You have found three investment choices for a one-year deposit: 10% APR compounded monthly, 10% APR compounded annually, and 9% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.)

Q: You are to make monthly deposits of $725 into a retirememt account that pays an APR of 10.1 percemt…

A: Future value is the expected value of current regular deposit at a future date, at a given rate of…

Q: Ms. Aay is considering to deposit $500 every six months, and would receive interest at an annual…

A: Semi annual deposit (P) = $ 500 Annual interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%…

Q: You deposit $300 in an account earning 5% coumpound interest for 4 years. Find the future value and…

A: Deposit is $300 Interest Rate is 5% Time Period is 4 years Note: According to Banker's Rule, there…

Q: Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest…

A:

Q: Find the amount of an annuity that consists of 20 quarterly payments of $700 each into an account…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: You are offered three investments. The first promises to earn 10% compounded annually, the second…

A:

Q: You can earn $59 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless…

A: Effective Annual Rate: It refers to the annual real rate taking into account compounding effects.…

Q: Harry Morgan plans to make 30 quarterly deposits of P200 into a savings account. The first deposit…

A: Solved using Financial Calculator  N= 30 (7.5 * 4 = 30) I/Y = 8/4 = 2 PMT = 200 CPT FV = 8113.62

Q: Compute the monthly payment on a $65,000 loan if the principal and interest are to be repaid in 84…

A: Monthly payments could be computed by using the present value formula. Present value of all the…

Q: Suppose you deposit $2,500 at the end of year 1, nothing at the end of year 2, $750 at the end of…

A: Here, Interest rate =15% compounded annually To Find: Future value at the end of 5 years =?

Q: Find the annual deposit

A: Compound interest is the interest on interest. Under this method the interest is calculated by…

Q: You have found three investment choices for a one-year deposit: 9.1% APR compounded monthly, 9.1%…

A: Solution:- Effective Annual Rate (EAR) means the effective rate for a year after effect of all the…

Q: Assuming that four annual deposits of ($1000) are occurred but the first payment deposit at end of…

A: The annual payments are going to occur will be equivalent to the future value of annual payment that…

Q: In the situation where Ahmad are depositing $1,000 per month in a savings account that pays 6…

A: Payment period is the no. of times money is deposited in a year. compounding period is the no. of…

Q: If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the…

A: The effective rate of interest refers to the return on savings or interest on the investment…

Q: Suppose are going to make monthly deposits into an account with an annual interest rate of [8] 2.5%…

A: For calculating the monthly deposit as ordinary annuity; the $1,000,000 amount shall be taken as the…

Q: If you deposit $620 every month for the next 9 years, with first deposit to be made today and all…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: You have a financial goal of $140,000. The rate is 3% compounded annually. The time is 16 years.…

A: Formula to calculate annual periodic deposit Annuity=FV *r[(1+r)n-1] Where, FV = Future value r =…

Q: An investment promises to pay into an account that pays you 6 percent annually, $151 per month for…

A: In this we have to calculate future value FACTOR and get future value.

Q: Assume you put $600 per month into a retirement account for 14 years, and the account has an APR of…

A: Given: Particulars Amount Payment(PMT) $600 Years 14 Interest rate 3.02%

Q: You have your choice of two investment accounts. Investment A is a 9-year annuity that features…

A: All financials below are in $.Characterisitics of Investment A:Monthly annuity, M = 1,780Frequency…

Q: A person wants to make two individual investments, one today and one in six months at a rate of 18%…

A: monthly rate = 18%/12 = 1.5% X * 1.01512 + 5,000,000*1.0156 = 10,000,000 X = 3,791,163.26

Q: Compute the future value of a $1500 deposit, after eight years, in an account that pays an interest…

A: Future value can be determined by compounding the present value.

Q: Suppose you take out an auto loan for $25,500 over a period of six years at an APR of 7.5%.…

A: The annual percentage rate refers to the yearly rate of interest paid for a loan or received from an…

Q: You have found three investment choices for a one-year deposit: 12% APR compounded monthly, 11% APR…

A: Interest rate: 12% APR compounded monthly means compounding frequency is 12 11% APR compounded…

Q: You plan to make 15 annual deposits in a saving account that pays 6% interest compounded annually.…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: The amount of $7,000 is invested in a certificate of deposit (CD) and will be worth $16,000 in nine…

A: Invested amount=$7000Worth in 9 years=$16000

Q: Taking out a 21 year loan at $59,000 with 6% APR compounded monthly, and with monthly payments,…

A: Therefore, second principal payment is $117.9.

Q: You have taken out a 20-year loan of $72,000 with 3% interest (APR) compounded monthly and with…

A: Annual percentage rate (APR) is a rate that a person is paying annually after undertaking all the…

Q: Suppose you make 1000 pbr monthly deposits to a retirement plan that pays interest at a rate of 30%…

A: Using Excel FV function

Q: You deposit $300 in an account earning 5% coumpound interest for 4 years. Find the future value and…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: you deposited ₱5,000 from the savings of your daily allowance in a time  deposit account with your…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount invested is…

Q: You have taken out a 30-year loan of $55,000 with 6% interest (APR) compounded monthly and with…

A: An amount or asset borrowed by an entity from an individual or financial institution is known as a…

Q: You can earn $41 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless…

A:

Q: You deposit $3500 in an account earning 2% interest compounded quarterly. How much will you have in…

A: Deposit amount (P) = $3500 Interest rate = 2% Quarterly interest rate (r) = 2%/4 = 0.50% Period = 18…

Q: If you make quarterly deposits for 3 years into an account that compounds interest at 1% per…

A: The formula of future value of an annuity:  FV =A × (1+r)n-1r  where  A = Annuity amount  FV =…

Q: Your bank is offering you an account that will pay 10% interest in total for a two-year deposit.…

A: Equivalent discount rate is referred as the real return on a saving account which computes interest…

Q: You are about to borrow $8,000 from a bank at an interest rate of 8% compounded annually. You are…

A: The money which is taken as a loan from the bank or from any financial institution is known as…

Q: You wish to have $200,000 at the end of twenty years. In the last five years, you withdraw $1,000…

A: Solution- FV at the end of 20 years required =$200000Amount of withdrawal at the end of 5…

Q: What is the monthly effective interest rate? [ Select ] If the objective of these deposits is to…

A: Time period = 60 months  Nominal interest rate = 6%  Compounded monthly basis

Q: Use the appropriate formula to find the amortization payment you would need to make each three…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

Q: How much will be at the said account three years after the ast deposit? If you make six consecutive…

A: In cases where the interest is compounded semi-annually, the compounding period is considered to be…

Q: Prepare an amortization schedule for a three-year loan of $57,000. The interest rate is 8 percent…

A: Amortization Schedule: It is a schedule showing the loan payments, principal amount, and interest on…

Q: You have taken out a 23-year loan of $78,000 with 5% interest (APR) compounded monthly and with…

A: Therefore, the amount of your second principal payment is $151.7.

Q: How much interest is paid in the third year? How much total interest is paid over the life of the…

A: Loan: It is the sum of money given to the borrower by the lender for a period of time. In return,…