Answered: RM23,500 was invested in a bank for 3…

RM23,500 was invested in a bank for 3 years 7 months. If the interest rate offered was 9.6% compounded every two months,find the accumulated amount at the end of the investment period.(RM33058.46)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

See similar textbooks

Related questions

Q: The amount of interest earned in 11 years on Php 1,000,000 deposited in an account paying 8%…

A: Option A . True Formula : F = P(1+r/n)^nt Where F = Future Value P = Present Value or…

Q: A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded…

A: According to the time value of money principle, the real worth of money differs from time to…

Q: 2.A person got a loan of 200.000 € from Bank A at 12 % annual interest rate. The bond will be repaid…

A: Amortization table: It is the schedule showing repayment of the loan amount that includes principal…

Q: 5. A bank gives a loan to a company to purchase an equipment worth P1,000,000 at an interest rate of…

A: Formula for calculating the installment amount is: EMI formula = [P*r*(1+r)^n]/[(1+r)^n - 1]

Q: You have Php. 100,000 to be deposited in a bank that offers compounding interest of 3%. What is the…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A loan ₱125,000.00 at 8 compounded quarterly was paid back with an amount of ₱176,000.00 at the end…

A: In finance, the term loan represents a financial arrangement between two persons, i.e., lender and…

Q: 1. How long will it take for your P18,000 to be doubled if invested at 3% simple interest? 2. The…

A: Simple interest formula: Amount Received=Principal×1+rate×time

Q: Mr. Dizon borrowed P35,000.00 from the cooperative bank. Find the simple interest if it is to be…

A: Given information Amount borrowed (Principal) =P 35,000 Interest rate= 1.5% per month Period for…

Q: A bank loaned out $30,500, part of it at the rate of 6% annual interest, and the rest at 5% annual…

A: Suppose P be the amount loaned at 6%. Then $30500 - P will be amount loaned at 5% Interest on 6%…

Q: A principal of amount C is invested today. The compound financial law is applied. For the first 5…

A: BECAUSE YOU HAVE POSTED MULTIPLE QUESTIONS, WE WILL ANSWER THE FIRST QUESTION ONLY, FOR THE…

Q: 7. A company borrowed $100,000 from a bank, which charges them an interest rate of 5% per year.…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: (c) A motor vehicle which costs RM20,000 was bought on credit terms, with payment of 10% as deposit…

A: To find the Interest expenses we will use the following formula: Compounded Total Interest = P *…

Q: 1. An investment account was opened with an initial deposit of $9,600 and earns 7.4% interest,…

Q: Mountain Grains Cooperative wants to invest $42,000 in a short-term deposit. The bank offers 1.4%…

A: Future value can be calculated by using present value multiplied by 1 plus interest rate.

Q: Find the compound interest earned if PhP 31,496 is deposited in a bank at 2.6% compounded monthly…

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

Q: Bank 1 is offering interest rate of 8.4% (compounds semiannually) on fixed deposits. Bank 2 is…

A: Given information: Bank 1 offers interest rate of 8.40% (semi-annual) Bank 2 offers interest rate if…

Q: What is the total amount of money to be paid back at the end of 3 years for a loan of 200 000 lira…

A: Using excel FV function

Q: $13,000 was borrowed from two sources, one that charges 20% simple interest and the other that…

A: In the given question the amount is borrowed at two interest rates. As the bifurcation is not known,…

Q: Hanzalah took a loan of RMY from Bank ABC at interest rate of 4.5% compounded monthly.After 10…

A: We need to use compound interest formula to solve this formula A=P(1+i)n Where A=Final payment…

Q: An amount of $3000.00 is deposited in a bank paying an annual interest rate of 5 % compounded daily.…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: Marissa took a loan of RMY from Bank Perpaduan at interest rate of 6.5% compounded every two months.…

A: Following details are given in the question: Future value = RM 8386.65 Interest rate = 6.5% Time…

Q: Calculate the amount obtained for the following loans a) RM 2,500 with interest 7.5% compounded…

A: FUTURE VALUE IS THE VALUE OF PRESENT AMOUNT COMPOUNDED TO FUTURE DATE formula: Fv =PV×1+RMM×N where,…

Q: A person invested two amounts in a bank for a full year at a common interest rate. The total…

A: in this question one has to find the interest of the first amount in numerical terms as well as in…

Q: What is the total amount of money to be paid back at the end of 3 years for the loan of 175 000 lira…

A: Using excel FV function

Q: . Dina placed Php 18,000 in a 240-day term deposit earning 8.5% per annum. How much will the bank…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded…

A: Given Rate = 14%

Q: A company deposits $2.000 In a bank account at the end of every year for 10 years. If the bank pays…

A: The future value of annuity is the accumulated value of regular deposits at a given interest rate.…

Q: If the principal of Php 2,500.00 earns interests of Php 185.00 in 4 years and 8 months, what…

A: Note: Since here nature of interest is not specified, so we are taking it as simple interest and…

Q: f the interest that 6000 TL will bring in 3 months over 21% interest rate is brought by the same…

A: Simple Interest: When at the time of returning the loan to the bank, we have to pay back an amount…

Q: 3. A man deposits P 50000 in a bank account at 6% compounded monthly for 5 years. If the inflation…

