Abdullah buys a TV with a cash price RM6,500 by making an initial deposit of RM2,000. The balance will be settled by making 18 monthly deposits of RM300 each. Find the: a) Nominal rate compounded monthly that is being charged. [ans:23.93%] b) Effective rate that is being charged. [ans:26.74%]
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Please explain both subparts.
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- 2. Mr. Dizon borrowed P35,000.00 from the cooperative bank. Find the simple interest if it is to be paid after 5 months with an interest rate of 1.50 %per month.1. How long will it take to accumulate P5,000 to P7,000 if interest rate is 6% compounded quarterly?2. How much should be deposited now by Mr. A in an investment paying an annual rate of 16% compounded semi-annually to realize P300,000 in five years?3. Mrs. Nora Delos Reyes opens a savings account at Rural Bank. The Bank offers 16% interest per annum as long as no withdrawals are made. As soon as a withdrawal takes place, this rate will automatically drop to 10% per annum starting from the date of withdrawal. Mrs. A initially deposits P50,000. The account remains untouched for four years. At the beginning of the fifth year, she withdraws P5,000. Neither deposits nor withdrawals are made for the next four years. How much money does she have eight years after her initial deposit?4. Carl agrees to make equal payments at the end of each year for 10 years to pay all interest and principal in purchasing a land worth P1,250,000 cash. If money is worth 8% compounded annually, find the annual…James borrows $10,000 from the bank. By the time the loan is repaid, James has paid thebank $10,400. What does the additional $400 represent?A Inflation rateB Purchasing power of moneyC InterestD Investmen
- You agree to make 24 deposits of Php500 at the beginning of each month into a bank account. At the end of the 24th month, you will have Php13,000 in your account. If the bank compounds interest monthly, what nominal annual interest rate will you be earning? a. 7.62% B. 8.00% C. 8.40% D. 8.82% e.9.26%6. Mr. Ritche plans to deposit his Php 450,000 in any of his selected accounts that earns4 % interest How much money is in the account after 5 years compounded: a. semi-annually? b. quarterly? and c. monthly? 7.How long will it take for the amount of Php 95,000 to increase by Php 20,000 if it isinvested at 8% annual interest compounded semi- annually? Note: please answer asap. I really need help. Don’t use excel1. At what rate must RM50,000 to grow to 406,855 in 15 years compounded annually? Select one: a. 19% b. 20% c. 18% d. 15% 2.How long RM152,091.826 grow to RM708,900 with a 8% compounded annually? Select one: a. 12 years b. 15 years c. 20 years d. 10 years 3.If you deposit RM15,000 in an account earning 12%, how much would you have in the account after 15 years? Select one: a. RM87,869 b. RM83,456 c. RM82,104 d. RM82,879 4.If you deposit RM3,305 in an account earning 12%, how much would you have in the account after 15 years? Select one: a. RM18,090 b. RM23,456 c. RM12,879 d. RM17,869 5.If you deposit RM5,072 in an account earning 9%, how much would you have in the account after 15 years? Select one: a. RM18,474.76 b. RM17,869.90 c. RM12,879.67 d. RM23,456.89
- 1. Hanzalah took a loan of RMx from Bank ABC at interest rate of 4.5% compounded monthly. After 10 years, the amount to be paid is RM47,009.78. Find x.(RM30000)Suppose an investment will pay $11,000 in 41 years from now. If you can earn 14.55% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. A. $31.59 B. $31.30 C. $26.04 D. $25.74 E. $29.25What is the final answers and the cash diagram of the following: 1. Mr. Reyes borrows P600,000 at 12% compounded annually agreeing to repay the loan in 15 equal annual payments. How much of the original principal is still unpaid after he has made the 8th payment? 2. The purchased price of the equipment is P12,000 and its estimated maintenance costs are P500 for the first year, P1,500 for the second year, and P2,500 for the third year. After three years of use the equipment is replaced, it has no salvage value. Compute the present equivalent cost of the equipment using 10% interest. (capitalized cost) 3. Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of P120,000 each. The payment are made at the beginning of each year and money is worth 15% compounded annually.
- Suppose an investment will pay $19,000 in 16 years from now. If you can earn 10.15% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.Jeanelle is planning to borrow money amounting to ₱ 250,000.00 Limbon Rural Bank is offering 1.25% compounded semi – annually, while Buli Cooperative Bank offers 1% compounded monthly. 11.How much will be the maturity value after 5 years if he borrows from Limbon Rural Bank? a. ₱ 266,071.86 b. ₱ 207,660.68 c. ₱ 367,071.88 d. ₱ 376,716. 663. Ahmad bought a set of sofa and paid RM200 as a down payment. The balance was to be paid by monthly payments of RM150 for two years. The interest rate was charged 10% per annum based on the original balance. No use excel. Find: a) the amount of the loan. (RM3000) b) the cash price. (RM3200) c) the amount he has to pay immediately after the 20th payment, if he decides to settle all the outstanding debts. Use the Rule of 78. (RM580)