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

Q: Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded…

A: FV=PV×1+Rmm×n where, FV = FUTURE VALUE PV= PRESENT VALUE R = RATE/ APR m= NO OF COUMPOUNDING IN A…

Q: 3. Find the compound interest and the amount if 30,000 is invested for 2 years at 6% compounded (a)…

A: Compound interest= (Principle *(1+ rate/12)^12* time period) - Principle Principle= 30000 rate= 6%…

Q: Find the amount at the end of 5 years if Php17,535 is invested at 2.45% compounded quarterly.

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

Q: What is the compound amount and interest if Php 10,000 is invested at 3.6% compounded monthly for 2…

A: we know that, A=P(1+rn)n×t now, A= amount after time + (future value) P= principal amount (initial…

Q: you invest $12000 at an annual rate of 3% . Find the balance after 5 years for each type of…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum,…

A: Compound Interest: It is the interest on a deposit or loan computed based on the initial principal…

Q: $15,000 is deposited for 7 years in an account earning 3% interest. (Round your answers to two…

A: Compound value of money can be defined as the amount of interest computed on interest earned…

Q: Suppose that $80,000 is invested at 7% interest. Find the amount money in the account after 5 years…

A: The given problem can be solved using FV function in excel. FV function computes amount value in…

Q: a) $15,000 is invested in an account at time 0. At the end of 4 years, an additional $15,000 is…

A: Investment at time 0 15000 investment at the end of 4 years 15000 Rate of Interest for 10 years…

Q: Compute the  future  value  (compound  amount)  of  $4,500  invested  for  10  years  at  5%…

A: The future amount can be computed with the help of future value function.

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: 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: What is the present value of $17,000 deposited at the end of each year for 23 years earning 9.5%…

A: We need to compute the present value in this question using following details : Deposit at end of…

Q: $5,100 is invested at 6% compounded annually. what is the amount of the account at the end of 3…

A: Under Compound Interest Method, Interest is accumulated with the principle.

Q: A debt of $36,000 is repaid over 10 years with payments occurring quarterly. Interest is 8%…

A: The periodic payment would occur on each quarter then, first of all, we have to calculate the…

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: 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: A sum of P10,000 was invested now and left for 6 years, at which this time the principal is…

A: Invested amount (P) = P 10,000 Interest rate (R) = 15.8% Period till first withdrawal (N1) = 6 Years…

Q: An initial investment of $480 earns interest for 7 years in an account that earns 13% interest,…

A: Future Value = Present Value * (1+r)^n where r =rate of interest per period i.e. 13%/4 = 3.25% n =…

Q: A principal of 2450 Rials is invested at rate 5.25% compounded quarterly. After how many years the…

A: Given in the Question Principal = 2450 Riyals Rate = 5.25% Compounded Quarterly

Q: A debt of $5000 with interest 5% compounded 6-monthly is amortized by equal annual semi payments…

A: Present value annuity @ 2.5% for 6 periods = 5.50813

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

A:

Q: What will the deposited amount be at the end of 5 years if P15,000 is deposited in an account…

A: Information Provided: Term = 5 years Rate = 4% compounded quarterly Principal = 15,000

Q: Find the amount at the end of 2 years if $1,000 was invested at 5% simple interest; 5% compounded…

A: The term time value of money refers to the value of the money in the future of which the investment…

Q: Determine the effectivene annual yeild for 1 dollar invested for one year at 2 percent compounded…

A: Effective Annual Yield is the equivalent annual rate of return for nominal rate of return with more…

Q: Solve for the compound amount and compound interest earned if $ 825 is invested for 10 years at 4%…

A: The future value is the amount that will be received at the end of a certain period. The future…

Q: $7000 is invested at 6% p.a. compound interest. Find the value of the investment after 3 years if…

A: Compounded Interest Formula : A = P (1 + r/n)nt A = final amount P = initial principal balance r =…

Q: What is the compound interest if $170,000 is invested for 3 years at 12% compounded continuously.…

A: Investment (P) = $ 170,000 Period (t) = 3 Years Interest rate (r) = 12% Mathematics constant (e) =…

Q: Find the compound amount if P5,000 is invested at 10% compounded semi-annually for 2 years.

A: Compund Amount = PV * (1 + r/n)^ntWhere PV = Present Value  = P5,000r = rate of interest = 10%n=…

Q: A principal of 7000 Rial is invested at rate 9% interest for 8 years. Determine the future value if…

A: In this question future value is to be find out. Future value is the value of an asset which grows…

Q: 18,000$ is deposited for 9 years in an account earning 5% interest. Round answers to two decimal…

A: Future Value  The future value is the worth of any asset or any sum of money at a future date when…

Q: How much interest was earned by an investment that earns at a rate of 9% compounded semiannually for…

A: The present value is that amount without which we cannot obtain the future value. The future value,…

Q: Compare the interest earned by P dollars at i% per year simple interest with that earned by the same…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

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: Calculate if $10,000 is invested at interest rate of 12% per annum, what is the amount after 3 years…

A: The provided information are: Present value (PV) = $10,000 Interest rate (r) = 12% = 0.12 Number of…

Q: $10,000 is borrowed at 10% a year interest for five years. At the end of each year, the borrower…

A: Hence, payment made for year 1 is $1,000, year 2 is $1,000, year 3 is $1,000, year 4 is $1,000 and…

Q: If 5,000 shall accumulate for 10 years at 8% compounded quarterly, then what is the compound…

A: Given: Present value = 5000 Number of years = 10 The interest rate is: i'=in4=i44=0.084=0.02

Q: If $800 is deposited in a savings account at the beginning of each year for 12 years and the account…

A: The future value of an annuity due is the future worth of a cash flow series receivable /paid at the…

Q: $39,000 is deposited for 2 years in an account earning 6% interest. (Round your answers to two…

A: Therefore, the future value if interest is compounded semiannually is $43,893.84.

Q: Find the compound interest if $2000 is invested for 12 years at 8% compounded quarterly.

A: Future value = Present value(1 + Rate)^Time where, Present value = $2000 Rate = 8% / 4 = 2% Time =…

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: $1,000 is invested for 5 years in an account earning 8% annual interest, compounded semiannually.…

A: Details given are : Present value of investment = $1000 Interest rate = 8% p.a. Time period = 5…

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.