How can we calculate the effective interest rate, altering the period value?altering the period value?

Q: An 8-year annuity due has a future value of $1,000. If the interest rate is 5%, what is the amount…

A: An annuity is a contract between you and an insurance company in which you make a lump-sum payment…

Q: 2. Karen loaned P10,000 from a firm with a simple interest of 20%. The interest was deducted right…

A: Interest = Loan x Rate of interest   Given-> Loan = P10100   Interest rate - 20%.

Q: Pete borrows $10,000 to purchase a used car. He must repay the loan in 48 equal end-of-period…

A: (a):   Given :Number of months (n) =48Rate of Interest (r) =1.5% effective per monthPresent Value…

Q: How long in years will money double its amount if invested at 10% simple interest?

A: Given interest r= 10%

Q: Determine the periodic deposit. Round up to the nearest dollar. How much of the financial goal comes…

A:

Q: A 5-year bond with a yield of 6% (continuously compounded), with a face value of $100, pays an 3%…

A: Bond Price = C(1-(1+r)-n/r ) + F/(1+r)n Here, C = Coupon payment = 3 F = Face value = 100 r = 6% =…

Q: A 25-year-old student is offered an opportunity to invest some money in a retirement account that…

A: Given informations: Amount at the time of retirement, F = 1000000Time, t = 56 - 25 = 31r= 5%

Q: Question 16 What type of annuity is represented by the graph below? P 2 3 k-1 k А, А, Аз Ak-1 Ak A…

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: Define the term effective semiannual interest rate?

A: The interest is the income generated by the capital in the economy. The interest is the amount paid…

Q: We need to find an effective interest rate that covers the payment period. Illustrate this concept…

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

Q: Kathy buys a tv set fir 12,500 cash after 60 days. Kathy wishes to pay immediately and the seller…

A: F = 12,500 Interest rate, i = 0.08 Time, n = 60 days or 60/360 We know that F = P[1+i(n)]

Q: An annuity is a series of equal payments occurring at equal time intervals, normally at the end of…

A: Annuities can be considered as financial products whose purpose is to enhance and improve security.

Q: Required information The Premier Car Title Loan Company makes emergency loans of up to $500 for one…

A: Nominal interest rate is the interest rate which is calculated without taking into account the…

Q: Fill in the missing interest factor: (A/G, i%, N)(P/A, i%, N) = (———).

A: The present worth of uniform series is given by the formula (P/A, i%, N). On the other hand, the…

Q: You borrow $120,000 today to purchase a new truck. You sign a loan agreement for 4.8% annual…

A:

Q: This refers to the time unit for rate of return. a. Compound Interest b. Simple Interest c.…

A: The rate of return refers to the accumulated amount on an investment or a loan or a deposit after…

Q: carlos invests $6000 in a 24 month CD that has a 4.75 interest rate. use the formula to find how…

A: Certificate of Deposit (CD) The investors and the authorised banking and financial institution sign…

Q: Write  the formula which is used to calculate the annual effective yield?

A: Effective yield refers to the return on a bond for which interest payments are reinvested by the…

Q: When investing or saving money for retirement, which type of interest would benefit the most from?…

A: When investing or saving money for retirement which type of interest would benefit the most from?…

Q: %, compounded bimonthly. What future amount is due at the end o an period? Draw a cashflow diagram…

A: Future worth is the worth of a resource at a particular date. It estimates the ostensible future…

Q: Beam Inc. Bond's are trading today for a price of 768.54. the bond pays annual coupons with a coupon…

A: If: F = Face value P = Current price C = Annual coupon N = Years to maturity and Y = YTM,  Then Y =…

Q: EN INTEREST RATE DESIRED INTEREST RATE 6% per week % per quarter % Per month Nominal rate per 6…

A: *Answer:   *a year = 52 weeks , hence nominal rate per 6 months = ( 0.186 * 52 ) / 2= 3.64 %…

Q: If marry put $100,000 into an account that pays 4.5% annual interest, and she plan to withdraw…

A: here we calculate the time when account of Marry will empty by calculating the future value so the…

Q: A loan is paid off in 15 years with a total of $192,000. It had a 4% interest rate that compounded…

A: Given information, Time period (t): 15 years Compounded monthly (n): 12 times in a year Interest…

