1. Jessica buys a television set from a merchant who asks P14,000.00 at the end of 80 days. She wishes to pay the merchant immediately and the money assumed 10% of simple interest. What is the cash price today? Draw the cash flow diagram.
Q: 5. A man wishes his son to receive P200,000 ten years from now, What amount should he invest if it…
A: The future value of the investment is P200,000. The investment to be done in current period is P.…
Q: 2. A savings bank offered you 6% nominal interest compounded every 2 months You deposited $4,000. a)…
A: here we calculate the future value and the effective interest rate of the following , so by using…
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A: Here we calculate the following by using the given information , and conclude the answer so the…
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A: For the first 4 years interest at 12% , 12/4=3 then 3/2=1.5 To find the nominal interest rate…
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A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…
Q: Q4. A man borrowed $85000 at 7% to purchase a flat. The loan is to be repaid in equal monthly…
A: here we calculate the amount paid on first and second payment so here by using the given information…
Q: 15. Justine buys a television set from a merchant who asks P 1,250.00 at the end of 60 days (cash in…
A: Let the cash price today be p. Assumption: cash price is worth 8%. 8% interest on cash price=0.08x…
Q: 1. A person wishes to accumulate P2,500 over a period of 15 yrs so that a cash payment can be made…
A: * SOLUTION :- * 1) Given, FV=2500 I =8% n=15, then We use the following formula to calculate…
Q: Question 16 What type of annuity is represented by the graph below? P 2 3 k-1 k А, А, Аз Ak-1 Ak A…
A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…
Q: solve A in this cash flow diagram
A: The cash flow is the outflow or inflow of cash into the business. It means as cash inflow into the…
Q: 2. What is the future worth of P10,000 invested every month for five years at 8% interest rate…
A: Given investment each month = 10000 Time = 5 years * 12 months = 60 months Interest rate = 8 %…
Q: 4. Given two cash transactions at i=10%, find the value of C. Cash flow 1 Cash flow 2 $300 $300 $300…
A: Present Worth (PW) of cash flow 1 = 100×PA,0.10,2 + 300×PA,0.10,10.3×PF,0.10,2 Calculate the…
Q: Problem 1: Tess wanted to have P100,000 on her bank account at the end of 8 years. She plans to…
A: The idea of saving a certain amount monthly in order to save a large sum of money for the future is…
Q: 7. Consider a cash flow series of 40 payments. The first 20 payments are $1,000 per year and the…
A: In the question above, it is given that : A cash flow series of 40 payments The first 20 payments…
Q: 9. A man wishes to have P 40,000 in a certain fund at the end of 8 years. How much should he invest…
A: Here, given information is: Future value (FV)= P40,000 Interest rate (i)= 6% compounded…
Q: 2. Jeth paid a 10% down payment of P269,000 for a house and lot, and agreed to pay the balance of…
A: Monthly Amount = r * Total amount ÷ [1 - (1 + r)-n]
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A: Given a specific return rate, the present value of an investment is the current worth of that…
Q: John-The-Smart-Investor plans to make uniform deposits every three months into a high yield savings…
A: YTM = 8% = 0.08 Coupon rate = 10% = 0.10 time to maturity of bond, n = 3 years coupon value, C =…
Q: 3. What is the value of an investment of P250,500 after 2 years if it earns 1.5% compounded…
A: Investment value = P250500 Time period = 2 years Interest = 1.5%
Q: What is the future equivalent of $1,000 invested at 8% simple interest per year of 2.5 years?
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Jake Werkheiser decides to invest $5000 in an IRA at the end of each year for the next 11 years. If…
A: We have the following information, Jake Werkheiser decides to invest $5000 Time period, n = 11…
Q: 6. A man bought an equipment costing P60,000 payable quarterly for 3 years, each installment payable…
A: Equivalent quarterly payment (EQP) can be calculated by using the following formula.
Q: %, compounded bimonthly. What future amount is due at the end o an period? Draw a cashflow diagram…
A: Future worth is the worth of a resource at a particular date. It estimates the ostensible future…
Q: 5. For an interest rate of 8% compounded annually, find: How much will be required 5 years hence to…
A: here we calculate the payment value of loan after 5 year by using future value formula which are as…
Q: EED HELP ASAP FOR BOTH PROBLEM THANK YOU SO MUCH ! Problem 1: An investment earns 20% compounded…
A: Answer is given below
Q: 4% compounded annually, what is the cash price(P) of the property?
