How is the future related to the present value of a single sum?

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: What is a simple interest rate?

A: Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan or…

Q: Interest earned with an annuity due is higher than that with an ordinary annuity. Do you agree or…

A: An annuity is a series of payments paid or received over a defined length of time. The timing of the…

Q: What variables should we consider when dealing with research about cashless economy?

A: With the introduction of the digital era there has been an inclination of people going cashless…

Q: Determine the Future Value of a Lump Sum of Money

A: The future estimation of money is essential to organizations since it considers the expected rate of…

Q: How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 42 years…

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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: In simple interest, the interest for the current period is computed based on the amount (principal…

A: When some amount is deposited in the bank as a principal, the bank pays interest to the savers…

Q: Nicholas made a deposit of $5,000 in a savings account that earns 2% per year. What is the maximum…

A: here we calculate the given by following method as follow;

Q: David is planning to contribute $8,000 a year into a mutual fund that earns an average of 8% per…

A: In economics, present value refers to the current value of future steam of cash flow. Future value…

Q: What is Effective interest?

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

Q: Assume an interest rate of 5%. What is the maximum amount an individual would be willing to give up…

A: Future value (F.V.) = $1 Interest rate (r) = 5% = 0.05% Number of years (n) = 30 years Present value…

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…

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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: If you purchase $24,000 in U.S. Treasury Bills with a discount rate of 4.9% for a period of 26…

A: Interest for 26 week = Principal * Discount Rate * (26 / 52 ) = 24000 * 0.049 * 0.50 = 588

Q: Explain Methods of Calculating Interest?

A: Answer -  Interest = It is the extra amount of money a lender which charge to a borrowers.  there…

Q: A series fequal quarterly payments of $5,000 for 10 ears is equivalent to what present amount t an…

A: here we calculate the given by following method as follow;

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: Explain the term Present Value of Perpetuities?

A: Answer - Present Value of Perpetuities - It is the cash flow which continue indefinitely. It is…

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: In how many years will an amount be doubled if the interest rate is 6%?

A: Interest rate can be defined as the percentage of the loaned amount a borrower is obliged to pay to…

Q: A house is rented for $7,500 per quarter, with each quarter's rent payable in advance. If money is…

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Q: Calculate the value of APS if Savings is $320 million and income is $420 million

A: The information being given to us is as follows:- Savings = $320 million Income = $420 million We…

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 difference between Nominal Rate and Effective Rate of Interest? Is 10% per year…

A: The time value of money refers to the concept that a sum of money is worth more now than the same…

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

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Q: For an interest rate of 2% per quarter, determine the effective interest rate (a) quarterly (b)…

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Q: Find the present worth of a perpetuity of 1,000 annual payments with interest of 6%

A: According to the question, perpetuity is of 1000   at the interest rate 1% Present value is the…

Q: How much should you put into 6% saving account in order to have 100,000 in five years?

A: *Answer:

Q: Find the present value, in pesos, given an annual perpetuity of 1,000 pesos with 5% annual interest.

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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: How is an Effective Interest Rate calculated?

A: The effective rate of interest is an important concept in economics.  The effective rate of interest…

Q: Katy invests $13,000 at 6% simple interest for 38 years. Round your answers to the nearest cent. How…

A: Interest is the cost of borrowing money or credit. It can be expressed in monetary terms or as a…

Q: A 5-year ordinary annuity has periodic cash flows of $100 each year. If the interest rate is 8…

A: In economics, present value refers to the current value of a future stream of cash flows. Future…

Q: years from now at an interest rate of

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Q: What is the meaning of interest rate

A: Financial institutions play an important role in an economy. They collect money from people who have…

Q: what is the present value of a loan when a monthly payment of ₱3,250 is needed to extinguish for 3.5…

A: Present Value gives the value of a series of cash flows when it has been discounted with the current…

Q: invest today in order to withdraw ₱ 14,766 annually for6 years if the interest rate is 2.24% if…

A: *Answer:    Given information, Annual amount (A): ₱ 14766 Time period (N): 6 years Interest rate…

Q: What is meant by Prime interest rate?

A: Prime Interest Rate is the interest rate which is determined by the federal funds rate.