Suppose that $12,000 is placed in a bank account at the end of each quarter the future worth at the end of 15 years when the interest rate is 8.5% compou
Q: You want to start saving for your 10 yr old son. If i=6% compounded quarterly, how much would you…
A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…
Q: You are paying $1.000 each month for 12 years with an interest rate of 13% compounded continuously.…
A: here we can find the future value by using the present value which are as follow-
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A: The present value is the current value of the future stream of income. The present value is affected…
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A:
Q: you invest $23,000 at 8% c
A: Given: Present value = $23000 Future value = $72533.36
Q: Find the present value amount that is equivalent to a uniform gradient series in wich the first…
A: In economics, present value refers to the current value of a future stream of cash flows. Future…
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A: We are going to use Future worth to answer this question.
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A: The concept of value of money states that the value of money available at the present time is more…
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A: This question is from engineering economics.
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A: Interest rate is defined as the rate which is paid on the amount of borrowing or buying a fixed…
Q: How much should a family deposit at the end of every 6 months in order to have $2000 at the end of 5…
A: Future value tells us how much will be the worth of the amount deposited/invested today says after n…
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A: Accounting means the calculation of expenses and revenues. It means the revenues are the income…
Q: If you borrow 9000 dolars and agree to repay the loan in six equal annual payments at an interest…
A: In economics, present value refers to the current value of a future stream of cash flow. Future…
Q: John-The-Smart-Investor plans to make uniform deposits every three months into a high yield savings…
A: YTM = 8% = 0.08 Coupon rate = 10% = 0.10 time to maturity of bond, n = 3 years coupon value, C =…
Q: What is the future equivalent of $1,000 invested at 8% simple interest per year of 2.5 years?
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Assume that you want to deposit an amount P into an account 2 years from now in order to be able to…
A: Here we calculate the value of P by calculating the present value and choose the correct option , so…
Q: years that is equivalent to a pa starting with $45,000 at the er year and decreasing by $5,00C 10…
A: *Answer:
Q: The present value of a series of $5 at the end of every 5 years, forever, is equal to $20. i.…
A: The concept used here, provides useful insight to form business expectations and to calculate gains…
Q: 19. Each year a single payment of P5000 is deposited in an account that earns 16% compounded…
A:
Q: Suppose that the parents of a young child decide to make annual deposits into a saving account, with…
A: To Solving this Problem we Required the following formula A1N (p/f,i%,1)
Q: have selected an account that yields 4.87% compounded every tl 4,125,000 that you have saved while…
A: *Answer: Nominal interest rate = 4.87% Interest rate per quarter = 4.87%/4 = 1.2175% Effective…
Q: Suppose you have a vehicle, the 1st year maintenance cost is estimated to be $100. The rate of…
A: the value in the presence of a sum of money, in contrast to some future value it will have when it…
Q: At 3% interest rate, how much should you invest today to be able to withdraw P4,162 annually for 7…
A:
Q: If the interest rate of a certain account is 6.5%, compute the (a) single payment present worth…
A: Present Worth represents the value of a future sum of money in present terms . Single payment…
Q: You owe $120,000 from your ex-girlfriend and promise to pay 6% simple interest. How much will you…
A: Given, principal = $120,000 Interest = 6% Time = 1 year 6 months = 18 months Simple interest =…
Q: At a certain interest rate compounded quarterly, PT a. What is the nominal interest? b. What is the…
A: The nominal interest rate refers to the rate of interest that has not been adjusted for inflation.…
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A: a) The successful interest rate aims to absorb the entire cost of borrowing. It accounts for…
Q: A student has money given by his grandfather in the amount of P20,000.00. How much money in the form…
A: Given information: Present Value (PV)= P20,000.00 Interest rate (r)= 8% Time period (t)=7 years.…
Q: Example: Suppose $1500 is deposited at the end of each year for the next 6 years in an account…
A: The amount of annuity (A) = $1500 Total number of years (n) = 6 Interest rate ( r ) = 8%
Q: Calculate, to the nearest cent, the present value of an investment that will be worth $1,000 at the…
A:
Q: What is the future worth of these payments for 16 years if interest is 9% in the first year and…
A: The future value if the compounding is done annually is: FV = P (1 + R)t R : Interest rate PA…
Q: Many persons prepare for retirement by making monthly contributions to a savings program. Suppose…
A: Monthly contribution = $2000 Interest rate = 10% per year Time period = 30 years
Q: 5. Find the present worth of all the cash disbursements using gradient interest formulas if money is…
A: Present value of year 1 cashflow = amount / (1 + rate %)^1 = 5000 / 1.15 = 4347.83 $ Present value…
Q: An advertisement of an investment firm states that if you Invest ₱600 In their firm today you will…
A: a) Compounded quarterly: Let r be the rate of quarterly interest rate Number of periods N=4*4.5=18…
