Phyllis invested $7,500, a portion earning a simple interest rate of 4 1/5 % per year and the rest earning a rate of 4% per year. After one year the total interest earned on these investments was $312.00. How much money did she invest at each rate? at 4 1/5 % per year $ at 4 % per year $

Phyllis invested $7,500, a portion earning a simple interest rate of 4 1/5 % per year and the rest earning a rate of 4% per year. After one year the total interest earned on these investments was $312.00. How much money did she invest at each rate? at 4 1/5 % per year $ at 4 % per year $

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

See similar textbooks

Related questions

Q: Tyrone invested a sum of money 10 years ago in an account that paid 2.25% per year compounded…

A: Answer - Formula for Future Value Calculation = FV = Principal / ( 1+i ) t Therefore, Formula…

Q: Mrs Smith invests R25 000,00 in an account earning 7,5% interest per year, compounded weekly. After…

A: given. r = 7.5% m=52 ( compounded weekly) pv = 25000 fv = 25000 x 2 = 50,000

Q: Juan invested an amount of $16,000.00 in a mutual fund. After 3 years and 6 months the accumulated…

A: Invested Amount $ 16,000.00 Future Value $…

Q: Jolene invests her savings in two bank accounts, one paying 3 percent and the other paying 11…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Q: Timothy invests $5,000 at 17% interest compounded daily for three years. How much does he have in…

A: Future value = Present value(1 + Rate)^Time

Q: Ms. Walsh invested $35,000 in two accounts. one yielding 8% interest and the other yielding 9%. if…

A: Interest rate in account 1 (r1) = 8% Interest rate in account 2 (r2) = 9% Period (t) = 1 year Total…

Q: Kim Baker invested $250 at the end of every 3-month period, for 5 years, at 8% interest compounded…

A: If money has been deposited in an account at the beginning of every period for a specified duration…

Q: Abigail invested $1,700 at the beginning of every 6 months in an RRSP for 11 years. For the first 7…

Q: Sarah deposited $26,500 into a fund at the beginning of every quarter for 16 years. He then stopped…

A: Compound interest= p*(1+r%/n)^tn A.) Around $358903 stacked up at the end of 16th year.

Q: Zach depsoits a $38,000 one-time lump sum in an account with an APR of 7% that is compounded…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Flo East has $25,000 to invest in a financial institution for a period of three years. Institution A…

A: Explanation : When we are calculating the Compounded Interest calculation Monthly Compounding…

Q: Maya has savings of $50,000. She invests in a bond mutual fund that 4% interest each year. Ignoring…

A: Total savings are the accumulated value of the investment including interest. In case of simple…

Q: Jessica invests $4500 today and another $1,000 a year from now until 5 years. She also increases her…

A: Investment in year 0 = 4500 for 10 years Investment in year 1 = 1000 for 9 years Investment in year…

Q: Morgan opened an RRSP account and deposited $2,800.00 into it. She then deposited $900.00 at the end…

A: Deposit at year-0 = $ 2800 Deposit at year-1 = $ 900 Deposit at year-2 = $ 575 Interest rate = 2.20%…

Q: Jasmine invested a certain amount in a bank compounded semi-anually. The bank told her that the…

A: First we need to calculate the interest rate. Given, Amount will be doubled in 5 years and it is…

Q: April receives $50 every six months in interest income from her bond investment. She paid $900 for…

A: Tax: Tax is a financial charge imposed by the county's government on the income of the person, and…

Q: Yoko invested s4000 in a fund for 2 years and was paid simple interest. The total interest that she…

A: Investment (P) = $4000 Period (T) = 2 Years Interest amount (I) = $400

Q: If Karen placed an amount of 9,700 Php in an investment that pays an interest rate of 12%,…

A: Investment = 9700 Php Interest rate = 12% Compounding = Semi annually Future value = 50,000 Php

Q: Cameron opened an RRSP account and deposited $3,800 into it. He then deposited $800 at the end of…

A: Deposit now = $ 3800 Deposit at the end of year 1 = $ 800 Deposit at the end of year 2 = $ 475…

Q: Mr. Chua invest 45,000 into two different accounts which pay 7% and 8% annual interest. If he earned…

A: solution the rate of interest = 7% and 8% total amount invested =45000 we need to find out the…

