A used car dealer tells you that if you put $2,500 down on a particular car your payments will be $ 450 per month for 5 years at a nominal interest rate of 15%. Assuming monthly compounding, what is the cost of the car?
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- The maintenance of a room air conditioner is expected to be P 200,000 at the end ofthe first year and is expected to increase P 10,000 each year for the following 7 years. Assuming rate of interest at 8%, compute The sum of money to be set aside now for the future maintenance of the roomPlease no written by hand and no emage You owe UJ R1 000 due in three years from now and R8 000 due in five years from now. He wishes to reschedule his debt so as to pay two sums on different dates, one, say X, in one year from now, and the other, which is twice as much (ie 2X), five years later. UJ agrees, provided that the interest rate is 18% per annum, compounded quarterly. What are your payments?Calculate the effective annual rate of interest which is equivalent to an effective rate of interest of 2.2% paid every 5 years (correct answer = 0.43618, no tables, ONLY formulas, please)
- Lourdes has just retired and plans to consume $14965 from the retirement account every year for the next 10 years starting one year from today, meeting the rest of the expenses from other resources. If the annual interest rate is 9.6% compounded semiannually, how much does Lourdes have in the retirement account today? Round off interest rate to six decimal places.Lourdes has just retired and plans to consume $12829 from the retirement account every year for the next 14 years starting one year from today, meeting the rest of the expenses from other resources. If the annual interest rate is 9% compounded bimonthly, how much does Lourdes have in the retirement account today?Find the present worth today in real value corresponding to the cur- rent values shown below for a 4 percent ination rate and a 4 percent interest rate. a. $400 three years from now b. $400 three years ago c. $10 next year d. $350 983 in 10 years from now e. £1 one thousand years ago the answer is 292 f. $1 000 000 000 three hundred years from now
- Lourdes has just retired and plans to consume $8,640 from the retirement account every year for the next 16 years starting one year from today, meeting the rest of the expenses from other resources. If the annual interest rate is 9.6%, how much does Lourdes have in the retirement account today? with solution please, thanks2.e If $300 is earned in three months on an investment of $12,000,what is the annual rate of simple interest? include a cash flowcan you help me with this qustion Gina deposits her inheritance into an account earning interest of 4% compounded annually. She will notwithdraw the money until the balance has doubled. How long will Gina have to leave the money in theaccount
- 1. Given the cash flow diagram as shown, if interest is 5%, determine the equivalenttotal present and accumulated amount. 2. How much do you need to deposit today into an account that pays 3% per year sothat you can make 10 equal annual withdrawals of P1000, with the first withdrawalbeing made seven years from now? 3. Four-year lease agreement requires payments of P10000 at the beginning of everyyear. If the interest rate is 6% compounded monthly, what is the cash value of thelease?If your credit card calculates interest based on17.85% APR, compounded monthly:(a) What are your monthly interest rate and annualeffective interest rate?(b) If your current outstanding balance is $2,500 andyou skip payments for two months, what wouldbe the total balance two months from now?Suppose that $12,000 is placed in a bankaccount at the end of each quarter over the next 15years. What is the future worth at the end of 15 yearswhen the interest rate is 8.5% compounded at thegiven intervals?(a) Quarterly(b) Monthly(c) Continuously