Q: Find the nominal interest compounded quarterly equivalent to 12.00% effective interest?
A: Effective annual interest rate is rate that is regarded as the real return on a loan or savings for…
Q: 2.5. What equal-payment series is required to repay the following present amounts? a. $10,000 in 4…
A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only…
Q: A deposit of $495 earns 3% p.a. interest compounded monthly, how much money will be in the bank…
A: Given information, Principal amount (P): $495 Interest rate (r)= 3% Compounding period (m): 12…
Q: 43. Find the equivalent rate of interest of 9% compounded quarterly to an interest rate compounded…
A: Given interest rate = 9 % compounded quarterly Effective annual rate = (1 + rate)^time - 1 = (1 +…
Q: How long will it take for $5,000 to double when invested at 8% compounded quarterly?
A: Formula for compound interest is A = P(1=r/n)^(tn) Where n is the compounding frequency P is the…
Q: Suppose that a $100 lump-sum amount is invested for 10 years at a nominal interest rate of 6%…
A: Interest is the cost of capital. While borrowing money, borrowers have to pay an ‘interest’,…
Q: Would you rather have $1,000 today or $1,250 in 3 years at a 8% annual interest rate compounded…
A: Future value can be calculated by using the following formula.
Q: 5. Find the present worth of a future payment of 100,000 to be made in 10 years with an interest of…
A: For the first 4 years interest at 12% , 12/4=3 then 3/2=1.5 To find the nominal interest rate…
Q: 1. Convert the following rates (a) 10% to compounded daily. (b) 20% simple interest to compounded…
A: Compound Interest refers to the addition of interest to the principal sum of a deposit/loan, or in…
Q: You want to buy a $32,000 car. You can finance the car for 1.5% interest for 6 years. What is your…
A: The formula for monthly payment is calculated as follows: Monthly payment = Pr121+r12n1+r12n-1 where…
Q: Find the present worth of a future payment of 100,000 to be made in 10 years with an interest of 12%…
A: To solve above question we firstly simplify the interest rates as per their compounding periods by…
Q: MARIE PURCHASED A LOT AND AGREED TO PAY $1,600 A MONTH FOR 15 YEARS. IF MONEY IS WORTH 9% COMPOUNDED…
A: According to the given question:- Future value of the amount will be = R[(1+i)^n -1]/1 R = Regular…
Q: What will be the required monthly payment torepay a loan of $72,000 in eight years if the…
A: Interest is the cost of capital. There are primarily two ways to calculate the rate of interest.-…
Q: 18.b
A:
Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…
A: semi annual payments = 1000 Time = 3 years Interest rate = 12 % Semi annual rate = 12/2 = 6 %…
Q: You deposit $2000 in an account earning 8% interest compounded continuously. How much will you have…
A: When you earn compound interest, you earn interest on both the money you've saved and the money…
Q: Assuming an interest rate of 8% compounded annually, how much money will be required in four years…
A: A = P(1+r)n where P is principal amountr is interest rate n is time period
Q: 19. Each year a single payment of P5000 is deposited in an account that earns 16% compounded…
A:
Q: 7. Calculate the effective annual interest rate of the following: a. 12% compounded annually b. 12%…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…
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: 10. If money is invested at a nominal rate of interest of 8% for a period of 4yrs. (a) What is the…
A: a) The successful interest rate aims to absorb the entire cost of borrowing. It accounts for…
Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…
A: Given: The series of semi-annual payments of = $1,000 Years = 3 The rate of interest is = 12%…
Q: 2. Convert 12% compounded semi-annually to "r" compounded quarterly.
A: The formula for effective rate of interest is: r = 1+inn - 1
Q: It is known that the total interest paid over a 5- year period is $4,200. What was the principal…
A: In case of compound interest, amount at the end of the year is compounded and not the initial…
Q: You invest 10,000 pesos for 3 years and get 10% interest compounded at the end of each year. What is…
A: We use the compound interest formula to calculate future value after 10 years.
Q: 5. For an interest rate of 5% compounded annually, evaluate the value of "X" from the cash flows…
A: Year 0 1 2 3 4 Cashflows 1000-x 1000 2000 3000 6000 To evaluate the value of x at break-even…
Q: 5. Calculate the effective rate corresponding to each of the following rates: a. 9% compounded…
A: Effective interest rate = (1+im)m -1 where i is nominal interest ratem is number of compounding…
Q: Accumulate P3, 000 for 9 years at 6% compounded quarterly? What is the compound interest earned?
A: P = P3,000 n= 4 (because it is compounded quarterly) t = 9 r = 6% = 0.06 A = P(1+r/n)nt = 3000 x…
Q: 8 years ago, a man borrowed P 150,000 from a bank with an interest rate of 8% compounded quarterly…
A: Given Borrowed amount = 150000 Time = 8 years Interest rate = 8 % compounded quarterly Present value…
Q: Accumulate $ 300 for nine years at 6% compounded quarterly. What is the compound interest earned?
