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- URGENT! PLEASE WRITE LEGIBLE. Question Suppose we deposit $1500 into an account that pays a simple interest rate of0.5% each month. Find the amount of interest earned at the end of 3 years?Suppose you deposited $200 at the end of every year for seven years in an account that earned 6% annual effevtive interest. At the end of seven years, how much would the account be worth?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)
- 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)I thought the formula needed to find the interest rate is i= (FW/PW) ^ (1/# of years) - 1. frim what i understand givens are F = 100000, P = 80000, n = 15. and i dint know why A is given but its 5000. I need this type of notation (A/P, i%, 15) not pure math notation Vi paja (e) $5,000 now for $225 at the end of each year 3-9. A company can either buy certain land for outdoor storage of equipment or lease it on a 15-year lease. The purchase price is $80,000. The annual rental is $5,000 payable at the start of each year. In either case, the company must pay property taxes, assessments, and upkeep. It is estimated that the land will be needed for only 15 years and will be salable for $100,000 at the end of the 15-year period. What rate of return before income taxes will company receive by buying the land instead of leasing it? (Ans. 7.7%) 100 for a prepaidInterest can be computed more frequently than one time a year Select one: O True O False
- 1- How much can you afford to spend now on an Alarm Fire system if it will save you $21,300 per year for the next 5 years? Use an interest rate of 10% per year. 2. You need to buy a car in two years from now, the car dealer made you an offering, if you buy the car now, he would give you 40% a discount rate. You know that the car price will be SR 142,000 if you delay the purchasing decision two years. what is the present worth of the savings? if you refuse the offering. Assume the interest rate is 10% per year. 3. The amount of money that Energy Company can spend now for improving productivity instead of spending $30,000 three years from now at an interest rate of 12% per year is closest to: (a) $15,700 (b) $17,800 (c) $19,300 (d) $21,350QUESTION 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 ?How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 42 years at an annual interest rate of 1.66%. How long will it take to become a millionaire if the annual interest rate increases to 2.81%? You can get to your goal in years when /2.81%. (Round to the nearest whole number.)
- Suppose $5,000 is invested at an annual interest rate of 7%. Compute the balance after10 years if the interest is compounded:a. Annuallyb. Quarterlyc. Monthlyd. Continuously4. 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:4. An engineering consultant wants to withdraw $16,000 per year for each of the next 10 years to purchase hardware and software upgrades. How much money must the consultant deposit initially in an account that earns 4% interest, compounded annually?