H O CONSUMER MATHEMATICS Calculating and comparing simple interest and compound.... Linda deposits $10,000 into an account that pays simple interest at a rate of 6% per year. Bob deposits $10,000 into an account that also pays 6% interest per year. But it is compounded annually. Find the interest Linda and Bob earn during each of the first three years. Then decide who earns more interest for each year. Assume there are no withdrawals and no additional deposits. Year First Second Third Explanation Interest Linda earns (Simple interest) Type here to search $ $ Check Interest Bob earns (Interest co ided annually) Who earns more interest? O Linda earns more. O Bob earns more. O They earn the same amount. O Linda earns more. O Bob earns more. They earn the same amount. O Linda earns more. O Bob earns more. O They earn the same amount. © 2022 McGraw Hill LLC. All Rights Reserved

H O CONSUMER MATHEMATICS Calculating and comparing simple interest and compound.... Linda deposits $10,000 into an account that pays simple interest at a rate of 6% per year. Bob deposits $10,000 into an account that also pays 6% interest per year. But it is compounded annually. Find the interest Linda and Bob earn during each of the first three years. Then decide who earns more interest for each year. Assume there are no withdrawals and no additional deposits. Year First Second Third Explanation Interest Linda earns (Simple interest) Type here to search $ $ Check Interest Bob earns (Interest co ided annually) Who earns more interest? O Linda earns more. O Bob earns more. O They earn the same amount. O Linda earns more. O Bob earns more. They earn the same amount. O Linda earns more. O Bob earns more. O They earn the same amount. © 2022 McGraw Hill LLC. All Rights Reserved

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS3.- Future value and simple interest. La Costanera, S.A., a pawnshop, would like to know the future or final value and simple interest (360 days per year) of the following amounts owed by its refined clientele. a) Note #7376 for $57,500.00 for a set of diamond wedding rings, due in 90 days at 14% interest. b) Note #9425 covering $74,500.00 for a Rolex watch (presumably from a congressman) maturing on September 18, if the promissory note was signed on February 6, considering an interest rate of 10.5%. c) Note #8836 covering $31,000, for a refrigerator, signed on August 2, maturing on October 3 at 8.25% interest. Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel. TO CONSIDER THE YEAR AS 360 DAYS (WHICH…
(a) Explain the differences between annual percentage rate (APR) and effective annual rate (EAR). (b) Phoebe is considering selling her entire stock holding and depositing the money ($500,000 in total) into a bank account. She has obtained the following information about two banks: Bank X: 12% APR with monthly compounding Bank Y: 13% APR with semi-annual compounding (iii) How much money will Phoebe have in Bank X’s account if the interest earned is withdrawn at the end of each month to pay for living expenses of the following month? Explain (without calculation) in NO MORE THAN THREE LINES your answer. (iv) Explain the difference in the bank account balance in parts (ii) and (iii), with supporting calculations by showing the 5-year interest on principal, 5-year interest on interest and the total interest.
Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s bank pays 12% interest compounded semiannually. Amount needed $ 60,000.00 Length of time needed from today 4 Interest 12% Compounded Semiannually Required: Complete the following using the information above and the present value Table 12.3 or the present value table in the Business Math Handbook to answer the following: Period used: Rate used: Factor used: What must Tony deposit today so he will have $60,000 in 4 years?
Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s bank pays 12% interest compounded semiannually. Amount needed $ 60,000.00 Length of time needed from today 4 Interest 12% Compounded Semiannually Required: Complete the following using the information above and the present value Table 12.3 or the present value table in the Business Math Handbook to answer the following: Period used: Rate used: Factor used: What must Tony deposit today so he will have $60,000 in 4 years? Present value of $1 at end of period Period 1% 1½% 2% 3% 4% 5% 6% 7% 8% 9% 10% 1 .9901 .9852 .9804 .9709 .9615 .9524 .9434 .9346 .9259 .9174 .9091 2 .9803 .9707 .9612 .9426 .9246 .9070 .8900 .8734 .8573 .8417 .8264 3 .9706 .9563 .9423 .9151 .8890 .8638 .8396 .8163 .7938 .7722 .7513 4 .9610 .9422 .9238 .8885 .8548 .8227 .7921 .7629 .7350 .7084 .6830 5 .9515 .9283 .9057 .8616 .8219 .7835 .7473 .7130 .6806 .6499 .6209 6 .9420 .9145 .8880 .8375…
Cathy borrowed $24,000 to buy a new car and expects to pay $400 per month for the next 3 years to pay off the loan. What is the loan's annual rate of interest? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Identify variables and use excel
Subject: Mathematics in the Modern World (MMW) - Ms. Althea Jordao purchases a home worth Php 1,200,000 with a down payment of 15%. Then she loan the balance from the bank that charges 7.5% annual interest to be paid for 20 years. a. What must be the amount of the mortgage loan? b. What is the monthly mortgage payment? c. How much is the amount of interest paid on the loan over 20 years?
NOTE: DONT USE EXCEL Problem A: Jenny's father deposited P 36,000 at the end of each year for 5 years in her savings account. If her bank paid 4.67% interest compounded annually, find the future value. Round off your final answer up to 2 decimal places. Problem B: RS Bank pays interest at the rate of 7.6% annually compounded quarterly. How much money will Aerol have in the bank at the end of 4 years if he deposits P3,500 at the end of each quarter? Round off your final answer up to 2 decimal places. Problem C: Find the present value of annuity of P 4,500 at the end of each month for 6 years at 9.89% compounded monthly. Round off your final answer up to 2 decimal places.
please answer all. do not use excel please, show all solution. 1. Calculate the future worth of 20 annual $4,000 deposits in a savings account that earns 8% compounded monthly. Assume all deposits are made at the beginning of each year. 2. Two banks offer the following interest rates on your deposit: (1) Bank A : 9% interest compounded quarterly (2) Bank B: 8.5% interest compounded continuously. Which of the following statements is not true? (a) The annual percentage yield (APY) for Bank A is 9.30%.(b) The effective annual interest rate for Bank B is 8.87%.(c) Bank A offers a better deal.(d) The annual percentage rate (APR) for Bank 8 is 8.5%.
Question 1 (a) Explain the differences between annual percentage rate (APR) and effective annual rate (EAR). (b) Phoebe is considering selling her entire stock holding and depositing the money ($500,000 in total) into a bank account. She has obtained the following information about two banks: Bank X: 12% APR with monthly compounding Bank Y: 13% APR with semi-annual compounding (i) Based on the comparison of the yearly rate of return, which bank would Phoebe prefer? Provide supporting calculations. (ii) How much money will Phoebe have in Bank X’s account five years from now if the money remains in the account during the period? Provide supporting calculations. (iii) How much money will Phoebe have in Bank X’s account if the interest earned is withdrawn at the end of each month to pay for living expenses of the following month? Explain (without calculation) in NO MORE THAN THREE LINES your answer. (iv) Explain the difference in the bank account balance in parts (ii) and (iii), with…
3. Subject : - Finanace assume you currently have a chase sapphire preferred card with a balance of 12,000 dollars. Behind the honest sort, suppose you resolve to pay off the credit card in five years and the stated APr charged by the credit card company the credit card is 19.00%. How much would your monthy payments have to be to reach your goal?
SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. Maria loaned an amount of 100,000Php payable in 15 equal quarterly instalments. The first payment was made a year after the money was borrowed. How much in each quarterly installments if rate of interest is 10% compounded bi-monthly?Answer: A = 8,706.61Php
Answer the questions below and show all working from a financial calculator. Do not use excel: 1. Investment promises to pay into an account that pays you 6 percent annually, $150 per month for the next twenty-two years. Suppose the first deposit into the account is made one month from today what is the value of the amount which will be in the account at the end ofthirty years? Rounded to 2 decimal places. 2. What will be the present value, if $5,400 is discounted back 4 years at an interest rate of 3% compounded semi-annually?