t is desired to have P100,000 two ye- m now by depositing P20,000 now a form monthly amounts, the first of v made one year from now. What wou nthly amount be if interest rate is 12 mPOynded monthly?
Q: You are paying $1,500 monthly for 10 years with an the interest rate of 12% compounded continuously,…
A: Future Value Annuity amount (PMT)= $1,500 monthly= $18,000 yearly Time period (n)= 10 years Interest…
Q: How much would you need to deposit in an account now in order to have $3,500.00 in the account in 20…
A: a. Future value = Amount + (Amount*Rate*Periods) $3,500 = Amount + (Amount *8.35%*20) $3,500 =…
Q: Ms. Aay is considering to deposit $500 every six months, and would receive interest at an annual…
A: Semi annual deposit (P) = $ 500 Annual interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%…
Q: Assuming you bought a 182-day Treasury Bill with a face value Ghc 20,000.00 and held it for 45days.…
A: Purchase price = Face value/(1+interest rate*days to maturity/360) Accrued interest = Purchase…
Q: Your broker is offering 1.2 percent compounded daily on its money market account. If you deposit…
A: A study that proves that the 1value of money today is higher than the future value of money is term…
Q: what rate compounded continuous would you earn?
A: Future Value: It represents the future worth of the current sum of amount and is estimated by…
Q: How much would you have to deposit at the end of the year in an account that pays an interest rate…
A: Information Provided: Term = 15 years Future value = $20,000 Interest rate = 7.6% compounded monthly
Q: heds R Us sells $900 sheds on a monthly payment plan over 4 years. a. If the interest rate is 2% per…
A: Given information: Present Value : $900 Time period : 4 years The monthly payment can be computed in…
Q: You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with…
A: loan amount (p)=$10,000 n=11 payment m=4 pmt=$360.02 r=5.9%
Q: You are considering taking out a loan of 20,000 that will be paid back over 7 years with monthly…
A: Interest amount decreases and the principal paid amount increase as loan payments proceed further.
Q: If you borrow $5000 at an APR of r (as a decimal) from a lending institution that compounds interest…
A: Interest rate is the proportion of amount loaned on which a lender charger as interest to the…
Q: If 5000 TL installments are deposited at the end of each year with 3% interest rate in order to save…
A: The number of installments can be calculated with the help of NPER function of Excel
Q: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…
A: Number of period is 4 (2 x 2).
Q: A lending company advertises that for a fee of P10, you can immediately borrow up to P200 for one…
A: Annual rate of return = (Monthly fee / Amount Borrowed) * 12 Amount Borrowed = P200 Monthly Fee =…
Q: You are buying a house for $130,000.00 with a downpayment of $26,000.00. The loan will be paid back…
A: Concluding payment is calculated as under-
Q: Assume you make a deposit of $7,500 now into a saving account that pays 12% per year, compounded…
A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…
Q: You are considering taking out a loan of $15,000.00 that will be paid back ove payments of $224.20.…
A: In this problem we have to calculate unpaid monthly instalments and calculate present value of that.
Q: You deposit $4700 in an account earning 3% interest compounded continuously. How much will you have…
A: Future Value Future value refers to the value of the investment at a certain point in time in the…
Q: Jay Jenkins takes out a 10.5% simple interest loan today that will be repaid in six months from now…
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…
Q: MA1C МАЗА A credit card charges 18% interest per year, compounded monthly. How much interest is…
A: A compounding of interest refers to the cycle after which the interest on interest (earned during…
Q: A loan should be fully repaid in 30 monthly installments of Rp3.750.000. If the loan is…
A: Flat interest rate is simple interest rate without considering the impact of the compounding and…
Q: How much money would you have to deposit for 20 consecutive periods starting 1 year from now if you…
A: N = 20 semi annual periods (10 years) Future Value Required = 250,000 Nominal Rate = 12% Quarterly…
Q: Assume you make monthly deposits of $200 starting 1 month from now into an account that pays 6% per…
A: The interest rate is compounded semi-annually which means the interest rate will be 3% (6%/2) for…
Q: Today you deposit $1000 into a new investment account. You make the same deposit one month later,…
A: Correct answer 4th option, 0.500%.
