A payment of $15,000 is due in 1 year and $11,000 is due in 2 years. What two equal payments, one in 3 years and one in 4 years would replace these original payments? Assume that money earns 4.50% compounded quarterly. Use the focal date in 4 years. Round to the nearest cent

Q: Two payments of $9,000 and $5,300 are due in 1 year and 2 years, respectively. Calculate the two…

A: Payment due in Year 1 is $9,000 Payment due in year 2 is $5,300 Interest rate is 9% Compounded…

Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for four…

A: Quarterly Payment = 4500 Time Period = Number of quarterly payments = 16 quarters Quarterly Payment…

Q: year-end bonus of $25,000 will generate how much money at the beginning of each month for the next…

A: Year End Bonus=$25000 interest rate =6.06 monthly interest =6.06/12=0.505 monthly interest =0.505%0…

Q: Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000…

A: Focal date is after 1 year (12 months) Payment 2 years (24 months) ago (P1) = $657 Payment today…

Q: Two payments of $18,000 and $3,700 are due in 1 year and 2 years, respectively. Calculate the two…

A: Compound interest is a type of the interest which is charged on the loan. Compound interest is…

Q: Find the annual deposit

A: Compound interest is the interest on interest. Under this method the interest is calculated by…

Q: cheduled payments of $1,400 due today and $1,600 due with interest at 11.5% compounded annually in…

A: In this we have to calculate the present values of both options and equate them with payment.

Q: If interest is compounded semi-annually (twice a year), and the interest rate is 3% per 6 month…

A: Present value is the current value of a specified amount you will received in a future date,…

Q: a series of 12 annual payments of $2400 is equivalent to three equal payments, one each at the end…

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

Q: A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The…

A: To Find: Monthly payment Capital repaid and interest paid in first and lst month Loan repaid after…

Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two…

A: Amount borrowed= $1,000,000 Rate= 3% compounded semi-annually Time (n)= Bi weekly over 25 years

Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi- weekly (every two…

A: There are two methods to charge interest on the loan taken. One is the simple interest method and…

Q: To finance the development of a new product, a company borrowed $36.000 at 9% compounded monthly. If…

A: The act of repaying a loan taken from a lender, combined with the relevant interest amount, is known…

Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two…

A: Installment is the amount of periodic payments a borrower has to make to its lender in order to pay…

Q: Loans of $1600.00, $8300.00, and $12,100.00 are due now, in four years, and in seven years…

A: Loan due now = $ 1600 Loan due in 4 years = $ 8300 Loan due in 7 years = $ 12,100 Annual interest…

Q: A payment of $700 is due in 3 years, and $5,000 is due in 5 years. What single payment made today…

A: PV=FV11+rn=$70011+4.54×1004×3+$500011+4.54×1004×5=$612.062293+$3997.59977=$4609.66206=$4609.66

Q: An annuity purchased for $195,000 pays $6,000 at the end of every quarter. How long will the…

A: The term "annuity" refers to an insurance contract created and distributed by financial institutions…

Q: A payment of $3,160 was due three years ago, and a payment of $1,150 is due today. What single…

A: Money received today is worth more than money due at a later date, according to the time value of…

Q: Two payments of $14,000 and $3,400 are due in 1 year and 2 years, respectively. Calculate the two…

A: To replace the payments of different periods, we will first compute the NPV of payments to be…

Q: A payment of $17,000 is due in 1 year and $11,000 is due in 2 years. What two equal payments, one in…

A: Given : Annual interest rate is 3.25% So quarterly interest rate = 3.25/4 = 0.8125% We assume two…

Q: Two payments of $12,000 and & 3,400 are due in 1 year and 2 years, respectively. Calculate the two…

A: Discounting is a technique to compute present value (PV) of future cashflows by considering…

Q: A payment of $23,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: The equivalent periodic cost is the periodic payment made towards the acquisition of an asset or…

Q: Determine the amount of the payment required at the end of each quarter to repay a six-year loan of…