Q: A man wishes his son to receive P250,000 ten years from now. What amount should he invest if it will…
A: The present worth technique is very famous in industry since every single future expense and incomes…
Q: What is the difference between the present worth of annuity due and ordinary annuity having the…
A: In ordinary annuity payments (regular) are done at the end of each interval. On the other hand, in…
Q: Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of…
A: Given: A=R 2500 Number of deposits (n)=10 Rate of interest (r)=9%
Q: Suppose that $12,000 is placed in a bankaccount at the end of each quarter over the next 15years.…
A: A. Future value when compounded quarterly=A1+rn-1rInterest rate,…
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A: Given: The amount of initial investment is = $750 Years = 3 The maturity amount is = $1,000 To Find:…
Q: 29. If money is worth 5% compounded semi-annually, find the, present value of a sequence of 12…
A:
Q: 2-Given a nominal rate of a 30%, what is the effective annual interest rate if the interest is…
A: The Effective Annual Interest Rate is an important concept that describes the true interest rate…
Q: 10. Barbara decides to buy a house for $450,000. She makes a down payment of $40,000 at the time of…
A: here we calculate the monthly payment of the given by following given below as
Q: If you obtain a loan o P 1,000,000.00 at the rate of 12% compounded annually in order to build a…
A: Given, P- 1 M R- 12% N- 10 Years
Q: 1. A future amount F, is equivalent to $ 1,500.00 now when six years, separate the amounts and the…
A: To find the future value, we use the formula for compound interest with present value equal to 1500
Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for four…
A: We are going to use Present value of money approach to answer this question.
Q: 4. The present value of an annuity of "P" pesos payable annually for 8 years, with the first payment…
A: Given:- Money worth=5% Present value of annuity=P187,481.25 Payable annually=8 years First payment=…
Q: John is planning to retire in 15 years. Money can be deposited at 8% compounded quarterly. What…
A: Semiannually Withdrawal = 25,940 Interest rate = 8% compound quarterly
Q: You have P10,000 and wish to receive an annual annuity for 10 years. The annual interest rate is 8%…
A: Given information, Present value (P): P10,000 Interest rate (i): 8% Time period (N): 10 years To…
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A: When comparing financial products, the annual interest rate, also known as the standard annual…
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- You are making semiannual deposits into a fund that pays interest at rate of9% compounded continuously. What is the effective semiannual interest rate?(a) 4.000%(b) 4.708%(c) 4.164%(d)4.175%A company has issued a 20 year bonds, with a face value of $50,000 interest at 8% is paid quarterly. If an investor desires to earn 12% compounded quarterly, what would be the purchase price of the bond? $12, 654.40 $42, 563 $35, 062.60 $ 34, 900.80Solve 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?
- Suppose a man purchases a luxury car with an initial down payment of $20,000 and then makes quarterly payments: $2000 at the each of each quarter for six years and $3500 at the end of each quarter for eight more years. Given an interest rate of 6% compounded quarterly, find the present value of the payments and the list price of the luxury car.How long will it take any sum to double itself with an 11% interest rate compounded continuously? a) 4.8 years b) 6.3 years c) 5.2 years d) 3.4 yearsToday, you invest ₱100,000 into a fund that pays 25% interest compounded annually. Three years later, you borrow ₱50,000 from a bank at 20% annual interest and invest in the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal you start taking ₱20,000 per year out of the fund. After five withdrawals, you withdraw the balance in the fund. How much was withdrawn? Note: Draw the cashflow diagram
- Today, you invest ₱100,000 into a fund that pays 25% interest compounded annually. Three years later, you borrow ₱50,000 from a bank at 20% annual interest and invest in the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal you start taking ₱20,000 per year out of the fund. After five withdrawals, you withdraw the balance in the fund. How much was withdrawn? Note: Draw the cashflow diagram and solve using the formula of annuitiesThe price of a new car is $20,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7%/ year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 36 months? Over a period of 60 months? 36 months $ 60 months $ (b) What will the interest charges be if she elects the 36-month plan? The 60-month plan? 36-month plan $ 60-month plan $You are buying a home for $500,000. If you make a down payment of $80,000and take out a mortgage on the rest at 10% compounded monthly, what will be your monthly payment if the mortgage is to be paid off in 12 years?
- 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?Suppose P100, 000 is deposited in an account that earns 8% compound interest that is compounded semi-annually. In how many years will the initial investment triple? a.13.01 years b.14.01 years c.14 years d.13 years As advised by your financial adviser, you started to save P15,000 and deposited it every in the beginning of each month in a bank with 6% interest compounded annually, How much is the total amount after 8 years? (Hint: Future Value of General Annuity Due) a. 4,935,561.09 b. 3,495,561.09 c. 5,493,561.09 d. 9,435,561.09Calculate the price of a zero-coupon bond that matures in 20 years if the market interest rate is 3.8 percent. Assume semiannual compounding. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