A: Given information: Principal amount (P): $300 Interest rate (r): 6% Time period (t): 9 Compounding…
Q: What annual nominal rate compounded semiannually has the same annual percentage yield as 13%…
A: Let r be the annual nominal rate of interest compounded annually. Therefore, APY=1+rnn-1 And APY of…
Q: How many years will it take for an amount of $2500 to triple is invested at an interest rate of 6%…
A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal the…
Q: Suppose you make equal quarterly deposit of $ 1,000 into a fund that pays interest rate of 12%…
A: Quarterly deposit = 1000 Interest = 12% Balance at the end of 3 years = ?
Q: Without using excel: What is the present equivalent of a uniform series of quarterly payments of…
A: Given Interest rate = 8 % compounded bimonthly Bimonthly rate = 8 / 6 = 1.33 % Quarterly rate = (1 +…
Q: How much do eight ₱ 69,058 quarterly payments amount at present, if the interest rate is 3…
A: Eight equal payment of 69058 quarterly for 8quarters. This is case of annuity where constant amount…
Q: James deposited $150 at the beginning of each month for two years into his savings account. For the…
A: Future value (FV) can be calculated by using the following formula. Deposit made 24 months. Total…
Q: Compute the effective annual interest rate in each of these situations: a. 10% nominal interest,…
A: A. Effective annual interest rate = 1+inn-1i=Nominal interest raten=Number of calculation in a…
Q: Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is…
A: Given, A = ₱ 2,000.00 Rate (r) = 12% Number of periods (n) = 6
Q: 8. What is the nominal rate of interest compounded continuously for 10 years if the compound amount…
A: Given: The time period = 10 years The amount of compounded factor is = 1.34986 To Find: The nominal…
Q: What is the effective interest rate for a. 15% compounded quarterly? b. 18% compounded…
A: Effective Interest rate = (1+rn)n -1where r is interest rate and n is time period.
Q: If the interest rate is 6% compounded quarterly, how long (number of quarters) will it take to earn…
A: The interest income on any instruments such as bank deposits and bonds is the amount received over…
Q: How long will an account invested at 11.5% compounded yearly be tripled?
A:
Q: (ou have just taken out a mortgage for $5 75,000, at a fixed rate of 4.75% per rear, compounded…
A: The term mortgage refers to a loan used to purchase or maintain a home, land, or other types of real…
Q: how long does it take for an investment to double at 1.4% compounded continuously
A: Continuous compounding is the numerical furthest reaches that accruing funds can reach if it's…
Q: 35. Find the effective rate of interest equivalent to 12% compounded continuously.
A: since you have posted multiple questions, asper the guidelines we can solve only one question per…
Q: A series of equal quarterly payments of $5,000 for 10 years is equivalent to what present amount at…
A: Given values in the questions: Payment made quaterly = $5000 The time period for which the payment…
Q: What interest compounded monthly is equivalent to an interest rate of 78.9% compounded. quarterly?
A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…
Q: A series of equal quarterly payments of $5,000 for 10 years is equivalent to what present amount at…
A: Pieces of information given in the question: Annuity = $5000Annuity made = QuarterlyTime = 10…
Q: Calculate the amount of money that must be deposited today in a savings account that pays 15% annual…
A:
How much money would you need to deposit today at 8% interest compounded quarterly to have $15,000 in the account after 8 semi annuals?
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- What is the future value of $3,000 saved for 6 years at 4% interest compounded annually? Enter your answer rounded to two decimal places.How long will an account invested at 11.5% compounded yearly be tripled?How much do eight ₱ 76,990 quarterly payments amount at present, if the interest rate is 3 compounded quarterly?
- You were entitled to receive $5,000 at the end of six months for the rest of your life. If the interest rate is 10% compounded monthly, what is the present value of perpetuity? can someone explain how come the answer is 97,936.84?What amount a man deposit each year so that he can withdraw P 50 000 at the end of ten years. If the interest rate is 6% compounded continuously?What is the present equivalent of a uniform series of quarterly payments of $4,500 each for 8 years and a quarterly payments $2,000 of the next 5 years if the interest rate is 8% compounded bimonthly? Note: Round off your interest rate to five decimal places Round your answer to 2 decimal places.
- How much do you need to deposit in an account today in order to have $11,000 in the account in 6 years? Assume the account earns 9% interest compounded monthly.COMPUTE THE EQUIVALENT RATE OF 6% INTEREST COMPOUNDED SEMI- ANNUALLY TO A RATE COMPOUNDED QUARTERLY?How much money would you have to deposit monthly for five consecutive years starting at the end of the first month if you want to be able to withdraw 70000 after five years? Assume the interest is 10% compounded annually
- If you want to have $100,000 in your saving account in ten years, how much do you need to deposit now if (a) the interest rate is 8% a year compounded monthly? (b) the interest rate is 8% a year compounded continuously?Find the nominal interest compounded quarterly equivalent to 12.00% effective interest?Annuity 1. What is the current value of a $50 payment to be made at the beginning of each year, for three years if the prevailing rate of interest is 7% compounded annually?