How much annual income would need to be generated over a 5 year period, to be equivalent to $4,000 over an 8 year period? Consider 6% nominal interest (compounded annually) for both cases.

Q: If $600 is invested in an account with an annual interest rate of 14.5%, compounded continuously,…

A: We need to use the formula of continuous compounding belowA=P(e)rn  where   A=future valueP=present…

Q: how much more interest will be earned if $4500 is invested for 7 years at an annual rate of 11%…

A: Given information: Present value is $4,500 Number of years is 7 Interest rate is 11%

Q: If $19,000 is invested at 3% compounded monthly, what is the amount after 4 years?

A: FUTURE VALUE is the value of current cashflow at the future date compounded at the specified rate.…

Q: What is the nominal rate of interest if Php4,000 accumulates to Php10,000 in 8 years with interest…

A: solution given present value    =4000    future value       =10,000 time period        =8 years…

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: 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: How much compound interest is earned on a 6.5-year investment that has a rate of return of…

A: Future value (FV) = $ 9600 Period = 6.5 Years Period in quarters (n) = 6.5*4 = 26 Interest rate = 6%…

Q: onths on an inve

A: Given , Earned= 265, Investment= 20,000.

Q: If $3000 is invested at 6% annual simple interest, how much should be invested at 9% annual simple…

A: Given Information: Interest Rate(R1)=6% Principal Amount(P1) = $3,000 Time Period in both option(T1…

Q: If $500,000 is to grow to $700,000 over a 5-year period, at what annual rate of interest must it be…

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

Q: If $650 is invested at 6% compounded (A) Annually, (B) Quarterly, (C) Monthly, what is the amount…

A:

Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?

A: In the given question we need to compute the future value of $700 deposited today for one year at 4%…

Q: What should be the amount in an RRSP that is earning 5.50% compounded quarterly if it can be…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: How much will be the equivalent worth of ₱2M invested today for three years at a commercial rate of…

A: Investment amount (PV) = P 2,000,000 Annual interest rate = 10% Quarterly interest rate (R) = 10%/4…

Q: How many years are required for P 1,000 to increase to P 2,000 if invested at 9% per year compounded…

A: Future value is obtained by compounding the present value using the appropriate rate of interest.

Q: How much is the present sum is equivalent to a series of P1000 annual end-of year payments, if a…

A: Annual payment (P) = P 1000 Interest rate (r) = 6% Number of annual payments (n) = 10

Q: Suppose that $1,000 is invested for 4 years at an interest rate of 12%, compounded quarterly. How…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Would you prefer making a $25,000 investment that will earn interest at the rate of 6 percent…

A: Given: Investment amount is $25,000 The rate of 6 percent The calculation is shown below as,

Q: What is the present value of annual payments of $2,000 for 12 years at 1 percent?

A: Present Value of Annuity is that amount which was invested by the investor today for receiving the…

Q: If $17,500 is invested at an interest rate of 10% per year, find the value of the investment at the…

A: Present Value (PV)= $17,500 Interest Rate (r)= 10% per year Time period (n)= 5 years Future Value at…

Q: At what nominal rate, compounded monthly, would 12,000.00 have to be invested to amount to 21,811.13…

A: Interest is the amount charged on a loan or investment. It can be calculated by simple interest or…

Q: If $200 is invested at 5% compounded quarterly, what is the interest earned after: a) 6 years,…

A: The formula used as follows: A=P1+rnn×t

Q: What is the future value at the end of year 2 of an income stream that starts out at $2400 per month…

A: Monthly Payout = 2400 Decreases by 75 Monthly Compounding Number of compounding periods = 12 Time…

Q: How much more interest will be earned if $5000 is invested for 6 years at 7%, compounded…

A: a) 7% compounded continuously Future Value = Present value * e^rt Where r =rate of interest i.e. 7%…

Q: What is the effective rate of interest

A: In this case first the quarterly interest rate would be calculated and from quarterly interest rate,…

Q: How much money must be deposited at the end of each quarter if the objective is to accumulate…

A: Working note:

Q: If $400 is invested at 10% compounded quarterly, what is the interest earned after: a) 6 years…

A: Compound Interest: It refers to the additional interest added to the principal amount of any deposit…

Q: How long will it take P1,000 to amount to P1,346 if invested at 6% compounded quarterly?*

A: Compound interest is when we invest the interest back and earn even more interest as a result.

Q: How much would be the accumulated amount if P2, 047,000 is invested in 2 years, 2 months with…

A: Simple Interest is method of Interest computation where interest is simple calculated on initial…

Q: If 36,400 dollars is invested at an interest rate of 7 percent per year, find the value of the…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: What is the accumulated amount after 5 years of P7,500.00 invested at a rate of 10% per year…

A: As per the guidelines we are required to solve first question only when multiple questions are…

Q: What interest will be earned if $6500 is invested for 7 years at 10% compounded monthly? (Round your…

A: Compound interest is a method of calculating the interest to be paid for using the money lent in a…

Q: What is the present value of an annual payment of $9,500 discounted back 8 years at an annual rate…

A: given, A=$9500 r=3% n=8

Q: What interest rate would be necessary for $7,950 investment to grow to $10,400 in an account…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: If $5,000 is borrowed today and $8,955 is paid back in 9 years, what interest rate compounded…

A: Here, Borrowed Amount (PV) is $5,000 Paid Back Amount (FV) is $8,955 Time Period is 9 years

Q: You have borrowed $60,000 at an interest rate of10.5%. Equal payments will be made over a…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: If the nominal interest rate is 3% of P5,000, how much worth in 15 years continuously compounded…

A: Investment (P) = P 5000 Interest rate (r) = 3% Period (t) = 15 Years Mathematics constant (e) =…

Q: If an investment grew to $15,000 in 2 years and the interest amount earned was $1,000, calculate the…

A: Investment means engaging your funds to earn some additional money over the period. interest is a…

Q: How much would a company have to invest now in order to sufficiently provide for annual payments of…

A: Solution:- Calculation of the How much would a company have to invest as follows under:-

Q: What interest will be earned if 4,000 dollars is invested for 4 years at an annual rate of 7%…

A: The interest will be the future value of the investment less the amount invested.

Q: How much more could you have earned over a 10 year period if interest had compound annually?

A: Simple interst formula is I = P*R*T Where I is Interest,P is principle,R is rate of interest and T…

Q: If P100 is placed in an account that requires a rate of return of 4%, compounded quarterly, what…

A: Future Value is the value of the current assets or some amount that is invested today and amount…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.