are due now, in four years, and espectively. What is the equiva -um of money due three and a now if interest is 10.8% compou monthly? Select one: $22,000.00 p.$21,278.29 $18,626.80 I.$18,501.94

Q: At what effective annual rate of interest i will a payment of $7,000 accumulate to $8,179.57 in 4…

A: An effective annual rate is defined as the rate of an interest, which is actually earned on…

Q: Forty eight monthly deposits are made into an account paying 6% nominal interest per year compounded…

A: Amount of each deposit = M Number of deposits (n) = 48 r = 6% per annum = 0.5% per month Accumulated…

Q: put 5,000 in a savings accont that 0.25 percent, pays inkest at the rate Componnded in 5 tears . How…

A: Compound interest is a concept where the interest earned in a period is not withdrawn and the added…

Q: You place $4000 into an account paying 8% compounded annually. Inflation is 2.5% during each of the…

A: The real rate of return is the actual rate of return after taking inflation into account. The…

Q: Determine the principal that p at rate must be invested r = 3°, companded monthly, so that $500,000…

A: Principal = Future Value / (1 + r)^n

Q: At the end of each quarter, a life insurance client deposits PhP 9,174 for 5 years. If money is…

A: The amount of saving can be calculated as future value of annuity.

Q: You deposit $175,000 in a savings account. The APR (Annual Percentage Rate) is 6%. Calculate the…

A: Effective Annual Rate(EAR) shows net rate which an investment will yield after considering…

Q: Acouple who borrow #90,000 tor 20 years at 8.4% Compounded monthly must make monthly payment's of…

A: Annuity refers to series of equalized payments either paid or received for constant period of time.…

Q: If you need $40,000 five years from determine the minimum amount of money you need to deposit into…

A: Working note:

Q: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…

A: Number of period is 4 (2 x 2).

Q: How much must be invested now at 6% interest, compounded monthly, to accumulate $1,000 at the end of…

A: Present value = Future value/(1 + r)n         OR Present value = Future value x (Present value…

Q: Deposits of $1,320 are made into an account at the beginning of every 6 months for 2 years and 6…

A: Deposits made are of $1,320 Type of payment is begining of the period Interest rate is 3.07%…

Q: If for the next 30 years you place OMR 3,610 in equal annual year-end-deposits into an account…

A: Future value of annual year end deposits is calculated by future value of ordinary annuity formula.…

Q: nterest , a company that you regularly do business with, gives you a $11,000 note. The note is due…

A:

Q: You plan on withdrawing monthly payments for the next ten years and have deposited $100,000 inan…

A: Let's assume that the value of the monthly withdrawals be an amount A.Interest rate = 8% per annum…

Q: At end of three years, how much is an initial deposit of $100 worth, assuming a compound annual rate…

A: FV is the worth of amount that will be paid or received in future. The formula for the computation…

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: An cellphone is for sale at either (a) P15,999 cash or, (b) on terms, P1,499 each month for 12…

A: According to the concept of Time Value of Money, the value of one unit of a currency is worth more…

Q: Mark Welsch deposits $7,500 in an account that earns interest at an annual rate of 12%, compounded…

A: When a person deposits a lump-sum amount with the bank, for a fixed period of time, it is known as…

Q: $ 5000 is deposited in an account that earns 6% compounded continuously for 2 years. If this amount…

A: Using excel FV function

Q: You invest $5,000 into a money market account that pays interest monthly (e.g., interest is…

A: Future Value = Present Value * (1+r)^n Where, n = no. of compounding period i.e. 3 years * 12 = 36 r…

Q: JP just made a deposit of $4,321 is made today in an account earning 5.3% APR compounded annually.…

A: Data given: P=Deposit amount = $4,321  r=Rate = 5.3% APR compounded annually n= 15 years   Required:…

Q: A person deposits $150 per month into a savings account for 2 years. If $75 is withdrawn in months 4…

A: Cash is considered as one of the most important and valuable factors of the business, without which…

