ntrast and compare the interest earned using both simple and compound interest after 6 years, with the principal amount of PhP 15,000 and an interest rate at 7%. Justify your answer.
Q: You are loaned $300 at the end of years 1 and 2, and loaned X at the end of year 3. You pay this…
A: We will use the concept of time value of money. Here each payment is made in a different time period…
Q: You and a friend are discussing the return on an account with an initial balance of $100 and an APY…
A: The simple interest is calculated based on the principal balance only. Thus, an equal amount of…
Q: Calculate the future value of the following two cases: a. LE150,000 deposited in an account that…
A: Loan amount = LE150,000 Interest rate = 8% Time period = 7 years
Q: How much money should be invested in an account that earns 9% interest, compounded quarterly, in…
A: Given data; interest rate = 9% future value = $ 5000 number of years = 5 compounding frequency = 4
Q: The simple interest rate in a payment plan is 12%, and the principal amount borrowed is $10,000.…
A: simple interest formula: A=P+I=P+P×R×T100=P×1+R×T100 WHERE, P=PRINCIPAL R=RATE T=TIME IN YEARS
Q: • Determine the exact simple interest on P5,000 for the period from Jan 15 to Nov 28, 1992 if the…
A: Simple interest = Principal * Rate of interest * Period Where, Principal = 5000 Interest = 22%…
Q: SIMPLE vs COMPOUND INTEREST Isimp. = P * r * t where P - principal amount (the initial amount you…
A: Simple interest = P * r * t where P = Principal amount r = rate of interest t = time period…
Q: Find the interest paid on a loan of $2,700 for one year at a simple interest rate of 11% per year.…
A: Simple interest = Principle × rate × time
Q: (a) Given the effective rate of interest as 7.5%, calculate the present value which will provide…
A: Present value is the future value discounted using the interest rate and time period. Present value…
Q: If you borrow $25,000 at an interest rate of 6%, compounded annually, with the repayment schedule as…
A: We need to discount all the future cash flows from year 1-4 and year 5-9 so that the total sum of…
Q: 1. What is the compound amount and interest if Php 10,000 is invested at 3.6% compounded monthly for…
A:
Q: Find the interest rates earned on each of the following: A. You borrow $700 and promise to pay back…
A: A. To determine the rate of interest earned: Loan = PV = 700 Future Value = FV = 749 Term = n=1 year…
Q: What is the simple interest rate on a loan of 2,000.00 that was paid 2,600.00 after 2 years and 6…
A: Interest = Amount - Principal Interest = 2,600 - 2,000 Interest = 600 Time = 2 years 6 months = 2.5…
Q: Find the APR of the loan given the amount of the loan the number and types of payment in the add-on…
A: Annual percentage rate (APR) : It refers to the yearly generated interest by a Principal amount that…
Q: Calculate the future value of $2,000 in a. 3 years at an interest rate of 10% per year. b. 6 years…
A: Future value = Present value ×(1+pir) ^n Where, Pir = Periodic interest rate n = number of periods…
Q: Find the simple interest on a $1600 investment made for 3 years at an interest rate of 8%/year. What…
A: Simple Interest: The amount earned on an investment at a given rate of interest at the end of the…
Q: Wen is making deposits of $300 each quarter into an account earning 6% interest compounded…
A: future value of an ordinary annuity is a value of payments at a point of time in future it shows the…
Q: The following loan is a simple interest amortized loan with monthly payments. $5000, 7 1/2%, 4…
A: Answer: Principal balance = $ 5000 rate = 7.5% time = 4 years
Q: How much interest will be charged on ₱7,300 borrowed for three (3) years at a simple interest rate…
A: SIMPLE INTEREST FORMULA: simple interest =P×R×T100 P=Principal r=rate t=time in years
Q: For the following exercise, use the compound interest formula, A(t) = P 1 + r n nt , where…
A: Compound interest formula: where A is the accumulated value P is the invested principal r is the…
Q: A. Compute for the simple interest given the Principal, interest rate, and term 1. P = Php10,000 2.…
A: Principal Interest rate Period P r t 10000 4.50% 5 500000 15% 10
Q: If you bought a 4-week T-bill for Tk.887 and receive Tk.1,200 4 weeks later, what is the effective…
A: The Effective Annual Interest Rate (EAR) is the interest rate that is adjusted for compounding over…
Q: A sum of 12,500 amounts to 15,500 in 4 years at the rate of simple interest. What is the rate of…
A: Simple interest is defined as an interest type, which is an easy method for the calculation of an…
Q: Given that the $400,000 loan with a 8% interest rate over 4 years. Show how to get the beginning…
A: Monthly payment= Loan/(PVA, 8%,4 years) = 400000/3.31212 = $ 120768
Q: for theory of interest class: A loan of size L is to be paid off by payments of 2000 each year for…
A: Interest is the amount paid by the borrower of the loan to the lender of the loan along with the…
Q: Find the present value of a payment of 1000 dinars at an interest rate of 3% annually, and the…
A: The question is based on the concept of present value calculation for an expected annuity cash flows…
Q: how much do you need to repay for your yearly instalment if you had borrowed $20,000 at 10% for 5…
A: Year installment will be calculated by amount of borrowings divided by Present value of an ordinary…
Q: PLEASE SHOW ALL WORK In how much time will the simple interest on $3,500 at the rate of 9% be the…
A: Simple interest is calculated by multiplying the rate of interest with the principal amount and time…
Q: Find the simple interest on a $2000 investment made for 4 years at an interest rate of 6%/year. What…
A: Accumulated amount will be the future value of the initial investment. The future value will consist…
Q: Q9. If an amount of $14,000 is deposited into a savings account at an annual interest rate of 5%,…
A: A concept through which it is studied that the current worth of money is higher than its future…
Q: What is the simple interest rate if Rogine paid an interest of P2,100 after 2 years and 6 months on…
A: A method of computing interest amounts in which the compounding effect was not considered by the…
Q: a. What is PV of $100 received in year 10, with 1% discount rate?b. Hans made investment $10 million…
A: Present Value Present value refers to the discounted value of cash flows which is occurring at a…
Q: Find the length of the loan in months, if $500 is borrowed with an annual simple interest rate of 3%…
A: Compound Interest: Compound interest is interest computed on a loan or deposit depending on both the…
Q: Calculate the simple interest earned. Round to the nearest cent. P = $4200, r = 7%, t = 1 year
A: Only the original principal amount is used to compute simple interest, which is calculated as a…
Q: If the interest rate is at 8%, what is the maximum amount that can be loaned given a repaid of :…
A: Maximum amount that can be loaned is the total sum of present value of all repayment.
