Please provide COMPLETE and CLEAR SOLUTION. 5. If the sum of P12,001 is deposited in an account earning interest at the rate of 9% compounded quarterly, what will it become at the end of 8 years?
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- How much money will you at present time if you deposit P6,640 each for the next 8 years in a savings account that earns 6% compounded quarterly? Please give correct answer.Solve the following, using interest rate at 7% compounded annually: a) What is the amount that will be accumulated in a sinking fund at the end of the 15th year if $200 is deposited in the fund at the beginning of each of the 15 years? b) What uniform annual payment for 30 years is equivalent to spending $10,000 immediately, $11,000 at the end of 10 years, $12,000 at the end of 20 years, and $2,000 a year for 30 years?Assume that $1,000 is deposited today, two years from now, four years fromnow, six years from now, and eight years from now. At 8% interest compounded annually, determine the future value at the end of year 9. (a) $4,174(b)$7,521(c) $2,085(d) $1,895
- A man deposits P 1,000 at the end of each month for 3 years at a nominal rate of 12% compounded monthly. What is the effective interest rate of the given nominal rate? a. 12.68%b. 12.46%c. 12.54%d. 12.75%What single payment at the end of year 5 is equivalent to an equal annual series of payments of $600 beginning at the end of year 3 and ending at the end of year 12? The interest rate is 10% compounded annually.(a) $4,907(b)$6,260(c) $6,762(d)$6,883Indicate whether the given statements is true (T) or false (F): "Suppose that a lump sum of $1,000 is invested at r = 10% for eight years. The future equivalent is greater for daily compounding than it is for continuous compounding".
- Solve the following, using interest at 7% compounded annually: a) What is the amount that will be accumulated in a sinking fund at the end of 15 years if $200 is deposited in the fund at the beginning of each of the 15 years if $200 is deposited in the fund at the beginning of each of the 15 years? b) Uniform deposits are to be made on January 1 of 1991, 1992, 1993, and 1994 into a fund that is intended to provide $1,000 on January 1 of 2005, 2006, and 2007. What must be the size of these deposits?You deposit $100 now, and another $100 at the end of 20 years. The account earns a nominal discount rate of 4% compounded monthly for the first 20 years, and a nominal discount rate of d(52) compounded weekly thereafter. If the account has $700 at the end of 40 years then find this nominal discount rate compounded weekly.You expect to receive the following: $2,784 at the end of each year for 12 years $16,636 today $3,890 at the end of year 6 $1,007 at the end of each year forever $8,847 at the end of 15 years What is the uniform annual payment for the first 12 years equivalent to the above payment scheme, if the interest rate is 8%?
- You borrowed $35,000 to buy a new car from abank at an interest rate of 10.2% compounded monthly.This loan will be repaid in 96 equal monthly installments over eight years. Immediately after the 36thpayment, you desire to pay the remainder of the loanin a single payment. Compute this lump-sum amountYou consider paying equal amounts of money into a bank account at regular intervals for 10 years. As a result of your research, you find out the following payment plans:a. To pay $500 at the end of each month for a period of 10 years with an interest rate 12% compounded monthly.b. To deposit $1500 at the end of every three months with an interest rate of 12% compounded continuously for 10 years.c. To deposit $1000 at the end of every two months with an interest rate 12% compounded quarterly for 10 years.For each of these payment plans, calculate the amount of money that will be accumulated in your account at the end of the 10th year (including the last payment). Which alternative would be more advantageous for you?Cory Manciagli is planning to retire in 20 years. Money can be deposited at 6% compounded quarterly. What quarterly deposit must be made at the end of each quarter until Cory retires so that he can make a withdrawal of $40,000 semiannually over the first 10 years of his retirement? Assume that his first withdrawal occurs at the end of six months after his retirement. (Hint: Apply concept of economic equivalence at the end of 20 years).