Consider the case where the Annual Percentage Rate (APR) is 15%. If the frequency of compounding is every 3 months, what will be the value of Effective Annual Rate (EAR)?

Q: If the opportunity cost rate is 8% and is compounded annually, what is the present value of Php…

A: Present value of future value is the equivalent value of money today considering the interest rate…

Q: What is the present value of 10 equal payments of $16,500 to be made at the end of each year for the…

A: Present value of equal payments = equal payments x PVIAF (10%, 10 years)

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…

A: Compounding refers to the power of doubling the investment by adding interest .Compounding helps in…

Q: Find the time required for an investment of 5000 dollars to grow to 6700 dollars at an interest rate…

A: we have convert annual rate to quarter period interest and period into quarterly period also.

Q: About how many years would it take for your investment to grow sixfold if it were invested at an APR…

A: Using NPER in Excel

Q: $4200 is invested for 9 months at an annual simple interest rate of 12%. How much interest will be…

A: Simple interest is interest calculated on the principal investment, i.e no interest will be…

Q: A man's investment of P100,000 is expected to yield a regular income of P25,000 per year for 10…

A: Solution:- Benefit cost ratio means the ratio of present value of benefits from a project to present…

Q: Consider a 2-year investment project that provides a compound annual rate of return of 10%.…

A:

Q: What is the present value (PV) of an investment that pays $90,000 every year for four years if the…

A: The present value of an annuity is the sum of the discounted value of the periodic cash flows.…

Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?…

A: Return can be calculated as: Return = Closing Value - Opening ValueOpening Value Substituting the…

Q: At what annual rate would the following have to be​ invested?

A: NOTE:  As per our policy, we only answer up to three sub-parts. Therefore the first three sub-parts…

Q: What is the compound interest if $47,000 is invested for 10 years at 8% compounded continuously?…

A: The formula used as follows: A=Pert

Q: Use the formula for compound interest with n compoundings per year to solve:How long, to the nearest…

A: Compound interest: The amount of interest received or earned for multiple-interest time periods, on…

Q: If 39600 dollars is invested at an interest rate of 9 percent per year, find the value of the…

A: Given: PV (Present Value ) =$39600Interest rate(i) =9% per yearNo. of years (n) =5 Abbreviation:FV…

Q: Suppose you were to receive $1,000 at the end of 10 years. If your opportunity rate is 10 percent,…

A: given, FV = $1000 N=10 R=10%

Q: assuming a rate of 10% annually, find the FV of 1,000 after 5 yearas

A: The formula for the calculation of Future value is as follows: Future value=Present…

Q: What annual interest rate must be obtained to accumulate $10,000 in 8 years on an investment of…

A: The interest rate is compounding quarterly. Hence, it is important to understand that, annual rate…

Q: If $500,000 is to grow to $700,000 over a 5-year period, at what annual rate of interest must it be…

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

Q: Suppose that $4000 is invested each quarter, for the next 10 years. What is the future worth if the…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: How much will be the equivalent worth of ₱2M invested today for three years at a commercial rate of…

A: Investment amount (PV) = P 2,000,000 Annual interest rate = 10% Quarterly interest rate (R) = 10%/4…

Q: Would you prefer making a $25,000 investment that will earn interest at the rate of 6 percent…

A: Given: Investment amount is $25,000 The rate of 6 percent The calculation is shown below as,

Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…

A: Interest is the cost of borrowing the money.

Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: If $19,000 is invested at 5% compounded quarterly, what is the amount after 9 years? The amount…

A: Given: Present value = $19,000 Interest rate = 5% Years = 9

Q: About how many years would it take for your investment to grow fourfold if it were invested at an…

A: A purchase of an object or thing with the intention of producing revenue or increasing in value is…

Q: Equipment that costs $15,000 and generates a $5,000 annual return would appear to "pay back" on the…

A: Given: Investment =$15000Annual return =$5000Inflation rate =30%

Q: Approximately how many years would it take for an investment to grow fivefold if it were invested…

A: Investment amount (P) = $1 Future value (FV) = $5 Interest rate (r) = 9% Number of compounding per…

Q: Use the graph below to answer the following questions.   What is the approximate final value of…

A: Future value = Present value * ( 1 + Interest rate )time

Q: What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs…

A: Computation of effective annual rate when rate is 8% and compounding is semiannually is as…

Q: About how many years would it take for your investment to grow threefold if it were invested at an…

A: In the given problem we require to calculate the number of years that will make the investment three…

Q: How much was initially invested if the value of the investment is at ₱200,000 after 3 and a half…

A: Present Value: It is the present worth of the investment amount, discounted at an interest rate for…

Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?

A: Future value is the value of assets at a future date given a growth rate. This is used for financial…

Q: About how many years would it take for your investment to grow fourfold if it were invested at an…

A: We require to calculate the time period i.e. number of years that will make out investment four fold…

Q: Find the nominal rate if Php 25,000 is compounded continuously and will become Php 32,000 in 3…

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

Q: uppose that $5000 is invested each quarter, for the next 20 years. what is the future worth if the…

A: An annuity is a sum of series of payments after every year or after every quarter. An annuity can be…

Q: What is the difference in future value if $20,000 is invested at 5% over ten years, with one option…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You are comparing two investments. The first pays 3 percent interest per month, compounded monthly,…

A: a) i) First investment: Rate of interest i =3% per month Number of compounding periods in one half…

Q: With a present value of $110,000, what is the size of the withdrawals that can be made at the end of…

A: We need to use present value of ordinary annuity(payment due at end) formula to calculate the size…

Q: what is the internal rate of return of $10,000 investment that yields an annual benefit of $2,400…

A: Using IRR function in excel

Q: What interest will be earned if $6500 is invested for 7 years at 10% compounded monthly? (Round your…

A: Compound interest is a method of calculating the interest to be paid for using the money lent in a…

Q: Consider an investment where $45,000 is invested for 15 years at 8% compounded continuously.   How…

A: Continues compounding is a limit that a compound interest can reach. It can be calculated through…

Q: A sum of money is invested at a rate of 7 percent per year compounded annually. How long it will…

A: Rule 72 refers to the rule which makes it a simple calculation for the person to determine that in…

Q: (Solving for n with nonannual periods) About how many years would it take for your investment to…

A: We require to calculate the the number of years that make the investment twofold i.e. two times.…

Q: Calculate if $10,000 is invested at interest rate of 12% per annum, what is the amount after 3 years…

A: The provided information are: Present value (PV) = $10,000 Interest rate (r) = 12% = 0.12 Number of…

Q: For this investment, an initial amount of $25,000 should be paid this year (t=0). As of next year…

A: The present value method is a method of finding the productivity of the project by discounting the…

Q: What is the future value if the amount invested is 10,000 at 10% compounded quarterly for 5 years?…

A: Solution Given Present value 10000 Rate of interest 10% Compounding Quarterly…