A father wishes to provide P4,000 for his son on his 21st birthday How much should he deposit every 5 months in a savings bank which pays 3 compounded semi-annually, if the first deposit is made when the son is 3 1/2 years old? Answer: P86.44

Q: Your parent started to deposit monthly $20,000 in the bank 2 years after birth. The bank offers are…

A: Amount deposited $20,000 monthly Rate of interest is 6%.

Q: A man deposited $10,000 in a savings account when his son was born. The nominal interest rate was 8%…

A: The future value t is the estimated value of the deposit on a future date with an estimated interest…

Q: how much money was invested in the CD​ account?

A: Solution:- Lets assume that the amount of money invested in CD account is x which makes the amount…

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

A: Annuity is type of financial instrument (insurance contract) in which you pay certain amount…

Q: New parents wish to save for their newborn's education and wish to have $40,000 should the parents…

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

Q: When you were born, your parents started to deposit monthly $2,000 in the bank. The bank offers a…

A: FV Ordinary Annuity=C×(1+i)n−1i where, C=cash flow per period i=interest rate=0.1512…

Q: On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw…

A: Present Value of annuity = Annual payments * PVAF(rate, number of years) Present Value = Future…

Q: Mrs. Euclid wants to have Php246,916.30, within 3 years for her daughter's graduation. How much…

A: Answer -  The future value annuity formula calculates the value at the end of given period n of a…

Q: If Mr. X wants to retire at an age of 56 and he wants to accumulate in his bank account at that time…

A: Individuals save for retirement using various investment instruments in order to have sufficient…

Q: Suppose a child's parents decide to make annual deposits to a savings account, making the first…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: A father wants to set aside money for his 5-year old son's future college education. Money can be…

A: Present Value annuity- The present value of an annuity is the present worth of future outflow from…

Q: On your 21st birthday you receive $10,000 as a result of a deposit that your grandparents made on…

A: Simple interest is one of the easy method of calculation of interest amount. Simple interest is…

Q: Adrian received the proceeds from an inheritance on May 14. He wants to set aside enough on May 15…

A: Simple interest is calculated directly on the given principal amount. The formula for calculating…

Q: On the 7th birthday of her daughter, Anna deposited an amount in a bank peso bond that pays 1%…

A: The present value of a future sum of money or stream of cash flows with a fixed rate of return is…

Q: (Refer to this word problem. , Samuel wishes to have P500,000 available for his son's college…

A: Accumulated value (F) = P 500000 t = 14 years = 28 semiannual periods r = 4.4% per annum = 2.2%…

Q: Razi need RM20,000 for his daughter education in 9 years, how many he deposits in his bank at the…

A: Monthly payments refers to the amount which is paid on periodic basis. The period of monthly…

Q: A father wants to set aside money for his 5-year old son's future college education. Money can be…

A: Solution:- When an equal amount is deposited or withdrawn each period, for a number of periods, it…

Q: How much money can they expect to withdraw?

A: Future value of ordinary annuity refers to the sum total value of all deposits made periodically at…

Q: Mr. Doe is trying to decide whether to put his money in the XYZ Bank or the ABC Bank. The XYZ Bank…

A: Option 1 - XYZ Bank, 6% interest rate, compounded annually Option 2 - ABC Bank 5% interest rate,…

Q: A father wishes to provide P4,000 for his son on his 21st birthday. How much should he deposit every…

A: Future Value of Annuity The future value of annuity refers to the total value of the investment at…

Q: Earl E. Bird and Ivana Waite both celebrated their 66th birthday today. Both of them qualify to…

A: "Present Value" is the present-day value of a sum of money expected to be received at a future date…

Q: A father wants to set aside money for his 5-year-old son's future college education. Money can be…

A: Deposit: It is a saving which one earns during his or her earning period and saves the same amount…

Q: A father wants to set aside money for his 5-year old son's future college education. Money can be…

A: Initially, it is required to calculate value of money required at 18,19,20 and 21st birthday at 17th…

Q: (Refer to this word problem Samuel wishes to have P500,000 available for his son's college…

A:

Q: A young couple wishes to accumulate $35,000 at the end of four years so that they may make a down…

A: Given: Particulars Amount Future value (FV) 35000 Years (NPER) 4 Interest rate (rate) 6%

Q: On the day your daughter is born, you deposit $1,000 in a college savings account that earns 8%…

A: Ordinary annuity accepts regular annuity payments at the end of each period which can be annually,…

Q: Suppose you want to save money for your child's college expenses. You deposit $1,000 at the…

A: Future value of an annuity due is defined as the formula, which used to get calculated the end value…

Q: A father wants to set up a bank account that will pay his daughter $16,000 at the end of quarter…

A: The investor must have an approach to invest their funds based on goals-based investment i.e. they…

Q: A mother wants to invests 9,000.00 for her sons future education she invests a portion of the money…

A: Solution:- Interest is the return amount on money invested.

Q: Bozo the clown decides to start saving money. So, every month he deposits $200 into an account which…

A: because you have posted multiple questions we will answer the first question Only, for the remaining…

Q: er deposits P15,500 each quarter in a savings bank paying 12.5% compounded quarterly. If she desires…

A: Future value of amount include the amount being deposited and interest being accumulated over the…

Q: A father decides to invest k300 each month at 12% per year compounded monthly to pay for his 12 year…

A: Data given: pmt= k 300 r=12% (compounded monthly) n=17-12 =5 years

Q: On the day his son was born, a father deposited to a trust company a sufficient amount of money so…

A: The effective annual interest rate (EAR) is the real rate of return that exceeds the annual…

Q: At the time of her grandson's birth, a grandmother deposits $4000 in an account that pays 4.5%…

A: The value of an account is defined as the total worth of the account for holdings. Cash value is…

Q: Mrs. Christell Lee deposited Php50,000 now in an account for the college education of her 3-yeard…

A: Future value from present value concept is used to determine the value of deposits before starting…

Q: (Refer to this word problem. Samuel wishes to have P500,000 available for his son's college…

A: Here we have to find the present value so that P 500,000 is available after 14 years.

Q: On a girl's 10th birthday, her father started to deposit P5,000 quarterly at the end of each term in…

A: The future value of a cash flow is the future worth of a cash flow at a rate of interest. Future…

Q: As a savings program toward their child’s college education, parents decide to deposit 100 dollars…

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

Q: A man wishes to set aside some money for his daughter’s college education. His goal is to have a…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: On his son's fifth birthday, a man decides to deposit a certain amount which will be equivalent to…

A: given, FV = P28000 NOMINAL RATE = 5.5% INFLATION = 8.7% N = ( 18-5) = 13 YEARS

Q: On his son's fifth birthday, a man decides to deposit a certain amount which will be equivalent to…

A: given, FV = 28000 NOMINAL RATE = 512%=5.5% inflation = 8.7% n = 13 years ( 18-5)

Q: A father wishes to provide P4,000 for his son on his 21st birthday. How much should he deposit every…

A: When the deposit is intended to be made every six months, it means that interest rate will be…

Q: A couple plans to save their child's college education. What principal must be deposited by the…

A: Here, Required Amount (FV) is $39,000 Time Period (n) is 18 Years Interest Rate (r) is 8%…

Q: The Martin family recently deposited $1,000 in a bank account that pays a 6 percent nominal interest…

A: Deposit amount (P) = $ 1000 Interest rate = 6% Monthly interest rate (r) = 6%/365 =…

Q: A father wants to set aside money for his son's future college education. Money can be deposited in…

A: The question is based on the concept of Financial Management.

Q: Pedro deposits a sum of money in Metrobank for Juan. He wants Metrobank to send Juan checks of P…

A: Interest rate (r) = 12% per annum compounded bimonthly = 2% per bimonthly period Bimonthly checks to…

Q: A rural bank pays interest at the rate of 2% compounded quarterly. If Neil deposits P3,000 every…

A: Interest rate = 2% quarterly compounded Monthly deposit (M) = P 3000 n = 5 years = 60 months

Q: An individual deposited P35,000 and earns 3% interest compounded quarterly. After six years, how…

A:

Q: .A father deposits  P1,200  at the end of each six months  for 4 years  in a bank that pays  at 16%…

A: The future value of account at end of four years can be calculated with the help of future value of…

Q: A father wants to set aside money for his 5-year old son's future college education. Money can be…

A: Present Value  The present value is the value of cash flow stream or the fixed lump sum amount at…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.