If you are LOANING money to another party, would you prefer to offer a 12% interest rate compounded quarterly or a 11.5% interest rate compounded continuously? (Hint: Compare their effective interest rates)
Q: Jack borrowed $10,000 from Mr. Jill on July 11, 2018 and promised to pay it by December 21, 2018.…
A: Given the borrowed amount = $10000 Interest rate = 15% Total number of days between the given months…
Q: Two payments of $13,000 and $6,600 are due in 1 year and 2 years, respectively. Calculate the two…
A: Given; Payment due in year 1= $13000Payment due in year 2= $6600Interest rate= 5.5%Interest rate in…
Q: (Using Appendix A) How much will be in the bank account at the end of 15 years if $ 100 is invested…
A: Semi-annual interest rate (i) = 8% / 2 = 4% Number of semi-annual compounding periods (N) = 2 x 15 =…
Q: In one instance, a financial institution loaned you $60,000 for two years at an APR of 5.75% for…
A: First instance: Given , Principal = $60000 APR = 5.75% Time period = 2 years Thus, simple interest =…
Q: An annuity offers to pay £8,200 per year for 20 years, and the nominal annual bank interest rate is…
A: Given: The amount of annuity = £8,200 per year Years = 20 The rate of interest is = 6% compounded…
Q: Sam promises to pay Sandy $2,000 in four years and another $3,000 four years later for a loan of…
A: Interest rate: The real interest rate is the rate of interest that is being calculated in an economy…
Q: You are quoted an interest rate of 6% on an investment of $1000. What is the value of your…
A: Here, it is given that an investment of $1,000 gives 6% annual interest rate that is compounded…
Q: What is the effective interest rate per payment period for an interest rate of 12% compounded…
A: The interest rate that accounts for the compounding periods over the course of a repayment plan is…
Q: A principal of P10,450 is deposited in a 8.46% account and compounded continuously. At the same time…
A: Given: Principal (P)=P 10450 Interest rate (r)=8.46% compounded continuously Principal (P)=P 21197…
Q: Mohamed wishes to deposit BD10,000 to a bank that will guarantee BD15,938.48 after eight (8) years.…
A: Here we need to assume the interest rate she is expecting from the bank. Then following calculation…
Q: In preparation for Sandara’s college education, her parents want to save ₱400,000 after 12 years.…
A: Given information, Future value (F)= ₱400,000 Interest rate (r)= 2% Compounding period (m)= 4…
Q: A business man borrowed P 200,000 and agrees to pay P 47,719.73 annually for X years at the rate of…
A: Given Borrowed amount P=200,000 Annual payment A= 47,719.73 number of years =X rate of interest =…
Q: You pay 10,000$ per year for 10 years. what is the total payment at the end of 10 years with knowing…
A: Compound interest in layman terms can be referred to as 'interest on interest'. This means that…
Q: Which method is the best for an investor, to invest at 8% compounded monthly or 8% compounded…
A: The compounding period is important in determining the interest earned on an investment. The more…
Q: A bank gives a loan to a company to purchase an equipment worth 10,00,000 dollars at an interest…
A: Loan amount to purchase the equipment = $1000000 Interest rate = 18% Time period for the the…
Q: How long will it take any sum to double itself with an 11% interest rate compounded continuously?
A: Suppose the present value of sum be P and future value of the sum is A
Q: you invest $1,000 at an annual interest rate of 5% compounded continuously, calculate the final…
A:
Q: You borrowed $22,000 to buy a new car from a bank at an interest rate of 9% compounded monthly. This…
A: To calculate present worth use the following formula. Here A = an annual payment, n = the number…
Q: A businessman expects to receive P20, 000.00 in 10 years. How much is that money worth now…
A: Given information is: Future value (FV)= P20,000 Interest rate (r)= 6% Compounded period (m)= 4 in…
Q: What is the nominal rate of interest compounded continuously for 10 years if the compound amount…
A: Nominal interest is the interest before adjusting inflation.
