Q: If an amount of $9000 is borrowed at an interest rate of 24% per year for 12 years, how much is the…
A: Simple interest is calculated by multiplying the principal by interest and given years.
Q: How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum,…
A: Compound Interest: It is the interest on a deposit or loan computed based on the initial principal…
Q: At what nominal rate compounded quarterly will payments of P 800 at the beginning of each 3 months…
A: Here, Quarterly Payment is P800 Time Period is 5 years Annuity Type is Annuity Due Borrowed Amount…
Q: w much will be in an account at the end of five years the amount deposited today is $10,000 and…
A: The given problem can be solved using FV function in excel. FV function computes future value for…
Q: What is the interest earned in a savings account after 12 months on a balance of $4000 if the…
A: Since compounding is annually and we have to find the interest earned for 12 months, formula would…
Q: Simple interest of P1,235 is owed on a loan of P9,500 after four years and four months. What is the…
A: Simple interest amount (I) = P1,235 Loan amount (P) = P9,500 Period (t) = 4 Years and 4 months =…
Q: c. You put $2,750 into an account earnings 4% interest compounded QUARTERLY. How much will be in…
A: Solution c: Amount invested (PV) = $2,750 Quarterly interest rate (I) = 4%/4 = 1% Nos of quarterly…
Q: how much must you repay at the end of the 3 months?
A: While charging interest on the principal amount, there are two ways to calculate it- Simple interest…
Q: What is the nominal annual rate of interest compounded quarterly if a loan of $21,500 is paid in…
A: Semi-annual effective interest rate is calculated as below in the excel:
Q: what is the nominal annual rate of interest compounded quarterly if a loan of $25,000 is repaid in…
A: The act in which one person or entity provides funds to another person for defined term and agreed…
Q: Money borrowed today is to be paid in 7 equal payments at the end of each quarter. If the interest…
A: A financial measurement that calculates the worth of a potential sum of money or stream of payments…
Q: If a sum of $3000 is borrowed for six months at 9 percent simple interest per year, what is the…
A: A method of computing interest amounts in which the compounding effect was not considered by the…
Q: 3. A financial institution offers a nominal interest rate of 12% while compounding its accounts…
A: Effective Interest Rate: It refers to the annual rate of interest provided the effects of…
Q: what interest rate payable quarterly will the payments of 500 at the beginning of each 3 months will…
A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…
Q: est is paid at a rate of 5% per year, compounded quarterly, what is the effective annual rate?
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: If you borrowed P10,000 from a bank with 18% interest per annum, what is the total amount to be paid…
A: A bank is a financial institution that provides loans and borrowings to the borrowers or the…
Q: f you borrowed $12,000 for 8 months at 7% annual simple interest, how much must you repay at the end…
A: Interest = Principal * Time * Rate
Q: What is the interest earned in a savings account after 12 months on a balance of $1000 if the…
A: Because a dollar on hand now is worth more than a dollar promised in the future, the time value of…
Q: what is the balance in an account at the end of 10 years if 5,000 is deposited today at the account…
A: The following formula is to be used in order to find out the balance in account A =P[1+r/n]nt…
Q: what was the corresponding interest rate if it compounded quarterly?
A: Interest Rate: It is the rate for computing either the present value of an amount or the future…
Q: Finance. Suppose that $7,700 is invested at 4.7% annual interest rate, compounded monthly. How…
A:
Q: Suppose 500$ is initially placed in savings account and 500$ is deposited at the end of every month…
A: Future Value of Cash Flow = Amount Invested * ( 1+r)n Where r is Rate of Interest and n is period…
Q: a. What would be the accumulated amount of the debt in 2 years? Round to the nearest cent b. What…
A: Information Provided: Amount borrowed = $25,000 Interest rate for first 2 years = 4% semi-annually…
Q: What is the accumulated value of periodic deposits of $40 at the beginning of every month for 17…
A: This is the case of an annuity due. An annuity due is that annuity where the cash flows occur at the…
Q: 1. For each of the following, calculate the interest rate per compounding period (i): a. 4% per year…
A: A compounding period refers to the time period from when the interest was compounded lastly to the…
Q: What is the present value of 5,275 due in 6 months if 11% interest is paid
A: Future Value = (P * R * T) + PWhere P = Present ValueR = Rate of InterestT = Time Period
Q: If the sum of P12,035 is deposited in an account earning interest at the rate of 9% compounded…
A: In this we have to use future value formula to get the future value.
