Suppose on January 1 you deposit $1000 in an account that pays a nominal, or quoted, interest rate of 12%, with interest added (compounded) daily.  How much will you have in your account on October 1, or 9 months later?

Q: You currently have $4,000 in a bank account that pays a nominal rate of 1%, compounded monthly. You…

A: The interest that is calculated on all the accumulated interest of previous years or months plus…

Q: Suppose you owe $600 on your credit card and are paying 14 percent interest. How much will you save…

A: Monthly saving: It is the amount that we have to save monthly  to repay its credit card bill fully.…

Q: the bingo bank is paying 9% interest compounded monthly .a) if you deposit 1000 at the beginning of…

A: The future value of annuity due is the total future value of each cash flow which is made at the…

Q: How much would you have to deposit at the end of the year in an account that pays an interest rate…

A: Monthly Deposit: It is the deposit made by the person over the period to accumulate a sum of money.…

Q: You take out a 5-year loan of $20,000 from a bank today, where repayments are made at the end of…

A: Given, The loan amount is $20,000 Term of loan is 5 years Nominal rate is 8% compounded monthly.

Q: Assume you graduate from college with $30,000 in student loans. If your interest rate is fixed at…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: You deposit $4,000 today in a bank that promises to pay an annual interest of 8%? a. What is future…

A: (1) (a.) FV =PV*(1+r)^n =4000*(1+8%)^12 =10072.68 (b.) If rate =8% with monthly compounding FV…

Q: Suppose you currently have $20,000 and plan to purchase a 8-year certificate of deposit (CD) that…

A: Using the Future value and NPER function in excel

Q: If you want to earn 3% annual simple interest on an investment, how much should you pay for a note…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Suppose you owe $600 on your credit card and are paying 14 percent interest. If you pay off the debt…

A: Interest is the amount paid for the usage of the principal borrowed.

Q: A down town bank is advertising that if you deposit $1,000 with them, and leave it there for 65…

A: In the given question we requires to calculate the monthly interest rate paid by the bank. Details…

Q: You plan to deposit $4,000 today, $2,000 in one year and $4,000 in two years into an account earning…

A: Here, Deposit Amount  today (D0) is $4,000 Deposit Amount in One Year (D1) is $2,000 Deposit Amount…

Q: Suppose that you borrow $8,000 now, promising to repay the loan principal plus accumulated interest…

A: The future value of an amount is the future worth of an amount calculated based on the time value…

Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…

A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )

Q: You plan to make five deposits of $1,000 each, one every 6 months, with the first paymentbeing made…

A:

Q: If the bank states an effective interest rate of 13.5% per year, and there are 52.15 weeks, how much…

A: Formula for calculating weekly interest rate is:

Q: If the bank is paying 8% interest compounded quarterly, how much must you deposit today in your…

A: The formula to calculate the present value of future cash inflow is C/(1+r)n, where C is the cash…

Q: You want to buy a house, and a local bank will lend you $100,000. The loan will be fully amortized…

A: EAR: EAR stands for Effective Annual Rate, and it is the interest rate. Compounding periods are…

Q: You plan to borrow $10,000 from the bank. For a four-year loan, the bank requires annual end-of-year…

A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: Your goal is to have $15,000 in your bank account by the end of eight years. If the interest rate…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Van Buren Resources Inc. is considering borrowing $100,000 for 202 days from its bank. Van Buren…

A: Given:Borrowing amount=$1000000 for 202 daysPayable amount $3000 of interest at maturityRepaid…

Q: It is now January 1, 2018. You plan to make 5 deposits of $200 each, one every 6 months, with the…

A: Future value is the expected value of an investment at a future date at given rate of return. given:…

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: You must make a payment of $1,668.06 in 10 years. To get the money for this payment, you will make…

A: There will be 5 deposits on: 1. Beginning of Q1 2. Beginning of Q2 3. Beginning of Q3 4. Beginning…

Q: The bank is paying 9% interest compounded quarterly. If you deposit P5,000 at the beginning of each…

