What is the equal-payment series for 10 years that is equivalent to a payment series starting with $30,000 at the end of the first year and decreasing by $3,000 each year over 10 years? Interest is 8% compounded annually.
What is the equal-payment series for 10 years that is equivalent to a payment series starting with $30,000 at the end of the first year and decreasing by $3,000 each year over 10 years? Interest is 8% compounded annually.
Want to see the full answer?
Check out a sample Q&A here
Related Economics Q&A
Find answers to questions asked by students like you.
Q: You have borrowed $28,000 at an interest rate of 12% compounded annually.Equal payments will be made…
A: Equivalent annual value can be calculated as follows: Thus, the annual worth is $9,218.56
Q: You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be…
A: According to question, given that Borrowing amount $28,000@12%/year a) AP represented annual…
Q: You have borrowed $20,000 at an interest rate at 10% compounded annually. Equal payments will be…
A: Part-1Annual Instalment is computed by dividing the loan amount with annuity PVF for 3 years at…
Q: What is the equal-payment series for 10 years that is equivalent to a paymentseries starting with…
A: Present value can be calculated as follows: Thus, the present value is $34,739.13
Q: At an interest rate of 10% compounded continuously, how will be a deposit of P15,000 be in 15 years.…
A: Here we calculate amount will be deposit with continuous compound , so calculation as follow-
Q: You pay 10,000$ per year for 10 years. what is the total payment at the end of 10 years with knowing…
A: Compound interest in layman terms can be referred to as 'interest on interest'. This means that…
Q: Find the present value of a $50,000 annuity payable each three months for ten years but deferred…
A: Given that, Payment at the end of period (R) = $50,000 Periodic rate (i) = 0.12/3 = 0.04 as there…
Q: You are buying a home for $500,000. If you make a down payment of $80,000and take out a mortgage on…
A: Mortgage amount and number of years can be calculated as follows:
Q: P 50,000 was deposited quarterly at an interest rate of 18% compounded quarterly. About how many…
A: Given: The amount deposited quarterly=P 50000 Interest rate compounded quarterly=18% Future sum=P…
Q: What is the future worth of each given series of payments?(a) $8,000 at the end of each year for…
A: a. The investment is $8,000 at the end of each year and is repeated for 5 years and the rate of…
Q: What is the future worth of each given series of payments?(a) $8,000 at the end of each year for…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Determine how much is "X" payment to be made 8 years from now, that is equivalent to a payment of…
A: Click to see the answer
Q: What is the equivalent of a current deposit of $32,000.15 years from now at 8.5% interest compounded…
A: Given: Present Value (PV) = $32,000 Interest rate = r= 8.5% = 0.085 Time Period = n = 15 years…
Q: Find the effective interest rate per payment period for an interest rate of 8%compounded monthly for…
A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…
Q: What single payment at the end of year 5 is equivalent to an equal annual series of payments of 600$…
A: Present value: It means the current value of the future sum of money for a specific rate of return.
Q: Mr Santos wants to get a lump sum of money when he retires at the end of 30 years. He then deposits…
A: Time period (n) = 30 years Compound interest rate = i% annually Amount factor = 43.7685
Q: What is the present equivalent of $18,000 to be received in 15 years when the interest rate is a.…
A: Click to see the answer
Q: What equal monthly payments will repay an original loan of $10,000 in six months at a rate of 6%…
A: P= $10000 n=6 r=6%
Q: If I loaned an amount of 27,292 with an interest rate of 10% for the three and half years compounded…
A: Present value = 27292 r = 10% Time = 3.5 years
Q: Janie Curtis borrowed $25,000 from a bank at an interest rate of 12% compounded monthly. This loan…
A: It is already given that the individual has taken a loan from the ban which amounts to $25,000 and…
Q: For a uniform series of payments (ordinary annuity), determine the value of the uniform series…
A: Introduction In this question we have to find the present value Using the continuous compounding…
Q: If the interest rate is 7% compounded continuously, what is the required quarterly payment to repay…
A: Interest is the cost of capital. We can use interest in the context of either borrowed funds,…
Q: You borrowed $22,000 to buy a new car from a bank at an interest rate of 9% compounded monthly. This…
A: To calculate present worth use the following formula. Here A = an annual payment, n = the number…
Q: Find the amount at the end of two years and seven months if P1000 is invested at 8% compounded…
