Four years ago, Zaldy Nevarez invested P23 900compounded bimonthly at 12%. How much is his moneynow?A. P38 578.00B. P38 578.01C. P38 578.02D. P38 578.03BO AODFind the interest earned at the end of 4 years if P36 700 isinvested at 12% compounded bimonthly.A. P22 309.04B. P22 429.04C. P22 539.04D. P22 359.04O A

1) The present value of the money is the future value of the money invested 4 years ago. So we can…

Four years ago, Zaldy Nevarez invested P23 900 compounded bimonthly at 12%. How much is his money now? A. P38 578.00 B. P38 578.01 C. P38 578.02 D. P38 578.03 O B O A D Find the interest earned at the end of 4 years if P36 700 is invested at 12% compounded bimonthly. A. P22 309.04 B. P22 429.04 C. P22 539.04 D. P22 359.04 O D O A

Four years ago, Zaldy Nevarez invested P23 900 compounded bimonthly at 12%. How much is his money now? A. P38 578.00 B. P38 578.01 C. P38 578.02 D. P38 578.03 O B O A D Find the interest earned at the end of 4 years if P36 700 is invested at 12% compounded bimonthly. A. P22 309.04 B. P22 429.04 C. P22 539.04 D. P22 359.04 O D O A

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

See similar textbooks

Similar questions

! Use the given Data ! bartleby = 3 max questionsFor a deposit of P150000 at 8.5% interest compounded continuously over 5 years, find the interestearned. Jonal is left with an inheritance which amounts to P 30000 trusted to her guardian until it reachesto P 60000, how long would she wait for her money if it is invested at 10% compounded quarterly?N=
4. At an annual effective interest rate of i, i > 0, both of the following annuities have a present value of Y: (a) a 10-year annuity-immediate with annual payments of 55. (b) a 15-year annuity-immediate with annual payments that pays 30 per year for the first 5 years, per year for the second 5 years, and 90 per year for the final 5 years. 60 Calculate Y. Solution:
Erwin expects to receive 20,000 dollars in 10 years. If interest is computed at 6% compounded continuously, how much should he invest?11,000 10,000 12,000
11.Find the value of Z in the left-hand cash flow diagram that establishes equivalent with the right-hand cash flow diagram. Both diagrams are drowned on a yearly scale. Interest rate is 10% compounded annually. 0 1 2 3 N N N N 4 N 5 6 years 0 day 2 3 4 5 6 1 1000 5000
a. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded quarterly? b. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded monthly? c. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded daily? d. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded continuously? e. At what compounding period does the effective annual interest rate very closely approximate continuous compounding? (Consider to the nearest 0.0001)
2. How many years are required for your money to triple if it is invested at 9% compounded? a. annually b. semi-annually c. quarterly,
Which of these gives the lowest effective rate of interest? a. 12.35% compounded annually b. 11.90% compounded semi-annually c. 12.20% compounded quarterly d. 11.60% compounded monthly
QUESTION 1 Muhammad takes out a loan of $ 2,130, at 8% simple interest, for 8 years. How much will he pay back at the end of year 8? QUESTION 2 Calculate the amount of interest on an investment of AED 103,971 at 8% simple interest for 5 years. QUESTION 3 If you deposit today $7,335 in an account for 6 years and at the end accumulate $10,885, how much compound interest rate (rate of return) you earned on this investment ? QUESTION 4 You will deposit 12,025 at 10% simple interest rate for 9 years, and then move the amount you would receive to an investment account at 12 % compound rate for another 3 years. How much money would you have at the end of the entire period ?
What simple interest rate is equivalent to simple discount rate 15 ½ % in discounting anamount for 9 months?
100,000 invested today in a fund that pays 25% interest compounded annually. 3 yrs later, you borrow 50,000 with interest of 20% annually in a bank and invest to the fund. 2 yrs later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. 3 yrs from this withdraw you start taking 20,000 per year in the fund. After 5 withdrawals, you withdraw the balance in the fund. How much was withdrawn? a. 1.9 Million b. 1.3 Million c. 1.6 Million d. 1 Million
Find the amount needs to be invested if the investors want to receive an annual net income worth 5,400,000 for 7 years. Use the Hoskold's Formula to compute the priceif the money is worth 8% on sinking fund and the yield of interest is 5%. Price =
9. A man wishes to have P 40,000 in a certain fund at the end of 8 years. How much should he invest in a fund that will pay 6% compounded continuously?