Q: What are the two types of cashflows? Define each
A: The cash flow refers to the net flow of cash and cash equivalents in and out of the businesses or…
Q: Explain the true effect of more frequent compounding on annual interest amounts?
A: With more frequent compounding, the returns are higher. With the increase in compounding periods,…
Q: How much do you need to save each year for 30 years in order to have $775,000, assuming you are…
A:
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: The amount which from the transaction entered by the person who borrows money called the debtor or…
A: Answer-
Q: In preparation for Sandara’s college education, her parents want to save ₱400,000 after 12 years.…
A: Given information, Future value (F)= ₱400,000 Interest rate (r)= 2% Compounding period (m)= 4…
Q: Describe the Borrowed-Funds Concept?
A: Lent capital is money which is lent and used for making an investment. This varies from equity…
Q: When selecting a financial institution, you should consider: (select all that apply) convenience,…
A: Financial Institution is an institution such as central banks, commercial Banks, credit unions etc.…
Q: (b) Peter has RM10,000 that he can deposit in any three savings accounts for a 3-year period. Bank A…
A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…
Q: Illustrate how the Cash Balances change over time?
A: Cash Flow: When the cash goes out of business or cash comes into the business is termed as cash…
Q: Distinguish between the present worth of cash and future worth of cash?
A: Present worth of cash : Meaning : It is defined as the current value of future or future 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: How much money do you need to deposit in a bank each month if you are planning to have $5000 in four…
A:
Q: 1) for a period of two years. During the first year, the quarterly payment is for $300, while in the…
A: Given information: First-year quarterly payment = $300 Second-year quarterly payment = $400 Interest…
Q: 7. Represents share in the ownership of the capital corporation. a. Bond b. Mutual fund c. Stock d.…
A: “Stock” represents share in the ownership of the capital corporation Bond is a type of debt…
Q: hazel borrowed 100,000 and must repay a total of 130,000 exactly two years later. How much is the…
A: Using the formula to solve.
Q: Which is the better investment, a fund that pays 5% compounded annually or one that pays 4.8%…
A: Discretely compounded interest is determined and added to the head at explicit spans (e.g., every…
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: How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5%…
A: Compound interest rate is addition to the interest of interest. It can be applicable both loan and…
Q: Define the term Interest?
A: Interest refers to the amount of money that an individual gets paid for investing or lending money…
Q: What are the two types of interest rates used in equivalence calculations?
A: Equivalence calculation is the calculation of interest rate received for an investment at the end of…
Q: Please show work
A: The amount deposited 5 years ago is $1,000 and the amount deposited one year ago is $2,000.The…
Q: Hey can someone help me with this? Explain the main differences between amortization, annuity and…
A: The term loan refers to a form of credit vehicle within which a complete of money is lent to a…
Q: 1. How much must you deposit each year to have $20,000 at the end of 15 years with money worth 7%?
A: Future value = 20000 $ Time = 15 years Interest rate = 7 %
Q: Write the formula of Effective interest?
A:
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: How much do eight ₱ 64,055 quarterly payments amount at present, if the interest rate is 2…
A: Given: Quarterly payments(A)=64055 Interest rate compounded quarterly(i)=2% Number of quarterly…
Q: f you deposit $10000 into a fund paying interest 6%. How much you get after one yea
A: Given the deposit amount = $10000 Interest rate = 6%
Q: Explain Borrowed-Funds Concept?
A: A firm can raise capital to finance its investment projects via borrowing or equity. Borrowed…
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: 2. What is the difference between simple interest and compound interest? Which is more expensive?
A: Answer: Simple interest: simple interest is calculated on the principal amount each period. Here the…
Q: What is Compound interest?
A: Simple Interest: The simple interest is the interest that is paid on the principal amount. For…
Q: What is meant by the present value of money? Choose the correct answer below. O A. The amount…
A: FV = PV1+inor PV = FV1+in where PV = present value FV = future value i =…
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 is the most desirable form of a lump-sum settlement?
A: A lump sum settlement implies that the person who claims will receive the whole amount in a single…
Q: What is the maturity date of a loan taken out on September 9, 1998 for 125 days?
A: The loan is taken out on September 9, 1998, for 125 days So maturity date of this loan will be 125…
Q: Liz plans to deposit $20,000 in the bank now and another $5,000 two years from now. If she plans to…
A: Introduction: An annuity of payments is made at fixed distances. Examples of annuities are recurring…
Q: Write the Summary of Compound-Interest Formulas?
A: Answer - Compound-Interest Formula - Compound interest formula helps to calculate the total return…
Q: 3.57 Consider the following three individuals. Just after their 19th payment: o Robert Dixon had a…
A: An installment loan is an expansive, general term that alludes to by far most of both individual and…
Q: Why certificate of deposit is considered as lending investment
A: Answer-
Q: Provide answers in the form of a percentage to three decimal places . (a).What is the effective…
A:
Q: An advertisement of an investment firm states that if you invest ₱500 in their firm today you will…
A: The investment curve refers to the indirect relationship between interest rate and investment. The…
Q: (Present Value of an Annuity) Why is $10,000 a close approximation of the price of an annuity that…
A: Present Value of an Annuity) Why is $10,000 a close approximation of the price of an annuity that…
Q: y due an
A: An annuity is a contract entered between a person and an insurance company in which either series of…
Q: Which Interest rate is better to use the simple interest or compounded interest plan, explain your…
A: The interest rate is the amount charged on the principal by the borrower to the borrower to use the…
Q: What does the interest rate measure?
A: Market interest rate refers to the interest rate that the lenders expect or demands from the…
Q: You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you…
A: Annual Payments refers to the (x) the total amount of payments anticipated to be paid or received,…
Q: 2. Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is offering…
A: 2.Given that Greg wants to have $50,000 in five years. He has $20,000 today to invest. Time = 5…
Q: What is balance of payment?
A: Economics is a social science that discusses economic behavior regarding their unlimited wants in…
Explain Methods of Calculating Interest?
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- How can we calculating effective Interest Rates based on Payment Periods?Which Interest rate is better to use the simple interest or compounded interest plan, explain your answer brieflyhazel borrowed 100,000 and must repay a total of 130,000 exactly two years later. How much is the interest paid? what is the interest rate?
- How much money do you need to deposit in a bank each month if you are planning to have $5000 in four years by the time you get out of college? The bank offers a 6.75% interest rate that compounds monthly.Differentiate between Simple interest and Compound interest?What is meant by the balance of payment?