A: Time Value of Money :— According to this concept, value of money in present day is more than the…

Q: wo payments of $16,000 and $6,800 are due in 1 year and 2 years, respec alculate the two equal…

A: Present value of money would give the required money today that is equivalent to future payment to…

Q: A payment of $12,000 is due in 1 year and $10,200 is due in 2 years. What two equal payments, one in…

A: Compounding is a process that uses an appropriate rate or CVF to calculate the future value (FV) of…

Q: An amount equal to $50,000 is borrowed at 7% annual compound interest.a. What size equal annual…

A: Given information: Amount borrowed is $50,000 Interest rate is 7% Number of payments is 5

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: Future value of annuity due = P * [ (1+r)^n  - 1 ] /r  * (1+r) Where, r = rate per period i.e.…

Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two…

A: Installment is equal periodic payments a borrower pays in order to pay back his loan over a period…

Q: What is the equal-payment series for 10 years that is equivalent to a payment series starting with…

A: Given information: Initial amount is $10,000 Decreases by $1,000 over 10 years Interest rate is 7%

Q: If P dollars is borrowed at a rate or r per year to be paid back in t years, the monthly payment…

A: The amount borrowed as a loan needs to be repaid back to the lender along with the interest.…

Q: An annuity purchased for $175,000 pays $4,000 at the end of every quarter. How long will the…

A: Compounding refers to the process where the interest is determined on the principal and interest…

Q: A scheduled payment of $5,500 due in one year is to be replaced with two payments: the first due in…

A: Time value of money shows that the money available today is worth than the money in the future.

Q: A payment of $13,735 is due in 1 year, $19,500 is due in 4 years, and $8,900 is due in 7 years. What…

A: Payment due in year 1 (P1) = $13735 P4 = $19500 P7 = $8900 Interest rate = 5.5% monthly compounded

Q: The present amount needed to generate an annual income of $50,000 for 20 years if the expected rate…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: A payment of $23,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: Given That: P.V=$23000 Payment is done in 3 equal payment Rate of interest= 4.25% Duration= 6 years…

Q: What is the principal that will grow to $2600 in four years, one month at 4 5% compounded annualy?…

A: present value formula: present value =future value1+rnwhere,r=rate of interestn = number of years

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: What is the equal payment series for 12 yearsthat is equivalent to a payment series of $25,000 atthe…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A payment of $2,690 was due two years ago, and a payment of $1,650 is due today. What single payment…

A: This question can be solved in light of time value of money and future value. The formula to…

Q: A payment of $12,000 is due in 1 year and $11,500 is due in 2 years. What two equal payments, one in…

A: The present value method uses the discount rate to find the present values of the cash flows.

Q: A payment of $11,710 is due in 1 year, $19,500 is due in 4 years, and $8,400 is due in 6 years. What…

A: The screenshot of the above sheet along with formulas is given below for your reference. The Single…

Q: A year-end bonus of $23,000 will generate how much money at the beginning of each month for the next…

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

Q: payment of $16,000 is due in 1 year and $11,700 is due in 2 years. What two equal ayments, one in 3…

A: Effective interest rate is that is rate after considering the impact of compounding and more then…

Q: For total yearly payments of $10000 for 10 years, compare the compound am ted at the end of 10 years…

A: Given information: Annual payments : $10,000 Time period : 10 years The amount accumulated at the…

Q: What equal payments in 2 years and 5 years would replace payments of $35,000 and $87,500 in 7 years…

A: Here the present value of two payments to be made at the end of 7 years and 9 years should be equal…

Q: A scheduled payment of $3,500 due in one year is to be replaced with two payments: the first due in…

A: Scheduled payment in 1 year (12 months) (X) = $3500 Replacement payment 1 = R1 in 9 months…

Q: Scheduled payments of $: years are to be replaced by a payment of $3500 due in 2.5 years and a…

A: The future value is the future worth of the amount that will be paid or received in the future.