Q: To make CDs look more attractive as an investment than they really are, some banks advertise that…
A: We are going to find the compounding interest rate to answer this question. Note: As per Bartleby…
Q: ind the equivalent effective interest rate of 6.05% when compounded continuously. Write your…
A: Given nominal interest rate i=6.05% compounded continuously. We have to calculate the equivalent…
Q: First City Bank pays 9 percent simple interest on its savings account balances, whereas Second City…
A: Money is a commodity accepted by general consent as a medium of economic exchange. Here, we…
Q: You are going to invest $1,500 today in a fund today. After 10 years, you want to have exactly…
A: Principal = $1,500 Time =10 years Amount =$2,500 or Principal1+R10010=2500or 15001+R10010=2500or…
Q: Mr. Edwards borrowed P 200,000 and agrees to pay P X annually for 5 years at the rate of 6%…
A: Amount Borrowed = 200000 Annual Payment = x n = 5 r = 6%
Q: earns an annual interest rate of 2.75%.
A:
Q: Suppose that an investor wishes to deposit an amount now so that in 30 years $1,000,000 will be in…
A: Let the amount deposited now be represented by P. Let F represents $1,000,000 which appears to be in…
Q: Suppose that $5,000 is placed in a bank account at the end of each quarter over the next 9 years.…
A: GIVEN P = $5000 No. of periods (n)= 9*4 = 36 compounded = 14%
Q: A company borrowed $200,000 at an interest rate of 8% compounded annually over six years. The loan…
A: The company borrowed the amount which is equal to $200,000 and it is given that the rate of interest…
Q: How many years will it take to triple your investment of $5,000 if it has an interest rate of 10%…
A: Information given to us is:- Investment = $5000 Interest rate = 10% compounded annually We have to…
Q: The Weidmans want to save $35,000 in 4 years for a down payment on a house. If they make monthly…
A: Interest is an amount of payment that is generally paid on a deposit or lent money by the financial…
Q: The simple interest on a sum of money for 5 years at 4.53 % per annum is P5,584. What will be the…
A: The difference between simple interest and compound interest is that compound interest is charged on…
Q: Roy wishes to have P 1,000,000 in a certain fund at the end of 5 years. How much should he invest in…
A: Future value (F)= 1,000,000 Time = 5 year r = 0.22 P = Initial investment
Q: Suppose that you invest $1,000 for 1 year at 18% compounded monthly. How much interest would you ear
A: Given information: Investment amount = $1000 Time period = 1 year Interest rate = 18%
Q: Need asap... If you invest $750 at an interest rate of 7% compounded annually how much would the…
A: Given:Present worth (PV)=$750Interest rate=r=7%Number of years= n=5 years
Q: The sugar bank gives a home loan at an annual interest of 15%. Loan amount is one hundred thousand…
A: Given The annual interest = 15%. Principle amount = 100000 Time = 6 years.
Q: Suppose that $100 is invested for five years at an interest rate of 8% per year, compounded…
A: D. F = $100(F/P,8%,5) = $100(1.469) =$146.90 Option "D" is correct.
Q: What rate of interest (in %) compounded quarterly will yield an effective interest rate of 4.4%?…
A: Let x% be the rate of interest compounded quarterly Effective interest rate = 4.4% We have to find…
Q: You invested $24031 for 13 years at 4.89% per annum. How much more would you receive at the end of…
A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…
Q: What rate of interest (in %) compounded annually is required to triple an investment in 5 years?…
A: The interest charged on a loan or deposit is known as compound interest. It is the idea that we…
Q: Find the present value of $750 to be paid four years from now when the prevailing interest rate is…
A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…
Q: The owner of Sebastopol Tree Farm deposits $400 at the end of each quarter into an account paying 5%…
A: D=$400i=5%4=0.0125 (divided by 4 as the interest is compunded quaterly)n=9×4=36 (multiplied by 4 as…
Q: Provide answers in the form of a percentage to three decimal places . (a).What is the effective…
A:
Q: If $10,000 is invested in an account at United Mutual fund for 18 years, earning 10% compounded…
A: The future value of an investment is the compounded value of the investment which is compounded on…
Q: If an interest rate is 18% per year, compounded quarterly, what is the effective quarterly interest…
A: Interest rate is the premium paid for a certain amount of money. The effective interest rate is…
Q: You are making $5.000 monthly deposits into a fund that pays inte rest at a rate of 6% compounded…
A:
Q: f you obtain a loan of ₱1M at the rate of 12% compounded quarterly in order to build a house, how…
A: Loan Amount = 1000000 Interest Rate= 12% N=10 Years Equal Payment Series =?
