Gigi has exactly $7000.00. She took out a certain amount of that money and lent it to Sasha at 6% per annum and lent the remaining money to Bianca at 4% per annum. If the total simple interest from both in 5 years was $1600.00, what is the sum lent at 6% per annum?

Gigi has exactly $7000.00. She took out a certain amount of that money and lent it to Sasha at 6% per annum and lent the remaining money to Bianca at 4% per annum. If the total simple interest from both in 5 years was $1600.00, what is the sum lent at 6% per annum?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

See similar textbooks

Related questions

Q: Bing gave $800 to her cousin. As a token of gratitude, her cousin gave her $1, 520 at the end of the…

A: Details given are : Present value = $800 Future value = $1520 Time period = 1 year From above…

Q: Beverly is considering starting her small family business in five years’ time. She has decided to…

A: i. Given Annuity=400,000 Interest rate=10% p.a. No. of years=5 FVAn=A1+rn-1r where FVAn=Future…

Q: Twenty years ahead of her retirement, Kelly opened a savings account that earns 5% interest rate…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Beverly is considering starting her small family business in five years’ time. She has decided to…

A: Annuity is a stream of equal cash flows(deposits) over specified time. Where cash flow is due at the…

Q: Susan lends RM3,000 to Mary at 10% p.a. and then Mary lends the same sum to Maria at 12% p. a. Find…

A: Amount of transaction (P) = RM 3000 Susan interest rate (r1) = 10% Maria interest rate (r2) = 12%…

Q: Sharie is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

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

Q: Nana's mother forgot that her Php 25,000 13th-month pay 10 years ago was invested to an instrument…

A: Future value of any investment is the sum of compounded values of all the investments made at a…

Q: Marryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $14,000 in student…

A: It can be calculated using following function in excel =NPER(rate,pmt,pv,[fv],[type]) Rate The…

Q: Elena wanted to invest in a trust fund. She borrows from a credit corporation that charges 8% simple…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Ashea Smith is a 22-year-old senior who used the Stafford loan program to borrow $4,000 four years…

A: The annual payment amount can be calculated. But the first step is to calculate present value of all…

Q: The parents of Hala saved an amount of AED 20,000 to cover her university costs and expected to…

A: Amount saved = AED 20,000 Growth = 5% per year Period = 18 Future value is to be calculated of the…

Q: At the same rate of interest, Rachel lent $5000.00 to Monica for 2 years and $3000.00 to Chandler…

Q: Beverly is considering starting her small family business in five years’ time. She has decided to…

A: Investors are supposed to estimate the value of investment with the interest rates and time period.…

Q: sandra and cindy both invest $14,000 into savings accounts that earn simple interest if sandras…

A: Simple interest formula = A = P (1+rt) Where, A = Final amount i.e. Principal + Interest P =…

Q: Christina invested $3000 five years ago and earns 2 percent annual interest. By leaving her interest…

A: Invested 3000 N = 5 Interest rate = 2% She is earning interest in her account and the amount of…

Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 5…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Leon and Heidi decided to invest $2,500 annually for only the first eight years of their marriage.…

A: Amount invested annually “PMT” = $2500 Number of years of investment “n” = 8 Annual rate “r” = 8%…

Q: CFJ deposited P175,000 every 6 months for 5 years with an interest of 12% compounded semi-annually.…

A: The future value can be calculated using the FV Function in excel. FV = (RATE, NPER, PMT, PV, TYPE)…

Q: Cardo invested a certain amount at 20% simple interest per year. After 8 years, the interest she…

A: solution concept under simple interest the interest is calculated on the principal amount only .…

Q: Jacqueline invested the profit of her business in an investment fund that was earning 2.50%…

A: Let the amount invested in the fund be $ X. Interest rate = 2.50 % compounded monthly The money is…

Q: Abel wants to determine the amount of money he would obtain from the interest of PHP 2,000 at 16%…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Maria invested part of her P800,000.00 in an investment earning 12% per annum while the remaining at…

A: Solution:- When an amount is invested somewhere, it earns some interest on it and that’s why every…

Q: Phyllis invested $9,000, a portion earning a simple interes

A: Phyllis invested $9,000, a portion earning a simple interest rate of 4.5 1 2 % per year…

Q: Phyllis invested $7,500, a portion earning a simple interest rate of 4 1/5 % per year and the rest…

A: Simple Interest = Investment * Rate * Period

Q: her new house. She can repay the loan in either of the two ways described below. (a) Five equal…

A: Inputs Borrowing Amount or Loan Amount = 5000

Q: Elif received a bonus of $100,000 at the age of 30 and she decides to invest this money to a savings…

A: The nper function or concept can be used to determine the number of years or time required to…

Q: Nalan saved the monthly 400 TL scholarship from the General Directorate of Credits and Dormitories,…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Isabella placed $5,000 in a savings account which earns 5.3% interest, compounded every year. How…

A: The formula used as follows: A=P×1+rn

Q: After several years of working, Katy has saved $125,000. If she invests that $125,000 in a savings…

A: Investment = $ 125000 Annual interest rate = 4% Period = 15 Years

Q: Phyllis invested 49000 dollars, a portion earning a simple interest rate of 4 percent per year and…

