Which Interest rate is better to use the simple interest or compounded interest plan, can i have a brief explanation

Q: As we mentioned in this chapter, assets such as machines, cars, and computers lose their value over…

A: Straight Line Depreciation: The straight line method of depreciation is the most commonly used…

Q: Assume that you and your best friend each have $1000 to invest. You invest your money in a fund that…

A: Given data: Po is the principal (starting amount)=$1000 Compound interest =10% per year. Simple…

Q: Type of annuity that is made at the beginning of each period, such as a rent payment Annuity Due…

A: An annuity is a series of payments made at equal intervals.

Q: What are the causes of inflation in risk management?

A: Inflation is condition in which the demand for resources, goods and services increases significantly…

Q: effect of inflation on money

A: Inflation - Inflation mean rises in price of goods and services like food, cloths, house living cost…

Q: Rachel can earn 3% interest in her savings account. Her daughter Dani is 11 years old today. Suppose…

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Q: An engineer who is planning his retirement has decided that he will have to withdraw $10 000 from…

A: To determine the initial sum of money in a retirement account that allows for annual withdrawals for…

Q: A) What is the concept of TVM? B) Give full-explanation about each cases for rate of interest? C)…

A: Que:- What is the concept of TVM ? Ans:- The time value of money (TVM) is the concept that a sum of…

Q: 4. Use the cash flow diagram below to calculate the amount of money in yea 5 that is equivalent to…

A: Given:- interest rate=12% year =5 To find:- amount of money in year 5

Q: If the nominal annual interest rate is 6% compounded monthly, what is the effective quarterly…

A:

Q: Transportation increases cost of personal goods. O True False

A: A transportation system is described as the collection of elements and their interactions that…

Q: simple interest rate. 20

A: = final amount = initial principal balance = annual interest rate = time (in years)

Q: 1. How much interest is earned in 4 years on 12,000 deposited in an account paying 4% compounded…

A: Interest per annum = 4% intereset on the amount semiannually (r) = 4/2 = 2% Number of year (n) = 4…

Q: lucy heartfilia by a television set for a merchant who offers p25,000 at the end of 60 days she…

A: Given:- The final price of the television at the end of 60 days = p25,000 The simple interest on the…

Q: A merchant is offered a 5.25% discount for immediate payment of a bill which is due in 96 days. What…

A: A merchant is offered a 5.25% discount for immediate payment of a bill. Time = 96 days To find- The…

Q: According to the Descartes' rule, the number of positive i* value for the following cash flow is:…

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Q: What will be the effective annual interest rate if the nominal interest is 9.53102%?

A: Given, Nominal interest is 9.53102 % now, asked the effective annual interest rate effective annual…

Q: 2. Attach a complete solution. Draw the cash flow diagram. Suppose that P 4500 is deposited each…

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Q: Q4: Develop your concept that what will be the effect of inflation on money if it is not invested.…

A: In this question we are asked the following three questions: 1. What is Inflation 2.The effect of…

Q: What is the amount of money deposited 50 years ago at 8% interest would now provide a perpetual…

A:

Q: You are paying a series of five constant-dollar (or real-dollar) uniform payments of $642.19…

A: Given: Uniform payment = $642.19 Inflation rate = 28.15%= 0.2815 Market interest rate =28.15%=…

Q: How long will it take for an investment to fivefold its amount if money is worth 14% compounded…

A: Using the formula for compound interest in which money is interested continously.

Q: An annuity that pays for an infinite amount of time Ordinary Annuity Perpetuity Deferred Annuity O…

A: Perpetuity :  In perpetuity the cash flow is for infinite time. In this payment never ends. So an…

Q: 1. Write the objectives and procedure of value engineering. Assume a sum of $10,000 is invested for…

A: Objectives and procedure of value engineering: The main objective is to cut back project price,…

Q: A bank pays interest at the rate of 6% per year, compounded monthly. If a person deposits $2500 in a…

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Q: How much money must be deposited in a savings account so that $5500 can be withdrawn 12 years hence,…

A: given-Amount of $5500 can be withdrawn for 12 years.rate of interest=9% compounded annually

Q: estimate the accumulated amount in a fund earning 5% interest at the end of 11 years if $270 is…

A: Given: The interest is 5%. The time period is 11 years. The deposited amount each year is $270.

Q: What do we mean by nominal and effective interest rates?

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Q: Explain in detail the liquidity index.

A: It is the water plasticity ratio.The Liquidity index is defined as the ratio of natural water…

Q: The tag price of a certain commodity is payable in 100 days but if paid in 40days there will be a 2%…

A: Let the price of the comodity is X. Discount = 0.02X  Amount to be paid in 40 days = X-0.02X = 0.98X…

Q: 3. A doctor invested his money at 12 % per annum, net of taxes , compounded semi - annually after…

A: step 1-

Q: Show complete solution with cash flow diagram. The annual income from a rented house is $12.000. The…

A: This question is related to Estimation and Costing Engineering. In this problem given about profit…

Q: 7. Find the capitalized cost of a present cost of $300,000, annual costs of $35,000, and periodic…

A:

Q: How many years will be required for a given sum of money to be 4 times the principal amount, if it…

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Q: Stereophonics, Inc., plans to borrow $20,000 from a bank for 1 year at 9% interest for new recording…

A: Interest gained is the final amount less the original amount, or principal, from the standpoint of a…

Q: Develop your concept that what will be the effect of inflation on money if it is not invested. Also…

A: As the demand of goods and services increases inflation occurs. As the demand of certain commodity…

Q: What is the nominal interest rate if the interest rate of 25% is compounded continuously?

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Q: Engineering Economics Subject A cash flow series is increasing geometrically at the rate of 10% per…

A: The formula for calculating the present worth is as follows. P=A11-1+g1+ini-g Here, g is geometric…

Q: How many years will be required for a sum of money to double, if the annual interest rate is lo%,…

A: rate of interest = r = 0.10  Compounding quarterly = 4 times per year

Q: 9. A cash flow has the following income values: $100 at end of year 2, $200 at end of year 3, $300…

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Q: A software engineer borrows money to pay her employees while they are working at her start-up…

A:

Q: 17. In amortization, accounting technique is used to lower the book value of a loan or an intangible…

A: Answer : option (a) periodically is correct. More about amortization is given in next step.

Q: A financing company charges 1.5% every two months on a loan. Find the equivalent effective rate of…

A: Given that  Rate of interest = 1.5% /2 month 1.5%=1.5/100=3/200  We have to find equivalent…

Q: If 12500 is invested at 6% from Jan 1, year 1, how much money accumulated until Jan. 1, year 그0?

A: