You buy a lathe for $10,000. You are charged an annual interest rate of 12% and pay equal quarterly payments for 20 years. How much will each payment be?

Q: You have $6,000 to invest in a 5-year certificate of deposit (CD) that pays 10% interest compounded…

A: A financial instrument in which an individual or company investment a lump-sum amount for a…

Q: You are to pay a bill in Meralco every month for 5 years. The accumulated amount of the payment you…

A: A deferred annuity is an agreement with an insurance broker to pay the owner a monthly income or a…

Q: You make two annual payments of $2,000 each (the first payment is made one year from today) into a…

A: Number of annual payments (N) = 2 Payment = 2000 Interest rate = 10%

Q: a print is bought for 60 monthly payments of $80. What is the equivalent cash price if the rate is…

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

Q: You have just borrowed $240,000 and you agree to pay it back over the next 20 years in 20 equal…

A: Details given are : Present value of borrowing = $240000 Time period = 20 years Interest rate = 11%…

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…

A: Loan amount (PV) = $30000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period = 10…

Q: You have $11,489.64 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Given: Present value (PV)= $ 11489.64 PMT = $5000 Future value (FV) = $200, 000. Rate = 11% = 0.11

Q: Neal plans to buy a car worth $42,000 today. He is required to pay 15  percent as a down payment and…

A: Using Excel PMT function

Q: Aidan deposits $1000 at the end of each quarter in an account that pays 5.25% per year, compounded…

A: Solution: An equal amount invested every period is called annuity. So, future value of annuity = PMT…

Q: You deposit $5,000 at the end of every year for three years. How much will accumulate in three years…

A: Future value:The future value is value of present amount compounded at an interest rate until a…

Q: You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: The future value of annuity helps an investor or an individual to know the future value of their…

Q: Suppose you have $2,100 and plan to purchase a 10-year certificate of deposit (CD) that pays 13.1%…

A: Value when the CD matures = 2100 x (1 + 0.131)^10 = $7191.93

Q: You want to buy a boat costing $35,000.  Your down payment is $7,000.  The remainder will be paid…

A: We have to calculate present value factor by considering monthly interest and from that we can…

Q: A balloon payment of $21,000 on your house is due in 10 years. Ifyou can earn an average of 5…

A: INTEREST RATE 5% YEARS 10 PMT 0 FUTURE VALUE 21000

Q: a customer invests IDR 20 million in the money market and earns 12% compound interest How much money…

A: The addition of interest to the principal sum of a loan or deposit is known as compound interest. It…

Q: One building was priced at $ 125,000 . If you advance $ 25,000 and every month after that If $ 1,000…

A:

Q: house costs $350,000. You pay a 15% down payment and mortise the rest with equal monthly payments…

A: Given: Cost of house = $350,000 Down payment = 15% Years = 20 years Interest rate = 8.4%

Q: What amount will be paid at the beginning of every month for 10 years if the present value is 200,…

A: Payment at the beginning of every month = PV x r / [{1 - (1 + r)^(-n)} x (1 + r)] Here, PV = Present…

Q: A person wants to deposit $10,000 per year for 6 years. If interest is earned at the rate of 10…

A: We need to use future value of annuity formula to calculate amount after 6 years FVn =PMT(1+i)n -1i…

Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two…

A: Amount borrowed= $1,000,000 Rate= 3% compounded semi-annually Time (n)= Bi weekly over 25 years

Q: If you pay 50 pesos at the end of each month for 40 years on an account that pays interest at 10%…

A: The interest rate period : When the interest rate is compounded more than once a year, the interest…

Q: You are offered payments of P1500.00 at the end of each quarter for 6 years.  You feel that the…

A: The cash value is the present value of annuity calculated on the basis of a specified rate. Annuity…

Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi- weekly (every two…

A: There are two methods to charge interest on the loan taken. One is the simple interest method and…

Q: If you borrow $9,000 and agree to repay the loan in six equal annual payments al an interest rate of…

A: Present worth is the value of the amount in current time which is expected to be paid or received in…

Q: You borrow $11,000 and promise to make payments of $3,359.50 at the end of each year for 5 years.…

A: The question gives the following information:

Q: You will receive $5,000 in three years. What is the present value if you can earn eight percent…

A: Present Value: Present value refers to the current value of future sum of money in lump sum or in…

Q: The buyer of a lot pays P10,000 every month for 10 years. If money is 8% compounded annually, how…

A: Convert 8% compounded annually to its equivalent interest rate for monthly interval. Here, 'R'…

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: For determination of equal monthly payment(PMT), we need to use loan amortisation formula below. PMT…

Q: You will deposit $30,000 per year into an account beginning today that pays 13 percent per year.…

A: Annual deposit (P) = $ 30,000 Annual interest rate (r) = 13% Future value (FV) = $ 1,000,000 Period…

Q: You buy a lathe for $10,000. You are charged an annual interest rate of 12% and pay equal quarterly…

A: Loan = 10,000 Interest rate = 12%/4 = 3% per quarter N = 20*4 = 80 Quarters

Q: You are getting paid 12k a month at the end of each working month for one year. What is the present…

A: In this question we need to calculate the present value from following details: Salary per month =…

Q: assume that you pay 10000 on a yearly basis for 10 years, how much will pay after ten years if the…

A: Given:Amount paid on yearly basis=10000Time period=10yearsInterest rate=5% compounded yearly

Q: You own $35000 from the bank for 3 years at 8.50% annual interest, and you will make equal monthly…

A: Solved using Financial Calculator  PV = 35,000 N = 3years * 12 = 36 I/Y = 8.5/12 = 0.708333 CPT PMT…

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: the monthly loan amount will be                                    = p*[ r(1+r)n/(1+r)n-1]…

Q: If you invest $10,000 at an interest rate of 8.00% (annual rate) compounded quarterly, how much…

A: Given: Investment amount = $10000 Rate = 8.00% compounded quarterly To compute the amount of…

Q: John contributes $5,000 per month into an account. How much will he have in the account after 25…

A: In the given question we require to calculate the future value of account after 25 years is john…

Q: A $500,000 whole life policy is available for $5150 per year, payable at the beginning of the year.…

A: Life policy per year $ 5,150 Insurance amount ($5,150 x 10%) $ 515 Savings plan ($5,150 x 90%) $…

Q: Suppose you invest in an annuity that pays 5% annual interest, compounded quarterly. If you…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You take out a $7,000 car loan that calls for 60 monthly payments starting after 1 month at an APR…

A: The present value of annuity refers to the current value of regular payments made at fixed intervals…

Q: You deposit $10,000 in an account that pays 5.85% per year, compounded continuously. Find the future…

A: Annual deposit (A) = $10000 Interest rate (r) = 5.85% n = 6 years

Q: If you borrow $25,000 from a local finance company and you are required to pay $4,424.50 per year…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: ow $ 150,000 for a house with 10% down payment at 8% compound annual interest rate for 30 years,…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: If you save $500 per quarter for retirement in an account that earns 8% interest per year,…

A: Retirement planning wherein a fixed amount is saved for a definite period to reap the benefits of…

Q: If $650 000 is saved for retirement, what rate of interest, compounded monthly, will provide…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: You are paid £4,000 annually for 6 years, with the first payment due in one year and the last…

A: Annual payment (P) = £4,000  Number of annual payments (n) = 6 Interest rate (r) = 2%

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.