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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?A bank pays a simple interest rate of 4.1% on 30 to 179-day GICs of at least $100,000. What is the effective annualized rate of return:a) On a 40-day GIC?b) On a 160-day GIC?A bank offers the following interest rates on your deposit: (Draw the Cashflow) 10% per year, compounded quarterly 9% per year, compounded monthly (a) Determine the effective rate for each on the basis of semiannual periods. (b) What are the effective annual rates? (c) Which bid has the lowest effective annual rate?
- If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a function f (r) of the interest rate, r%. At 7% interest (compounded monthly), f (7) = 2568.10 and f (7) = 25.06. Approximately how much additional money would you earn if the bank paid 7 1/2 % interest?You deposited P5,000 from the savings of your daily allowance in a time deposit account with your savings bank at a rate of 1.5% per annum. This will mature in 6 months. Compute the annual interest, total interest, and amount to be received or paid at the end of the term for this scenario above using a simple interest assumption and compound interest assumption.You are able to make a current deposit in the amount of $21,605.49. The expected discount rate is 9.6%. Interest is earned on an annual basis. The time period is 10 years. What is the size of the annual withdrawal possible under these circumstances? a. $2,160.54 b. $3465.00 c. $3,456.00 d. $4,356.00
- A bank offers 1.2% effective interest with monthly compounding, find the effective rate per annum.3. A bank offers an account with an APR of 5.8% and an EAR of 5.88%. How does the bank compound interest for this account?A) weekly compoundingB) monthly compoundingC) semiannual compoundingD) annual compounding2. Deposit the principal amount of P10,000 into a savings account that pays interest at the rate of 5%. What is the amount in the account after 1 year if the account is: a. compounded annually b. compounded semi-annually c. compounded quarterly d. compounded monthly e. Which is advantageous to the investor?
- An Initial payment of $6,000 is deposited Into a bank with a nominal annual Interest rate of 9.5%, compounded semi-annually. You would like to withdraw this amount In in a series of 5 equal annual sums, with the first withdrawal being 1 year form the deposit. What is the amount that should be withdrawn each year? O $3,571.71 $2,571.71 O $2,271.71 O $1,571.71A bank quotes you a nominal interest rate of 12%, compounded monthly, on a savings account. What is the effective annual rate? %An investor makes a 14 year deposit of $6,991. The bank is paying an interest rate of 16.69% per year, compounding monthly. Calculate "n" (number of periods).