Method A assumes simple interest over nal fractional periods, while Method B assumes simple discount over nal fractional periods. The annual eective rate of interest is 20%. Find the ratio of the present value of a payment to be made in 1.5 years computed under method A to that computed under Method B

Q: What is the discounted value of ​$899.00 paid at the end of every month for 3 years if interest is…

A: RATE (12%/2) 6% YEARS(7*2) 14 PERIOD PAYMENT  (899*6) 5394 FUTURE VALUE $0

Q: Which of the following has the most effective annual rate of interest?  A. 12.50 % compounded…

A: Effective annual rate (EAR) is the actual rate of interest earned after taking the effect of…

Q: Find the future values of the ordinary annuities at the given annual rate r compounded as indicated.…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: annual, semiannual, and quarterly compunding periods, (1) calculate the future value i f$4000 is…

A: Future value can be computed using FV function in excel. FV function computes interest rate for…

Q: The effective rate of interestis 3.25% per annum. Calculateto 6 sf. (a)The equivalent rate of…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub- parts…

Q: Determine the monthly payment for the installment loan.   Amount Financed​ (P) Annual Percentage…

A: Equated monthly payment It is a monthly fixed payment given by the borrower to the lender on the…

Q: A sum of 45000 invested will provide payments of 500 each at the end of every 2 months for 7 years…

A: Compound interest is interest on interest.  In case of compound interest…

Q: Suppose a borrower makes a $100,000 loan with annual payments at a 10 percent rate and a 10-year…

A: Annuity:   An annuity is the series of payments which is received or paid for a fixed period of…

Q: the interest rate of a certain account ia 6.5%, compute the (a) single payment present worth factor;…

A: In this we have determine the present value factor and future value factor.

Q: the difference between the future values of a deposit accumulated for 15years at a rate of 9.5%…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: Determine the future value of $10,000 under each of the following sets of assumptions: Interest…

A: Future value: It is the value of money or asset for a specific period at a future date based on rate…

Q: For the following annuity due, determine the nominal annual rate of interest. Future Periodic Rent…

A: Solution:- When an equal amount is paid at the beginning of each period, it is called annuity due.…

Q: Using the appropriate interest table, answer the following questions. (Each case is independent of…

A: a. Future value of 20 periodic payments of $4,000 = $4,000 x FVAD (8%, 20) = $4,000 x 49.42292 =…

Q: An amortization of a debt is in a form of a gradient series of ₱5,000 on the first year, ₱4,500 on…

A: In this we have to find out present value and from that we can get required annuity.

Q: What rate compounded quarterly is equivalent to (c) 10% simple interest for two years, and (d) 10%…

A: In this we have to find out annual equivalent  rate compounding quarterly.

Q: Find the future values of the ordinary annuities at the given annual rate r compounded as indicated.…

A: PMT = $340 r = 4.5% Number of compounding per year (m) = 2 Period (n) = 20 Years

Q: Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of…

A: given, A = $2000 n = 3.5 r = 4% pa but it is compounded quarterly therefore, frequency of…

Q: For each of the following situations involving annuities, solve for the unknown. Assume that…

A: Present Value: The present value (PV) of a future amount of money or stream of cash flows is the…

Q: Compounding frequency, time value, and effective annual rates For each of the cases in the following…

A: Following is the answer to the question

Q: If the effective annual interest rate is 12.82% and the nominal annual rate is 12.25%, compounding…

A: Effective Annual Rate = 12.82% Nominal Annual Rate = 12.25%

Q: etermine the simple interest. The rate is an annual rate. Assume 360 days in a year.   p=​$280​,…

A: Simple interest is the type of interest that is calculated on the original amount invested in an…

Q: At an annual effective interest rate of 5%, the present vakue of a perpetuity immediate with…

A: Perpetuity , in finance, would mean a constant flow of similar or identical  amount of cash  for an…

Q: What principal amount is equivalent to a withdrawal of 10,600 on the 2ndyear, 4,000 on the 4thyear,…

A:

Q: An amortization of a debt is in the form of a gradient series of $6,000 in the first year, $5,000 in…

A: When a debt is paid in series of instalments involving principal and interest is called…

Q: iannual, and quarterly compunding periods, (1) calculate the future value i f $10,000 is deposited…

A: Future value can be computed using FV function in excel. FV function computes interest rate for…

Q: Using the appropriate interest table, answer each of the following questions. (Each case is…

A: a. Future Value of $7,000 = $7000*Future value factor (8%, 5 years)…

Q: Assume the following annual payments of notes payable of Demi Company with 10% discount rate. 1st…

A: Time value of money concept says that a sum of money invested today will have more value in future…

Q: Directions: Solve the present value P, and amount F of the following ordinary annuities. Quarterly…

A: Present value = Pmt x [1 - (1 + r)-n]/r

Q: iven an effective annual interest rate of 15%, calculate the prresponding: annual nominal interest…

A: In this we need to calculate effective interest rate with given compounding.

Q: Using the appropriate interest table, compute the present values of the following periodic amounts…

A: a. Present values = Amount receivable at the end of each period for 8 periods x PVIAF (12%, 8) =…

Q: At an annual effective rate of interest i -4%, find the PV of a perpetuity-immediate with annual…

A: If the annual payments are made for indefinite period, it is known as perpetuity. The cash flow of…

Q: Find the effective annual rate of interest equivalent to a nominal rate of interest of 4.8%…

A: The effective annual interest rate is the real return on a savings account or any interest-paying…

Q: What is the present value of $3,950 to be received at the beginning of each of 29 periods,…

A: Present value of money is the value of future money at present. The value of money received in…

Q: Calculate the principal and interest portons of the specified payment for this ordinary annuty, and…

A: An annuity is a contract where a lump sum amount is paid in return for regular payments back at a…

Q: • The force of interest in the first investment is 6%. The effective rate of interest in the second…

A: Given Information: Amount invested is 100 Force of interest in 1st year is 6% EAR in 2nd year is 5%…

Q: Compute the present value of a $5,800 deposit in year 1, and another $5,300 deposit at the end of…

A: Present Value is the Value Currently for the Future deposits or proceeds To Calculate the Present…

Q: Assume that at time 0 a sum L is lent for a series of n yearly payments. The rth payment, of amount…

A: Amount lended or Present value is Leffective annual interest rate is irNumber of payment is r To…

Q: t rate of 14%/year compounded semiannually. calculate effective rate using excel i

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: For each of the following situations involving annuities, solve for the unknown. Assume that…

A: Annuity refers to the amount paid or received on a regular interval. Ordinary annuities are one with…

Q: lculate the present value of the compound interest loan. (Round your answers to the nearest cent.)…

A: In this we have to calculate the present value of loan using given interest rate and compounding.

Q: (Computation of Present Value) Using the appropriate interest table, compute the present values of…

A: Requirement a: Present values = Amount receivable at the end of each period for 8 periods x PVIAF…

Q: Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. p = $340, r =…

A: Simple interest = Principal * Interest rate * Time period

Q: A. Calculate the effective annual rate (EAR) in each of the following scenarios: b. APR = 10%,…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask the…

Q: Find the value of the ordinary annuity at the end of the indicated time period. The payment R,…

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

Q: For each of the following cases, indicate (a) to what rate columns, and (b) to what number of…

A: For 1. Option Rate of interest  number of periods a.  9% 9 b.  2% 20 c.  5% 30