Q: Suppose you deposit $2,000 at the end of eachquarter for ten years at an interest rate of 9%…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: You borrow $5000 now and agree to pay this whole amount back in three payments: Payment 1. $X in 3…

A: Amount borrowed (B) = $5000 P1 = X in 3 months P2 = 2X in 7 months P3 = 2X in 12 months

Q: At the end of each quarter, a life insurance client deposits PhP 7,076 for 5 years. If money is…

A: Quarterly deposit (P) = Php 7076 Period = 5 Years Number of quarterly deposits (n) = 5*4 = 20…

Q: If you make quarterly deposits of $1000 for 15 years into an account that compounds interest at 1.5%…

A: Quaterly deposit is $1000 Time period is 15 years Interest rate is 1.5%   To Find: Future Value

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: If you borrow $3,600 to buy a car at 15% per year compounded monthly, to be repaid over the next…

A: Monthly Payment = P x r / [1 - {1 / (1 + r)^n}] Here, P = Present Value or Loan Amount i.e. $3600 r…

Q: A person deposits $150 per month into a savings account for 2 years. If $75 is withdrawn in months…

A: When there is no iterperiod interest, which means the interest will be paid for balance at the start…

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

A: The future value of cash flow is the future worth of a cash flow at a certain rate of interest and…

Q: You're prepared to make monthly payments of $260, beginning at the end of this month, into an…

A: The number of payments made can be calculated with the help of NPER function of Excel

Q: How much (in dollars) is needed in an account that earns 9.6% compounded monthly to withdraw $1,000…

A: Computation:

Q: You wish to save $51000 in an account which pays 4% compounded monthly by making semiannual deposits…

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

Q: $2500.00 is invested in an account with a 3.1% interest rate that is compounded quarterly. How much…

A: The money at the end of one year can be computed using the Future Value Formula.

Q: You put \$1,000$1,000 into a savings account today that offers a 5\%5% APR with semi-annual…

A: Banks usually offer loans to customers, and they also accept deposits from the customers. The…

Q: t is desired to have P100,000 two ye- m now by depositing P20,000 now a form monthly amounts, the…

A: In this we have to calculate the present value of future value and than calculate the future value.

Q: A deposit of $50,000 is made into an account that pays 10% compounded semiannually. How much would…

A: Introduction: Amount which is deposited into an account now is referred to as present value. The…

Q: You have borrowed $60,000 from al interest rate of 12% per year, compou monthly. You are to repay…

A: In this we need to calculate present value factor monthly and find out monthly payment.

Q: $100 is deposited each quarter for 5 years. What is the future value of the account if interest rate…

A: FORMULA FVA = P*[(1+R)N-1]/R Where FVA - Future value of annuity P - Quarterly deposit amount i.e.…

Q: If I plan to avail of a loan today and I will pay it P7,938 every end of the month for 6 years…

A: Equivalent annual rate = (1  + 11.09/4)4 - 1 = 11.56% Monthly rate (rate)= 1.1156^1/12 - 1 =…

Q: you  borrow $20,000 from a bank to be repaid in three equal annual instalment at 9% interest…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: You’re prepared to make monthly payments of $190, beginning at the end of this month, into an…

A: I/Y = rate = 6%/12 = 0.5% PMT = payment = -190 PV =Present value = 0 FV = future value = 10000 CPT…

Q: You wish to save $52000 in an account which pays 3% compounded semiannually by making quarterly…

A: An annuity is a series of payments or deposits for a certain period of time at a compounded rate.…

Q: A customer opens a savings account that applies 2% compound interest annually. If the initial…

A: The money in account at end of 2 years can be calculated as the future value of account,

Q: You borrow $5000 now and agree to pay this whole amount back in three payments: Payment 1. SX in 3…

A: The value of a certain amount of money at the current time will not be the same as the value of the…

Q: You're prepared to make monthly payments of $200, beginning at the end of this month, into an…

A: Monthly payment (M) = $200 r = 10% per annum = 0.833% per month Let n = Number of payments

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.