What is the effective rate of interest

Q: What is the compound amount and interest if Php 10,000 is invested at 3.6% compounded monthly for 2…

A: we know that, A=P(1+rn)n×t now, A= amount after time + (future value) P= principal amount (initial…

Q: What monthly payment is required over 8 years to equate with a future amount P90,000? Assume…

A: Monthly payment refers to the amount which is paid on a periodic basis. The period of monthly…

Q: Find the present value at 12% interest of Php 1,000 due in 5 months.

A: Present value of an amount of money in future is calculated using following equation Present value =…

Q: What is the present worth of P500 deposited at the end of every month for 6 years if the interest…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

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: How many years will P100,000,000 earned a compound interest of P100,000 if the interest rate is 7%…

A: Present value is the value of the future expected/calculated amount as of today.

Q: What is the future value of $875 deposited for one year earning an 8 percent interest rate annually?

A: Future value can be described as the future worth of a specific amount at a certain future date.It…

Q: What rate of interest, compounded annually, will result in the receipt of P15 938.48 if P10 000 is…

A: Let the interest rate = r Final amount (F) = P 15938.48 Invested value (P) = P 10000 n = 8 years

Q: Solve for the compound interest earned if 10,000 pesos is invested for  1-1/2 years at 8% compounded…

A: Compound interest refers to the interest calculation mechanism where the previous period interest is…

Q: What is the nominal rate of interest if Php4,000 accumulates to Php10,000 in 8 years with interest…

A: solution given present value    =4000    future value       =10,000 time period        =8 years…

Q: How many years are required for Php 1000 to increase by Php 4000 if interest rate is pegged at 15%…

A: Future value: It represents the future worth of the present sum amount. Future value can be…

Q: What is the present worth of P500 deposited at the end of three months for 6 years interest rate is…

A: The Present value of a future deposit is the present worth of that amount. The future amount can be…

Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…

A: Individuals deposit a sum of money into savings accounts in order to earn interest and accumulate a…

Q: Assuming an annual effective interest rate of 5%. Which of the following annuities with 12 payments…

A: The present value of the annuity is calculated by discounting the future payments at the required…

Q: . What lump sum of money must be deposited in a bank account at present time so that Php 500 monthly…

A: Monthly withdrawal (M) = Php 500 after 6 years (72 months) Number of withdrawals (n) = 5 years = 60…

Q: A loàn of Php150, 000 with an interest rate of 6% compounded monthly payable for one year.

A: Amortization is referred to as decreasing or writing down the value of intangible assets or loans.…

Q: 1. If P500.00 is invested at the end of each year for 6 years at an annual interest rate of 7%, what…

A: The questions here pertain to annuity. An annuity is a stream of constant cash flow that occurs at…

Q: 1. What is the accumulated value of the Php 25 payment be made at the beginning of each of the next…

A: The same amount is being paid annually over three years; this is an annuity. To find the future…

Q: Calculate the compound interest for a Php 100,000 investment under the following conditions:…

A: The compound interest is calculated as difference of future value and the principal

Q: With interest at 4% compounded quarterly, how much will be required 8 years hence to repay a Php…

A: Payment required to be made after 8 years is calculated as future value of loan amount

Q: What is the present worth of P5000 deposited at the end of every three months for 5 years if the…

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

Q: at what interest rate will a principal of P9,500 accumulate to P15,000 in 2 years compounded…

A: Future value = Present value*(1+interest rate/k)^(n*k) where n = number of years = 2 k = compounding…

Q: What is the annual interest rate (APR) required for $22,500 to accumulate to $50,000 in 14 years…

A: Future value =Present value (1+r)n 14 years =28 semiannual period

Q: What is the annual rate of interest if P265 is earned in four months on an investment of P15, 000?

A: Interest amount = P 265 Period = 4 Months = 4/12 = 1/3 Years Investment = P 15000

Q: How much will be received in 6 years if Php35,000 is deposited in an account earning 5.5% interest…

A: Answer -  Formula for Future Value - FV=PV(1+i)n,   Where, PV = Present Value i= Interest Rate n =…

Q: What is the interest earned on the principle of RM18,000 at the rate of 12% for 1 year and 4 months…

A: Principal amount (P) = RM 18,000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period…

Q: A bank deposit of P10,000 earns 3.5% pa compounded quarterly. If inflation is at 5% per year, what…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: What is the nominal rate of interest if Php12,000 accumulates Php30,000 in 10 years with interest…

A: Solution: Present value (PV)    12,000.00 Future value (FV)    30,000.00 Period (Nper) 40…

Q: How much would be the accumulated amount if P2, 047,000 is invested in 2 years, 2 months with…

A: Simple Interest is method of Interest computation where interest is simple calculated on initial…

Q: If you deposit Php6500 into an account paying 8% annual interest compounded monthly, how much money…

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

Q: If Php 5,000 becomes Php 9,734 after 12 years, when invested at an unknown rate of interest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: What is the present value of an ordinary annuity if its value at the end of 10 years is Php 50 000?…

A: Annuity Amount PHP 50,000 Rate of Interest (12% /4) 3% Period (10 Years * 4) 40

Q: What is the present value of $1,500 due in 14 years at a 5 percent interest rate

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: Determine the total amount if P11, 500,000 is invested in 2 years, 5 months with interest rate of 13…

A: Time has been precious in all perspectives, however in terms of finance, the time has a monetary…

Q: How much would be the accumulated amount if P2, 047,000 is invested in 2 years 0, 2 months with…

A: In this question future value is to be find out. For future value present value 2,047,000 if given ,…

Q: What is the effective rate of interest if Php12,000 accumulates Php30,000 in 10 years with interest…

A: Solution: Present value (PV)       12,000.00 Future value (FV)       30,000.00 Period (Nper)…

Q: How much monthly deposits must be made for 8 years and 6 months in order to accumulate P250,000 at…

A: A deposit is a financial phrase that refers to money that is kept in a bank. A deposit is a…

Q: How much interest was earned by an investment that earns at a rate of 9% compounded semiannually for…

A: The present value is that amount without which we cannot obtain the future value. The future value,…

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 amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: If $5,000 is borrowed today and $8,955 is paid back in 9 years, what interest rate compounded…

A: Here, Borrowed Amount (PV) is $5,000 Paid Back Amount (FV) is $8,955 Time Period is 9 years

Q: What lump sum of money must be deposited in a bank account at present time so that Php 500 per…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Determine the total amount if P11,500,000 is invested in 2 years, 5 months with interest rate of 13…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: If the nominal interest rate is 3% of P5,000, how much worth in 15 years continuously compounded…

A: Investment (P) = P 5000 Interest rate (r) = 3% Period (t) = 15 Years Mathematics constant (e) =…

Q: at Php2

A: Given information :

Q: If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: At what simple interest rate per annum will Php25,000 accumulate to Php33,000 in 5 years? Round off…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: at is the present worth and future of P6000 deposited at the end of every month for 4 years if the…

A: The more is compounding more is future value and less is the present value of money due to the fact…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.