A man borrowed P20000 and promised to pay P35000 at the end of 5yrs. If interest is compounded semi-annually, what is the effective rate of interest in %?
Q: Suppose you borrow $8500 for a term of five years at a simple interest and 8.25% APR. how much is…
A: Interest is the cost of borrowing the money.
Q: A debt of $4,000.00 is to be paid off with 8 equal semi-annual payments. If the interest rate is 15%…
A: Repaying debt in equal instalments is a type of annuity. That is any number of payments of equal…
Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…
A: Answer: Calculation of the future value: Step 1: Calculation of the future value of 5900 pesos:…
Q: You borrowed money from the bank with a simple interest 8%, find the present worth of P25,000, which…
A: In Simple Interest Case, FV = PV + (PV x r x n) FV = PV x {1 + (r x n)} Therefore, PV = FV / {1 + (r…
Q: I borrow £5000 and agree to pay back £6000 after 18 months. Whatever is the annual rate of compound…
A: Annual Compounding refers to the financial process of adding interest to initial amount with the…
Q: A debt of $4000 due now is to be repaid by a payment of $1,000 in 1 year, a payment of $2,000 in 3…
A: Total debt =$4000 interest rate =6% First payment $1000 in one year Second payment $2000 in three…
Q: What is the payment for a loan of $320000 with an interest rate of 8.13% compounded monthly for 6…
A: using financial calculator to solve the monthly payment
Q: If you borrowed $2400 at an annual simple interest rate of 5.75%, how much would you owe altogether…
A: Interest on loan=Amount Borrowed×Rate×Years=$2,400×5.75%×3.5=$483
Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…
A: To calculate the present value of payment that will receive after 1 year we will use the below…
Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…
A: Rate of return is the return earned on an investment. It is always expressed in percentages. Rate of…
Q: If money is worth 9.94% annually, what annual payment is required to raise P 15,043 after 1 years?
A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…
Q: A firm is scheduled to receive payment of $68,000 in 2 years. What is the present value of this…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: Assume that you borrow $5000 and pay back the $5000 plus $250 in interest at the end of the year.…
A: Real interest rate: Principle = $5,000 Interest = $250 Interest rate = 2505,000×100%=5%
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: What is the discounted value of $3500.00 paid at the end of every six months for 5 years if interest…
A: Here, Equal amount at equal interval = $3,500 Payment at the end of every six months No. of years =…
Q: You want to be able to withdraw $5800 each year for 10 years. Your account earns 3% compound…
A: An annuity is the plan that gives a fixed amount in return for a lump sum. It is usually made with…
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: 1. If PS00,000 is deposited at rate of 11.25% compounded monthly, determine the compounded interest…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: You are offered payments of P1500.00 at the end of each quarter for 6 years. You feel that the…
A: The cash value is the present value of annuity calculated on the basis of a specified rate. Annuity…
Q: A loan of P30,000 was made with a rate of 15% annually. How many years will he pay an amount of P…
A: Loan amount is P30,000 Rate"r" is 15% Annually Total Interest paid is P6,000 Future Value is…
Q: Assume that 1500 Php is deposited in an account in which interest is compounded annually at a rate…
A: Deposit amount = 1500 Php Interest rate = 6% Period = 5 Years Compounding = Annually
Q: Ferris Bueller has borrowed from the Ferrari Bank at a rate of 7% and will repay the laon with…
A: The current worth of the cash flows or an asset after discounting is termed as the present value.
Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…
A: Present value of future cash flow can be calculated as follows: = Future Value/ (1 + rate)^number of…
Q: Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14…
A: Annual payment (P) on a loan (PV) of $70,000 at an interest rate ( r ) of 5.25% and for 14 years (n)…
Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: What is the effective rate of interest
A: In this case first the quarterly interest rate would be calculated and from quarterly interest rate,…
Q: An advertisement of an investment firm states that if you invest P500 in their firm today you will…
A: Interest Amount = Maturity Amount - Investment Amount Nominal rate = [ Interest Amount /…
Q: Choam Inc. owes $16,100 that is due in 1 year. Instead of paying then, Choam is going to make two…
A: Amount due in 1 year = $16100 Interest rate (r) = 3.8% per annum First payment is to be done in 6…
Q: If you were offered $1000 today of $1050 in one year which would you accept if money can be invested…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: A loan is to be repaid after a term of 5 years. If the principal amount is at P215,000 and the total…
A: The interest rate on the loan: The interest paid on a loan taken is the cost of the money taken as a…
Q: Mr. Hyson borrowed $15,550 from the bank for 3 yrs. If the quoted rate (APR) is 6.55% and the…
A: The Effective Annual Rate (EAR) for daily is calculated by compounding daily rate wit the number of…
Q: If money is borrowed today with an amount of P50,000.00 and subjected to a 9% compounded quarterly…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: Acme Industries Ltd. borrowed $50,000 and amortized the loan over 10 years at a rate of j1=8.00%.…
A: Monthly payments refers to the periodic payment of repayment of a loan. Monthly payments includes…
Q: What is the present value of an annuity of P150,000 payable at the end of each 6-month period for 2…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: A man borrows Php10,000 from a loan firm. The rate of simple interest is 15%, but the interest is to…
A: Actual interest rate here will be calculated by dividing interest by net amount received. Actual…
Q: If I loaned an amount of P10,000.00 with an interest rate of 8.44 % compounded monthly for 5 years.…
A: Loan amount = P 10,000 Annual interest rate (AR) = 8.44% Number of compounding per year (m) = 12
Q: A person owes $1000 due in two years and $4000 due in 6 years. Using an interest rate of 12%…
A: In the given question we require to calculate the present value of $1000 due in two years and $4000…
Q: If you borrow $5000 for five years and seven months at 9% compounded quarterly. How much is owed on…
A: Formula = Principal * [ 1 + Interest rate / 4 ]Number of quarters
Q: If $5,000 is borrowed today and $8,955 is paid back in 9 years, what interest rate compounded…
A: Here, Borrowed Amount (PV) is $5,000 Paid Back Amount (FV) is $8,955 Time Period is 9 years
Q: How long (in years) will it take to repay a $100,000 loạn taken out today at 7% compounded monthly,…
A: The time value of money is the one widely used by companies and individuals to determine the current…
Q: How is the manthly pay ment Of P350,000 loan which is to be repaid monthly for 1 year with an…
A: Given: Loan = 350,000 Years = 1 Interest rate=10%
Q: You borrow 10.000 USD for 4 years to be paid with equal installments. The rate is 10% a-what is…
A: Remaining principal after a certain time period denotes the outstanding principal at the end of that…
Q: A certain amount was borrowed for 5 years at 6% simple interest. After which, the amount was not…
A: Simple interest rate for first 5 years = 6% Interest rate for next 8 years = 10% compounded semi…
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: A loan of P95000 is borrowed for 240 days at a simple interest rate of 12.3 percent per year. What…
A: Loan amount (P) = P95000 Interest rate (r) = 12.3% Period (t) = 240 days = 240/365 =…
Q: If I loaned an amount of P10,000.00 with an interest rate of 8.60% compounded MONTHLY for 5 years.…
A: Annual interest rate (r) = 8.60% Compounding = Monthly Number of compounding per year (m) = 12
Q: at is the present worth and future of P6000 deposited at the end of every month for 4 years if the…
A: The more is compounding more is future value and less is the present value of money due to the fact…
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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600If P dollars is borrowed at a rate or r per year to be paid back in tyears, the monthly payment (n=12) is given by the formulaA =((r/n)P)/ (1 − (1 + r/n)−nt450, 000.00 is borrowed to buy a house. The annual interest rate is 7.04%. Whatis the monthly payment if the term of this transaction is 30 years.
- Krei is required to pay P57,000 in 15days ir P60,000 in 60days. Find the annual rate of the interestJoseph Moore borrowed $15550 from a bank for three years. If he quoted rate (APR) is 8.90 percent, and the compounding is daily, what is the effective annual interest rate (EAR)? (Round to 2 decimal places)Today, a businessman borrowed money to be paid in 10 equal payments for 10 quarters. If interest rate is 10% compounded semi-annually and the quarterly payment is P20,000, how much did he borrow?
- If I loaned an amount of P10,000.00 with an interest rate of 8.60% compounded MONTHLY for 5 years. What is the real interest rate of the effective interest rate in percent?If a firm borrowed P500,000 at a rate of 10% simple interest with monthly interest payments and a 365-day year, what would be the required interest payment for a 30-day montMr. Cruz borrowed P100,000 from BPI at a stated rate of 6% payable over a period of one-year. What is the effective interest rate if the loan is discounted?
- Today, a businessman borrowed money to be paid in 10 equal quarterly payments. If the interest rate is 10% compounded quarterly and the quarterly payment is P2,000, how much did he borrow?As debt payment, P315,000 is due in 4 years and 7 months. If the debtor wishes to repay the debt now, and the lender applies 9% interest compounded semi-annually, how much does he have to pay?Krei is required to pay P57,000 in 15days or P60,000 in 60days. Find the annual rate of the interest