A: Interest rate (r) = 9% per annum = 2.25% per quarter Quarterly deposit (Q) = P 5000 n = 10 years =…

Q: Suppose you have $8,675,309 to deposit into a savings account for one year. The bank lets you choose…

A: Here Investor has $8,675,309 to deposit for 1 year @ 12% in two options: Compounded annually…

Q: Niagular Corp. needs to take out a one-year bank loan of $450,000 and has been offered loan terms by…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Assume you make a single deposit of $1000 into a savings account that pays interest at 0.5% per…

A: Monthly compound interest relates to the compounding of interest on a monthly basis, which indicates…

Q: You borrow $10,000 from a bank for three years at an annual interest rate of 12% compounded…

A: Given information : Borrowed amount $10,000 Interest rate 12% Time period (years) 3 Note :…

Q: Suppose you want to have $300,000.00 for retirement in 35 years. You plan to make regular monthly…

A: Future value is the value of the cash flows at the end of certain period. Future value of annuity is…

Q: Suppose an investor plans to make monthly deposits into an account that pays 9% interest, compounded…

A: We will first calculate the amount needed to pay on a monthly basis so we will take the period as…

Q: You agree to make 24 deposits of $500 at the beginning of each month into a bank account. At the end…

A: Data given:: No. of deposits = 24 Amount deposited at the beginning of each month = $500 FV= $12800…

Q: Assume you have secured a loan of $10,000 from a bank  which will be paid in one year. The fin bank…

A: Closing Balnace = Opening Balance + Interest @ 0.31% - Monthly Installments

Q: If you want to earn 3% annual simple interest on an investment, how much should you pay for a note…

A: Interest = Principal * rate * time  Interest =$13500*3%*10/12 Interest = $337.50

Q: 2: An engineer wishes to purchase an $80 ayment of $20 000 and borrowing the remaining $60 000,…

A: In this question payment per month needs to be find out. Loan amount is $60,000 and it is to be paid…

Q: Suppose you deposit $125 on the first of every month for 240 months, and the bank credits interest…

A: The term annuity depicts a stream of equivalent periodic cash flows over a specific time duration.…

Q: You plan to make five deposits of $1000 each, one every 6 months, with the first payment being made…

A: "In case when multiple questions are posted we will answer the first question when no other question…

Q: Suppose that you start a savings account today with $ 265,000.00, from which you will make a single…

A: Since there are multiple questions As per company policy it is only possible to solve  one question.…

Q: Say you barrowed $10,000 from a bank at 12% interest rate per year for a period of 10 years. How…

A: Borrowed amount is $10,000 Interest rate is 12% Time period is 10 years   To Find: Amount after 10…

Q: Assume  you have secured a loan of $10,000 from a bank  which will be paid in one year. The fin bank…

A: A loan is an agreement where an amount is forwarded with the promise to pay it back along with some…

Q: You have maxed out your $10,000 credit card, which is being charged 12.8% annual interest compounded…

A: Calculation of minimum monthly and weekly payments:Answer:The minimum monthly payment and weekly…

Q: Assume you just deposited $1,000 into a bank account. The current real interest rate is 2% and…

A: Given data; Deposit amount = $1000 real interest rate = 2% inflation rate = 6%

Q: Suppose you borrowed $ 15 000 at 8% monthly interest to repay it in monthly installments over 4…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: Suppose you decide to deposit $18,000 in a savings account that pays a nominal rate of 6%, but…

A: In order to take investment decisions, the investor will look forward for evaluation. The evaluation…

Q: a bank will lend a landlord 10,000 TL. The debt has to be paid back in 24 months with monthly…

A: Loan is contract between lender and borrower where lender provide funds to borrower for definite…

Q: We assume that we have a secured a loan of $10,000 from a bank which will be paid in one year. The…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: Suppose that you are about to borrow $10,000 from a bank. Suppose you will be repaying using…

A: Bank charges interest rate when you borrow money and these are to be paid equal annual payment or…