How much more interest will be earned if $5000 is invested for 6 years at 7%, compounded continuously, instead of 7%, compounded quarterly?

Q: How much annual income would need to be generated over a 5 year period, to be equivalent to $4,000…

A: Calculate the annual income over a period of 5 years as follows:MS-Excel --> Formulas -->…

Q: What are the future value and the interest earned if $4000 is invested for 3 years at 8% compounded…

A: Investment Amount = 4000 Compounded Quarterly , hence interest rate will be divided by 4 and time…

Q: In how many years is required for ₱2,000.00 to increase by ₱3,000.00 if interest at 12% compounded…

A: Given information: Present Value ₱2,000.00 Future value ₱5,000.00 Interest rate 6.00%

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: If ​$8000 is invested at 6​% compounded​ continuously, what is the amount after 6 ​years?

A: Investment=$8000Interest rate=6%Number of years=6

Q: An investment will return $125 at the end of each month for 5 years and then $250 at the end of each…

A: Value at the end of 5 years of $250 received for next 3 years every month, can be calculated as…

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: There is 60% increase in a amount in 6 years at simple interest. What will be the compound of…

A: Compound interest is defined as an addition of an interest to the sum of the principal of the loan /…

Q: If $600 is invested in an account earning 2.75% compounded continuously, how much would be in the…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: How long will it take for P 1,000.00 to amount to P 1,346.00 if invested at 6 compounded quarterly?

A: Interest is the amount charged or received by investing or borrowing some amount. It can be simple…

Q: What interest will be earned if $6000 is invested for 5 years at 11% compounded monthly? (Round your…

A: Using excel FV function

Q: A sum of P1,000 is invested now and left for eight years at which time the principal is withdrawn.…

A: We will use the concept of time value of money here. The concept says that money earns interest and…

Q: How long would it take you to double your money in an investment if it earns 5.75% compounded…

A:

Q: A sum of money invested now at 10 percent compounded semi-annually is to provide payments of $1500…

A: Let the money to be invested now = X Semiannual payment (A) = $1500 Number of payments (n) = 16 r =…

Q: What is the compound interest if $47,000 is invested for 10 years at 8% compounded continuously?…

A: The formula used as follows: A=Pert

Q: should be invested now into an 8% per annum interest-bearing account, compounded ye

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

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 a sum of $3000 is borrowed for six months at 9 percent simple interest per year, what is the…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

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

A:

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: What will an amount of $75 000 become in 5 years time if invested at                      4.15% p.a.…

A: Future value is the compounded value of a sum of money invested at a given interest rate for a…

Q: 1. How much interest will be earned on $10,000 in 5 months if the annual simple interest rate is…

A: Answer 1: Information Provided: Present value = $10,000 Time = 5 months Interest rate = 2%

Q: If $6000 is invested in an account. After three years, the account has $7500 in it. If money is…

A: Question is based on the concept of Time value

Q: If $19,000 is invested at 5% compounded quarterly, what is the amount after 9 years? The amount…

A: Given: Present value = $19,000 Interest rate = 5% Years = 9

Q: Suppose that $2700 is invested in an account with an APR of 3.9% compounded continuously. Determine…

A: Future value = Present value*e^rate*time

Q: a) What would be the accumulated value of ₺ 5000 in a saving account at 8% per year for 4 years when…

A: Using Future value in excel.

Q: A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn.…

A: Invested amount or principal amount is P1,000 Effective Annual interest rate is 5% Principal is…

Q: how many years is required for $3,000 to increase by $4,000 if interest at 14% compounded quarterly

A: Investment can be defined as depositing funds in an asset to earn a profit or interest. Interest is…

Q: What is the future equivalent of $1,000 invested at 6% simple interest per year for 3 years?

A: Simple interest is the type of interest that is calculated on the principal amount invested, it is…

Q: If $ 30000 is invested at 8% interest per year, compounded continuously, how much will be in the…

A:

Q: How much must be invested now at 6% interest, compounded monthly, to accumulate $1,000 at the end of…

A: Present value is referred to as the current value of future funds or stream of cash flows at a…

Q: what is the average EAR on an investment that earns 6% APR with monthly compounding for 5 years,…

A: The EAR is calculated for the compounded interest which shows the single rate that will provide same…

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 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: What is the value today of $500 received at the beginning of each period of six months for 12 years…

A: The following formula will be used to calculate today value as follow:

Q: A principal of $1600 is invested at 5.5% interest, compounded annually. How many years will it take…

A: Present  Value is the concept that states an amount of money today is worth more than that same…

Q: What is the future value of a series of $4,500 annual payments received at the end of each of the…

A: Annuity refers to series of equalized payments that are either made start or end of specific…

Q: You wish to make an investment of $10,000 at 5% interest. How much will your Investment be worth in…

A: Present Value= $10,000 Interest rate= 5% Time period= 20 years

Q: What is the future value of $3,000 invested today at 10% interest in 15 years with interest…

A: In the given question we need to compute the future value of $3000 invested today at 10% interest…

Q: What is the future value of $1,500 invested today at 7% interest in 6 years with interest compounded…

A: In given question we need to compute the future value of $1500 invested today for 6 years at 7%…

Q: If $7000 is invested at 3% compounded continuously, what is the amount after 5 years? The amount…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: How much will $10,000 grow to in 3 years, assuming an interest rate of 9% compounded quarterly? What…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: A certain sum of money is invested at 2 years at 12% compounded quarterly. If the sum is P43,000,…

A: Present value is equivalent value of money that is today of the future money to be received based on…

Q: What is the future value of $1,100 invested today at 5% interest in 3 years with interest compounded…

A: In given question we need to compute the future value of $1100 invested today at 5% for 3 years.

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.