A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6% interest rate on deposits and loans: How much would you have in one year if you deposited the $55 instead? How much money could you borrow today if you pay the bank $58 in one year? Should you loan the money to your friend or deposit it in the bank?

Q: If you deposit OMR 12200 in your account in a bank. If your bank pays 8.15% interest, how much will…

A: The value of a current asset at a future date based on an expected rate of growth is known as future…

Q: Example 5: While shopping for a car loan, you get the following offers: Solid Savings & Loan is…

A: We need to use pmt formula in excel to calculate monthly payment. Where monthly payment is 250 or…

Q: You lend a friend $10,000, for which your friend will repay you $15,000 at the end of 5 years. What…

A: Given: Present value (PV) =$10,000 Future value (FV) = $15000 Time period (n) = 5 years

Q: Q) Susan is 22 years old and today she opened a savings account that offers an interest rate of 12%…

A:

Q: A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is…

A: The present value of money is the discounted value of future cash flows. The future value is the…

Q: If you deposit OMR 20930 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: When interest is compounded multiple times in a year: Future value = Present value *(1+r/m)n*m  r is…

Q: A friend asks to borrow $50 from you and in return will pay you $53 in one year. If your bank is…

A: Given:

Q: QUESTION 3 You are in desperate need of cash and turn to your unde, who has offered to lend you some…

A: Future Value Future value refers to the value of investment at certain point of time in future which…

Q: suppose you want to buy a new car that costs you 15514 OMR by a loan from bank Muscat for 6 years.…

A: Bank charges are the charges which are charged by bank for providing loan to the customer and other…

Q: A man was offered a bank certificate with a face value of ₱200,000 which is bearing interest of 9%…

A: Amount payable for certificated is the sum of present value of cash flows from the certificate which…

Q: A merchant is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is…

A: 1. Merchant was given 5% cash discount for immediate payment, otherwise he can pay the bill amount…

Q: A trustworthy friend asks to borrow money from you today. She promises to pay you exactly $3750 in 2…

A: In order to find how much to lend her today one needs to calculate the present value of the amount…

Q: If you deposit OMR 5000 in your account in a bank; if your bank pays 9.05% interest, how much will…

A: future value = present value *(1+rate)^n future value = 5000 * 1.090515

Q: A friend asks to borrow $45 from you and in return will pay you $48 in one year. If your bank is…

A: If you deposit amount in a bank, you will reccive interest on such depoisit. Hence your money after…

Q: 21. A friend lends you P500 for a year with 3% interest. How much interest will your friend earn?

A: Interest can be computed using the formula given below. Interest = Principle x Rate x Time

Q: 2. You are running a bank. A customer agrees to pay you with annual interest rate of 10% for 5…

A: We need to use loan amortization formula to calculate amount of loan Loan amount(P)=PMT1-1(1+i)ni…

Q: Dérek bórrows $37,784.00 to buy a car. He will make monthly payments for 6 years. The car loan has…

A: Time value of money (TVM) means that the amount of money received in the present period will have…

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

A: Using excel FV function

Q: borrowed 72,000 as a mortgage loan on your house. The interest rate is 6%. The bank has calculated…

A: The given problem can be solved using NPER function in excel. NPER function computes no. of…

Q: Michelle wants to borrow $4,500. Bank A will lend Michelle the money at a simple annual interest…

A: Formula: Interest amount = PTR / 100 P = Principal  T = Time period R = Rate of interest.

Q: ou have agreed to loan some money to a friend at a simple interest rate of 62% your friend needs a…

A: Rate = 62% Principal = $1470 Maturity Value =$3200 Interest = $3200 -$1470 Interest = $1730

Q: Dr. Dennis Natali plans to take advantage of 0% interest balance transfer credit card offer to pay…

A: given data Dr. Dennis Natali plans to take advantage of 0% interest balance transfer credit card…

Q: A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is…

A: In this question rate of interest earned if money is lend to a friend should be find out so that one…

Q: A trustworthy friend asks to borrow money from you today. She promises to pay you exactly $3750 in 2…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: ou want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year loan…

A:

Q: you are a lender. suppose you have savings. your friends approached you and asked if you can lend…

A: Maturity Amount = Principal Amount x (1+i)n  where, i= Interest Rate n= number of period

Q: Question 3: A father wants to set up a bank account that will pay his daughter $(10000) at the…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. A person…

Q: Q1:If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in…

A: Answer 1.  The formula used for computation of future value: Future Value=Deposit Amount…

Q: Assume that a broker agent introduces you to a local bank, and that bank offers you their lowest…

A: we need to use loan amortization formula given below for calculation of monthly payment PMT…

Q: Q) At the end of year 5 Joe starts to withdraw $14500 from his savings account. If he takes out the…

A: Annuity- refers to a series of periodic payments or withdrawals made at equal time intervals. This…

Q: Problem 6: You are trying to explain to a friend the power of compound interest. So you use the…

A: Simple interest is when the interest is charged only on the principal amount. The formula of the…

Q: If you need $40,000 five years from now, what is the minimum amount of money you need to deposit…

A: Formulas:

Q: 12. You have saved up $7,000 and are interested in investing it. You can choose from 2 different…

A: Here, Savings are $7,000 Details of First Offer: Interest rate is 5.2% Compounding period is Bi…

Q: If you need $40,000 five years from now, what is the minimum amount of money you need to deposit…

A: The formula used as follows: Future value=Present value×1+rnnt

Q: A friend asks to borrow $55 from you and in return will pay you $58 in one year. Ifyour bank is…

A: Loan is an agreement between two persons as borrower and lender in which borrower promises lender to…

Q: You start a savings account (Tax Free) on your 20th birthday – You earn 7% interest on the balance –…

A: The future value of the monthly deposits is the compounded value of the deposits made at the rate of…

Q: 2. A bank offers a savings account with a 6% annual interest rate, compounded monthly. Stu wants to…

A: Savings Account is a deposit facility offered by commercial banks to their customer having limited…

Q: If you deposit $5,000 in a bank account that pays 10% interest annually to buy a car after you…

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

Q: You borrow $364000 for the the purchase of a house at an APR of 7.52% for 15 years. Your monthly…

A: A mortgage is a loan on a property for which the property itself is the collateral.

Q: You lend a friend ​$10,000. for which your friend will repay you ​$27,027 at the end of 5 years.…

A: FV or Future value = PV or Present value * (1+interest rate)^no. of years Interest rate = ((FV or…

Q: Suppose you want to buy a $153,000 home. You found a bank that offers a 30-year loan at 4.5% APR.…

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

Q: A friend asks to borrow $51 from you and in return will pay you $54 in one year. If your bank is…

A: Given information: Present value is $51 Interest rate is 6.3% Number of years is 1

Q: suppose you want to buy a new car that costs you 15514 OMR by a loan from bank Muscat for 6 years.…

A: Given: Loan = OMR 15,514 Interest rate = 4.004% Year = 6

Q: How much will the bank pay for the mortgage?

A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…

Q: n investment company pays 4% compounded semiannually. You want to have $11,000 in the future (A) How…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…