Q: Mark and John started investing at the same time. Mark makes payments of $20 at the end of each week…

A: Future value refers to the value of the investment at a future date. This includes the principal…

Q: Cardo invested a certain amount at 20% simple interest per year. After 8 years, the interest she…

A: solution concept under simple interest the interest is calculated on the principal amount only .…

Q: Frank invests $ 4500 dollars into an account earning interest compounded quarterly. After 10 years…

A: given, pv = $4500 fv = $5600 n =10 years m =4 (quarterly compounding)

Q: Stephanie invested $500 at the end of every month in an investment fund that was earning interest at…

A: The accumulated value of any fund is equal to the sum of future value of all the deposits made…

Q: Ryan invests $4400 in two different accounts, the first account paid 8%, the second account paid…

A: The simple interest is calculated by multiplying interest rate by principal amount for a certain…

Q: Brian opened an RRSP account and deposited $3,300 into it. He then deposited $800 at the end of the…

Q: Matthew has $40,000 invested in a checking account paying 3.7% per year and a savings account paying…

A: The actual interest earned by Matthew during the year is equal to $ 40,000 X 5.5 % = $ 2,200. The…

Q: Frank invests $ 2500 dollars into an account earning interest compounded quarterly. After 13 years…

A: Future Value = Present Value * (1+r)^n Where, r =rate per period n = no. of compounding period i.e.…

Q: Phyllis invested $9,000, a portion earning a simple interes

A: Phyllis invested $9,000, a portion earning a simple interest rate of 4.5 1 2 % per year…

Q: Meagan invests $1,200 each year in an IRA for 12 years in an account that earned 5% compounded…

A: The amount deposited each year = $1200 Interest Rate = 5% Compounded annually Years = 12 1st We need…

Q: a has savings of $60,000. She invests in a bond mutual fund that pays nterest each year. Ignoring…

A: As time period goes value of money goes on increasing with time due to the interest rate going on…

Q: Aimee invested part of Php35,000 in a stock paying 9% interest for 2 years and the balance in a…

Q: Bruno deposited $7,500 into an investment account and seven years later, the balance in the account…

A: The rate of return earned on the account can be computed by using the concept of time value of money

Q: Phyllis invested 49000 dollars, a portion earning a simple interest rate of 4 percent per year and…

A: Given, Amount invested is $49000 Interest earned on both the investments is $2320

Q: Lydia bought a rental house for $500,000. She rented it for 5 years at $2,700/month. At the end of…

A: The average annual rate of return is the rate of return an investment generates over its initial…

Q: rest per year, and SOY Rural Bank pays 10% per year. If the total interest earned on the investment…

A: Ryan has invested in two different banks for the gain of interest income. The total investment is…

Q: Stacey deposits $ 4500 at the end of each year for 30 years into an investment fund which pays out…

A: Reinvestment is the practice of using dividends, interest, or any other form of the income…

Q: Sidney makes 10 annual deposits of 5,500 each into an investment account. The interest rate is 6%…

A: Investments are the ways through which money is saved in various financial instruments and accounts…

Q: Judy was givin $3000 to invest that would last 8 years. $1050 earned exponentially at a rate of 3.2%…

Q: Erik invested $575 at the end of every month in an investment fund that was earning interest at a…

A: a. For 6 Months Erik invested $575 every months at rate 4.20% time 6 years therefore this is the…

Q: Melanie invests a total of $7,000 in two accounts paying 6% and 7% annual interest, respectively.…

A: A given sum of money can be invested in various sources to achieve maximum returns.

Q: Jolene invests her savings in two bank accounts, one paying 5 percent and the other paying 11…

A: Present Value: When a predetermined rate of return is applied to a future amount of money or stream…

Q: Alexander invests $5,000 at an interest rate of 1.4% per quarter. How much is the investment worth…

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

Q: Diana invested $1,025 at the end of every month into an investment fund that was earning interest at…

A: Future value of ordinary annuity computes the total amount of periodic payments at a certain time…

Q: Investments Phyllis invested $12,000, a portion earning a sim- ple interest rate of 4% per year and…

A: Return on capital computes how much amount business generates by using funds of capital providers.

