
A: P =A[(1 + i)n- 1 ]/(1 + i)ni Wherein i Means Rate of Interest A Means Annuity Payment N means…
Q: If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of…
A: Since you have asked a question with multiple parts, we will solve the first 3 parts as per policy.…
Q: If $10,000 is borrowed today at 5% simple interest, how much is due at the end of 10 years? (a)…
A: Simple interest is a method used to calculate interest on the sum of money borrowed by the borrower.…
Q: What interest rate compounded bi-monthly is needed for an amount of P20,679 to increase to P30,550…
A: Using Excel Function: With Formulas:
Q: e? 6 % p.a compounded monthly
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: How many semi-annually payments will it take for $550.00 deposited at the end of each half year to…
A: Future value (FV) = $12500.00 Semi annual deposits (PMT) = $550 Compounding per year (C/Y) = 12…
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: A payment of $35,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…
A: Let the equal payments = X The payments are to be made in year 2, 4 and 7. Interest rate = 4.5%…
Q: 1. If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded…
A: This pertains to compound interest. Compound interest accrues on both the initial principal as well…
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: If the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of…
A: Annual interest rate (R) = 16.5% Compounding per year (M) = 4 Period of effective rate (N) = 3 Years
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 single payment at the end of year 5 is equivalent to an equal annual series of payments of…
A: future value of lumpsum payment : fv=A×1+rn Future value of annuity: FVA=A×1+rn-1r therefore, r =…
Q: If you borrow $10,000 over three years at 10% annual interest, what is the interestpayment in the…
A: Given Loan Amount =$10,000 Annual Interest Rate =10% Annual Payment =$4021.15
Q: What is the interest earned on the principle of RM18,000 at the rate of 12% for 1 year and 4 months…
A: Principal amount (P) = RM 18,000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period…
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: 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: f the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Nominal rate = 11.5% compounded continuously We need to find bi-monthly rate, where there are 24…
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: What is the present value of P2,500 semiannual payments received at the beginning of each period for…
A: Please refer to the image below
Q: MA1C МАЗА A credit card charges 18% interest per year, compounded monthly. How much interest is…
A: A compounding of interest refers to the cycle after which the interest on interest (earned during…
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: Two payments of $18,000 and $2,200 are due in 1 year and 2 years, respectively. Calculate the two…
A: Compounding refers to the power of increasing the interest on the total investment . It actually…
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: 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: 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: What is the effective annual rate (EAR) of 8% per year, compounded monthly? Select one: O a. 8.29% O…
A: given, r=8% m = 12 ( monthly compounding)
Q: You are offered payments of P1500.00 att he end of each quarter for 6 years. You feel that the cost…
A: The present value of future and periodic cash flows is the value of these cash flows at the present…
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 is the present value of $9,500 payable at the end of 7 years? Use a nominal rate (monthly…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: You put \$1,000$1,000 into a savings account today that offers a 5\%5% APR with semi-annual…
A: Banks usually offer loans to customers, and they also accept deposits from the customers. The…
Q: y is equivalent to receiving $10,000 three years from today, if interest is compounded quarterly at…
A: The present value of future money would give the amount of money that is equivalent today…
Q: A series of equal quarterly payments of $6,000 for IO years is equivalent to what present amount at…
A: Formula used to compute present equivalent worth: Formula to compute effective interest rate:
Q: If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
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 is the effective annual rate of 6%, compounded monthly? O 6.12% O 6.06% O 6.14% O 6.17% O 6.24%
A: Effective Annual rate The effective annual interest rate is that real return that is paid on the…
Q: tỏ bê paid off by a payment of R2000 now, and two equal payments two consecutive years from the…
A: The time worth of money (TVM) is the possibility that cash you have now is worth more than the…
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- A 15% compounded semi-annually has an equivalent rate of 7.5%, how many times does it pay every year?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per bi monthA $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?
- 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 effective annual rate or EAR of 8% compounded monthly? a. 6.14% b. 8.38% c. 8.30% d. 6.47%What are the effective annual rates of the following: a) 12% APR compounded monthly? b) 16% APR compounded annually? c) 6% APR compounded daily?
- How long will it take for P 1,000.00 to amount to P 1,346.00 if invested at 6 compounded quarterly?If 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?1.If you bought a 4-week T-bill for Tk.887 and receive Tk.1,200 4 weeks later, what is the effective annual compounded interest rate earned?
- If money earns 5.22% compounded quarterly, what single payment in two years would be equivalent to a payment of $2,050 due three years ago, but not paid and $700 today?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?What is the equivalent rate of 10% compounded semi-annually to compounded bi-monthly?