If we are charged $50 on a $500 loan that is due in 1 month, what is the effective annual rate? (ieff) A 100% 120% C 180% D 200% 213% F 223% 243% H 263%
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- Suppose that $30,000 is borrowed today at 12% interest. The loan is to be repaid by uniform annual payments for 5 years, beginning 1 year from now. Calculate the annual payment. A) $500 per year $8,322 per year C $108,140 per year D) $3603.00 per yearDetermine 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 ·Question 3 A charity organization will donate for the education of indigent students. The donation will be spent as follows: P1260154 annually for each of the 1st five years; P2440221 annually for each of the next five years; and P3388889 annually thereafter. The funding will begin one year after the organization is established. If the money earns 20% cpd. quarterly, what is the amount of the donation? Add your answer
- Compute the number of years (t) if future value (FV) = $13514, present value (FV) = $1186, and interest rate (r) = 11.8%,.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 Five years after the last deposit the accumulated money is withdrawn from the account. How much is withdrawn?A mechanical contractor has four employees whose combined salaries through the end of this year are $325,000. If he expects to give an average raise of 6% each year, but beginning in year 3. Calculate the present worth of the employees' salaries for 5 year Let i=8% per year. a. 1342462 b. 1342452 C. 1342485 d. 1342455 е. 1342465
- An investor is considering buying a 20-3 corporate bond. The bond has a face value of $1000 and pays 4% interest per year in two semiannual pay- ments. To receive 6% interest, compounded semian- nually, how much should be paid for the bond?Mr. Smith invested $2,500 in a savings account that earns 3% interest compounded annually. He made no additional deposits or withdrawals. Which expression can be used to determine the number of dollars in this account at the end of 4 years? 2500(1+0.03)^(4),2500(1+0.04)^(3) 2500(1+0.3)^(4),2500(1+0.4)^(3).8. Consider a series of cash flows that begins with $1000 received at the end of year 7. At the end of year 8, you receive $1100, and $1200 at the end of year 9. This pattern of increasing cash flow receipts occurs through the end of year 20. What is the present equivalent value (time 0) of this cash flow series when the interest rate is 8% per year?
- If your credit card calculates interest based on17.85% APR, compounded monthly:(a) What are your monthly interest rate and annualeffective interest rate?(b) If your current outstanding balance is $2,500 andyou skip payments for two months, what wouldbe the total balance two months from now?1. Many small companies use accounts receivable as collateral to borrow money for continuing operations and meeting payrolls. If a company borrows $300,000 now at an interest rate of 1% per month, but the rate changes to 1.25% per month after 4 months, how much will the company owe at the end of 1 year?Engr. Odon is paying a loan five thousand pesos 5% monthly for 3 years. If the payment is to start after 6 years. What is the value after 14 years of the last payment? Solve without using Excel.