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- Cory Manciagli is planning to retire in 20 years. Money can be deposited at 6% compounded quarterly. What quarterly deposit must be made at the end of each quarter until Cory retires so that he can make a withdrawal of $40,000 semiannually over the first 10 years of his retirement? Assume that his first withdrawal occurs at the end of six months after his retirement. (Hint: Apply concept of economic equivalence at the end of 20 years).1. What is the Single Payment Compound Amount factor for an interest rate of 2% over 10 years? 2. What is the Uniform Gradient Future Worth factor for an interest rate of 10% over 10 years? 3. What is the Uniform Series Present Worth factor for an interest rate of 5.5% over 20 years? 4. A bank pays 3% interest per year (compounded annually). a. To what amount will a $5,000 deposit grow if left in the bank for 10 years? b. Draw the Cash Flow Diagram for this problem.1) A child’s grandparents have opened a ₱586702 savings account for the child on the day of her birth. The account pays 1.7% compounded semiannually. The child will be allowed to withdraw the money when she reaches the age of 21. What will the account be worth at that time? Round your answer to 2 decimal places. 2) What simple interest rate (in %) is equivalent to 6.5% compounded quarterly if money is invested for 8 years? Round your answer to 2 decimal places.
- Show solution numbers 1 and 2 on how the answer is obtained using interest formulas Note: Without using excel sheet 1. Alexander Murils owes P 25,000 due in one year and P 75,000 due in 4 years. He missed these 2 payments and agrees to pay all liabilities in 5 years. if money is worth 10% compounded semi annually, how much will Alexander Murils pay in 5 years? Answer: P 119,624 2. Mr. Jones borrowed P 20,000 from a lending firm and an additional P 5,000 after 2 months. He paid P 10,000 after 1 year and an additional payment of P 12,000 at the 18th month. The lending firm demanding Mr. Jones to pay all at the end of 2 years. If interest is 12% compounded monthly, how much will Mr. Jones pay at the end of 2 years. Note: The reference of all the time is the time P20,000 is borrowed. Answer: P 7, 611.80As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year into an account paying 3% interest compounded annually. (Round your answers to the nearest cent.). (a) How much (in $) would the account be worth after 10 years? $ (b) How much (in $) would the account be worth after 20 years? $ (c) When you retire in 30 years, what will be the total worth (in $) of the account? $ (d) If you found a bank that paid 6% interest compounded annually rather than 3%, how much (in $) would you have in the account after 30 years? $ (e) Use the future value of an annuity due formula to calculate how much (in $) you would have in the account after 30 years if the bank in part (d) switched from annual compounding to monthly compounding and you deposited $750 at the beginning of each month instead of $9,000 at the beginning of each year. $A bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. What is the bond's price? Assume annual compounding. Round your answer to two decimal places.
- If you deposit $4,800 at the end of each of the next 15 years into an account paying 11.3 percent interest, how much money will you have in the account in 15 years? How much will you have if you make deposits for 30 years?Suppose Sally’s current salary is $62,000 per year, and she is planning to retire 25 years from now. She anticipates that her annual salary will increase by $1,800 each year. in the first year she will earn $62, 000 in the second year $63, 800 in the third year $65, 600 and so forth.) At the end of each of the next 25 years, she plans to deposit 10% of her salary from that year into a retirement fund that earns 6% interest compounded daily. How much money will be in her account at the time of her retirement?4. Eleanor makes year-end deposits of 500,000 the first year, 550,000 the second year, 605,000 thethird year, and so on increasing the next year’s deposit by 10% of the deposit in the preceding yearuntil the end of the 10th year. Ronald makes equal year-end deposits of 720,00,000 each year for 10years. A.) Is the gradient of Eleanor’s payments increasing or decreasing?B.) If interest on both funds is 12% compounded annually, who will be able to save more atthe end of 10 years.
- What is the interest rate on your credit card if after 10 years you owe $40 for a pizza that had a price of $10? The interest rate is _______. A. a monthly rate of 15/12 percent B. 15 percent per year compounded monthly C. a monthly rate of 15/365 percent compounded daily D. 15 percent per year compounded annually SubmitProvide answers in the form of a percentage to three decimal places . (a).What is the effective annual interest rate of a 4 % nominal annual interest rate compounded daily . (b).What is the effective annual interest rate of a 2 % nominal annual interest rate compounded weekly ? (c).What is the effective annual interest rate of a 7 % nominal annual interest rate quarterly ?what would be the present value of the bond if the bond has 3 years to maturity instead of one? what would be the present value of the bond 6 months from now if the bond has three years to maturity instead of one? same question just 3 ytm instead of 1