Q: Assume you make monthly deposits of $3,000 now into an account that pays 12% per year, compounded…
A: Since you have asked multiple questions, we will solve the first question for you. Please ask the…
Q: A company wants to have $20,000 at the beginning of each 6-month period for the next 4years. If an…
A: Present value of annuity concept is required to use in this case. Present value of annuity is the…
Q: If you take out a bank loan of $11500 now, what will the monthly payment be if you have to repay the…
A: Loan Amount = $11,500 Time Period = 5 Years Interest Rate = 9% compounded monthly
Q: You borrow $5000 now and agree to pay this whole amount back in three payments: Payment 1. $X in 3…
A: Amount borrowed (B) = $5000 P1 = X in 3 months P2 = 2X in 7 months P3 = 2X in 12 months
Q: Assume you make monthly deposits of $3,000 now into an account that pays 12% per year, compounded…
A: the quoted interest rate is always annual interest rate. depending on the compounding frequency, we…
Q: you wish to receive incresing quater-end payments with 3.7% growth -rate quater for the next 3…
A: Quarter End Payments First Quarterly Payment = 540 Time Period = 3 years * 4 = 12 quarters or 36…
Q: suppose you obtain a $3000 t-note with a 3% annual rate, paid quarterly, wiht maturityin 5 years.…
A: For t-note interest paid is simple interest . Therefore, interest can be calculated using the…
Q: If you would like to have $ 10,000 after 8 years, how much money should you deposit now if the…
A: Given:
Q: How long (in years) will it take to repay a $100,000 loạn taken out today at 7% compounded monthly,…
A: The time value of money is the one widely used by companies and individuals to determine the current…
Q: A 30 year mortgage for $100,000 has been issued. The interet rate is 10% and payments are made…
A: Mortgage Amount = $100,000 Interest rate = 10% Nominal interest rate = 12% Inflation rates are 0%,…
Q: 2. It is desired to have P200,000 two years from now by depositing an initial amount P, plus P50,00…
A: Future value = P 200,000 Annual interest rate = 12% Monthly interest rate = 12%/12 = 1% Deposit…
Q: You have borrowed $60,000 from al interest rate of 12% per year, compou monthly. You are to repay…
A: In this we need to calculate present value factor monthly and find out monthly payment.
Q: If you deposit $5,000 4 years from today, how much will you be able to withdraw 10 years from today…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: How much money would you have to deposit for five consecutive years starting one year from now if…
A: Future value (FV) = P 50,000 Interest rate (r) = 14% Number of annual deposit (n) = 5 Period after…
Q: How much do you have to deposit today so that beginning 14 years from now you can withdraw 15,000 a…
A: An annuity due is a sequence of periodic cash flows starting at the beginning of the first period.…
Q: You are considering taking out a loan of $10,000.00 that will be paid back over 12 years with…
A: We need to use loan amortisation formula to calculate unpaid balance of loan Unpaid balance(P)…
Q: Assume that you take out a $2000 loan for 30 months at 9% APR. What is them onthly paym ent? (Round…
A: The present value of all the monthly payments discounted at the interest rate charged under the loan…
Q: You owe $100,000. You plan to make monthly payments of $1000. If the interest rate is 6% monthly,…
A: Amount owe = $100,000 Monthly Payment(P) = $1000 Interest rate(n) = 6%/10 = 0.50% Let number of…
Q: You borrow $5000 now and agree to pay this whole amount back in three payments: Payment 1. SX in 3…
A: The value of a certain amount of money at the current time will not be the same as the value of the…
Q: You borrow $150,000 with a 20-year term at a9.3% (APR) variable rate and the interest rate can…
A: A mortgage is a debt instrument, secured by the collateral of specified real estate property, that…
Q: How much should t invest today and expect a reímbursement every other month with a ROR of 0,08…
A: Present Value of annuity refers to the current value of all the series of payments or income at…
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- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
- (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?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.
- If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%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 want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity