Q: What is a simple interest rate?
A: Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan or…
Q: 22. You deposited $15,000 in a savings account five years ago. The account has earned 5.25% interest…
A: here we calculate the money is in the account today by using the formula which are as follow-
Q: 43. Find the equivalent rate of interest of 9% compounded quarterly to an interest rate compounded…
A: Given interest rate = 9 % compounded quarterly Effective annual rate = (1 + rate)^time - 1 = (1 +…
Q: How long will it take for $5,000 to double when invested at 8% compounded quarterly?
A: Formula for compound interest is A = P(1=r/n)^(tn) Where n is the compounding frequency P is the…
Q: Define interest and explain how interest rates vary based on risk, maturity, loan size, and…
A: The interest rate is the return that an individual receives from the financial asset in the economy.…
Q: Interest can be computed more frequently than one time a year Select one: O True O False
A: Interest is the price of money that is borrowed.
Q: What is the effective interest rate per payment period for an interest rate of 12% compounded…
A: The interest rate that accounts for the compounding periods over the course of a repayment plan is…
Q: How long will it take for a money to quadruple itself if invested at 12% simple interest rate.
A: The future value in the case of simple interest is calculated by the following formula. A = P ( 1 +…
Q: Many years ago, Julie deposited $14,490 into a savings account. Today, the balance of the account is…
A: By using the formula;A=P1+r100n Where, A= Future value P= Present value r= Rate of interest n= Time…
Q: How much money will be in a bank account at the end of 15 years if $100 is deposited today and the…
A: Deposit refers to the amount of money that is kept in the bank for safekeeping. Banks pay interest…
Q: Nicholas made a deposit of $5,000 in a savings account that earns 2% per year. What is the maximum…
A: here we calculate the given by following method as follow;
Q: David is planning to contribute $8,000 a year into a mutual fund that earns an average of 8% per…
A: In economics, present value refers to the current value of future steam of cash flow. Future value…
Q: Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is offering…
A: Interest rate per quarter (i) can be calculated as follows. ...
Q: What is fractional ownership?
A: Ownership:The term ownership refers to the legal right or exclusive right over the commodity. For…
Q: How much money do you need to deposit in a bank each month if you are planning to have $5000 in four…
A:
Q: Bank A charges 12% compounded monthly on its business loan. Bank B charges 11.8% compounded daily.…
A: The best bank to borrow money can be selected based on the following method.
Q: When investing or saving money for retirement, which type of interest would benefit the most from?…
A: When investing or saving money for retirement which type of interest would benefit the most from?…
Q: Which is the better investment, a fund that pays 5% compounded annually or one that pays 4.8%…
A: Discretely compounded interest is determined and added to the head at explicit spans (e.g., every…
Q: Summarizes some of the interest formulas?
A: Simple interest = (P*R*T)/100 where, P : Principal amount R : Rate of interest per annum…
Q: A credit plan charges interest rate of 30% compounded monthly. Find its effective rate.
A: Given information, Interest rate: 30% Compounded period: 12 (monthly) To find: effective rate
Q: Explain Methods of Calculating Interest?
A: Answer - Interest = It is the extra amount of money a lender which charge to a borrowers. there…
Q: How much should you pay for a $1,000 bond with 10% coupon, annual payments, and 5 years to maturity…
A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal the…
Q: How much loan will be extinguished for a monthly amortization of ₱4,500 at 12% interest compounded…
A: Formula to be used: Compound interest (PN)=PO1+rKNKPN=Balance after n yearsN=YearsPO=Principal…
Q: Which of the following is the preferable interest rate for investing your money? (i) 12% Compounded…
A: Given: Interest rate (r)=12%
Q: ill deposited 100,000 pesos in bank account earning interest at the rate of 10% compounded…
A: Amount deposit = 100,000 r = 10% n = 10
Q: Define the term Interest?
A: Interest refers to the amount of money that an individual gets paid for investing or lending money…
Q: At 10% compounded annually, how long will it take for money to double itself?