A: Given, Amount invested is $49000 Interest earned on both the investments is $2320

Q: Irmgard borrowed ¢7 million from her friend at a rate of 21% converted monthly 2 years ago. If no…

A: Loan is a contract between lender and borrower where lender provide funds to borrower for definite…

Q: wed ₱24,480 from Marie at the rate of 10% simple interest per year. She then returned the money…

A: Given, Borrowed amount = 24,480 Interest rate = 10% No. of years = 4 years 6 months or 4.5 years…

Q: Aunt May has three sums of money invested, one at 12%, one at 10%, the last at 8%. His total annual…

A: When we make investments the investment amount earns interest. Interest rate varies from one type of…

Q: Asha feels she needs $45,000 per year in retirement. If she receives $30,000 a year from Social…

A: Data given: Annual requirement (atleast)= $45,000 Receipt from Social Security = $30,000 Investment…

Q: Taylor invests part of her $2 000 savings into a savings account at 6% and part into a GIC at 8%…

A: In this we have to calculate interest in both cases and than calculate the amount invested in each.

Q: Maria Shriver has a $27,600 debt that she wishes to repay in 4 years from today; she has $18,181…

A: This question require us to calculate the rate of interest so that $18181 will be converted into…

Q: Suppose Brianna invests $1300 each year for 5 years, in annuity that pays 6% annual interest,…

A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, P = 1300 r = 6% n = 5 years

Q: Cynthia lent P5.000 to Ricky for 2 years and P3,000 to Cindy for 4 years on simple interest at the…

A: Amount lent to Ricky (X) = P 5000 n = 2 years Amount lent to Cindy (Y) = P 3000 m = 4 years Let r =…

Q: Jolene invests her savings in two bank accounts, one paying 5 percent and the other paying 11…

A: Present Value: When a predetermined rate of return is applied to a future amount of money or stream…

Q: Maricar bought a split type inverter aircon which costs P33,500 in an installment basis . How much…

A: It can be calculated using rate formula in excel. =RATE (nper, pmt, pv, [fv], [type], [guess])…

Question

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 by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

At the same rate of interest, Rachel lent $5000.00 to Monica for 2 years and $3000.00 to Chandler for 4 years on simple interest. She got a total of ₱2200.00 from both of them as interest. What is the rate on interest per annum?
Maria invested part of her P800,000.00 in an investment earning 12% per annum while the remaining at 10% per annum. If she received P90,000.00 amount of interest for one year, how much did she invested on each interest rate?
sandra and cindy both invest $14,000 into savings accounts that earn simple interest if sandras account earns 4.5% interest and candys account earns 6% intresr,how much more intrest will cindy have earened after 7 years?
Christina invested $3000 five years ago and earns 2 percent annual interest. By leaving her interest earning in her account, she increases the amount of interest she earns each year. The way she is handling her interest income is referred to as
Suppose Brianna invests $1300 each year for 5 years, in annuity that pays 6% annual interest, compounded annually. What percentage of the balance, after 5 years, is Brianna's contributions?
When Christian bought his home, he borrowed $315,700 at 4.2% interest, compounded monthly for 25 years. If he makes all 300 payments, repaying his loan on schedule, how much interest will he pay? (Assume all payments are of equal amount)
Ten years ago, Jane deposited $5,500 into her savings account. Five years later, she added an additional $2,500 to her account. During the first 5 years, her account earned an interest rate of 6.5 percent compounded annually, while the last 5 years saw her account earn 5.0 percent interest compounded annually. How much money does Jane have in her account today?
Phyllis invested $9,000, a portion earning a simple interest rate of 4 1 2 % per year and the rest earning a rate of 4% per year. After one year the total interest earned on these investments was $400.00. How much money did she invest at each rate?
Ashea Smith is a 22-year-old senior who used the Stafford loan program to borrow $4,000 four years ago when the interest rate was 4.06% per year. $5,000 was borrowed three years ago at 3.42%. Two years ago she borrowed $6,000 at 5.23%, and last year $7,000 was borrowed at 6.03% per year. Now she would like to consolidate her debt into a single 20-year loan with a 5% fixed annual interest rate. If Ashea makes annual payments (starting in one year) to repay her total debt, what is the amount of each payment?
While Kate was a student at SA University, she borrowed $16,000 in student loan at an annual interest rate of 10%. If she repays $3,000 per year, calculate the period required (to the nearest year) to pay off her debt
Joe has $1,500 in credit card debt but pays it in full every month from cash flow. He also pays her mortgage from cash flow ($2,000 principal). For savings, Joe saves $50 per month in an interest-bearing savings account. Annual interest earned and reinvested is $100. How much will his net worth increase in the current year?
Four years ago, XZY deposited $2,920 in an account that has earned and will earn 8.70 percent per year in compound interest. If ABC deposits $3,540 in an account in 1 year from today that earns simple interest, then how much simple interest per year must ABC earn to have the same amount of money in 10 years from today as XZY will have in 10 years from today? Answer as an annual rate. 20.30% (plus or minus .05 percentage points) 10.00% (plus or minus .05 percentage points) 9.00% (plus or minus .05 percentage points) 18.36% (plus or minus .05 percentage points) None of the above is within .05 percentage points of the correct answer.