a. 12% nominal rate, semiannual compounding, discounted back 5 years b. 12% nominal rate, quarterly compounding, discounted back 5 years c. 12% nominal rate, monthly compounding, discounted back 1 year

Q: Direction: Find the compound interest and the maturity value in each of the following cases: Given:…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Complete the equal-payments four -year amortization table. Interest rate on this loan is…

A: An amortization schedule is a complete table of periodic loan payments, showing the amount of…

Q: A debt of $1881 with interest at 9.34% compounded monthly is to be repaid by equal payments at the…

A: Given: Debt 1881 Interest rate 9.34% Years 5

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A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: End the effective bimonthly interest rate equivalent to: a) nominal annual interest of 8%,…

A: Effective annual rate=1+rmm-1where,r=rate of interestm= frequency of compounding

Q: a. FV of $700 paid each 6 months for 5 years at a nominal rate of 8% compounded semiannually. Do not…

A: Solution:- Given, Formula for FV FV=PMT(1+r)n-1r Where; FV = Future value of Annuity PMT = Paid…

Q: Set up an amortization schedule for a $25,000 loan to be repaid in equal installment at the end of…

A: Amortization Schedule refers to a table that shows the total amount of interest and principal…

Q: A loan of P12, 500 is to be repaid with equal quarterly payments for one year with an interest of 6%…

A: In this question Quaterly payment is to be find out and amortisation schedule which lays out all the…

Q: A loan of £ 2,120,000 is repayable by equal quarterly payments for 15 years. The effective rate of…

A: Loan Amount = 2120000 Years = 15 Interest rate(r) = 6% p.a = 6/4 = 1.50 % per quarter Terms(n) =…

Q: Determine the interest rate per compounding period as a decimal. Time of payment every 6 months.…

A:

Q: A loan $30.000 is to be amortized by equal payments at the end of each year for five years. The…

A: Interest payment for the 3rd year = $1080 ($30000-$6000-$6000)*6% = $1080

Q: years, (b) a 10-year me s, (c) interest payabl 00. For each obligatic ime an operating cycl borrows…

A: BE11-1 1 )a -It is a non current liability as same is due in2 years b) $ 30,000 is a current…

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A: Principal amount (P) = $43,000 Interest rate (r) = 9 3/4% = 9.75% Period (t) = 9 Years Compounding…

Q: periodic payment $260 made at end, payment period 1month,, period of deferment 7years,terms…

A: Deferred annuity means the payment to be received either in the form of installments or lump-sum…

Q: Company A borrows $2,000,000 from Bank at 12% interest to be paid at the end of each year for 15…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

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A: An amortization schedule is a complete table of periodic loan payments, showing the amount of…

Q: Parts a–c for each of the following cases. Answer parts a–c for each of the following cases.…

A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…

Q: Method A assumes simple interest over nal fractional periods, while Method B assumes simple discount…

A: Simple Interest vs. Simple Discount In case of Simple Interest, the Interest is calculated on…

Q: Repost could you please complete the sub parts D and E please Payment and  frequency  (PMT) Time…

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

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A: Principal Amount of loan/ Investment: When any amount borrowed from the lender/banks/Financial…

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A: Present value (PV) is the current value of a future sum of money or a stream of cash flows, given a…

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A: Using excel RATE function

Q: Mr. X deposited 10.000 TL in a savings account for 3 years offering progressive rate of interest.…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: periodic payment $260 made at end, payment period 1month, period of deferment 7years,terms 3years,…

A: Ordinary Annuity = P x [1-(1+r)-n][ (1+r)t-1x r ]

Q: a Find the amount at the end of 2 years and 8 months if P6,000 is invested at 78% compounded…

A: The conceptual mathematical formula can be used:

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A: The given problem can be solved using PV function in excel. PV function computes present amount for…

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A: The interest that an investor earns on the investment and a borrower pays on loan after considering…

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A: Nominal Rate (r) = 2.3% p.a. If interest is compounded annually, then effective rate of interest…

Q: (a) Manny made a 5-year investment. The following are the interest rate earned: 15% interest…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Discount ₱64,820 at 12.25% interest when compounded monthly for 3 years and 7 months

A: Present Value = Future Value /(1 + Interest rate)n

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A: Solution:- Discounting means the value in the today's terms by pulling the cash flows and…

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

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A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

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A: An amortization schedule of the loan consists of the beginning balance, interest , semi annual…

Q: t rate of 14%/year compounded semiannually. calculate effective rate using excel i

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

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A:

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A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: Accumulate ₱180,000 for 5 years at 13% compounded semi-annually.

A: Initial amount (P) = ₱180000 n = 5 years = 10 semiannual periods r = 13% per annum = 6.5%…

Q: Here are two ways of investing $40,000 for 25 years. After 25 years, how much more will you have…

A: Future value of single payment = C(1+r)N Where, C = lump sum amount = 40000 r = interest rate = 6.5%…

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A: The loan amount (PV) is $120,000. The maturity period is 25 years and the total number of payment…

Q: Find interest charged on a loan of P8,275 for 3 years at 11% compounded quarterly

A: The interest rate is that amount which is charged by a lender to a borrower and it is expressed as a…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.