Present value. A promissory note will pay $25,000 at maturity 8 years from now. How much should you be willing to pay for the note now if money is worth 6.5% compounded continuously? (Round to the nearest dollar.)

Q: Suppose an investment account is opened with an intial deposit of $12,000 earning 8.7% interest.…

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Q: To the nearest penny, how much would you have to invest right now in a fund paying 5% continuously…

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Q: 1. (a) If $4500 is put in the bank today at 1.5% interest compounded continuously, how much will the…

A: (a) To find: The amount after 3 years. Given information: The invested amount is $54000 and rate of…

Q: Question 19. Find the balance on an account if you invest $ 407 at 3.9 % for 13 years compounded…

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Q: An investment of $41,800 earns 5.1% annual interest, compounded continuously. If no funds are added…

A: The principal amount = P = $41800 Rate = r = 5.1% compounded continuously Time = t = 20 years

Q: Find the present value of a $50, 000 annual income stream if it is invested immediately as it is…

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Q: If $400 is invested at an interest rate of 5% per year, compounded quarterly, find the value of the…

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Q: When your first child is born, you begin to save for college by depositing $500 per month in an…

A: Given: Amount deposited per month is $500. Thus, the amount deposited per year is $500×12=$6000. The…

Q: Parents of a newborn baby are given a gift of $16,000 and will choose between two options to invest…

A: P=$16000 time t= 18 years for Option 1, r=5% compounded monthly for Option 2, r=3.75% compounded…

Q: An investor deposits $5,000 into an account that pays 4% compounded continuously, and then deposits…

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Q: For the 2009 fiscal year, Lowe's Companies, Inc. reported an annual net income of $48,230,000.…

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Q: An investment of $3,700.00 earns 19.7% annual interest, compounded continuously. If no funds are…

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Q: An investment of $82,200 earns 3.3% annual interest, compounded continuously. If no funds are added…

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Q: If 1700 dollars is invested in an account for 10 years. Find the value of the investment at the end…

A: When a principal amount of $P is invested for time t years at an interest of r% per annum compounded…

Q: A2. (a) (i) Find the future value of £2000 when it grows at an annually compounded rate of 5% for 10…

A: To find the future value of £2000 when it grows at an annually compounded rate of 5% for 10 years.…

Q: Which Investment would be worth more after 20 years?  An initial investment $3000 compounded annualy…

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Q: If $2000 is invested at an interest rate of 4.5% per year, compounded daily, find the value of the…

A: Given that the initial investment = P = $2000 Interest rate=r= 4.5%= 0.045  Number of times…

Q: An investment of $24,400.00 earns 12.8% annual interest, compounded continuously. If no funds are…

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Q: 58) Ben Franklin bequeathed $4000.00 to the city of Boston in 1790. Assuming the fund grew to $15…

A: Given data is : Principal P=$4000Amount A=$15 million=$15×106Time t=200 years Let the amount of…

Q: If $10,000 is invested at an interest rate of 2% per year, compounded semiannually, find the value…

A: Topic- compound interest

Q: Question 1 of 14 If an investment grew to $13,000 in 3 years and the interest amount earned was…

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Q: If 1800 dollars is invested in an account for 10 years. Find the value of the investment at the end…

A: To find the future value of the investment compounded annually, substitute 1800 for P, 0.05 for r, 1…

Q: 6. Suppose you want to have $12,450 in an account 16 years from now, and the APR is 2.3%. (a) If…

A: A=$12450 r=2.3% =0.023 t=16 years  n=4 (quarterly ) A=P(1+r/n)^(n*t)

Q: At age 35, Ronald earns his MBA and accepts a position as a vice president of an asphalt company.…

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Q: For the 2009 fiscal year, Lowe's Companies, Inc. reported an annual net income of $48,230,000.…

A: Solution: a) Constant investment of  $48,230,000 each year indicates constant flow with constant…

Q: Question 3 Nkechi has $8,000 that she wants to invest. Her bank has several investment accounts to…

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Q: If $3500 is invested at an interest rate of 6.25% per year, compounded continuously, find the value…

A: A=P ertP is the invested amount.A is the amount after t years

Q: 3. In how many months will money become three times itself at 9% compounded semiannually? Solution:…

A: Solution :  Let  P be the principal amount  Interest rate r=9 %=9100=0.09  Compounded semiannually…

Q: Questlon 1 Given an interest rate of 7.2% per year, compounded continuously. What is the quarterly…

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Q: If $20,000 is invested at an interest rate of 2% per year, compounded semiannually, find the value…

A: Here the given  Principle amount P=$20,000 And the interest rate r=2%=0.02 and n=number of…

Q: If $175,000 is invested at a rate of 8%per year compounded continuously, find value of the…

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Q: An employee wants to invest ​$50,000 in a pension plan. One investment offers 6​% compounded…

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Q: If $10,000 is invested at an interest rate of 3% per year, compounded semiannually, find the value…

A: If $10,000 is invested at an interest rate of 3% per year, compoundedsemiannually.Our Aim is to find…

Q: If $10,000 is invested at an interest rate of 2% per year, compounded semiannually, find the value…

A: Principal amount, P = $10,000 Rate of interest, r = 2%                              = 2100  = 0.02…

Q: Upon the death of his aunt, Lucien receives an inheritance of $40,000, which he invests for 13 years…

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Q: If you need to have at least $50,000 in 10 years, what is the smallest amount you need to deposit in…

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Q: An investment of $1,000.00 earns 1.2% annual interest, compounded continuously. If no funds are…

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Q: Question 3 of 6 What monthly compounding nominal interest rate is earned on an investment that…

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Q: If $2000 is invested at an interest rate of 3.5% per year, compounded continuously, find the value…

A: Given: If $2000 is invested at an interest rate of 3.5% per year, compounded continuously. To Find:…

Q: What is the future value after 18 years if you deposit $1,000 for your child's education and the…

A: The principal amount deposited is $1000. The number of years the amount is deposited for is 18…

Q: a Credit How much should be invested now at an interest rate of 3% per year, compounded…

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Q: Having received a large inheritance, a child's parents wish to establish a trust for the child's…

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Q: Find the present value of a $8,000 annual income stream if it is invested immediately as it is…

A: Compound continuously A=Pe^(rt)

Q: When your first child is born, you begin to save for college by depositing $400 per month in an…

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Q: Recently, a certain bank offered a 10-year CD that earns 11.2% compounded continuously. Use the…

A: Given the following : Compounding interest on CD (r) = 11.2%=11.2100=0.112 Period (t) = 10 years

Q: Find the present value of a $3, 000 annual income stream if it is invested immediately as it is…

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Q: Question 3 is compounded quarterly. How much money is in the fund after We invest $7 into a fund…

A: This problem can be solved using compound interest formula.

Q: An investment of $98,200.00 earns 14.1% annual interest, compounded continuously. If no funds are…

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Q: QUESTION 5 How much will you need to save per quarter to have $54,000 after 13 years, if your…

A: here we use compound interest formula 54000 = P(1+13/400)13*4 54000 = P(1+0.0325)52 54000 =…

Q: Someone invests a constant stream of $25,000 per year at a continuously compounding interest rate of…

A: Annuity, A= a constant stream of $25,000 per yearInterest rate, r = continuously compounding…