Q: How much should you pay for a $1,000 bond with 10% coupon, annual payments, and 5 years to maturity…

A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal the…

Q: You open a credit card account that charges 1.25% interest each month on the unpaid balance. the…

A: given   You open a credit card account that charges 1:25% interest each month on the unpaid balance,…

Q: borrowed $25,000 with an add-on rate, 6% for three years, and I have to make veekly payments. Jsing…

A: 8832 would be for 1 year If for one week $184 184*48=8832 For 3 years 8832*3=26496 $26496 is…

Q: A department store has offered you a credit card that charges interest at 1.53% per month,…

A: Nominal interest rate and the effective annual rate are calculated as follows:-

Q: Brian borrowed P30,000 from a financing company charging 11 4/5% simple interest for 180 days. How…

A: According to the question brain borrowed P30,000 at the interest rate of 11 4/5(11.8%) for the 180…

Q: Define the term Interest?

A: Interest refers to the amount of money that an individual gets paid for investing or lending money…

Q: Anika wants to invest $200 a month at 4.25%/a compounded monthly for 10 years. a) b) What will be…

A: Regular payments given at the conclusion of each term, such as monthly or quarterly, make up a…

Q: Find the interest on the loan if Tim borrows $10,000 for years at a simple interest of 10%.

A: The investors as well as consumers borrow or take loans funds from banks for investment or for…

Q: Accumulate a $40,000 principal for 15 years under the rate (.05, m 4). What compound interest is…

A: Given information: Principal amount (P): $40,000 Time period (t)= 15 years Interest rate (r): 5%…

Q: You purchased a winning ticket for a $3 million lottery which pays $300,000 immediately and the rest…

A: The accepting of an offer and rejecting it depends on the comparison of the present value of the…

Q: As a borrower, would one prefer more or fewer compounding periods? a. More b. Fewer

A: Answer: Fewer Explanation: As a borrower, one would prefer fewer compounding periods. In case of…

Q: I invested $5000 and earned $300 in interest in 9 years. What was the interest rate r if interest…

A: Continuous compounding is the numerical furthest reaches that accruing funds can reach if it's…

Q: Sally purchases a perpetuity immediate with annual payments that pays $4000 toda and Payments…

A: Specifics of annual payment - Increases by 5% annually  Paid for 6 years    Let the payment in first…

Q: If I want to invest my money, how long will it take (in months) $6000 to earn $120 interest (simple)…

A: Simple interest is a method of investment an amount on which an investor get interest on his…

Q: Four years ago, you opened a mutual fund account and made three deposits ($100 four years ago, $X…

A: Amount invested for four year = $100 Amount invested for three years  = X Amount invesed for 1 year…

Q: What type of interest is the capital invested in a transaction is principal and at any time after…

A: Interest can be determined in two ways: simple interest or compound interest. Simple interest is…

Q: If the interest rate is 7.0%, what is the present value of a perpetuity paying $210 per year? (A…

A: Present Value of perpetuity-Perpetuity is used in accounting and finance, represents  a business or…

Q: Rashed wants to make his investment triple its value at the end of twelve (12) years’ time. What…

A: We need to assume some terms such as interest rate , principle amount and then nee dto calculate the…

Q: You borrow $2,000 from Gougo’s, a well-known loan consolidation outfit. The loan is an “unbelievably…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: A wine dealer owns a case of fine wine that can be sold for Kev" dollars t years from now. If there…

A: Introduction A wine dealer owns a case of fine wine that can be sold for K et dollars t year from…

Q: What is equal-payment-series present-worth factor?

A: Answer - Equal Payment - Series worth factor - This help investor to calculate how much money need…

Q: accounts. How much will Mr. Jones have in his savings account in thirteen years if $50,000 is put in…

A:

Q: Karen and Sophia want to buy a $225,000 home. They plan to pay 20% as a down payment, and take out a…

A: Note: We will answer the first 3 subparts of the question as the exact one was not specified. Please…

Q: Josie wants to be able to celebrate her graduation from CSULA in 55 years. She found an annuity that…

A: First let us understand the major points in the question briefly: Investment= P500,000 for Auto…

Q: borrower pays an additional $200 with each payment, how fast will the mortgage be paid off?

A: A mortgage is an agreement between you and a lender that gives the lender the right to take your…