You are going to invest $1,500 today in a fund today. After 10 years, you want to have exactly $2,500 in the fund. If the interest rate is compounded annually, what interest rate is needed to achieve this?
Q: Jack borrowed $10,000 from Mr. Jill on July 11, 2018 and promised to pay it by December 21, 2018.…
A: Given the borrowed amount = $10000 Interest rate = 15% Total number of days between the given months…
Q: How much money will be in a bank account at the end of 15 years if $100 is deposited today and the…
A: Compounding interest means the interest is calculated for the principal and after each period the…
Q: Explain the true effect of more frequent compounding on annual interest amounts?
A: With more frequent compounding, the returns are higher. With the increase in compounding periods,…
Q: In one instance, a financial institution loaned you $60,000 for two years at an APR of 5.75% for…
A: First instance: Given , Principal = $60000 APR = 5.75% Time period = 2 years Thus, simple interest =…
Q: An annuity offers to pay £8,200 per year for 20 years, and the nominal annual bank interest rate is…
A: Given: The amount of annuity = £8,200 per year Years = 20 The rate of interest is = 6% compounded…
Q: How long will Mr. Gutierrez earn ₱750,000 if he wants to invest by depositing ₱13,315.42 at the end…
A: In the question, it is given that, The deposited amount at the end of every quarter is P13,315.42.…
Q: Sam promises to pay Sandy $2,000 in four years and another $3,000 four years later for a loan of…
A: Interest rate: The real interest rate is the rate of interest that is being calculated in an economy…
Q: Mohamed wishes to deposit BD10,000 to a bank that will guarantee BD15,938.48 after eight (8) years.…
A: Here we need to assume the interest rate she is expecting from the bank. Then following calculation…
Q: In preparation for Sandara’s college education, her parents want to save ₱400,000 after 12 years.…
A: Given information, Future value (F)= ₱400,000 Interest rate (r)= 2% Compounding period (m)= 4…
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: 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: The CEO of a company is to give each nominal interest of his 50 employees a bonus. How much is…
A: The total holiday bonus is (50)($1000) = $50,000 Use the uniform series sinking funds discount…
Q: How long will it take any sum to double itself with an 11% interest rate compounded continuously?
A: Suppose the present value of sum be P and future value of the sum is A
Q: Your company implemented a forced savings plan, each employee is required to deposit P1,000 at the…
A: Given: Amount of deposit per month=P 1000 Number of years=5 Interest rate compounded monthly=6% To…
Q: A student obtains a loan to pay one year of college tuition, which costs $18,000 with 6% which he…
A: Given, Cost- $18000 ROI- 6%
Q: If the price of a one year T-Bill is $2,860 and the value at maturity is $3,000, what would be the…
A: Yield to maturity is given as = (Face value/current value)1/years to maturity - 1 Face value= $3000…
Q: Ben Franklin's gift of $3,000 to New York City grew to $2,000,000 in 200 years. At what interest…
A: Given Ben Franklin's gift initial value (P)= $3000 Value of gift after 200 years (F) = $2,000,000…
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: At the beginning of every three months, a college student deposits $3,000 in a fund that gives 2%…
A: Depositing every three months till 48 months at the beginning forms the annuity series or annuity…
Q: You are making $300 monthly deposits into a savings account that pays interest at a nominal rate of…
A: To calculate the future equivalent value of for a series compound amount is given by, F=A(1+r)n-1r
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: Distinguish between Simple interest and Compound Interest?
A: Interest rate refers to the percentage of a principal amount charged by a lender to a borrower.
Q: What are the annual payments necessary to pay a $100,000, 12-year loan if the loan rate is 8 %
A: The loan rate is defined as the rate of interest at which the loan is paid to the bank. It means the…
Q: How much must be deposited at the beginning of each year in an account that pays 5%, compounded…
A: The compound interest formula is given as: A=P(1+r)t Where, A is the final amount compounded on an…
Q: Mr. Edwards borrowed P 200,000 and agrees to pay P X annually for 5 years at the rate of 6%…
A: Amount Borrowed = 200000 Annual Payment = x n = 5 r = 6%
Q: A $10,000 bond with a coupon rate of 1% and a yield of 2% will pay a yearly interest amount of:
A: Given the bond price = $10000 Coupon rate = 1% Yield = 2%
Q: How long does it take an investment of P300,000 to double if it invested at 10% interest compounded…
A: The future value of a given amount invested is a function of interest rate, periods of investment,…
Q: You have borrowed $50,000 at an interest rate of 12%. Equal payments will be made over a three-year…
A: Interest rate is the percentage rate that the lender charges from the borrower against the use of…
Q: How much should I expect a lump sum from a deal at the end of 3 years if I start investing today at…
A: *answer: Given, Annuity =5879 Time(n) = 3 x 4 quarters=12 quarters Interest (r) =0.09 compounded…
Q: earns an annual interest rate of 2.75%.
