a customer invests IDR 20 million in the money market and earns 12% compound interest How much money will grow in 10 years and calculate the interest in 10 years if a. Interest is paid annually, semiannually, quarterly and monthly b. Calculate the effective interest rate for the quarterly, quarterly and monthly basis and prove that the interest earned is the same as the answer in number (a)

Q: Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded…

A: FV=PV×1+Rmm×n where, FV = FUTURE VALUE PV= PRESENT VALUE R = RATE/ APR m= NO OF COUMPOUNDING IN A…

Q: CBG pays 10 percent per annum simple interest on its savings account balances, GCB pays 8 percent…

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

Q: Suppose an individual makes an initial investment of $2,000 in an account that earns 7.2%,…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments starting at the end 2…

A: The amount borrowed can be calculated as the present value of quarterly payments, The present value…

Q: Suppose that $17,000 is invested in a savings account paying 5.1% interest per year. (a) Write the…

A: Compound interest formula: A = P(1+r/n)^nt Where A is the future amount, P is the principal, r is…

Q: terest, compounded monthly, for 2 years. Use the compound interest formula to calculate the compound…

A: In this we have to use future value formula to get future value.

Q: You borrowed $10000 with an interest rate of 12%. The loan is to be repaid in equal monthly payments…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Mr. Samal deposits 5,000 php at the end of each month at a product with an interest rate of 8%…

A: In the given question, compounding is done on monthly basis. Therefore, effective monthly rate will…

Q: 1. Compute the difference in the future amount of P500 compounded annually at nominal rate of 5% and…

A: Hi, Thanks for the question. Since you asked multiple questions, we will answer the first question…

Q: Suppose that you deposit $200 at the end of each month into an account paying an expected annual…

A: given, monthly compounding N    =10 x 12 = 120I    =3%12PV   =0PMT =200   FV    = need to find

Q: a) A man has invested $5350 in a savings account that pays 12% simple interest. How long will it…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The interest rate is 10% compounded annually. What percentage of the 2nd payment will be interests?

A: In any loan, the equated instalment repayment will include the principal and the interest.  Interest…

Q: You invest $17,000 at 6% interest, compounded monthly, for 2 years. Use the compound interest…

A: Compound Interest- It is interest which is earned on the principal amount invested and interest…

Q: Suppose an individual makes an initial investment of $2800 in an account that earns 7.8%. compounded…

A: Given information: Initial investment is $2,800 Interest rate is 7.8% Number of periods is 12 made…

Q: Suppose an individual makes an initial investment of $2,600 in an account that earns 7.8%,…

A: Here, Initial Investment is $2,600 Interest Rate is 7.8% Compounding period for deposit and…

Q: 3. A 10,000 loan is taken out and the interest rate is 8 percent effective. Payments are made on the…

A: GIVEN, Loan is taken  - $10000            Interest rate  - 8% Paayment is to be completed in 10…

Q: You invest $10,000 into a money market account that pays interest on a semi-annual basis (e.g.,…

A: We use NPER function in excel by taking present value as 10000 and future value as 20000 and…

Q: Suppose an individual makes an initial investment of $1,600 in an account that earns 8.4%,…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: A company wants to deposit $500,000 per year in an investment which earns interest of10 percent per…

A: The value at the end of the 10 deposit is the future value of the first 10 deposits.

Q: A man is planning to retire in 20 years. He can deposit money for his retirement at 8% compounded…

A:

Q: Hamilton wants to accumulate ₺ 24.000 at the end of 4 years. It starts quarterly payments in a bank…

A: Amount at the end of 4 years = 24000 Years = 4 Terms(n) = 4 *4 = 16 quarterly deposits Rate (r) = 6%…

Q: will your hotel have at the end of the 10th year ($)?

A: Future value refers to the amount of a current cash flow at some future date based on the given…

Q: Assume you put $600 per month into a retirement account for 14 years, and the account has an APR of…

A: Given: Particulars Amount Payment(PMT) $600 Years 14 Interest rate 3.02%

Q: An investor deposits a sum of Rs 100,000 in an investment company with a promise of a rate of return…

A: Investment = 100,000 Return = 18% Time Period = 5 years

Q: You invest $5,000 into a money market account that pays interest monthly (e.g., interest is…

A: Future Value = Present Value * (1+r)^n Where, n = no. of compounding period i.e. 3 years * 12 = 36 r…

Q: An investment of P50,000 is made at the beginning of each month for 5 years. How much will the…

A: The investment value can be calculated as future value of annuity due

Q: TIME TO REACH A FINANCIAL GOAL You have $33,556.25 in a brokerage account, and you plan to deposit…

A: Given, Present value = $33556.25 Future value   = $220000 interest r         12/100 = 0.12% Years…

Q: 20. $1,000 is deposited each month in an account paying 4.23% for 15 years. Then, $350 is deposited…

A: Note : As per our guidelines, we can only answer one question at once. Please post other question…

Q: You plan to make 15 annual deposits in a saving account that pays 6% interest compounded annually.…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments starting at the end 2…

A: The amount borrowed can be calculated with the help of present value of annuity function. The…

Q: Suppose an investor plans to make monthly deposits into an account that pays 9% interest, compounded…

A: We will first calculate the amount needed to pay on a monthly basis so we will take the period as…

Q: An air conditioner is for sale at P20,000 in cash or on terms, P1,650 each month for the next 18…

A: Given,  The sale price is P20,000. Payment is P1650 for each month is 6% compounded monthly Number…

Q: If you make quarterly deposits of $1000 for 15 years into an account that compounds interest at 1.5%…

A: Quaterly deposit is $1000 Time period is 15 years Interest rate is 1.5%   To Find: Future Value

Q: what is the future value of an mortar $300 after 4 years if it has invested in an account paying an…

A: Here, Amount is $300 Time Period is 4 years

Q: Suppose an individual makes an initial investment of $2,600 in an account that earns 7.8%,…

A: The time value of money refers to the concept that states that the money present today is more…

Q: You plan to accumulate R450,000 over a period of 12 years by making equal annual deposits in an…

A: Annuity due is a type of annuity under which payment is deposit at starting of the each period and…

Q: Suppose an individual makes an initial investment of $1400 in an account that earns 7.8%, compounded…

A: Future value of a cashflow is the present value of the cashflow compunded at future date at…

Q: You invest $19,000 at 18% interest, compounded monthly, for 2 years. Use the compound interest…

A: Given, Investment = $19,000 Interest     = 18% Compounding Frequency = Monthly for 2 years  The…

Q: 2. You invested $39,000 in Yug Industries at an annual interest rate of 5% compounded continuously.…

A: Formula Future value = PV*ert Where PV - Investment amount i.e. $39000 e - Euler's number i.e.…

Q: A house and lot are to be purchased by paying P15,500.00 monthly payable in 25 years. The first…

A: An interest rate is defined as the proportion of a loan sum paid to the borrower by the lender as…

Q: A customer opens a savings account that applies 2% compound interest annually. If the initial…

A: The money in account at end of 2 years can be calculated as the future value of account,

Q: Calculate the effective annual interest rate being charged for the loan.

A: Effective Annual Interest Rate EAR = (1+in)n -1 where: i=Nominal interest rate n=Number of periods​…

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