a.
To calculate: The
Introduction:
It is an interest rate computed on the principal amount plus interest amount, which is accumulated over prior periods. It also represents the number of times interest is generated in a particular period. It can be annual, semi-annual, quarterly, daily or continuous.
b.
To calculate: The future value of $5,500 after 10 years at 12% compounded semi-annually.
Introduction:
Compounded Interest:
It is an interest rate computed on the principal amount plus interest amount, which is accumulated over prior periods. It also represents the number of times interest is generated in a particular period. It can be annual, semi-annual, quarterly, daily or continuous.
c.
To calculate: The future value of $5,500 after 10 years at 12% compounded quarterly.
Introduction:
Compounded Interest:
It is an interest rate computed on the principal amount plus interest amount, which is accumulated over prior periods. It also represents the number of times interest is generated in a particular period. It can be annual, semi-annual, quarterly, daily or continuous.
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Chapter 9 Solutions
BUS 225 DAYONE LL
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- You deposited P5,000 from the savings of your daily allowance in a time deposit account with your savings bank at a rate of 1.5% per annum. This will mature in 6 months. Compute the annual interest, total interest, and amount to be received or paid at the end of the term for this scenario above using a simple interest assumption and compound interest assumption.arrow_forwardFind the value of the ordinary annuity at the end of the indicated time period. The payment are frequency of deposits and annual interest rate are in time period. TR given amount $750 quarterly 5% eight years.arrow_forwardFind the future value of each deposit if the account pays (a) simple interest, and (b) interest compounded annually. $300 at 3% for 7 yearsarrow_forward
- Find the future value of an annuity of $1500 paid at the end of each year for 10 years, if interest is earned at a rate of 7%, compounded annuallyarrow_forwardFind the present value of the annuity that will pay $1,500 every 6 months for 9 years from an account paying interest at a rate of 8% compounded semiannually.arrow_forwardA person wants to deposit $10,000 per year for 6 years. If interest is earned at the rate of 10 percent per year, compute the amount to which the deposits will grow by the end of the 6 years if: a . Deposit of $10,000 are made at the end of each year with interest compounded annually. b. Deposit of $5,000 are made at the end of each 6-months period with interest compounded semiannually.arrow_forward
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