Define the term an amortized loan?

Q: Which are the Decision Rule for Simple Investments?

A: Answer - Simple Investment - Investment which an individual do into there day to day life like…

Q: What are some reasons why the investment strategy of a 30-year-old might differ from the investment…

A: Investments: It refers to the value of the fixed assets of an economy which is produced within a…

Q: What's the value to you of a $1,000 face- value bond with an 8% coupon rate when your required rate…

A: A bond is an instrument being issuer to the holders of indebtedness of the bond.

Q: Is it possible for a one-year coupon bond to have a negative nominal interest rate? Explain, how?

A: Yes, it is possible for a one-year coupon bond to have a negative nominal interest rate as long as…

Q: Define interest and explain how interest rates vary based on risk, maturity, loan size, and…

A: The interest rate is the return that an individual receives from the financial asset in the economy.…

Q: What is Ex-dividend?

A: A synonym for 'without dividend'.

Q: How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 42 years…

A:

Q: f an insured purchases an Annuily from which income is received, the insured is the receiver…

A: Answer is given below

Q: If an interest rate pays 9% five times a year, calculate the effective rate of interest. please with…

A: Interest rate is the interest charged to the borrower by the person who makes the loan, calculated…

Q: What is Effective interest?

A: Effective interest rate can be described as the interest rate gained or paid in actual on a project.…

Q: Repayment of loan with interest is a capital expenditure True/False

A: # The upgradation for maintenance of physical assets is counted as capital expenditure.

Q: How many weeks would it take to increase the debt of a simple discount loan by 114% if the annual…

A: Debt refers to the amount owed for money borrowed. The lender agrees to lend money to the borrower…

Q: Assume an interest rate of 5%. What is the maximum amount an individual would be willing to give up…

A: Future value (F.V.) = $1 Interest rate (r) = 5% = 0.05% Number of years (n) = 30 years Present value…

Q: 1. What is the amount of interest earned on $5,000 for eight years at 10% simple interest per year?

A: Since we only answer one question at a time, we will answer the first question. Please submit a new…

Q: What is the Decision Rule for simple Investments?

A: In a simple investment, cash flows change sign only one time. For example, negative cash flow in the…

Q: Distinguish between Simple interest and Compound Interest?

A: Interest rate refers to the percentage of a principal amount charged by a lender to a borrower.

Q: Summarizes some of the interest formulas?

A: Simple interest = (P*R*T)/100 where, P : Principal amount            R : Rate of interest per annum…

Q: Which of the following is NOT a retirement plan? a) 401k plan b) 529 plan c) IRA plan d) 501(c)…

A: Retirement planning is the process of securing life after retirement when the person will be unable…

Q: What do you mean by "term spread" ?

A: Different terms are used in economics or finance to indicate the difference between two prices, ask…

Q: Explain time and interest rate effect on future value?

A: Interest rate: It is the rate of earning in a specific time period on the investment.

Q: What does the statement “interest rate 10%” signify?   a The rate is effective per year.   b The…

A: Effective Interest rate:- Effective interest rate can be explained as the actual return on the…

Q: 1. What is an effective rate of interest?

A: The time value of money is the concept that an amount of money is worth more now than the same…

Q: What refers to the interest rate at which the present worth of net cash flow of an investment equals…

A: The rate of return at which the sum of all present values of all the cash flows becomes zero is…

Q: Distinguish between Simple investments and Nonsimple Investments?

A: The investments are an important factor for the growth of the economy which cannot grow without the…

Q: What do you mean by capital recovery factor?

A: Capital recovery factor can be explained as the ratio of constant annuity and the annuity's value…

Q: If the interest rate is zero, then $100 to be paid in10 years has a present value that isa. less…

A: The present value refers to the today’s value of the future amount that adjusted with the existing…

Q: Discuss the importance of long range planning for retirement

A: Financial planning is highly important in order to determine the financial independence of the…

Q: It is the interest paid in advance. a. simple interest b. perpetuity c. compound interest d.…

A: Interest is the monetary payment, it is made for the privilege of borrowing money. The amount of…

Q: what are zero-coupon bonds also called?

A: Answer: A zero-coupon bond is a bond that is sold at a discounted value or lesser value than par. It…

Q: Describe what is Market interest rate?

A: The rate of interest which is determined by the interaction of demand for and supply of funds in the…

Q: How can we calculating effective Interest Rates based on Payment Periods?

A: The effective annual interest rate is the interest rate on investment or return on a savings account…

Q: What does the interest rate you determine represent?

A: The interest is a specific percentage of the principal amount that is lent, borrowed, or deposited…

Q: Differentiate between Simple interest and Compound interest?

A: In economics, interests are the costs of borrowing money. The economic agent who is borrowing the…

Q: Which of these is NOT a financial intermediary in the market for loanable funds? credit unions O an…

A: Answer to the questions are as follows :

Q: Define the term Yield to Maturity?

A: Yield to maturity (YTM) is a rate of return of a bond or debenture if it held till its maturity date…

Q: Which of the following $1,000 face-value securities has the highest yield to maturity? A) a 5…

A: option A is correct answer

Q: Define Purchase of Investment.

A: An investment is the purchase of products, the main purpose for which is to have gains. They are not…

Q: How is an Effective Interest Rate calculated?

A: The effective rate of interest is an important concept in economics.  The effective rate of interest…

Q: Define interest rate.

A: The price paid by the lender for the use of assets expressed as a percentage of the principal is…

Q: What refers to the ratio of the interest payment to the principal for a given unit of time and…

A: For the production and consumption of goods, economic agents have derived a barter system. In the…

Q: What are objectives on interest rate spread

A: When talking about interest rate spread, it is considered as the difference in the interest rate…

Q: Which factors affect the yield to maturity (or return on investment?

A: Yield to Maturity provides a benchmark for evaluation of different types of investment instruments.

Q: What is Annual Effective Yield?

A: Yield refers to the earnings that are generated and then realized on a particular investment over a…

Q: What is meant by Prime interest rate?

A: Prime Interest Rate is the interest rate which is determined by the federal funds rate.