Q: You want to start saving for your 10 yr old son. If i=6% compounded quarterly, how much would you…
A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…
Q: How much money would you need to deposit today at 8% annual interest compounded monthly to have…
A: Given Rate of interest = 8% per year compounded monthly. Future value of money =$20000 Time = 5…
Q: With an interest rate of 7%, how much money can be lent now if $15,000 will be repaid at the end of…
A: Interest rate (r) = 7% or 0.07 Accumulated amount (A) = $15000 Time period (n) = 5
Q: Alex wishes to have P 800,000.00 available to buy a car in 4 years. How much should he deposit in a…
A: Given that, Present value (P) = 800,000 Rate of interest (r) = 10 or 0.10 Compounded quarterly = 4…
Q: 4. An annuity pays $6500 at the beginning of every year for 10 years. If the payments are deferred…
A: Given: Annuity payment each year for 10 years=$6500 Deferred=7 years Interest compounded…
Q: If you want to withdraw $20,000 at the end of 2 years and $55,000 at the end of 4 years, how much…
A: Withdraw: It means to take out money from the account.
Q: As part of your retirement planning, you purchase an annuity that pays 4 % annual interest…
A: Annuity- A regular payment may be a contract between you associate degreed a nondepository financial…
Q: Find the present value of an annuity of $2,000 payable at the end of each year for 10 years, if the…
A: Answer is given:
Q: Find the present value at 10% interest of the series of payments below: End of year 1 2 3 Net Cash…
A: The present value is the current value of the future stream of income. The present value is affected…
Q: What deposit today is required for it to be worth $150,000 in 25 years if the deposit earns 5%…
A: Interest is the cost of borrowing. Compound interest is calculated on the principal amount as well…
Q: If you deposit $2,042 today in a savings account that pays 8% interest annually, how much would you…
A: Given: Principal (P) = $2042 Interest rate (R) = 8% annually Time (T) = 5 years
Q: Find the present value amount that is equivalent to a uniform gradient series in wich the first…
A: In economics, present value refers to the current value of a future stream of cash flows. Future…
Q: Compute the effective annual interest rate which is equivalent to 5% nominal annual interest…
A: The formula for calculating the effective annual interest rate compounded continuously is given by r…
Q: A house and lot was offered for 87,000 with a 10% down payment and a monthly payment of 500 per…
A: initial cost = 87000 down payment = 10% monthly payment = 500 years = 25
Q: Compute the present value of $1500 received at the end of ten years’ time given monthly compounding,…
A: Given information is: Future value (FV)= $1500 Interest rate (r)=1% Compounding period (n)=12 Time…
Q: nterest rate... How much do you need to deposit in an account today in order to have $11,000 in…
A: Every commercial bank decides its Annual Percentage Rate (APR) range based on the interest rate set…
Q: If $500 were deposited in a bank savings account, how much would be in the account 3 years from now…
A: Compound interest is calculated on the principal amount as well as the accrued interest.
Q: 5. For an interest rate of 8% compounded annually, find: How much will be required 5 years hence to…
A: here we calculate the payment value of loan after 5 year by using future value formula which are as…
Q: Edward takes out today a loan of $150,000.00 from a local Bank at 8% Compound Interest for 7 years.…
A: Here we calculate the amount Edward pay back at the end of year 7th by using the given information ,…
Q: Mr. Benedito, a grocery store owner, borrows $50,000.00 from a loan shark, handing him a $77,000.00…
A: Given Mr. Benedito borrows $50,000, So present value P=$50,000 The value of the promissory note is…
Q: Suppose you have a vehicle, the 1st year maintenance cost is estimated to be $100. The rate of…
A: the value in the presence of a sum of money, in contrast to some future value it will have when it…
Q: If you deposit dollar 10000 into a fund paying 6% interest compounded monthly. how much can you…
A: Given the present value in the fund = 10000 Interest rate = 6% Monthly interest rate = 6%/12 = 0.5%…
Q: An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the end of the…
A: At the end of each year for 10 year as grant is case of ordinary annuity . And the present value of…
Q: - How long will it take money to quadruple if it earns 7% compounded semi-annually?
A: Given: Interest rate compounded semi annually=7% To find: Number of years for money to quadruple
Q: Brian borrowed P30,000 from a financing company charging 11 4/5% simple interest for 180 days. How…
A: According to the question brain borrowed P30,000 at the interest rate of 11 4/5(11.8%) for the 180…
Q: What is value of $475 at interest rate of 3.7% after 15 years?
A: The data presented in the question above is:- Principal amount = $475 Interest rate = 3.7% Time…
Q: Given the situation , choose the correct formula to solve the problem: What present value amounts to…
A: The formula for present value(PV) is given below: PV=FV×11+RN FV: future-value R: interest rate N:…
Q: 2) An annuity due in perpetuity pays X at the beginning of each year for 10 years and starting at…
A: Given the information: Present value = $3000 g = 2% i = 5% time, t= 10
Q: You have $5,000 on a credit card that charges a 23% interest rate. If you want to pay off the credit…
A: Interest rate is the amount charged by the lender from the borrower for the use of its money.