A: Given: Interest rate = 10% (in percentage) To find out how long will it take for money to double…
Q: Hey can someone help me with this? Explain the main differences between amortization, annuity and…
A: The term loan refers to a form of credit vehicle within which a complete of money is lent to a…
Q: How can we calculating effective Interest Rates based on Payment Periods?
A: The effective annual interest rate is the interest rate on investment or return on a savings account…
Q: How many years will it take an investment to triple if the interest rate is 8% compounded…
A: Compound interest refers to the adding of interest to the principle amount of a loan or deposit, or…
Q: How much money would you need to deposit today at 8% interest compounded quarterly to have $15,000…
A: In economics, interest refers to the amount paid in excess of the principal amount by the borrower…
Q: Differentiate between Simple interest and Compound interest?
A: In economics, interests are the costs of borrowing money. The economic agent who is borrowing the…
Q: Explain what is Principal Plus Interest?
A: Principal plus interest is that amount which is paid by the borrower to the lender after the agreed…
Q: Jesse wanted to double his money at 3% annual interest compounded monthly. How long will it take to…
A:
Q: Write the Summary of Compound-Interest Formulas?
A: Answer - Compound-Interest Formula - Compound interest formula helps to calculate the total return…
Q: Suppose you deposit $35,000 in an account today that pays 3.78% interest, compounded annually. How…
A: The compound interest adds the interest acquired on a time period to the principal amount and the…
Q: What effective annual interest rate corresponds to the following situations? nominal interest rate…
A: a. Effective annual interest rate = 1+inn-1=1+5%22-1=1+0.0522-1=1.0252-1=1.050625-1=0.050625=5.0625%…
Q: The owner of Sebastopol Tree Farm deposits $400 at the end of each quarter into an account paying 5%…
A: D=$400i=5%4=0.0125 (divided by 4 as the interest is compunded quaterly)n=9×4=36 (multiplied by 4 as…
Q: An advertisement of an investment firm states that if you invest ₱500 in their firm today you will…
A: The investment curve refers to the indirect relationship between interest rate and investment. The…
Q: How many years would it take to take an investment of $28,000 to double 11% annual interest?
A: Present amount is 28000 and future amount is 2*28000 with rate of interest of 11%
Q: 42. Find the equivalent rate of interest of 9% compounded quarterly to an interest rate compounded…
A: Given interest rate = 9 % compounded quarterly Quarterly rate = 9 % / 4 = 2.25 % Annual effective…
Q: How long would it take an investment to triple if the interest rate is 6% compounded annually?
A: Answer Given in the question - Interest rate = 6% = 0.06 Need to find - Time for investment to…
Q: Which Interest rate is better to use the simple interest or compounded interest plan, explain your…
A: The interest rate is the amount charged on the principal by the borrower to the borrower to use the…
Q: Use interest tables. Suppose that $1,000 is invested for 4 years at an interest rate of 12%,…
A: Following is the given information: Investment amount = $1000 Investment made for time period = 4…
Q: How long will an account invested at 11.5% compounded yearly be tripled?
A:
Q: how long does it take for an investment to double at 1.4% compounded continuously
A: Continuous compounding is the numerical furthest reaches that accruing funds can reach if it's…
Q: If you are LOANING money to another party, would you prefer to offer a 12% interest rate compounded…
A: In economic and financial transactions, an individual will always prefer an alternative that gives…
Q: What interest compounded 10 times a year is equivalent to an interest rate of 5% compounded…
A: Compounding Interest rate = 5% quaterly
Write the formula developed for calculating compound interest?
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- You take out a loan of $12,000 to pay for a piece of equipment. You plan to repay the loan in 16 years. You can afford to pay a maximum of $1,100 each year. What interest rate would allow for you to pay off the entirely of the loan in equal payments?Explain the true effect of more frequent compounding on annual interest amounts?If you want to withdraw $10,000 at the the end of two years and $35,000 at the end of four years, how much should you deposit into an account that pays 9% interest compounded annually?
- How much should you pay for a $1,000 bond with 10% coupon, annual payments, and 5 years to maturity if the interest rate is 12%?If you borrow $ 30,000 at 6% simple interest per year for seven years, how much will you have to repay at the end of seven years?How many years will it take an investment to triple if the interest rate is 8% compounded continuously?