Money borrowed today is to be paid in 9 equal payments at the beginning of each quarter. If the interest is 2% compounded quarterly, how much was initially borrowed if quarterly payment is P 20,160 if payments are done every beginning of the month?

Q: Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded…

A: FV=PV×1+Rmm×n where, FV = FUTURE VALUE PV= PRESENT VALUE R = RATE/ APR m= NO OF COUMPOUNDING IN A…

Q: A decreasing annuity account pays 35% interest rate, compounded quarterly. Withdrawals of $200 per…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: If $450 is deposited at the end of each quarter into an account paying 10% compounded quarterly, how…

A: The question is based on the concept of Annuity.

Q: If $3500 is deposited at the end of each quarter in an account that earns 7% compounded quarterly,…

A: Future value of annuity is: = P * ([1 + I]^N - 1 )/I, where P is annuity amount. I is equal to the…

Q: Determine the periodic paymen $80,000 borrowed at 8% for 9 years, with monthly payments PMT = $

A: PMT can be calculated by using this formula PMT =PV*i1-1(1+i)n Where PV =Loan amount            i=…

Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals when a first…

A: The flow of payments which are made at regular interval of time are termed as annuity when amount is…

Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for four…

A: Annual interest rate = 8% Number of compounding per year = 6 Effective annual rate = (1+0.08/6)6-1…

Q: A $183900 Ioan is repaid by 23 payments of $2500 each at the end of quarter, followed by 29 payments…

A: Loan is contract between lender & borrower where lender provide funds to borrower for definite…

Q: A loan is released today to be paid in 6 equal payments at the end of 6 quarters. If the interest is…

A: The loan is the amount that a borrower receives from the lender and pays it back in future along…

Q: Deposits of $93.00 are made at the end of every month for 2.5 years. What will the deposits amount…

A: The given problem can be solved using FV function in excel. FV function computes future value for…

Q: Suppose a bank offer a loan for 2 years with fixed interest rate 9% per year compounded daily.…

A: Effective annual interest rate(EAR) refers to the actual interest rate which is received on deposits…

Q: If a loan is made at 9.24% compounded quarterly, what loan today could be paid off by making 45…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is…

A: Here, Quarterly Payment is P2,000 Interest Rate is 12% Compounding Period is Quarterly i.e. 4 Time…

Q: Beautinator Cosmetics borrowed $152,300 from a bank for three years. If the quoted rate (APR) is…

A: Answer: Calculation of the effective annual rate (EAR): Formula of effective annual rate: EAR = (1+…

Q: Money borrowed today is to be paid in 6 equal payments at the end of six quarters. If the interest…

A: P =A[(1 + i)n- 1 ]/(1 + i)ni   Wherein   i Means Rate of Interest A Means Annuity Payment N means…

Q: $20,000 loan is being repaid by installments of $400 at the end of each month for as long as…

A: Amortization schedule is a table in which period payment or installment paid and the amount of loan…

Q: Money borrowed today is to be paid in 7 equal payments at the end of each quarter. If the interest…

A: A financial measurement that calculates the worth of a potential sum of money or stream of payments…

Q: Commercial bank pays 12% interest and compounds quarterly. If 1000 are initially, how much shall it…

A: Computation:

Q: If a sum of $3000 is borrowed for six months at 9 percent simple interest per year, what is the…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: compute the nominal quarterly interest rate at wich payments of $250 made at the end of each quarter…

A: in this problem we have to calculate future value FACTOR and from that we can get quarterly interest…

Q: If you borrow $5000 that you agree to repay in 8 equal quarterly payments at 2.8% interest per…

A: given, Principal = $5000 r=2.8% per quarter number of quarter = 8

Q: Money borrowed today is to be paid in 8 equal payments at the end of each quarter. If the interest…

A: Quarterly payment (Q) = P 37291 n = 8 payments r = 1% per annum = 0.25% quarterly

Q: What is the discounted value of ​$844 paid at the end of every three months for 10 years if…

A: Computation:

Q: If $2500 is deposited at the end of each quarter in an account that earns 5% compounded quarterly,…

A: Annuity is a stream of recurring cashflow at regular interval for fixed period at specific rate.…

Q: How much must be deposited at the beginning of each quarter in an account that pays 5% compounded…

A: In this question payment per quarter has to be find out. Future value , rate of return and number of…

Q: Velma deposits $2,534 at the end of each quarter, increasing the deposit by $147 per quarter. How…

A: The timing of cash flow is taken into account by discounting them. This is partly due to the effect…

Q: If $5500 is deposited at the end of each quarter in an account that earns 7% compounded quarterly,…

A: Given data; deposit amount = $5500 rate of interest = 7% Future value of annuity = $90,000

Q: Saud borrowed $90,000 now. He will pay off the loan with 10 equal quarterly payments. The first…

A: To find the quarterly payment one can apply the formula in excel called PMT which calculates the…

Q: A car valued at $11,400 can be purchased for 10% down and end-of-month payments of $286.21 for…

A: The nominal interest rate, also known as an Annualized Percentage Rate or APR, is calculated by…

Q: Suppose 500$ is initially placed in savings account and 500$ is deposited at the end of every month…

A: Future Value of Cash Flow = Amount Invested * ( 1+r)n Where r is Rate of Interest and n is period…

Q: Money borrowed today is to be paid in 13 equal payments at the beginning of each quarter. If the…

A: in this we have to find out present value FACTOR and than find out present value.

Q: Suppose an investor plans to make monthly deposits into an account that pays 9% interest, compounded…

A: We will first calculate the amount needed to pay on a monthly basis so we will take the period as…

Q: An air conditioner is for sale at P20,000 in cash or on terms, P1,650 each month for the next 18…

A: Given,  The sale price is P20,000. Payment is P1650 for each month is 6% compounded monthly Number…

Q: How many months will it take to pay off a $705 debt, with monthly payments of $25 at the end of each…

A: EMI (EQUATED MONTHLY INSTALLMENT)- It is a fixed payment made by a borrowing party to the lending…

Q: A loan of $14,400 is to be repaid in end-of-the-quarter payments of $600. How many payments are…

A: Using excel NPER function  =NPER(rate,pmt,pv,fv)

Q: How much must be deposited at the beginning of each month in an account that pays 6% compounded…

A: Monthly rate = 6%/12 = 0.5% Number of periods = 7*12 = 84 Future value required is $31,000 Find…

Q: What cash payment is equivalent to making payments of ​$944.00 at the end of every six months for 9…

A: We need to use present value of annuity formula to calculate cash payment Cash payment(PV)…

Q: suppose that $6,300 is invested at 3.1% annual intrest rate, componded monthly. how much money will…

A: Future Value(FV) is value of current amount at future date. It is computed by compounding that…

Q: You currently have $20,000 in the bank.  The monthly interest rate is 0.5%.  What equal amount could…

A: In this we have to calculate the present value FACTOR monthly and from that we can get monthly…

Q: A mortgage that was originally $20,000 is being paid off in regular quarterly payments of $500. The…

A: Mortgage Amount = 20,000 Interest Rate = 8%/4 = 2% per quarter Quarterly Payment = 500 Principal…

Q: Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: What quarterly compounded nominal interest rate is earned on payments of $215 paid at the beginning…

A: An annuity is a payment plan where a fixed recurring amount is paid in return for a lump sum amount.…

Q: Merchandise is received for $25,000 now and $50,000 in 6 months. If $10,000 is paid within a month,…

A: Solution:- Balance due in three months means the value outstanding at third period.

Q: MONEY BORROWED TODAY IS TO BE PAID IN 6 EQUAL PAYMENTS AT THE END OF 6 QUARTERS. IF THE INTEREST IS…

A: Borrowing is defined as the term, which used to allow the person to spread their funds around with…

Q: What is the nominal annual rate of interest compounded quarterly if a loan of $22,500 is repaid in…

A: The nominal interest rate is the stated interest rate. The nominal interest rate doesn't consider…

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.