An employee at Dragon Steel Corporation borrows $10,000 on May 1, 2020 and must repay a total of $10,700 exactly 1 year later. Determine the interest amount and the interest rate paid. Answer: I = $700 ; r = 7% per year
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- Peter has decided to make a deposit of $500 each quarter (starting next quarter) for 5 years. If the interest rate is 16%/year compounded monthly, the closest equivalent future value right after his last deposit is Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated interest rate after the stated amount of time. 3% per year, compounded weekly (52 times/year), after 7 years FV = $ 12,336.00 x Need Help? Read It Watch ItIf we are charged $50 on a $500 loan that is due in 1 month, what is the effective annual rate? (ieff) A 100% B 120% C 180% D 200% E 213% F 223% G 243% H 263%
- Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in year 1 after the deposit and if the bank provides an interest rate of 5% per year, how much money should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank now, 5 years later, how much money should he expect to get with an interest rate of 5%? I 2.Please no written by hand solutions Q3. An individual makes five annual deposit of $2000 in a savings account that pays interest at a rate of 4% per year. One year after making the last deposit, the interest rate changes to 6% per year. Five years after the last deposit the accumulated money is withdrawn from the account. How much is withdrawn?Compute the present worth (P) for the cash flows with the different periodicinterest rates specified. The cash flows occur at the end of each year over sixyears.(a) P = $2,140(b) p = $2,154(c) P = $2,234( d) p = $2,249
- Ahmad wants to borrow KD10,000 now from a bank to purchase a new car. He would like to .1 repay the loan in equal quarterly payments over 20 years. Find the unpaid balance after the 64th payment if the effective interest rate is 5% per quarterCompute the number of years (t) if future value (FV) = $13514, present value (FV) = $1186, and interest rate (r) = 11.8%,.Determine the present worth of the following cash flows if the interest rate is 4% per year: Year End Cash Flow ($) Click the icon to view the interest and annuity table for discrete compounding when the MARR is 4% per year. PW(4%) = $ (Round to the nearest dollar.) 0 - $8,000 1 - $15,000 (...) 2 $40,000 3 $45,000 4 - $2,000
- Mary made five EOY annual deposits in a savings account. Her deposits started at $7500 at EOY one and increased by $4300 each year, thereafter. The account paid interest at a rate of 6% per year. One year after making the last deposit, the interest rate changed to 20% per year. Five years after the last deposit, how much accumulated money can she withdraw from the account? Select one: $218822 $154634 $193292 $289939 $212622Determine the annual equivalent amount over 4 years for the following cash flow (CF) pattern. The nominal interest rate is 5%, and it is compounded monthly. (EOY = end of year) EOY 0, CF = -$16,500 • EOY 1, CF = -$3,000 • EOY 2, CF = $3,000 • EOY 3, CF = $7,000 • EOY 4, CF = - $7,000 ·You want to invest an amount today that will last for 5 years and allow you to withdraw $555 at the end of each 6-month period. You earn 4% APR compounded semiannually on your investment. How much do you need to invest today to achieve your goal?