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You invest $1,000 for 3 years at 6% per annum compounding quarterly. What is the equivalent annual simple rate of interest?
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You invest $5,000 for five years making no further deposits or withdrawals. After 5 years you have a balance of $9,765. What was your equivalent annual simple
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- 1. If you invest $ 2,000 now and it will become $ 6,000 at the end of 4 years, determine the nominal rate of interest and the corresponding effective rate of interest if the interest is compounded quarterly.What is the future value of $700 deposited for one year earning 4 percent interest rate annually?What is the equivalent present value of the following series of payments: $10,000 the first year, $11,000 the second year, and $12,000 the third year? Consider 4% interest, compounded annually.
- If you invest $10,000 at an interest rate of 8.00% (annual rate) compounded quarterly, how much interest will you have after one year?What is the future value of 1,000 over five years if 8% interest is paid annually ?What is the present value of $100 to be received in 3 years if the annual interest rate is 10% and compounded annually? How about if the interest is compounded monthly, daily or hourly?
- You are paid £4,000 annually for 6 years, with the first payment due in one year and the last payment due in 6 years. What is the present value of all these payments using an interest rate of 2%?Suppose you invest $1,000 today, compounded quarterly, with the annual interest rate of 8.00%. What is your investment worth in one year?What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the appropriate interest rate is 5%?
- What is the present worth of P5000 deposited at the end of every three months for 5 years if the interest rate is 6% compounded semi-annually?Find the present values of these annuities due.a. What is the present value of $4,000 per month for one year with an annual interest rate of 4.8% (APR with monthly compounding)? b.What is the present worth of annually payments ( 2000 $ ) if the first payment will deposit after five from now , and the last one will deposit at begin of the fifteenth year ? Assume interest rate ( 7 % ) ?