Q: 43. Find the equivalent rate of interest of 9% compounded quarterly to an interest rate compounded…
A: Given interest rate = 9 % compounded quarterly Effective annual rate = (1 + rate)^time - 1 = (1 +…
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A: Future value can be calculated by using the following formula.
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A: The value of deposit (X) from the second year can be calculated by using the following formula.
Q: 1. Convert the following rates (a) 10% to compounded daily. (b) 20% simple interest to compounded…
A: Compound Interest refers to the addition of interest to the principal sum of a deposit/loan, or in…
Q: 3.Suppose that a $100 lump sum amount is invested for 10 years at a nominal interest rate of 6%…
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A: * SOLUTION :- (5)
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A: Solving with explanation
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A: Compound interest refers to the addition of interest to the principal amount of a loan or deposit,…
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Q: How long should ₱50,000 be invested at 6% compounded semi-annually if it should earn an interes
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Q: 18.b
A:
Q: An investor needs 41,000 in 15 years. What amount should be deposited in a fund at the end of each…
A: Fund: It refers to the amount of that is deposited by people at various places that provides them…
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A: Interest is the amount paid in excess of the principal amount by the borrower to the lender. The two…
Q: 2. What is the future worth of #10,000 invested every month for five years at 8% interest rate…
A:
Q: Assuming an interest rate of 8% compounded annually, how much money will be required in four years…
A: A = P(1+r)n where P is principal amountr is interest rate n is time period
Q: 7. A nominal interest rate of 12% per annum compounded monthly is equal to what nominal interest…
A: Effective interest rate = (1+rm)m - 1where r is interest rate and m is time period.
Q: 5. For an interest rate of 8% compounded annually, find: How much will be required 5 years hence to…
A: here we calculate the payment value of loan after 5 year by using future value formula which are as…
Q: б. ( You are given a loan on which interest is charged over a 4-year period, as follows: i. an…
A: The rate of interest is the cost of borrowing money or the return for lending money.
Q: 7. Calculate the effective annual interest rate of the following: a. 12% compounded annually b. 12%…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…
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A: We are going to find the annual rate to answer both parts of this question.
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Q: 1. Accumulate P 3,000 for 9 years at 6 percent interest compounded quarterly. How much is the…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
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A: We use the rule of 72 here. Rule of 72: Years to double the principal = 72/Interest Rate
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A: Future value = 90000 $ Time = 7 years Interest rate = 8 % compounded quarterly Quarterly rate = 8 %…
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A: We use the compound interest formula to calculate future value after 10 years.
Q: 5. Calculate the effective rate corresponding to each of the following rates: a. 9% compounded…
A: Effective interest rate = (1+im)m -1 where i is nominal interest ratem is number of compounding…
Q: 8 years ago, a man borrowed P 150,000 from a bank with an interest rate of 8% compounded quarterly…
A: Given Borrowed amount = 150000 Time = 8 years Interest rate = 8 % compounded quarterly Present value…
Q: A loan of $20,000 is to be repaid in uniform monthly payments over 3 years. If the interest in 9%…
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Q: How much money would you need to deposit today at 8% interest compounded quarterly to have $15,000…
A: In economics, interest refers to the amount paid in excess of the principal amount by the borrower…
Q: 6. What interest rate compounded monthly is equivalent to 10% effective rate?
A: 6. Monthly (n)= 12 compounding periods i= 0.1
Q: 3.9 For an interest rate of 13% compounded annually, find (a) How much can be lent now if $10,000…
A: Here, it is given that interest rate is 13% that is compounded annually.
Q: Q1. How much will a $65,000 investment today be worth in 8 years if it earns 6% annual compound…
A: Given Present value of investment =65000 Time =8 years Rate of interest =6%
Q: What interest rate compounded monthly is equivalent to 10% effective rate?
A: Effective rate = 10%
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Q: 8. What is the nominal rate of interest compounded continuously for 10 years if the compound amount…
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Q: What value of A makes the two annual cash flows shown in the following diagram equivalent at 12%…
A: Answer: The two annual cash flows will be equivalent if the present values of both are equal at a…
Q: What is the effective interest rate for a. 15% compounded quarterly? b. 18% compounded…
A: Effective Interest rate = (1+rn)n -1where r is interest rate and n is time period.
