nt Interest Solve the following. Show solutions. Round off answers up to 2 (two) decimal places. Find the discount interest rate if Php15,000 is the present value of Php20,000 which is due at the end of 7 months. ASAP ONLY ROUND OFF ON FINAL ANSWER. DO NOT ROUND OFF ON SOLVING
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Discount Interest
Solve the following. Show solutions. Round off answers up to 2 (two) decimal places.
Find the discount interest rate if Php15,000 is the present value of Php20,000 which is due at the end of 7 months.
ASAP
ONLY ROUND OFF ON FINAL ANSWER. DO NOT ROUND OFF ON SOLVING
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Solved in 2 steps
- ind the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. An initial $500 compounded for 1 year at 5%. An initial $500 compounded for 2 years at 5%. The present value of $500 due in 1 year at a discount rate of 5%. The present value of $500 due in 2 years at a discount rate of 5%.Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. An initial $500 compounded for 1 year at 9%. $ An initial $500 compounded for 2 years at 9%. $ The present value of $500 due in 1 year at a discount rate of 9%. $ The present value of $500 due in 2 years at a discount rate of 9%. $. Find the present value of Php 20,000 due at the end of 6 months if the discount rate is 5%. What is the discount? 2. If Php 12,000 is due on December 31, 2020, find the present value on June 19, 2020, if the discount rate is 8%. 3. Find the simple discount rate which is equivalent to the simple interest rate 6% in accumulating or discounting money for 8 months.
- Please show working. please answer a, b, c and d Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. a. An initial $300 compounded for 1 year at 7%. b. An initial $300 compounded for 2 years at 7%. c. The present value of $300 due in 1 year at a discount rate of 7%. d. The present value of $300 due in 2 years at a discount rate of 7%.Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. A. An initial $300 compounded for 1 year at 4%. B. An initial $300 compounded for 2 years at 4%. C. The present value of $300 due in 1 year at a discount rate of 4%. D. The present value of $300 due in 2 years at a discount rate of 4%.Find the following valuesusing the equations and then a financial calculator. Compounding/discounting occursannually.a. An initial $600 compounded for 1 year at 6%b. An initial $600 compounded for 2 years at 6%c. The present value of $600 due in 1 year at a discount rate of 6%d. The present value of $600 due in 2 years at a discount rate of 6%
- In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $34,000 and the interest rate is 9.50%, the borrower “pays” 0.0950 × $34,000 = $3,230 immediately, thereby receiving net funds of $30,770 and repaying $34,000 in a year. A. What is the effective interest rate on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) B. What is the effective annual rate on a 1-year loan with an interest rate quoted on a discount basis of 19.50%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)Give typing answer with explanation and conclusion What is the present value of $4,000 that you expect to receive in two years assuming a discount rate of 8%?Find the present value of Php 20,000 due at the end of 6 months if the discount rate is 5%. What is the discount?
- For numbers 1 to 3, calculate the simple interest earned. Round to the nearest centavo.1. P = Php 2,500.00, r = 6%, t = 1 year2. P = Php 9,000.00, r = 5.6%, t = 6 months3. P = Php 22,000.00, r = 7.2 %, t = 120 days4. The simple interest charged on a 60 – day loan of Php 8,400.00 is Php 119. Find the simple interest rate.5. If Php 12,000.00 is deposited for 5 years in an account that earns 9%, calculate the simple interest earnedA bank offers two alternative interest schedules for a savings account of $100,000 locked in for 3 years: (a) a monthly rate of 1% and (b) an annually, continuously compounded rate of 12%. Which alternative should you choose? Hint: convert APR to EAR, then compare the two optionsComputing Future and Present Values When answering the following questions, round your answer to the nearest whole number Do not use a negative sign with your answer. 1. What is the present value of $4,000 to be received after 5 years, discounted at 5%? Answer 2. What is the future value of $8,000 at the end of 4 years, compounded at 6%? Answer 3. What is the present value of equal payments of $14,400 due at the end of each of 8 periods, discounted at 5%? Answer 4. What is the future value of equal payments of $20,000 made at the beginning of each of 5 periods, compounded at 7%? Answer 5. What is the present value of equal payments of $16,000 made at the end of 8 periods, compounded at 6%? The payments are deferred for 3 years.