I promise to pay you 25 annual installments of $5,000 starting five years from today. If the interest rate is 6%, how much are these payments worth to you today?
Q: Your business associate who owes you $8000 offers to pay you either $6640 now or else to pay you 5…
A: Yearly installment (A) = $1600 n = 5 years r = 5.8% compounded continuously
Q: You have $6,000 to invest in a 5-year certificate of deposit (CD) that pays 10% interest compounded…
A: A financial instrument in which an individual or company investment a lump-sum amount for a…
Q:
A: As per the given information: Amount of loan - $164,000 Rate of interest - 8% Period - 11 years To…
Q: If I loaned 163,085 today and promised to pay it back after 5 years to the bank with monthly…
A: Loan amount (P) = 163,085 Annual interest rate = 0.11 Monthly interest rate (r) = 0.11/12 =…
Q: You deposit $500 today in a savings account that pays 6% interest, compounded annually. How much…
A: Deposit amount = $ 500 Annual interest rate = 6% Period = 40 Years
Q: You have $11,489.64 in a brokerage account, and you plan to deposit an additional $5,000 at the end…
A: Given: Present value (PV)= $ 11489.64 PMT = $5000 Future value (FV) = $200, 000. Rate = 11% = 0.11
Q: You deposit $1000 each year into an account earning 6% interest compounded annually. How much will…
A: Future value of any deposits made is equivalent to the compounded value of deposits made for all the…
Q: b._ You want to have GH¢ 50,000 in your savings account five years from now, and you’re prepared to…
A: Future value of annuity = P * ([1 + I]N - 1 )/I where P is the payment amount. I is equal to the…
Q: You currently have $250,000 in your retirement account. What equal annual amount must you deposit…
A: Equal annual deposits into an account for a fixed number of times is called annuity. The future…
Q: You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end…
A: The future value of annuity helps an investor or an individual to know the future value of their…
Q: You deposit $4000 each year into an account earning 4% interest compounded annually. How much will…
A: Future value of annuity = Annual payment x [(1 + i)n - 1]/i i = Interest rate n = number of years
Q: How much should I invest today and expect a reimbursement every other month with a ROR of 0.08…
A: Interest rate bi-monthly = 8% Annual effective rate of interest = {[1 + (Interest rate pa % / Number…
Q: You want to have $50,000 in your savings account 12 years from now, and you’re prepared to make…
A: The annuity refers to the regular payment or receipt that lasts over a period of time. The annuity…
Q: You want to have $2,000,000 in your savings account seven years from now, and you're prepared to…
A: Given: Future Value of investment "FV" = $2000000 Number of payments "n" = 7 Interest rate "r" =…
Q: If you deposit $700 every year for the next 5 years, with first deposit to be made today and all…
A: Amount deposit per year = $700 Time period = 5 Years Interest Rate = 3.76%
Q: • You are to pay a bill in Meralco every month for 5 years. The accumulated amount of the payment…
A: Future value = Annuity * FVAF ( rate, years ) * FVIF ( rate, years )
Q: If you wish to accumulate $140,000 in 13 years, how much must you deposit today in an account that…
A: The provided information are: Future value (FV) = $ 140000 Time period (n) = 13 years Interest rate…
Q: You plan to deposit $100 at the end of every quarter (3 months) for 8 years starting at the end 8f…
A: Compound interest is the nothing but an interest on a deposit computed on principal amount and the…
Q: Suppose are going to make monthly deposits into an account with an annual interest rate of [8] 2.5%…
A: For calculating the monthly deposit as ordinary annuity; the $1,000,000 amount shall be taken as the…
Q: You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6.…
A: Answer: Calculation of the amount that will be available to withdraw at the end of year 15: The…
Q: You deposit $3000 each year into an account earning 5% interest compounded annually. How much will…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: You deposit $2000 each year into an account earning 3% interest compounded annually. How much will…
A: A deposit annually is rewarded by an interest annually that make a huge amount at the end of…
Q: You have just deposited $9,500 into an account that promises to pay you an annual interest rate of…
A: GOAL (FV) 27940 INTEREST RATE 6.20% YEARS 8+12=20 PMT 0 PV 9500
Q: you deposit $1,000 each year into an account earning 3% interest compounded annually. How much will…
A: Time value Value received today by an individual is of more worth than receiving the exact value in…
Q: You borrow $11,000 and promise to make payments of $3,359.50 at the end of each year for 5 years.…