Q: Mark invested P 6,000 in an account at 6.2% compounded monthly for 6.75 years. Mark then withdrew…

A: The given problem relates to time value of money. Future value is arrived by compounding present…

Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

100%

at 4 1/5 % per year $

at 4 % per year $

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Formula

VIEW

Step 2 Calculation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Phyllis invested $9,000, a portion earning a simple interest rate of 4 1 2 % per year and the rest earning a rate of 4% per year. After one year the total interest earned on these investments was $400.00. How much money did she invest at each rate?
Ms. Walsh invested $35,000 in two accounts. one yielding 8% interest and the other yielding 9%. if she received a total of $3,000 in interest at the end of the year, how much did she invest in each account? the amount invested at 8% was $ the amount invested at 9% was $
Cardo invested a certain amount at 20% simple interest per year. After 8 years, the interest she received amounted to Php40,000. How much did he invest?
Cody invested the profit of her business in an investment fund that was earning 2.25% compounded monthly. She began withdrawing $5,000 from this fund every 6 months, with the first withdrawal in 4 years. If the money in the fund lasted for the next 3 years, how much money did she initially invest in the fund?
Lisa invested $5000 in a fund for 5 years and was paid simple interest. The total interest that she received on the investment was $1000. As a percentage, what was the annual interest rate of her investment? If necessary, refer to the list of financial formulas.
Abigail invested $1,700 at the beginning of every 6 months in an RRSP for 11 years. For the first 7 years it earned interest at a rate of 3.20% compounded semi-annually and for the next 4 years it earned interest at a rate of 6.50% compounded semi-annually. a. Calculate the accumulated value of his investment after the first 7 years. Round to the nearest cent b. Calculate the accumulated value of his investment at the end of 11 years. Round to the nearest cent c. Calculate the amount of interest earned from the investment. Round to the nearest cent
Monica invested the profit of his business in an investment fund that was earning 2.75% compounded monthly. He began withdrawing $3,500 from this fund every 6 months, with the first withdrawal in 4 years. If the money in the fund lasted for the next 5 years, how much money did he initially invest in the fund?
Bianca invested $2,100 at the beginning of every 6 months in an RRSP for 11 years. For the first 8 years it earned interest at a rate of 4.70% compounded semi-annually and for the next 3 years it earned interest at a rate of 6.40% compounded semi-annually. a. Calculate the accumulated value of his investment at the end of the first 8 years. $63,385.77 $63,822.64 $40,223.97 $41,169.23 b. Calculate the accumulated value of her investment at the end of 11 years. $63,385.77 $63,822.64 $55,258.15 $41,169.23 c. Calculate the amount of interest earned from the investment. $17,622.64 $17,185.77 $16,133.72 $1,488.92
Eric invested $2,000 at the beginning of every 6 months in an RRSP for 11 years. For the first 9 years it earned interest at a rate of 4.40% compounded semi-annually and for the next 2 years it earned interest at a rate of 5.30% compounded semi-annually. a. Calculate the accumulated value of her investment at the end of the first 9 years. $57,787.31 $58,007.88 $43,591.27 $44,550.27 b. Calculate the accumulated value of her investment at the end of 11 years. $57,787.31 $58,007.88 $53,094.50 $44,550.27 c. Calculate the amount of interest earned from the investment. $14,007.88 $13,787.31 $13,463.65 $544.23
Jianne invested Php 50,000 in a friend's business with a definite annual interest rate of 4%. How much is her money's worth after 3 years? what if the interest rate of 4% is compounded quarterly, how much will she get after years?
Carlos invested $1,800 at the beginning of every 6 months in an RRSP for 11 years. For the first 6 years it earned interest at a rate of 3.40% compounded semi-annually and for the next 5 years it earned interest at a rate of 5.50% compounded semi-annually. a. Calculate the accumulated value of his investment after the first 6 years. Round to the nearest cent b. Calculate the accumulated value of his investment at the end of 11 years. Round to the nearest cent c. Calculate the amount of interest earned from the investment. Round to the nearest cent
Mark and John started investing at the same time. Mark makes payments of $20 at the end of each week into an investment that earns 6.25% compounded weekly. John made a single deposit into an investment that earns 6.25% compounded annually. a) At the end of 3 years, what is the future value of Mark's investment? b) John's investment has the same future value as Andy's in 3 years. How much principal did John invest?