(Compound Interest) Finding F, P, I, j, t Formula: L = F-P n=tm i=j/m F = P(1+i)n P=F(1 + i) CV = DP + F(1 + i) 1. Mr. Santos would like to have P6,500,000 in his account by the end of 6 years. How much should he invest today in a bank paying 8.25% compounded monthly?
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- You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?Solve the following and show your solution. 1. Peter borrowed P100,000 at 8% compounded annually? How much will he be paying after 2 years? 2. A time deposit account in a bank yields 5.5% compound interest annually. Jennifer invested P450,000 for 4 years in this savings account. How much interest will she gain? 3. In order to have P250,000 in 5 years, how much should you invest if the compound interest is 12%? 4. how much should you deposit in a bank paying 2% compounded quarterly toaccumulate an amount of P80,000 in 5 years and 9 months? 5. IF you deposit P5,500 in a bank at an annual simple interest rate of 0.5%,how much money will you have after 12 years?1. How much must a man deposit in a bank that pays 7% compounded annually so that after 10 years he will have P3,000,000 2. How much must a corporation deposit in a bank which credits interest at 12% compounded monthly to come up in 8 years with P2,500,000 needed for its expansion program? 3. In purchasing of house, a man makes P720,000 down payment and agrees to pay P1,200,000 5 years later. Find the cash value of the house if money is worth 14% compounded semi-annually. 4. On the birth of a child, a father wished to invest in a trust fund which gives 12% compounded quarterly. How much must he invest if he wants to accumulate P650,000 by the time the child reaches his 21st birthday? 5. To provide for a purchase of a car worth P950,000 as a gift to his mother 5 years from now. How much should Benjamin invest today at 18% compounded quarterly? 6. Mrs. Dela Cruz invested P70,000 at 12% compounded quarterly for 5 years and another P70,000 at 18% compounded semi-annually for the…
- Question 1 and 2 1. Compute the present value if you want to receive 8,000 at the end of year 4 and P 7,000 at the end of year 5 at 10%. 2. Sugar Corp. borrowed P20,000 in a bank at 12% interest. Using simple interest method, how much is the interest after 4 years?1. High Land Property Development Corp has a P10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 12% compounded monthly? PV = FV [PVFk,n] To get the PVFk,n (present value factor) = 1(1+r)t 2. Your sister borrowed P5,000 from you and promised to repay P5,550 in one year. What interest rates are implied by the lending arrangements? FV = PV [FVFk,n] or FV = PV x (1 + r)t 3. Z is purchasing an automatic washing machine in an installment basis. She is given 3 monthly installments of P6,000 per month with an interest rate of 10%. What is the price that Mrs Z is paying for the washing machine? PVA = PMT[PVFAk,n] or PMT [1 / r − 1 / r(1+r)t]Solve for the following compound interest 1. James invested 150,000 at 2.5% interest compounded semiannually. Find the maturity value if he invest for (a) four years (b) for 8 years (c) how much is the additional interest earned due to the longer time. 2. Jenny is planning to deposit 17,000, Quezon metropolitan bank is offering 7.5% compounded semiannually for 5 years while Quezon premier bank is offering 7% compounded monthly for 5 years. Which bank should she deposit her money?
- which one is correct please confirm? Q1: "I invest GBP500,000 for one year in a deposit which pays interest of 6% compounded on a monthly basis. How much will I receive at the end of the year?" "530,838.91" "11,485,623.34" "11,489,856.02" "5,221,078,167"b. You have a $20,000 note payable which is due in three years. How much money must you put into a savings account today in order to have enough money to pay off the debt on time assuming your savings account earns 3% interest compounded annually? d. In question “b." above, if you leave he money in the account for one more YEAR, how much more interest will you earn in that additional year (Year 5)? Need detail help wtih D. include N=I%=PV=FV=PMT Thank youPLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS2.- Mr. Rafael Robles goes to his financial advisor and asks him to calculate the interest to be earned on a deposit for the amount of 730,000.00; when the current interest rate is 9.75%, capitalized quarterly, and it was invested for 5 years, 9 months and 27 days. The Finance Company reinvests at simple interest when there are not complete capitalization periods. Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel. TO CONSIDER THE YEAR AS 360 DAYS (WHICH IS COMMERCIAL) (only if required)