A: The question gives the following information:
Q: You are to pay a bill in Meralco every month for 5 years. The accumulated amount of the payment you…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: You are to make monthly deposits of $500 into a retirement account that pays 10.3 percent interest…
A: A monthly deposit (P) of $500 is made for a period (n) of 420 (35*12=420) at an interest rate ( r )…
Q: You have approached Which Bank for a loan to buy a house. The bank offers you a $400 000 loan,…
A: Given Information:Loan amount is $400,000 Interest rate is 9% (compounded monthly) Loan tenure is 20…
Q: You will deposit $30,000 per year into an account beginning today that pays 13 percent per year.…
A: Annual deposit (P) = $ 30,000 Annual interest rate (r) = 13% Future value (FV) = $ 1,000,000 Period…
Q: You deposit $825 today in a savings account that pays 3.5% interest, compounded annually. How much…
A: Future value is the value of current value at a specified interest rate for given period. The…
Q: how much should I invest today and expect a reimbursement every other month with a ROR of 0.08…
A: ROR = 0.08 Bi-monthly ROR (R) = 0.08/6 = 0.0133333333 Period = 4 Years Number of bi-monthly payments…
Q: You deposit $1000 each year into an account earning 6% interest compounded annually. How much will…
A: Ordinary Annuity is way of payment where payment happens at the end of each period.
Q: You plan to deposit $100 at the end of every quarter (3 months) for 8 years starting at the end of…
A: Quarterly deposit (Q) = $100 Number of deposits (n) = 8 years = 32 quarters r = 8% per annum = 2%…
Q: You will deposit $354 each year into an investment account that earns 5% interest (as an effective…
A: The question is based on the concept future value of annuity payment for 10 years at end of period,…
Q: You think you will be able to deposit $4,000 at the end of each of the next three years in a bank…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: You are going to receive a payment of $80 at the end of each year for the next 12 years. If you…
A: Given details are : Periodic payment = $80 Time period = 12 years Future value = $1930.65 From above…
Q: If I invest PI0,387 today and expect a reimbursement every 6 months with a rate of l1.54% compounded…
A: solution : given present investment (PV) =P 10,387 rate of interest…
Q: If you deposit $110 every month for the next 7 years, with first deposit to be made today and all…
A: In this we have to calculate equivalent monthly compounding rate and calculate the future value.
Q: You deposit $3000 each year into an account earning 2% interest compounded annually. How much will…
A: Annual deposit (P) = $ 3000 Annual interest rate(R) = 2% Period (N) = 35 Years
Q: You have set a goal to save $ 10000 in a savings account that earns interest at 2.54% compounded…
A: Annuity due are the payments which are made at the beginning of the period.
Q: Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 23000 at the time…
A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…
Q: You want to have GH¢ 50,000 in your savings account five years from now, and you’re prepared to make…
A: In the given problem we need to find the Annual Deposit amount for 5 years which cumulates @9.5% to…
Q: You deposit $3000 each year into an account earning 8% interest compounded annually. How much will…
A: Future value of annuity is used to calculate the value of streams of cash flows in future at a given…
Q: annual loan payment
A: Annual Loan Payment: Annual loan payment is the amount to be paid in a year on the loan taken.…
Q: You are paid £4,000 annually for 6 years, with the first payment due in one year and the last…
A: Annual payment (P) = £4,000 Number of annual payments (n) = 6 Interest rate (r) = 2%
Q: You want to have 75000 in your savings account 12 years from now, and you’re prepared to make equal…
A: Given information: Amount at the end (Future value) 75000 Time Period (in years) 12 Interest…
Q: What must you invest today to receive a $20,000 annuity for 5 years semiannually at a 5% annual…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Assume that you keep RM5,555 in the savings account at Affin Bank with an interest of 15 percent per…
A: Saved amount = RM 5,555 Annual interest rate = 15% Period = 5 Years
Q: You have $33,556.25 in a brokerage account, and you plan to deposit an additional $5,000 at the end…
A: given, FV = $220000 r= 12% time line
Q: You want to borrow $30,000. For the loan to you must repay $1100 every quarter (4 times per year)…
A: Loan is an agreement between lender and borrower where lender agrees to provide funds to lender for…
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- You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?