A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 5.5% interest rate on deposits and loans: How much would you have in one year if you deposited the $55 instead? How much money could you borrow today if you pay the bank $58 in one year? Should you loan the money to your friend or deposit it in the bank?
Q: If you deposit OMR 8141 in your account in a bank. Suppose the bank pays 8% compound interest half…
A: Given information: Deposit (Present value) : OMR 8141 Rate of interest : 8% Time Period : 5 years…
Q: You lend a friend $10,000, for which your friend will repay you $15,000 at the end of 5 years. What…
A: Given: Present value (PV) =$10,000 Future value (FV) = $15000 Time period (n) = 5 years
Q: 1. Hannah deposited 1,500 in a bank with an interest rate for 1 year. What is the future of her…
A: IN finance the time value of money is considered so there is present value and future value concept…
Q: A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is…
A: The present value of money is the discounted value of future cash flows. The future value is the…
Q: A friend asks to borrow 455 form you and in return will pay you $58 in one year. If your bank is…
A: Present value = $55 Interest rate =6% Time =1 year So, Future value = Present value*(1+ interest…
Q: Your brother lends you $1000 and you promise to repay $1,500. If he wants at least a 5% return on…
A: Future value is the future worth of a cash flow at a certain rate and period of time. Future…
Q: If you deposit OMR 8415 in your account in a bank. Suppose the bank pays 8% compound interest half…
A: Future value is the value of current asset or investment at a future date. Future value is…
Q: How much will you have after 5 years? How much will you have after 5 years if you make the deposits…
A: Each year Deposit RM 2500 Interest Rate 4%
Q: A friend asks to borrow $50 from you and in return will pay you $53 in one year. If your bank is…
A: Given:
Q: 2. A local bank is offering a promotional deal where if you open a bank account for at least $1000,…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: You borrow $ 3500 for one year from a friend at an interest rate of 1.5 % per month instead of…
A: The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in…
Q: You just invested $5,000 in a 48-month certificate of deposit (CD) at your local bank. The CD pays…
A: In this question we need to compute the worth of CD when it matures i.e. we need to compute its…
Q: You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs…
A: From Bank's perspective, lending amount is an outflow and annual payments made on loan are inflows.
Q: How much will he have to repay?
A: Simple interest means interest on principle amount. Principle = $3000 Interest rate = 5.5% Period =…
Q: You decide to borrow $250,000 to build a new home. The bank charges an interest rate of 8%…
A: Mortgage/ Borrowings: Borrowings are the loan which is taken by the individual to meet its…
Q: Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with…
A: Given: Effective interest rate = 8.9% Future value = $15,000 Years = 2
Q: You have $300 and a bank is offering 5.5% interest on deposits. If you deposit the money in the…
A: FV = PV * (1 + r)^nWhere FV = Future ValuePV = Present Value = $300r = rate of interest = 5.5%n =…
Q: You decide to deposit $5000 in a bank account paying 3.5% interest. What is the value of your…
A: Value of saving in 1 year can be calculated using following formula FV = PV* (1 + r / n)nt Where,…
Q: A trustworthy friend asks to borrow money from you today. She promises to pay you exactly $3750 in 2…
A: In order to find how much to lend her today one needs to calculate the present value of the amount…
Q: If you deposit OMR 16830 in your account in a bank. Suppose the bank pays 8% compound interest half…
A: Amount of Deposit = OMR 16830 Interest Rate = 8% Years =5 Interest Rate half yearly (r)=8%/2 =4%…
Q: to borrow PHP 1.7M from a bank and plans to repay the same amount in 8 years. If the bank charges…
A: Concept of Bank Loan Bank borrowing and amortisation
Q: You decide that you can spend 600 as a monthly payment for a new car. Your bank offers car loans at…
A: The amount that can be borrowed should equal the present value of future payments. This is based on…
Q: A friend asks to borrow $45 from you and in return will pay you $48 in one year. If your bank is…
A: If you deposit amount in a bank, you will reccive interest on such depoisit. Hence your money after…
Q: Your cousin has asked for your advice on whether or not to buy a bond for $995, which will make one…
A: Here, Buying Price of Bond is $995 One Time Payment after 5 years is $1,200 Time Period is 5 years
Q: A bank will pay you $100 a year for your lifetime if you deposit $2,500 in the bank today. If you…
A: In the given question we need to compute the interest rate bank is paying.