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A: Trust Fund A trust fund is a type of estate planning tool that creates a legal entity to hold…
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A: According to the question brain borrowed P30,000 at the interest rate of 11 4/5(11.8%) for the 180…
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A: A series of money paid at regular intervals is known as an annuity. Monthly savings account…
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A: The formula for present value(PV) is given below: PV=FV×11+RN FV: future-value R: interest rate N:…
Q: Finance. Suppose that $2,300 is invested at 5% annual interest rate, compounded monthly. How much…
A: (A) Present value PV = $2300 Interest rate r = 5% compounded monthly Interest rate = 0.05/12 =…
Q: Example: Suppose $1500 is deposited at the end of each year for the next 6 years in an account…
A: The amount of annuity (A) = $1500 Total number of years (n) = 6 Interest rate ( r ) = 8%
Q: Find the net present value of the following cash flows, which can be purchased by an initial…
A: Here we calculate the net present value of the given cashflow by using the given information and…
Q: 1. Total present worth of all cash flows. Is the sum a positive net cash flow or a negative net cash…
A: In this question we have:- a series of cash flows : • a cash flow of P375 at the end of the 2nd,…
Q: Compute the effective annual interest rate in each of these situations: a. 9% nominal interest,…
A: The effective annual interest rate is the real return on a savings account or any interest-paying…
Q: Draw a Cashflow Diagram and full solution What is the present equivalent of a uniform series of…
A: The present equivalent of a uniform series of quarterly payments = $4,500 each for four years and a…
Q: How many years will it take for an amount of $2500 to triple is invested at an interest rate of 6%…
A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal the…
Q: 2-Given a nominal rate of a 30%, what is the effective annual interest rate if the interest is…
A: The Effective Annual Interest Rate is an important concept that describes the true interest rate…
Q: 1.1 If you desire to withdraw the following amount in the schedule below from the savings account…
A: The deposit in year 0 can be calculated by using the following formula.
Q: Question 2. Based on the following cash flow diagram, calculate the value of X with the interest…
A: here we calculate the value of X by using the given cashflow so the calculation of the following by…
Q: 3. What would $1000 become in a saving account at 3% per year for 3 years when the interest is not…
A: In simple interest rate, interest rate is charged on fixed initial value and in compounding interest…
Q: a.) How long will it take any sum to double itself with an 11% interest rate compounded…
A: Answer (a) For compounded continuously A = P×er t Here, A = 2P So, 2P = P×er t2 = er t 2 =…
Q: Tess wanted to have P100,000 on her bank account at the end of 8 years. She plans to deposit an…
A: Here we calculate the following terms by using the given information ,and conclude the answer , so…
Q: John has started a new job and wants to open a retirement account. He is now 26 years old and plans…
A: A cash flow is a monetary device used to address the sources of income related with a security,…
Q: What amount of money invested today at 15% interest can provide the following scholarships: ₱30,000…
A: Given:- Interest=15% Scholarship value=P30,000 for 6 year at each year end…
Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places What…
A: The present equivalent of a uniform series of quarterly payments = $4,500 each for four years and a…
Q: 2) An account earns (12) 2% for the first two years, (12) 3% for the net two years, and (12) -6% for…
A: Given; Interest in first 2 years;i=2%Next 2 years; i=3%Next 1 year; i= 6% Time; n=5 yearsMonthly…
Q: You want to buy an apartment at the price of 4 million Hong Kong dollars. You will do this with a…
A: Apartment price = 4,000,000 Annual interest rate = 8% Time period = 30 years
Q: Question 4 > What present value amounts to $14,950.78 if it is invested for 7 years at 9% compounded…
A:
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- 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)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 ?10. A present obligation of P 20,000 is to be paid by 5 equal end of the year payments of which includes the principal and the interest of the debt. If money is worth 12%compounded continuously, what is the amount of each repayment?
- 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,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?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) $21,350
- 3.Suppose that a $100 lump sum amount is invested for 10 years at a nominal interest rate of 6% compounded quarterly. How much is it worth at the end of tenth year?How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5% interestcompounded daily?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:
- Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to withdraw $8,000 three years after her last deposit, what will be the amount of money left in the bank after two years of her withdrawal? Use a 10% interest rate. MANUAL CALCULATION AND CASH FLOW DIAGRAMEng. economics. If $2000 is invested at 7% interest compounded continuously calculate its value after 3 years.7. Consider a cash flow series of 40 payments. The first 20 payments are $1,000 per year and the last 20 payments are $2,000 per year. At 6% interest what is the present value of the cash flow series?