If the simple interest on a sum of money for 3 years at 5% per annum is P2,500, what is the compound interest on the same at the same rate and for the same time?
Q: Laura wants to accumulate P150,000 in her bank account by depositing P1000 at the beginning of each…
A: This question is based on Annuities due, Annuities due are annuities that require payments to be…
Q: machinery supplier is offering a certain machinery on a 10% down payment and the balance payable in…
A: There two alternative to buy the machinery - 1 .) Whole payment of 195,000 2 .) 10% down payment…
Q: A service car whose cash price was P540,000 was bought with a downpayment of P162,000 and the…
A: Given information: Price of car = P540, 000 Down payment = P162, 000 Monthly instalment = P10,…
Q: A man borrowed from a bank under a promissory note that he signed in the amount of P60,000 for a…
A: Here the values given are as follows:- Amount Applied = 60000 Amount Received = 50150 Other fees =…
Q: Compare the interest earned from an investment of P50,000 for 15 years at 10% per annum simple…
A: In the question above, it is given that : Amount of Investment (P) = P 50,000 Time period (T) = 15…
Q: Determine the final value if you invest P30,694 into a certificate of deposit that has an annual…
A: Given :Number of Years (n) =5Rate of Interest (r(4)) =8.1%Present Value (PV) = $30694
Q: If $4,000 is invested now, $ 7,000 two years from now and $7,000 four years from now at an interest…
A: When you earn interest on a balance in an exceedingly savings or investment account, the interest…
Q: An annuity of P2,000 is to be paid in 4 years at the rate of 10% compounded continuously. What is…
A: Present Worth of an annuity formula PW =PMT1-1(1+r)nr where PW is the present worthPMT is a…
Q: An amortization of a debt is in a form of a gradient series of P5,000 on the first year, P4,500 on…
A: In the given cash flow P1=5000, P2=4500, P3=4000, and P4=3500 Therefore uniform gradient amount…
Q: An engineer wishes to set up a special fund by making uniform semiannual start-of-period (period 0)…
A: *Answer:
Q: What is the future value when $30,000 is invested for 9 months at an annual simple interest rate of…
A: The future value of an investment is the compounded value of the investment which is compounded on…
Q: A certain end of year cash flows are expected to be P7,000.00 at the end of the 3rd year, P9,000.00…
A: Given: Cash flows: Year 3: P 7000 Year 4= P9000 Year 5: P 11000 year 6: P 13000 Interest rate=15%
Q: Find the total amount after the investment period in semi-annual payments of 1000 pesos if the first…
A: In economics, the present value refers to the current value of a future stream of cash flow. Future…
Q: If ordinary simple interest is Php 2250, what is the equivalent exact simple interest?
A: Ordinary Interest refers to interest calculated at the time taken as 360 days instead of 365 days in…
Q: What is the annual rate of interest (in %) if P732 is earned in 9 months on an investment of…
A: The formula used is: SI=P×R×T100
Q: Jean deposited P1,000, P1,500 and P2,000 at the end of the 2nd year, 3rd year and 4th year,…
A: Given Information Jean Deposits At the end of 2nd year=P1000 At the end of 3rd year=P1500 At the end…
Q: How long will it take P 10.00 to be four times its value if invested at the rate of 8% compounded…
A: We have Present value P= 10.00 Future value = 40.00 Interest rate =8% compounded semi-annually We…
Q: Determine the final value if you invest P38,452 into a certificate of deposit that has an annual…
A: here we calculate the Final Value of certificate by using the given information so calculation as…
Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 12% annually if…
A: Present value of of perpetuity is calculated by ICFr, where ICF is the identical cash flow and r is…
Q: How long will it take for P1,000.00 to amount to P1,346.00 if invested at 6% compounded quarterly?
A: According to the formula of compound interest rate we get: A=P(1+rn)nt Here A=P1,346.00 P=P1,000.00…
Q: A company rent a building for P50,000 per month for a period of 10 years. Find the accumulated…
A: The correct answer is given in the second step.
Q: Four years from now , a man will need P25,000. How much must he invest in a fund at the beginning of…
A: FV = 25,000 Interest rate = 9% Time period = 4 yers (i.e. n = 8 for semi-annually)
Q: An amortization of a debt is in a form of a gradient series of P20,000 on the first year, P19,500 on…
A: Future value refers to the expected value of an asset at a future date based on a projected rate of…
Q: How much must be deposited at 8% each year beginning in January 1. year 1, in order to accumulate…
A: The interest charged on fixed deposits, savings accounts, and loans is calculated using simple…
Q: Compare the accumulated values at the end of 10 years if P100 is invested at the rate of 12% per…
A: We need to find futute value when present value is compounded at the rate of 12% for 10 years.