Q: Regular quarterly payments of $6000 are deposited into an account paying 3.19% interest, compounded…
A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…
Q: How much money is accumulated if P 5,800 is paid at the end of every month for 4 years at 5%…
A: Monthly payment (M) = P 5800 Number of payments (n) = 4 years = 48 months Interest rate = 5%…
Q: If 10,000php is invested in account paying 6% compounded quarterly; A. How much will be in the…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: What is the value today of $500 received at the beginning of each period of six months for 12 years…
A: The following formula will be used to calculate today value as follow:
Q: What value of r will make the future value of the account P5, 200 in six months?
A: Future Value: It is the future worth of the present cashflows or the present sum of money. Future…
Q: What is the simple interest for a principal of 560 dollars invested at a rate of 9% for 5 years?
A: The simple interest rate is calculated by multiplying the principal amount with the annual interest…
Q: What interest will be earned if 4,000 dollars is invested for 4 years at an annual rate of 7%…
A: The interest will be the future value of the investment less the amount invested.
Q: MONEY BORROWED TODAY IS TO BE PAID IN 6 EQUAL PAYMENTS AT THE END OF 6 QUARTERS. IF THE INTEREST IS…
A: Borrowing is defined as the term, which used to allow the person to spread their funds around with…
Q: Suppose that $4500 is invested in an account that pays 2% annually and is left for 4 years. 1) How…
A: Given Information: Principal = $4,500 Rate = 2% or 0.02 Time = 4 years
Q: 1. a. In a savings account 3% annual interest rate compounded monthy, P 1,000 is deposited at the…
A: Note: It is a case where the number of questions asked is more than one and no specified question is…
Q: How much will be in the account at the end of 4 years?
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: What is the nominal annual rate of interest compounded quarterly if a loan of $22,500 is repaid in…
A: The nominal interest rate is the stated interest rate. The nominal interest rate doesn't consider…
Q: How much money would be in an account if $6,200 is deposited at 2% interest compounded semi-annually…
A: Time value tells the amount received by an individual today is of more worth than the same amount…
Q: How much do ten ₱ 6,945 quarterly payments amount at present,
A: Time Value of Money (TVM) concept is used to discount the future cash flows or to compound the…
Q: A debt of $ 900 is repaid by making payments of $50 at the end of every 6 months. If interest is 3%…
A: The amount of loan is equal to the present value of installment discounted at the required rate of…
At what annual interest rate compounded for two months is it doubled to a principal in 3 years?
Step by step
Solved in 2 steps
- What is the present value of 5,275 due in 6 months if 11% interest is paidSuppose that $1,000 is invested for 4 years at an interest rate of 12%, compounded quarterly. How much will be in the account at the end of 4 years?In a certain account providing an interest rate of r compounded quarterly, P2, 500 is deposited every end of the quarter. What value of r will make the future value of the account P5, 200 in six months?
- What is the present worth of P500 deposited at the end of three months for 6 years interest rate is 12% compounded semi-annually?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?What is the nominal annual rate of interest compounded quarterly if a loan of $21,500 is paid in seven years by payments of $2,000 made at the end of every six months?
- What is the present value of loan payments of$515made at the end of every month for 3 years and 6 months? Interest is9.85%compounded annually?At what interest rate will ₱30,750 amount to ₱44,875 in 4 years and 6 months, if interest is compounded semi-annually?A loan, amortized over 15 years, is repaid by making payments of $1,900 at the end of every month. If the interest rate is 3.92% compounded quarterly, what was the loan principal? Round to the nearest cent
- what is the nominal annual rate of interest compounded quarterly if a loan of $25,000 is repaid in seven years by payments of $2500 made at the end of every six months? the nominal annual rate of interest is __% compounded quarterlySuppose 500$ is initially placed in savings account and 500$ is deposited at the end of every month for the next year. If interest is at 6% compounded monthly, how much is in the account at the end of the year?What cash payment is equivalent to making payments of $944.00 at the end of every six months for 9 years if interest is 9% per annum compounded quarterly?