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- 1. What is the present worth of P500 deposited at the end of every 3 months for 6 years if the interest rate is 12% compounded semi-annually? 2. Determine the present value of a perpetuity of P 100,000 payable annually, with the first payment due at the end of 10 years. Money is worth 10%. 3. How much must be deposited at 6% each year beginning on January 1, year 1 in order to accumulate P5,000 on the date of the last deposit, January 1, year 6.A person needs $17,000immediately as a down payment on a new home. Suppose that she can borrow this money from her company credit union. She will be required to repay the loan in equal payments made every six months over the next10 years. The annual interest rate being charged is 13%compounded continuously. What is the amount of each payment? The amount of each payment is $ (Round to the nearest dollar.)Pls solve for the ordinary annuity of the following: Joe deposits $22,000 at the end of each year for 7 years, in an account paying 6 % compounded annually, how much will he have on deposit after 7 years? Ans: $184,664.43 Napoleon deposits $1,200 at the end of each quarter for 10 years, in an account paying 8 % compounded quarterly, how much will he have on deposit after 10 years? Ans: $72,482.38 Jose wants to retire in twenty years and for this purpose he is depositing $200 at the end of each month in a sinking fund that pays 7.2% compounded monthly. If he will be doing this for twenty years, then how much money will be there for him when he retires? Ans: $106,752.47
- To accumulate a fund of P 80,000 at the end of 10 years, a man will make equal annual deposits in the fund at the beginning of each year, How much should he deposit if the fund is invested at 5% compounded annually?7. On his sixth birthday, the boy was left with inheritance. The inheritance will be paid in a lump sum of P 25,000 on his 21st birthday. What is the present value of the inheritance, if it is invested at 6% annually?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?
- A person needs $19,000 immediately as a down payment on a new home. Suppose that she can borrow this money from her company credit union. She will be required to repay the loan in equal payments made every six months over the next 12 years. The annual interest rate being charged is 8% compounded continuously. What is the amount of each payment? The amount of each payment is?Pls solve for the ordinary annuity of the following: Find the amount of payment to be Joe needs to make into a sinking fund every quarter to accumulate $62,000 after 6 years: Knowing that money earns 8 % compounded quarterly. Ans: $2,038.01 Find the amount of payment to be made into a sinking fund to accumulate $75,000 for 4 and half year: money earns 6% compounded semiannually. Ans: $7,382.54 What is the present value of an annuity of $2,000 per year, with the first cash flow received three years from today and the last one received 8 years from today? Use a discount rate of eight percent.Ans: $ 7,926.75! Pls answer all ! bartleby = 3 max questions 1. Compute the interest for an amount of P200,000 for a period of 8 years if was made at 16%compounded every 2 months? 2. Which has the least effective rate of interesta. 11% compounded monthlyb. 11.2 % compounded quarterly 3. Find the nominal rate of 22% compounded every 3 months.
- If you borrow $4,000, what single payment must you make after 5 years to repay the principal and interest at 10%? Alternatively, what uniform annual payment would be required? 2. The interest rate charged on a small loan is 1.5% per month. What are the corresponding 'nominal' and 'effective' rates per annum? 3. Using the interest rate of 3% compounded annually, 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?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).Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,600 is set aside each year and invested in a savings account that pays 10% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 23 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 23. The annuity will extend from the EOY 24 to the EOY 33. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? The accumulated savings amount at the end of 23 years will be $