Q: You lend a friend $13,000, for which your friend will repay you $49,591 at the end of 6 years.…
A: Interest rate = (Future value / Present value)^(1/Time) - 1 where, Future value = $49,591 Present…
Q: You are in desperate need of cash and turn to your uncle, who has offered to lend you some money.…
A: Loan options are analyzed based on the repayment amount where loan option with lower repayment…
Q: A student borrows $2500 from his uncle in order to finish school. His uncle agrees to charge him…
A: Given information Principal amount (P) = $2500 Rate of interest ( r ) = 3.7% Duration of loan (t)…
Q: (a) A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to…
A: a) Let the initial amount = P Final amount = Double of the initial amount = 2P r = 5.5% per annum =…
Q: Amir needs 12000 to get his business started as soon as possible. He decides to take a loan from a…
A: Amount needed = 12000 Discount amount = 354.15
Q: If you are planning to apply for a personal loan and borrow PhP 30,000 and repay the principal and…
A: Loan Amount = Php 30,000 Time Period = 3 Years
Q: Dr. Dennis Natali plans to take advantage of 0% interest balance transfer credit card offer to pay…
A: given data Dr. Dennis Natali plans to take advantage of 0% interest balance transfer credit card…
Q: If you are planning to apply for a personal loan and borrow PhP 30,000 and repay the principal and…
A: The question is based on the concept of loan repayment by the use of amortization of funds. The loan…
Q: A trustworthy friend asks to borrow money from you today. She promises to pay you exactly $3750 in 2…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: you are a lender. suppose you have savings. your friends approached you and asked if you can lend…
A: Maturity Amount = Principal Amount x (1+i)n where, i= Interest Rate n= number of period
Q: You are planning on enrolling in the Master of Finance in 4 years time and will be required to pay…
A: We need to calculate present value of fees to be paid at enrolment. the $45,000 fees is the future…
Q: A credit card company wants your business. If you accept their offer and use their card, they will…
A: Deposit amount into a savings account= 1% of your monetary transactions Return= 5% per year Annual…
Q: If you deposit $20,000 in a bank account that pays 5% interest annually, how much will be in your…
A: The provided information are: Present value (PV) = $20,000 Rate of interest (r) = 5% = 0.05 Time…
Q: A friend asks to borrow $55 from you and in return will pay you $58 in one year. Ifyour bank is…
A: Loan is an agreement between two persons as borrower and lender in which borrower promises lender to…
Q: A person you trust foresees the need for a loan and suggests that you loan them $2,000 at the end of…
A: Loan is an agreement between lender and borrower. Lender agrees to provide funds t borrower at…
Q: (a) A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to…
A: a) monthly rate = 5.5%/12 2 = 1*(1 + 5.5%/12)n where n is the number of months number of months =…
Q: A friend wants to borrow a sum of money from you today and will repay R20 000 in 3 years' time. How…
A: Present Value refers to the value of cash flows today which is to be received at some future time…
Q: You have $20,000 that you put on deposit on your 30th birthday at 5% compounded annually. On your…
A: The future value of a cash flow is the future worth of a cash flow at a certain rate of interest and…
Q: You are a financial adviser working with a client who wants to retire in eight years. The client has…
A:
Q: A friend asks to borrow $51 from you and in return will pay you $54 in one year. If your bank is…
A: Given information: Present value is $51 Interest rate is 6.3% Number of years is 1
Q: how much do you need if i have $40,000 in my bank and the bank pays 5.3% annual interest if i need…
A: Loan: A loan is a kind of debt that is taken on by a person or a business. It is the lender's…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- A friend asks to borrow $53.00 from you and in return will pay you $56.00 in one year. If your bank is offering a 5.7% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $53.00 instead? b. How much money could you borrow today if you pay the bank $56.00 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $53.00 instead? If you deposit the $53.00 in the bank today, you will have $ in one year. (Round to the nearest cent.)A friend asks to borrow $53 from you and in return will pay you $56 in one year. If your bank is offering a 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $53 instead? b. How much money could you borrow today if you pay the bank $56 in one year? c. Should you loan the money to your friend or deposit it in the bank?A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is offering an 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $47 instead? b. How much money could you borrow today if you pay the bank $50 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $47 instead? If you deposit the money in the bank today you will have $____ in one year. (Round to the nearest cent.)
- A friend asks to borrow $55 from you and in return will pay you $58 in one year. Ifyour bank is offering a 6% interest rate on deposits and loans: How much would you have in one year if you deposited the $55 instead? How much money could you borrow today if you pay the bank $58 in one year? Should you loan the money to your friend or deposit it in the bank?A friend asks to borrow $45 from you and in return will pay you $48 in one year. If your bank is offering a 5.7% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $45 instead? b. How much money could you borrow today if you pay the bank $48 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $45 instead? If you deposit the money in the bank today you will have in one year. (Round to the nearest cent.) b. How much money could you borrow today if you pay the bank $48 in one year? You will be able to borrow $ today. (Round to the nearest cent.) c. Should you loan the money to your friend or deposit it in the bank? (Select from the drop-down menu.) From a financial perspective, you should as it will result in more money for you at the end of the year.A friend asks to borrow $51 from you and in return will pay you $54 in one year. If your bank is offering a 6.3% interest rate on deposits and loans: How much would you have in one year if you deposited the $51 instead? How much money could you borrow today if you pay the bank $54 in one year?
- A friend asks to borrow 455 form you and in return will pay you $58 in one year. If your bank is offering a 6% interest rate on deposits and loans: a) how much would you have in one year if you depostied the $55 instead? b) how much money could you borrow today if you pay the bank $58 in one year?(1)You decide to purchase a new home and need a $100000 mortgage. You take out a loan from the bank that has an interest rate of 7%. What is the yearly payment to the bank to pay off the loan in 20 years? (2) Using T-accounts show what happens to reserves at Security National Bank if one individual deposits $1000 in cash into her checking account and another individual withdraws $750 in cash from her checking account.Q A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6% interest rate on deposits and loans: How much would you have in one year if you deposited the $55 instead? How much money could you borrow today if you pay the bank $58 in one year? Should you loan the money to your friend or deposit it in the bank?
- Perpetuities A local bank will pay you $100 a year for your lidetime if you deposit $2,500 in the bank today. If you live forever, what interest rate is the bank paying you?A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that he will cash in for the trip. What is the minimum annual interest rate he must obtain on the certificate if he needs at least $1500 for the trip? Assume that the interest on the loan is computed using simple interest. The rate he must obtain isYou are in desperate need of cash and turn to your uncle, who has offered to lend you some money. You decide to borrow $1,240 and agree to pay back $1,853 in 2years. Alternatively, you could borrow from your bank that is charging 6.5 percent interest annually. Should you go with your uncle or the bank?