Answered: Find the principal P that corresponds…

Find the principal P that corresponds to the future value F = $10,000 under r = 5.2% interest compounded quarterly for t = 18 months. Round your final answer to two decimal places.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

See similar textbooks

Related questions

Q: What are the future value and the interest earned if $4000 is invested for 3 years at 8% compounded…

A: Investment Amount = 4000 Compounded Quarterly , hence interest rate will be divided by 4 and time…

Q: At what nominal rate, compounded every 2 months, would $14,000.00 have to be invested to amount to…

A: Nominal rate = r 2 Months rate = r/6 = 0.166666666666667r Investment (PV) = $ 14000.00 Future value…

Q: Determine the future value of $10,000 under each of the following sets of assumptions:…

A: Future value: It is the value of money or asset for a specific period at a future date based on the…

Q: Compute the simple interest INT for the specified length of time and the future value FV at the end…

Q: Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t…

A: Future value = Present value ( 1 + Rate of interest )Number of period

Q: Find the future values of the ordinary annuities at the given annual rate r compounded as indicated.…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: An amount of $29,200 will provide 9 years of payments of $2,518.50 at the end of every 6 months.…

A: Present Value $ 29,200.00 Time Period 9 Semi Annual Payment(P/Y) $…

Q: Compute the simple interest INT for the specified length of time and the future value FV at the end…

A: Simple interest on a loan of $12000 for 6 months(0.5 years) at a rate of 3%.

Q: Find the present value and the compound discount of $6 600.00 due in seven years, three months, if…

A: It is given that,Future value is $6,600.Interest rate is 7.2% compounded quarterly. So, interest…

Q: If $900 is invested at 10% compounded quarterly, what is the interest earned after a) 4 years…

A: Time has been precious in all perspectives, however in terms of finance, time has a monetary value.…

Q: How long will it take for P 1,000.00 to amount to P 1,346.00 if invested at 6 compounded quarterly?

A: Interest is the amount charged or received by investing or borrowing some amount. It can be simple…

Q: d it will become $ 6,000 at the end of 4 years, determine the nominal rate of interest and the…

A: The given problem can be solved using using RATE and EFFECT function in excel. RATE function…

Q: What would be the future value of $7,992 invested annually for nine years beginning one year from…

A: future value formula: future value =A×1+rn-1r where, A=annuity r=rate of interest n=number of years

Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…

A: Nominal Rate = 11.5% Continuous Compounding

Q: Use the given annual interest rate r and the compounding period to find i, the interest rate per…

A: Information Provided: 5.45% compounded monthly

Q: Calculate the present value when A=$26,000 , r=9% compounded quarterly, and t=30 years. Round to the…

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

Q: Find the amount at the end of 2 years and 6 months if P2,000 is invested at 71% compounded…

A: Invested amount (X) = P 2000 n = 2 years 6 months = 10 quarters r = 71% per annum = 17.75% per…

Q: An account pays interest at a nominal rate of 3% per year. (a) Find the effective annual yield if…

A: Effective yield refers to return on bond that has its interest payments and is calculated by…

Q: At end of three years, how much is an initial deposit of $100 worth, assuming a compound annual rate…

A: FV is the worth of amount that will be paid or received in future. The formula for the computation…

Q: Find the present and the future value of quarterly payments of $2,000.00 for 5 years with interest…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: Calculate the rate of simple interest per annum offered on savings of $2,600.00 if interest earned…

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

Q: Find the present value of the following future amount. $200,000 at 10% compounded quarterly for 15…

A: Future Amount is $200,000 Interest rate is 10% Compounded Quarterly Time period is 15 years…

Q: Use the present value formula to find the present value of P30,000, if the interest rate is 16%…

A: Future value = P 30,000 Annual interest rate = 16% Number of compounding per year = 4 Number of…

Q: the formula find the monthly payment of an ordinary if the present value is P18,500 with an…

A: Present value of money is that equivalent money that includes interest and principal amount. That is…

Q: Calculate the simple interest earned. Round to the nearest cent. P = $2250, r = 4.00% monthly, t =…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: The future value of the account can be computed by using the future value of a single deposit…

Q: What is the compound interest if $170,000 is invested for 3 years at 12% compounded continuously.…

A: Investment (P) = $ 170,000 Period (t) = 3 Years Interest rate (r) = 12% Mathematics constant (e) =…

Q: What is the nominal rate of interest if Php12,000 accumulates Php30,000 in 10 years with interest…

A: Solution: Present value (PV) 12,000.00 Future value (FV) 30,000.00 Period (Nper) 40…

Q: Calculate the future value (FV) in 6 years time of £600 invested at 12% nominal annual interest, if…

A: Future value is the compounded value of a present sum of money compounded at a given interest rate…

Q: Find the nominal annual rate of interest compounded quarterly that is equivalent to 4.8% compounded…

A: Nominal Annual Interest Rate: The nominal interest rate is calculated by multiplying by the number…

Q: Use the given annual interest rate r and the compounding period to find i, the interest rate per…

A: GIVEN, annual interest rate (r) = 5.45% frequency of compounding (m) =12 (monthly compounding)

Q: What is the effective rate of interest if Php12,000 accumulates Php30,000 in 10 years with interest…

A: Solution: Present value (PV) 12,000.00 Future value (FV) 30,000.00 Period (Nper)…

Q: A. find the monthly payment of an ordinary if the present value is P18,500 with an interest rate of…

A: A) Present value of annuity = P 18500 Interest rate = 10% quarterly compounded n = 6 years = 72…

Q: Calculate the present value. (Round your answer to two decimal places.) A = $35,000, r = 14%…

A: Formula: Present value = Amount / (1+rate)^years

Q: Use the compound interest formula to compute the balance in the following account after the stated…

A: Compound interest is the interest you earn on interest.formula fro compound interest is=A(1+r)twhere…

Q: Complete the following using compound future value. Time 2 years, Principal $15,000, Rate 8%,…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: What is the present equivalent of a uniform series of annual payments of $2,900 each for five years…

Q: alculate the future value.( round your answer to two decimal places.) P=$7000, r= 8.5% compounded…

A: Given information: Principal (P) = $7,000 Rate of interest (r) = 8.5% Time (t) = 6 years Compounded…

Q: than a ye

A: Given information : Initial investment 3000 Time period (years) 5.42 Interest rate…

Q: Complete the following using compound future value. Time 13 years, Principal $16,800, Rate 2%,…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: What is the principal that will grow to $5500 in nine years, two months at 4.4% compounded…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: Complete the following using compound future value. (Use the Table provided.) (Round your answers to…

A: Interest: It refers to the cost of borrowing money as a percentage of the principal.

Q: Find the time t, in years, for the principal P = $715 to reach the future value F = $740 under r =…

A: Principal (P) = $715 Future value(F) =$740 Rate = 1.89% compounded quarterly So, quarterly compound…

Q: Determine P & F for the diagram below: Immi For the first seven years, interest is 12% per year…

A: Here, Annual deposits for the first 7 years = 500 Interest rate = 12% compounded monthly Annual…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: The future value of the account can be computed by using the future value of a single deposit…

Q: Determine how much is in each account on the basis of the indicated compounding after the specified…

A: As per the guidelines we are allowed to solve the first three parts only The account value can be…

Question

Find the principal P that corresponds to the future value F = $10,000 under r = 5.2% interest compounded quarterly for t = 18 months. Round your final answer to two decimal places.

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
You 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.
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.