A:
Q: If P25,000 is invested at 8% interest compounded quarterly, how many years will it take for this…
A: Quarterly nominal interest rate = 8% / 4 = 2% Let number of quarters be N. Then 25,000 x (1.02)N =…
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: Money borrowed today is to be paid in 5 equal payments at the end of each quarter. If the interest…
A: Given: The quarterly payment is = ₱ 21,293 The interest rate is = 3% compounded quarterly Money to…
Q: How much must be deposited at the end of each year into an account that earns 4.0 percent interest…
A: Given information, Future value (F): $80,000 Interest rate (i): 4% Time period (N): 6 years To…
Q: How many years will it take to triple your investment of $5,000 if it has an interest rate of 10%…
A: Information given to us is:- Investment = $5000 Interest rate = 10% compounded annually We have to…
Q: Josh is required to pay P57,000 in 15 days or P60,000 in 60 days. Find the annual rate of interest
A: (Q) Josh is required to pay P57,000 in 15 days or P60,000 in 60 days. Find the annual rate of…
Q: How many quarters will it take to triple an initial investment at an interest rate of 14% compounded…
A: The interest rate is the amount a lender charges a borrower and is a percentage of the…
Q: an interest-bearing security that promises to pay a stated amount on the maturity and regular…
A: Interest-bearing securities are a type of financial instrument in which you effectively lend money…
Q: Roy wishes to have P 1,000,000 in a certain fund at the end of 5 years. How much should he invest in…
A: Future value (F)= 1,000,000 Time = 5 year r = 0.22 P = Initial investment
Q: You take out a loan of $12,000 to pay for a piece of equipment. You plan to repay the loan in 16…
A: Suppose you want to pay the first installment at the end of the year. So 16 equal payments of $1100…
Q: A businessman borrowed P 200,000 and agrees to pay P 47,720 annually for x years at the rate of 6%…
A: The formula to compute continuously compounded interest is as follows: P(t)=P0ert where P(t) = Value…
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: 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: At 8% annual interest compounded quarterly, how long will it take to become a millionaire if you…
A: Interest is the amount received in excess of the investment to an investor. The two methods of…
Q: What should be the price of perpetuity that pays P5.000 every month with an interest rate of 8%…
A: Given payment each month = 5000 Interest rate = 8 % compounded annually Total payment each year =…
Q: Rafael invested $2,000 in a business that yields an annual interest rate of 10% compounded…
A: Continuous compounding formula: P(t) = Pert Where P(t) is valued at time t P is invested money (or…
Q: If an interest rate is 18% per year, compounded quarterly, what is the effective quarterly interest…
A: Interest rate is the premium paid for a certain amount of money. The effective interest rate is…
Q: Steve decides to place his money into an account that compounds interest quarterly at the rate of…
A: By formula, amount that would be received by Steve after 5 years is given by- Amount(A) =…
Q: uppose you want to withdraw $1500 every 6month from an account that's pays 14% interest compounded…
A: Given 6-Monthly withdraw amount A= $1500 Rate of interest = 14% compounded twice a year or…
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- Jane deposits $5,000 in a bank account that earns 6% interest compounded semi-annually. How much money will she have after 10 years?How long would it take an investment to triple if the interest rate is 6% compounded annually?An account has a nominator rate of 6.5%. Find me effective annual yield,round to the nearest hundred percent, with quarterly compounding, monthly compounding, and a daily company. How does changing the compound period affect the effective annual yield?
- f you have only $750 on January 1, 2019, what interest rate, compounded annually for3 years, must you earn to have $1,000 on January 1, 2022?How long will it take money to double if it earns 4 percent per annum compounded annually?Rafael invested $2,000 in a business that yields an annual interest rate of 10% compounded continuously. How much would he get. approximately at the end of 5 years from his investment?
- Jon’s grandfather was planning to give him $11,000 in 14 years. Jon has convinced him to pay him $7,000 now, instead. If Jon invests this $7,000 at 6.5% compounded continuously how much money will he have in 14 years? a) What type of problem is this? Select an answer Future Value -Simple Interest Future Value - Compound Interest Future Value - Continuously Compounded Future Value - Ordinary Annuity Future Value - Annuity Due Present Value - Ordinary Annuity Present Value - Annuity Due b) How much will he have? (round to the nearest cent) $How much do eight ₱ 69,058 quarterly payments amount at present, if the interest rate is 3 compounded quarterly?Marquel's employer contributes $1,000 semi-annually to his retirement account, which earns 13% interest that is compounded monthly. How much money will be in his retirement account at the end of 40 years?
- You owe $120,000 from your ex-girlfriend and promise to pay 6% simple interest. How much will you pay at the end of 1 year and 6 months?How many years will it take for an investment to be twice its value if it earns 8% compounded annually?How long your money would double its amount if you invested at 5%compounded annually?