Q: If an investment of $5,000 is made in an account returning 2% p.a. then how long will it take for…
A: Using excel NPER function
Q: You invested $11,500 at the end of each quarter for 6 years in an investment fund. At the end of…
A: Information Provided: Invested amount = $11,500 Years = 6 Future value of invested amount =…
Q: First City Bank pays 5 percent simple interest on its savings account balances, whereas Second City…
A: simple interest formula: A=p×1+rtwhere,A=amountP=principalr=ratet=time in years compound interest…
Q: Annual investments of $1200 are to be made at a savings and loan institution for 10 years beginning…
A: Annual Savings = 1200 End of year savings Nominal Rate = 5% Quarterly Compounding N = 10 years…
Q: You recently invested $12,000 of your savings in a security issued by a large company. The secu-rity…
A: Given case is: You recently invested $12,000 of your savings in a security issued by a large…
Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…
A: Individuals deposit a sum of money into savings accounts in order to earn interest and accumulate a…
Q: $7000 are invested in a bank account at an interest rate of 5 percent per year. Find the amount in…
A: To find the amount after certain period we have to use the compound interest formula : A = P 1+r100n…
Q: An account pays 4 percent interest (yearly effective). 10,000 dollars is deposited into that account…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…
A: There are various types of Bank Accounts, one of the basic and most commonly used is Saving's…
Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is:
A: Future value = Present value(1 + Rate)^Time
Q: Find the future value of $300 deposited at the beginning of every year, for 15 years if the bank…
A: The series of cash flows discussed here is a form of an annuity due wherein an equal amount is paid…
Q: A company wants to deposit $500,000 per year in an investment which earns interest of10 percent per…
A: The value at the end of the 10 deposit is the future value of the first 10 deposits.
Q: Suppose that you can pay 15,000,000 VND per month for the next 30 years. What is the largest loan…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: 5000 dollars is invested in a bank account at an interest rate of 10 per cent per year, compounded…
A: Companies are usually compute the present value and future value for the purpose of estimating the…
Q: The company sells products to a customer for $60,000 and will receive $15,000 at the end of the…
A: Time value of money is the concept that states that the value of money have more worth than the same…
Q: Sevim wants to create a savings of 95,000 TL at the end of 30 years. For this purpose, it plans to…
A: This question had two parts we had to find future value of both parts.
Q: Your client currently has $7,600 in a 401K investment account. They contribute $200 a month into…
A: Current Value in Account = 7600 Monthly Contribution = 200 Monthly Compounding, Annual Return = 5.3%…
Q: eposit $10,000 into an investment account. You believe that you can reasonably expect a compounding…
A: The more is compounding of interest rate more is the effective interest rate and more is future…
Q: A person wants to make two individual investments, one today and one in six months at a rate of 18%…
A: monthly rate = 18%/12 = 1.5% X * 1.01512 + 5,000,000*1.0156 = 10,000,000 X = 3,791,163.26
Q: 9th deposit is m
A: Given Information: Amount Deposited each year is P10,000 Time period is 9 years Interest rate is 14…
Q: Dhofar Insurance Company has made an investment in another company that will guarantee it a cash…
A: Given: Cash flows = OMR 37,250 Discount rate = 15% Years = 5
Q: If you invest $900 in a bank in which it will earn 8 percent compounded quarterly, how much will it…
A: PV = $ 900; r = 8% compounded quarterly; m = frequency of compounding = 4 (as there are four…
Q: A bank promises to pay an interest rate of 13.9 percent compounded quarterly. What is the effective…
A: Using excel effective rate formula
Q: cashflow diagram.
A: The cash flow statement represents the inflow and outflow of cash from the company in a particular…
Q: A bank pays a stated annual interest rate of 8 percent. What is the effective annual rate using the…
A: We require to compute the Effective annual rate in this question using monthly compounding.
Q: you make 11 semi annual deposits of 550 pesos into a savings account the interest rate is 4.72%…
A: Interest rate=4.72% compounded quarterly Interest rate per quarter=4.72%4=1.18% Interest rate per…
Q: Your bank account compounds interest monthly and has an annual percentage rate of 24 percent. What…
A: When the effects of compounding over time are considered, the effective annual interest rate is the…
Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…
A: The question is based on the concept of Annuity
Q: If an amount of $10,000 is deposited into a savings account at an annual interest rate of 4%,…
A: Here in this question we are required to calculate the compounded interest of investment after 8…
Q: it is desired to save $20,000 by depositing $800 every 3 months in an investment that pays 8%…
A: Annuity means a set of finite number of payments which are the same in size and made in equal…
Q: An investment project has annual cash inflows of $2,800, $3,700, $: for the next four years,…
A: The payback period method is a very important technique used in capital budgeting for assessing…
Q: Suppose that you have opened a saving account with an initial deposit of $10,000. The account offers…
A: Initial deposit (P) = $10000 Final amount needed (F) = $15000 n = 10 years Let the annual interest =…
Q: If 10700 dollars is invested at an interest rate of 5 percent per year, find the value of the…
A: Compounding is a technique through which future amount of present value is calculated by using…
Q: Calculate the future value of an investment of $3,500, after one year, if it is deposited in a…
A: Where, A=future valueP=present valuer=rate of interestn=time period.