Q: How long will it take $ 50 to be four times its value if invested at the rate of 7% compounded…
A: Interest, is that the adding of interest to the corpus of a loan or deposit. it is the outcome of…
Q: What interest compounded 10 times a year is equivalent to an interest rate of 5% compounded…
A: Compounding Interest rate = 5% quaterly
Q: A series of equal quarterly payments of $5,000 for 10 years is equivalent to what present amount at…
A: Pieces of information given in the question: Annuity = $5000Annuity made = QuarterlyTime = 10…
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A: Given: Annuity=1520 Interest rate=2% Number of years=7 To find: Accumulated amount
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- 1. Jessica buys a television set from a merchant who asks P14,000.00 at the end of 80 days. She wishes to pay the merchant immediately and the money assumed 10% of simple interest. What is the cash price today? Draw the cash flow diagram. 2.How long does it takes a principal of P25,000 at a simple interest rate of 5% per year to become P30,000? Draw the cash flow diagram. 3. Determine the ordinary and exact simple interest on $5,000 for the period from January 15 to June 20,2015 if the rate of simple interest is 14% 4. 13. What payment X 10 years from now is equivalent to a payment of P500,000 7 years from now, if interest rate is 12% compounded semi-annually? 5. A factory operator bought a diesel generator set for P10,000 and agreed to pay the dealer uniform sum at the end of each year for five years at 8% compounded annually, that the payment will cancel the debt and principal interest. What is the annual payment?NEED HELP ASAP! THANK YOU SO MUCH ! Problem 1: What is the future equivalent of $1,000 invested at 8% simple interest per year of 2.5 years?Problem 2: An investment earns 20% compounded semiannually. After how many years will it triple?Problem 3: A man is required to pay P57,500 at the endof 15 days and for P60,000 at the end of 60 days. Determine the rate of interest. Problem 4: How much should you deposit in an account 5% interest semi-annually if you want to have $25,000 after 10 years?Problem 5: How much should Jane return at the end of 60 days if she loaned P10,000 from a friend at a simple interest of 10%?8. Consider the cash flow transactions depicted in the accompanying cash flow diagram, with the changing interest rates specified. (a) What is the equivalent present worth? (In other words, how much do you have to deposit now so that you can withdraw $300 at the end of year 1, $300 at the end of year 2, $500 at the end of year 3, and $500 at the end of year 4?) (b) What is the single effective annual interest rate over four years? $300 $300 2 Years 9% 6% Interest Interest P compounded compounded $500 $500 6% Interest compounded
- 1. What is the Single Payment Compound Amount factor for an interest rate of 2% over 10 years? 2. What is the Uniform Gradient Future Worth factor for an interest rate of 10% over 10 years? 3. What is the Uniform Series Present Worth factor for an interest rate of 5.5% over 20 years? 4. A bank pays 3% interest per year (compounded annually). a. To what amount will a $5,000 deposit grow if left in the bank for 10 years? b. Draw the Cash Flow Diagram for this problem.You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate of 5% one year and 7% other year. How much money will you have at the end of year thirty if there are different interest rates after year 30 as shown in the diagram below? 1 3 4 26 27 28 29 30 5% 7% I 5% 7% 5% 7% 5% %7 F ? 2000 1000 2000 1000 1000 2000 1000 2000 1000 Select one: a. 117724 O b. 90000 O c. 120408 O d. 106141 O e. 180505. You receive payments of $10,000 per year from a family trust, but you don't need that money right now. Find FV Annuity: If you deposit your annual payments into an account earning 2% per year, what will be the account balance in 10 years? C= 10,000 r = 0.02 t = 10 (1 = i)^n FV = C =? Find FV Annuity: If you deposit your annual payments into an account earning 2% per year, what will be the account balance in 5 years?
- 2. How long will an investment double itself if interest is earned at a compounded rate of: a. 3% per quarter? b. 0.25% per week (assumption: 1 year = 52 weeks)?A cash flow at time zero (now) of $7,386 is equivalent to another cash flow that is an EOY annuity of $2,100 over five years (starting at year 1). Each of these two cash-flow series is equivalent to a third series, which is a uniform gradient series. What is the value of G for this third series over the same five-year time interval? Assume that the cash flow at the end of year one is zero. Choose the correct answer below. A. $1,050 B. $702 OC. $949 OD. $1,195 OE. Not enough information given.When computed using an effective interest rate of i, it is known that the present value of $2,000 at the end of each year for 2n years plus an additional $1,000 at the end of each of the first n years is $52,800. Using this same interest rate, the present value of an n year deferred annuity-immediate paying $4,000 per year for n years is $27,400. Find n. [HINT: First find an|i and a2n|i then νn and i.]
- 1. What is the annual rate of interest if P300 is earned in four months in an investment of P15350?Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place)Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,200 is set aside each year and invested in a savings account that pays 20% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 24 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 24. The annuity will extend from the EOY 25 to the EOY 34. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest and annuity table for continuous compounding when /-20% per year. CODE a. The accumulated savings amount at the end of 24 years will be $ (Round to the nearest dollar.)