A: Data given: Present worth =P= P 50000 Rate of interest = r= 6% compounded monthly. No. of years =n=…

Q: 1. Rahimah made equal payment of RM2,106.71 every two months for 8 years at 6% interest compounded…

A: Loan amount taken by R can be determined by calculating the present value of the equal payments…

Q: An amount of 5 million is placed on deposit from 17 August to 31 December at 6.7%. What would be the…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Pasco Co. borrowed Php20,000 at a rate of 7.25% p.a., simple interest, with interest paid at the end…

A: Interest can be simple or compounded, simple interest is the amount of interest which only calculate…

Q: Bank 1 is offering interest rate of 8.4% (compounds semiannually) on fixed deposits. Beck 2 is…

A: Solution: Investor invested in the bank which is offering highest effective annual rate. Thus, it is…

Q: A man borrowed P18,400.00 from a credit union that charges 8% simple interest for 1 year and 9…

A: Total months = 12 + 9 = 21 months

Q: 20. $1200 is placed in an account at 4% compounded continuously for 2 years. It is then withdrawn…

A: A = P * e^(rt) Where, P = Amount r =rate of interest t = time period

Q: An amount of $3000.00 is deposited in a bank paying an annual interest rate of 5 % compounded daily.…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: What is the total amount of interest/profit share that must be paid back at the end of 7 years for a…

A: Compound interest is concept of interest on interest.the interest is added back onto your principal,…

Q: - What is the total amount of money to be repaid at the end of 10 years for the loan of 175 000 lira…

A: A loan is a fund that is borrowed from financial institutions at a certain rate of interest for a…

Q: A principal of 10,000 is invested at one of the following banks: a) at 4.75% interest, compounded…

A: Compound interest is a process where interest is credited to the existing principal and interest…

Q: How much could be earned in an account by the end of 5 years if $100,000 is deposited and interest…

Q: A company that specializes in odor control made deposits of PhP 10,000 at the end of year 2, PhP…

A: Future value = present value * (1+rate)^time

Q: You put $250 in the bank for 5 years at 12%. If interest is added at the end of the year, complete…

A: Future value = Present value ×(1+pir)^n N = number of periods = 1 year (for first year) Pir =…

Q: How much should be deposited in a bank each year in order to accumulate Rs. 50,000 in 6 years, if…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: an amount of Php 5000 is deposited in a bank at 5% compounded quarterly for 3 years. After 3 years…

A: We need to use compounding interest formula first to calculated amount after 3 years A=P(1+i)n Where…

Q: A.Halep Inc. borrowed $17,128 from Davis Bank and signed a 2-year note payable stating the interest…

A: Annual payment in case of borrowing can be calculated by: = Amount borrowed / Present Value factor…

Q: 4) A person deposits an amount of 10,000 riyals in a bank at a vehicle driving rate of 6% per annum.…

A: Initial deposit (D) = 10000 r = 6% Final value = 12624.7696 Let n = Duration

Q: CTY Inc just made a deposit of $1.5 million in an account expected to earn 10.8% APR compounded…

A: Future Value Future value refers to the value of the investment at a certain point of time in future…

Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

7. RM23,500 was invested in a bank for 3 years 7 months. If the interest rate offered was 9.6% compounded every two months,find the accumulated amount at the end of the investment period.(RM33058.46)

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 2 images

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

You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
suppose that $47,700 is invested in certificate of deposit for 3 years at 6.2% annual interest to be compounded daily. how much interest will this investment earn?
Suppose that Php2,000 is deposited at a compound interest rate of 6% annually. Find the total account value after 12 years
4. RM27,000 was invested for 5 years. The interest rate offered was 6% compounded every 2 months for the first 2 years and 5% compounded monthly for the rest of the period. Find the future value of this investment.(RM35366.95)
4. RM27,000 was invested for 5 years. The interest rate offered was 6% compounded every 2 months for the first 2 years and 5% compounded monthly for the rest of the period.Find the future value of this investment.(RM35366.95)
A bank makes an amortizing loan of $200,000 with a maturity of 8 years and equal payments every year. What is the principal outstanding at the end of year 6 if the interest rate is 6%? A $27,041.78 B $30,384.41 C $59,048.42 D $86,092.20
Suppose you deposited $41,000 in a bank account that pays 5.75% with daily compounding based on a 360-day year. How much would be in the account after 8 months, assuming each month has 30 days? a. $42,598.28 b. $42,571.67 c. $43,426.30 d. $42,793.66 e. $42,602.05
Supposed you deposited rm5000 in a bank account that pays 5.25%with daily compounding based on a 360 day year. How much would be in the account after 8 months, assuming each month has 30 days.
Suppose an investment of $5000 is made every month in an account which pays an interest rate of 6% compounded semi-annually. What is the value of the investment after 5 years. $348,850 $370,543 $450,135 $348,190
Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded annually, how much interest is earned over the first 6 years? If the interest is compounded monthly, how much interest is earned over the first 6 years?
A business loan worth Php 1,000,000 is to be repaid quarterly in 2 years . The interest rate is 10% converted quarterly. a.) How much is the outstanding balance after 1 year? b.) How much are the principal repayment and interest component of the 5th payment?