Q: Example: Suppose $1500 is deposited at the end of each year for the next 6 years in an account…
A: The amount of annuity (A) = $1500 Total number of years (n) = 6 Interest rate ( r ) = 8%
Q: I invested $5000 and earned $300 in interest in 9 years. What was the interest rate r if interest…
A: Continuous compounding is the numerical furthest reaches that accruing funds can reach if it's…
Q: Determining the Present Value for a Decreasing Annuity How much money must you deposit now at 6%…
A: Given the annuity amount = $3000 Interest rate = 6% Quarterly interest rate = 6% / 4 = 1.5%…
Q: If the nominal annual interest rate is 7% compounded monthly, what is the effective quarterly…
A: When the effects of compounding over time are considered, the effective annual interest rate is the…
Q: In how many years will money triple its amount if invested at 8 % compounded semi – annually?
A: Interest is the amount paid for using an amount of money.
Q: How much money would you need to deposit today at 9% annual interest compounded monthly to have…
A: Correct : A. $7007
Q: If the interest rate is 6%, what is the present value of $800 paid at the end of year 10?
A: Interest Rates- these do not work in the favour of borrower, it is additional amount that a lender…
Q: Situation : Compute the interest for an amount of P 400,000 for a period of 7 years. 9. If it was…
A: Interest is the amount paid in excess of the principal amount by the borrower to the lender.…
Q: $20,000 for 5 years @ 2.25% annual interest, compounded quarterly.
A: Compounded Quarterly "it is the compound interest payable based on 3 months compounded and it is…
Q: 6. If the naminal interest rate is 3%, how much is $5000 worth in 10 years in a continuously…
A: Given the interest rate = 3% Present value = $5000 Time = 10 years
Q: 3. What would $1000 become in a saving account at 3% per year for 3 years when the interest is not…
A: In simple interest rate, interest rate is charged on fixed initial value and in compounding interest…
Q: Suppose that $5000 is deposited in a saving account at the rate of 6% per year. Find the total…
A: Given: Principal = $ 5000 Rate of interest = 6% per year Time = 4 years n = 365 ( since it is…
Q: 1. A future amount F, is equivalent to $ 1,500.00 now when six years, separate the amounts and the…
A: To find the future value, we use the formula for compound interest with present value equal to 1500
Q: In an account earning 8% nominal interest compounded bimonthly, How much should be deposited now to…
A: The data presented in the question above is:- Amount = $9052 Interest = 8% This interest rate is…
Q: A person wishes to have a future sum of $1,00,000 for his son’s education after 10 years from now.…
A: Given the future value = $100000 Number of years = 10 years Interest rate = 15%
Q: A set of cash flows begins at $20,000 the first year, with an increase each year until n = 10 years.…
A: (a) annual increase is $2000 Present value of cash flow = cash flow(1+r)n Year Cash Flow Present…
Q: A nominal rate of 12 % compounded _____ is equal to an effective rate of 12.65 %.
A: The real return on a savings account or any interest-paying investment when the outcome of…
Q: Find the present value of an annuity due of 2000 per annum for 14 years interest at 9%
A: In economics, present value refers to the current value of a future stream of cashflows. Future…
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- what is the present value of a loan when a monthly payment of ₱3,250 is needed to extinguish for 3.5 years at 17.5% interest?A set of cash flows begins at $25,000 the first year, increasing 10% each year until n = 10 years. If the interest rate is 5%, what is the present value?Economics: • A man saves R200 at the end of each year and lends the money at 5% compound interest. How much will it become at the end of 3 years.
- At 2% interest rate, how much should you invest today to be able to withdraw 2,958 annually for 5 years it payments are done every beginning of the month?Enrico Suarez has decided to purchase a house instead of renting anapartment. He can a ord a monthly payment of $800, and he has saved $6,000 to use as a down-payment on a house. If the mortgage is 4% nominal interest (compounded monthly) on a 30-yearloan, how much can Enrico a ord to spend on a house?A set of cash flows begins at $20,000 the first year, with a decrease each year until n = 10 years. If the interest rate is 7%, what is the present value when (a) the annual decrease is $2000? (b) the annual decrease is 10%?
- Eng'g Economy: At 8% annual interest compounded quarterly, how long will it take to become a millionaire if you invest your money worth $120,000?10.You now have $20,000 which can be invested at 9% per year. c.If you borrowed that $20,000 to be paid back over13 years at 9%, what are your annual payments? d.How much must you save per year for 13 years at 9% to accumulate $20,000?At 5% interest rate, how much should you invest today to be able to withdraw ₱ 3,199 annually for 7 years?
- 2.d What is the annual interest rate on a $1,000 loan which allinterest is paid at the end of the year, and a total of $1,125 mustbe repaid at the end of the year? include a cash flowFive years ago you invested $18,242. What is the current value of that investment if you use a 5% market interest rate?The present value of a series of $5 at the end of every 5 years, forever, is equal to $20. i. Calculate the effective rate of interest. ii. What is the accumulated value of $9400 invested for 10 years after a 6% discount is paid at the beginning of the investment period? Please i need answer for only subpart ii