Q: How much will be in a high-yield account at the National Bank of Arizona 12 years from now if you…
A: To identify the amount which will be receiving in a high-yield account at the National Bank of…
Q: An investor can invest money with a particular bank and earn a stated interest rate of 15.40%;…
A: Hi there! Thank you for the question. Post has multiple questions. As per company guidelines expert…
Q: If an investment grew to $15,000 in 2 years and the interest amount earned was $1,000, calculate the…
A: Investment means engaging your funds to earn some additional money over the period. interest is a…
Q: What is the accumulated value of periodic deposits of $5,000 made into an investment fund at the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Determine the value at the end of three years of a $10,000 investment (today) in a bank certificate…
A: The formula to calculate future value is given below:
Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…
A: Time value tells that the money received today has more value than that of receiving the same amount…
Q: Suppose you make equal quarterly deposits of $2,500 into a fund that pays interest at a rate of 5%…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: An investment producing cash flows in the amount of $1,200 per month is undertaken for a period of…
A: The equal rate with annual compounding will be the interest rate with 1 compounding period in a year…
Q: Auckland Corporation has borrowed $700,000 from a bank. Auckland will repay the loan in ten annual…
A: Here, Borrowed Amount is $700,000 Annual Instalments is $100,000 Time Period is 10 years
Q: What is the accumulated value of periodic deposits of $3,000 made into an investment fund at the…
A: Information Provided: Periodic payment = $3000 Interest rate = 4.75% compounded semi-annually Years…
Q: An investment is expected to pay a return of $5,250 semi-annually (i.e. at the end of each six…
A: Effective interest rate is the return an investor will earn during the span of their investment…
Q: You have Rs. 9,000 to deposit. ABC Bank offers 12 percent per year compounded monthly, while King…
A: Future Value = Deposit Amount * ( 1 + Peroidic rate )Number of periods
Q: An investment product promises semi-annual cashflows of $3,500 for the next 5 years. If the stated…
A: In this we have to calculate semiannual effective interest rate and than calculate the present value…
Q: A pension fund is making an investment of $100,000 today and expects to receive $1,600 at the end of…
A: The internal rate of return is the rate at which the present value of cash inflows is equals to the…
Q: Bank A offers a nominal annual interest rateof 6.5% compounded daily, while Bank B offerscontinuous…
A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…
Şamilin has a quarterly investment of $ 10000 in the bank with a compound annual interest rate of 12%. Find the effective annual interest rate
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- 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?Standard Chartered Bank Berhad pays 7 percent annual interest on its fixed deposit account, whereas UOB pays the same rate compounded monthly. If you depositedRM5,000 in each bank, identify the total return of investment you will receive at the end of 8 years.A bank offers an investment account that has an annual interst rate of 9.9%, compounded quarterly. At the end of a 132 month year period you'd like to have $50,000 in the account. If you invest 10,000 at the beginning and make regular contributions each quarter, how much total do you need to contribute?
- A bank offers and investment account that has an annual interst rate of 9.9%, compounded quarterly. At the end of a 132 month year period you'd like to have $50,000 in the account. If your investment is made as a lump sum at the beginning how much do you need to contribute?Budweiser has gotten a 90-day bank loan equaling $10,000 with an annual interest rate of 15%, payable at maturity. Assume a 365-day year. How much dollar interest will the firm pay on the 90-day loan?CNB, Inc. will deposit $25,000 into a money market account at the end of each year for the next eight years. How much will accumulate by the end of the eighth and final payment if the account earns 8% interest?
- Suppose you borrow $2,000 from a bank for one year at a stated annual interest rate of 14 percent, with interest prepaid (a discounted loan). Also, assume that the bank requires you to maintain a compensating balance equal to 20 percent of the initial loan value What effective annual interest rate are yo being chargedFind the future value of $300 deposited at the beginning of every year, for 15 years if the bank pays 6% interest compounded annually.Bank A offers a nominal annual interest rateof 6.5% compounded daily, while Bank B offerscontinuous compounding at a 6.25% nominal annualrate. If you deposit $5,000 with each bank, what willbe the difference in the two bank account balancesafter three years?
- A bank promises to quadruple your investment over a period of 15 years based on semi-annual compounding. What is the stated annual interest rate on this investment?I. Suppose that you start a savings account today with $ 265,000.00, from which you will make a single withdrawal for $ 180,000.00 within 15 months. Determine how much money you will have in the account in 3 years if the account pays interest as follows: In the first 6 months at a rate of 5% quarterly compounded continuously; in the next 9 months at an interest rate of 16% per annum compounded quarterly; and in the remaining months at a simple interest rate of 2% effective monthly. Also determine the total interest the account earns during those 2 years. MAKE A CASH FLOW CHART. II.Consider now that the account referred to in Problem I pays effective monthly compound interest at a constant rate from the opening of the account onwards. Then determine the numerical value of the rate that would produce the same effect on the account as that obtained from the way interest is paid in Problem I.If P10,000 is deposited in a bank for 10 yrs at an interest rate of 7% compounded quarterly, determine: a. the total amount at the end of 10th yr; b. yearly increase of the investment; and c. effective rate of interest