Q: Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on a…
A: Here we calculating the future worth , to know the amount would be in the account after 8 month ,…
Q: Deposit of P1,000 is made at the end of the first year and increases by P 500 for the next following…
A: Deposit = 1,000 Increase by 500 each year time period = 4 years Interest rate = 10%
Q: An investment of P8,500 is made at the end of each year with an interest of 3.5% compounded…
A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…
Q: Find i (the rate per period) and n (the number of periods) for the following loan at the given…
A: Given: Annual interest rate = 7% Interest is compounded semi-annually. Hence, i (rate per period) =…
Q: A man deposits P43,799 each year into his savings account that pays 2% nominal interest compounded…
A: Given that, Present value (PV) = 43,799 Rate of interest (r) = 2% or 0.02 Time period (t) = 5 years
Q: A company had replace one of its machine every five years with an initial cost of RM 18,000.…
A: Payment each month = ? Time = 5 years Interest rate = 6 % compounded monthly Monthly rate = 6 / 12…
Q: Deposit of P1,000 is made at the end of the first year and increases by P 500 for the next following…
A: Deposit = 1,000 Increase by 500 each year Years = 4 years Interest rate = 10%
Q: Determine the present value of a perpetuity of Php719.64 payable every 6 months if the money is…
A: Given perpetuity for 6 months = 719.64 Php Interest rate = 8 % compounded semi-annually Semi annual…
Q: If an amount of P6,041.72 is deposited into a savings account at an interest rate of 0.187, with 8…
A: Compounding period means the time period that times interest will be calculated in a year . For…
Q: How long will it take P90.00 to be four times its value if invested at the rate of 11% compounded…
A: Given data: Principal, P=P90.00 Required amount is four times its principal value,…
Q: If P15,000 is earned in three months on an investment of P600,000, what is the annual rate of simple…
A: Simple interest(SI)=P×R×T100 Where, P=Principal R=Rate of interest and T=Time in years
Q: You borrowed money from the bank with a simple interest 8%, find the present worth of P25,000, which…
A: Given that: Future Worth (A) = 25000Interest Rate (r) = 8% or 0.08Time(t) = 10 months or (10/12)…
Q: Compare the accumulated values at the end of 10 years if P100 is invested at the rate of 12% per…
A: Option e correct answer P332 Explanation Let's we concider given data P=100 (principle that…
Q: What is the present worth of two P100 payments at the end of the third year and fourth year? The…
A: The payment at the end of 3rd year = 100 The payment at the end of 4th year = 100 Interest rate = 8%
Q: A series of cash flows are established on an account as listed below. - Payment of P1.325 at the end…
A: We have a set of cash flows: Cash flow of P1.325 at the end of the 2nd, 4th, and 7th year at an…
Q: .A man wishes to provide a fund for his retirement such that from his 60th to 70th birthdays he will…
A: Compound interest is the interest on an advance or store determined in light of both the underlying…
Q: A certain amount is borrowed for 72 days at 17% per annum. Using exact interest, what is that…
A: Given, Time- 72 days ROI- 17% Due amount- 7238
Q: You obtained a loan of $25,000 to finance your home improvement project. Based on monthly…
A: Loan = 25000Interest = 1200
Q: What is the equal-payment series for 10 years that is equivalent to a payment starting with Php…
A: Amount of the Present Worth of the Equal-Payment Series This investment strategy aims to calculate…
Q: A house and lot can be acquired at a downpayment of P300,000 and a payment of P100,000 at the end of…
A: Down payment made today = 300000 P Payment each year starting from end of 5th year = 100000 Time for…
Q: What is the equal payment series for 10 years that is equivalent to a payment series of P12,000 at…
A: The present value (PV) of the future cash flow can be calculated by the following formula: i=8%…
Q: Find the effective rate corresponding to the following nominal rate. 3% compounded semiannually The…
A: R = 1 + inn- 1
Q: If you invest your P3,000 every year at 4% interest rate, how many months does it take to be worth…
A: We have given that the equal year-end payment A=3000 Future value F=117,247.80 Rate of interest r=4%…
Q: Suppose that the parents of a young child decide to make regular annual deposits into a savings…
A: Cash flow diagram is picturized depiction of cash inflows and outflow in any given point of time .…
Q: employee is earning P12,000 a month and he can afford to purchase a car which will require down…
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- What is the present worth of a P500 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 10 %?A house and lot can be acquired by a downpayment of P520,000 and a yearly payment of P100,500 at the end of each year for a period of 10 years, starting at the end of 5 years from the date of purchase. If money is worth 8% compounded annually, what is the cash price of the property?Jean deposited P1,000, P1,500 and P2,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 0.11 per annum. What is the equivalent uniform deposit for the uniform gradient only? Note: Interest is already shown in decimal form. Do not round in between solution. Final answer round to the nearest WHOLE NUMBER.
- An amount of P1,384 is to be paid indefinitely at the rate of 4.71%. How much is the present worth? Solve and explain!A man borrowed P300,000 from a lending institution which will be paid after 10 years at an interest rate of 12% compounded annually. If money is worth 8% per annum how much should be deposit to a bank monthly in order to discharge his debt 10 years hence?If P1,000 becomes P6,343 after 13 years when invested, what is the nominal interest rate?
- Determine the final value if you invest P30,694 into a certificate of deposit that has an annual interest rateof 8.1% compounded quarterly for 5 years.What is the present worth of two P100 payments at the end of the third year and fourth year? The annual interest rate is 8%.The maintenance of a room air conditioner is expected to be P2,000 at the end of the first year and is expected to increase by P100 each year for the following 7 years. Assuming rate of interest is 6%, compute the equivalent uniform annual maintenance cost.
- Ryan deposited P2,000, P2,500 and P3,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 0.09 per annum. What is the equivalent uniform deposit for the uniform gradient onlyIf P35, 000 is deposited now into a savings account that earns 6% per year, what uniform annual amount could be withdrawn at the end of each year for ten years so that nothing would be left in the account after the 10th withdrawal?If P1,000 becomes P1,811.36 after 5 years when invested at an unknown rate of interest compounded every two months, determine the unknown nominal rate and the corresponding effective rate.