A: Interest is the amount paid in excess of the principal amount by the borrower to the lender. There…
Q: Find the present value of the following instalment payments; $ 1,000 now, $ 2,000 at the end of the…
A: In economics, present value refers to the current value of a future stream of cash flow. Future…
Q: Money borrowed today is to be paid in 6 equal payments at the end of each quarter. If the interest…
A: answer was attached below
Q: Find the future value of an ordinary annuity with a regular payment of P1,000 AT 5% interest rate…
A: Given that, Annuity (A)= 1000 Quarterly time period(n) = 3 ×4 = 12 And Quarterly interest rate…
Q: What is the nominal rate of interest compounded semi annually which is equal to 10,52 % compounded…
A: Ans in step 2
Q: What equivalent annual equal payment series is necessary to repay a uniform gradient series of 9…
A: Click to see the answer
Q: You were entitled to receive $5,000 at the end of six months for the rest of your life. If the…
A: Present value of perpetuity is the periodic cash flow divided by the interest rate being charged. It…
Q: You were entitled to receive $5,000 at the end of six months for the rest of your life. If the…
A: (Q) You were entitled to receive $5,000 at the end of six months for the rest of your life. If the…
Q: You were entitled to receive $5,000 at the end of six months for the rest of your life. If the…
A: Given: The future value is = $5,000 Years = At the end of 6 months The rate of interest is = 10%…
Q: What is the present worth of each of the given series of payments?(a) $2.700 at the end of each…
A: The present worth can be calculated using following formula: Here, FV is the future value. r is the…
Q: If P5, 000.00 shall accumulate for 10 years at 8% compounded quarterly. Find the compounded interest…
A: Given, P= 5000 Noumber of years (n)= 10 years CI= 8%
Q: Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is…
A: Given, A = ₱ 2,000.00 Rate (r) = 12% Number of periods (n) = 6
Q: How much money will be in your account three years after the previous deposit? If you make six…
A: Total number of years = 6 years Annual deposits = $6000 Interest rate = 15% Half yearly deposits =…
Q: What is the future worth of the following series of payments? (a) $9,000 at the end of each year for…
A: Future worth = amount invested * (1 + interest rate)^time
Q: With a $500,000 home mortgage loan with a 20-year term at 4% APR compounded semiannually compute the…
A: Given information i = 4% compounded semiannually = 4% /2 = 2% per semiannual period Effective int…
Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…
A: Here we calculate the amount of the quarterly deposits by using the given cashflow , so the…
Q: Sam Musso is planning to retire in 20 years. He can deposit money at 12% compounded quarterly. What…
A: Deposit: It refers to the money which is deposited into the banks by the individuals so that they…
Q: If you buy a computer directly from the manufacturer for $2,923 and agree to repay it in 36 equal…
A: here we calculate the given by following method as follow;
Q: The nominal annual Interest rate, compounded semi-annually, for a bank with an effective annual…
A: Answer: 30.10% The effective annual interest rate is the real return on a loan or a saving account,…
Q: P89,650 is placed in an account at 5.92% compounded daily for 7 years. How much is in the account at…
A: Given: Principal amount=P 89650 Interest rate compounded daily=5.92% Number of years=7 To find:…
Q: Find the time required for a sum of money to triple itself at 5% per annum compounded continuously?
A: Meaning of Sum of Money: The term sum of money in the form of simple interest refers to the…
Q: If $10,000 is invested in an account at United Mutual fund for 18 years, earning 10% compounded…
A: The future value of an investment is the compounded value of the investment which is compounded on…
Q: 1) What is the present value of the following series of payments: $500 made at the end of every year…
A: Present value, also known as present discounted value, is the value of an expected income stream…
Q: 1) What is the present value of the following series of payments: $500 made at the end of every year…
A: Given an exact rate of come, gift price (PV) is that the current price of a future add of cash or…
Q: By the condition of a will, the sum of P 20,000 was left to a girl to be held in trust fund by her…
A: The time worth of cash is a monetary hypothesis that clarifies how the worth of cash changes over…
Q: How much money will you at present time if you deposit P6,640 each for the next 8 years in a savings…
A: Given :Number of Periods/Years (n) = 8Nominal Rate of Interest (r(4)) =6%Regular Deposit(A) = $ 6640
Q: Consider each of the equations below and draw the corresponding cash flow diagram. In each case, the…
A: Cash flow refers to the diagramatic representation that tells the net balance of cash moving into…