Q: The following table presents a series of income and expenses. Assume an interest rate of 5% per…
A: Present value (PV) is the amount which is equivalent to some higher future amount in case of…
Q: If you deposit $45,000 into an account earning 4% interest compounded quarterly per year: 1- How…
A: Future value = Present value * (1+r)^n Where, r = rate of interest per period i.e. 4%/4 = 1% n =…
Q: What is the future value of $5,000 invested for 4 years at 7.5% interest compounded continuously?
A: Future value is what money invested today will become over a time at a rate of interest
Q: What is the value of the following payment stream 1 year from now, at a simple interest rate of…
A: solution Given Simple interest rate =4.4% Amounts $10000 ,3 years ago $6000 ,1.25 years ago…
Q: a. How much money will you have saved after 2 years? b. How much will be owed after 2 years?
A: Information Provided: Present value = $2000 Interest rate = 7.5% compounded semi-annually
Q: Find the interest rates earned on each of the following:a. You borrow $720 and promise to pay back…
A: Given:
Q: what is the interest rate of Php 55, 200 become Php 88, 100 after 4 years?
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Find the compound amount and the interest if: Php25 350.00 is deposited in a savings account at 7%…
A: The future value is the future value of the amount that has to be paid or received in the future…
Q: 2. $4200 is invested for 9 months at an annual simple interest rate of 12%. How much interest will…
A: Given:Principal amount=$4200Interest rate=12% annuallyTime period=9 monthsTo compute amount of…
Q: 1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays…
A: Accumulation rate is the increase in size of asset, position or overall buying activity of…
Contrast and compare the interest earned using both simple and
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- Calculate the future value of the following two cases: a. LE150,000 deposited in an account that pays 8% simple interest for 7 years. b. LE150,000 deposited in an account that pays 8% compound interest for 7 years. Comment on the future value for both cases and why they are the same/different.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. Nominal Rate (%) Compound Term of Interest Present Compound Amount Investment Compounded Value Interest $200,000 10 years 4 annually $ Need Help? Read ItAssume that you want to buy a house and have to borrow $80.000 over a term of 25 years. The annual percentage rate (APR) is quoted as 7% per annum. Calculate the monthly payments in 3 different ways a) annual payment method b) annual interest method c) effective interest method. Compare the methods and find out which method is correct.
- Answer the following Compound Interest problem using the provided formula ONLY. Show your complete solution. 7. Compound Interest A. If the sum of P 12,000 (pesos) is deposited in an account earning interest rate of 9% compounded quarterly, what will it become after 1 year? B. In the previous problem, what is the effective rate? C. What is then the equivalent nominal interest rate if compounded monthly?repeat the process with the loan split into two 3 year loans, how much more will you pay in interest?Find the interest rates earned on each of the following:a. You borrow $720 and promise to pay back $792 at the end of 1 year.b. You lend $720 and the borrower promises to pay you $792 at the end of 1 year.c. You borrow $65,000 and promise to pay back $98,319 at the end of 14 years.d. You borrow $15,000 and promise to make payments of $4,058.60 at the end of each year for 5 years.
- Find the interest rates earned on each of the following: A. You borrow $700 and promise to pay back $749 at the end of 1 year B. You lend $700 and the borrower promises to pay you back $749 at the end of 1 year C. You borrow $85,000 and promise to pay back $201,229 at the end of 10 years D. You borrow $9,000 and promise to make payments of $2,684.80 at the end of each year for 5 yearsAnswer the following question correctly refer to the given problem below and show your Complete Solution (Given, Required, Equation, Solution, Answer). Mr. Quiton loans an amount of Php 30,000.00 which is to be paid monthly for 5 years that will start at the end of 4 years , if converted monthly at 12%, how much is the monthly payment ? 1. What is the type of annuity illustrated in the given problem? A. Simple Annuity B. General Annuity C. Deferred Annuity D. Complex Annuity 2. Compute for the interest rate per period. A. 0.01 B. 0.05 C. 0.10 D. 0.12 3. Determine the present value of the loan. A. Php 12,000.00 B. Php 30,000.00 C. Php 60,000.00 D. Php 75,000.00The following loan is a simple interest amortized loan with monthly payments. $5000, 7 1/2%, 4 years (a) Find the monthly payment. (Give your answer to the nearest cent.)Payment $ (b) Find the total interest for the given simple interest amortized loan. (Give your answer to the nearest cent.)Total interest $
- Find the interest rates earned on each of the following. Round your answers to the nearest whole number. a. You borrow $660 and promise to pay back $759 at the end of 1 year. % b. You lend $660 and the borrower promises to pay you $759 at the end of 1 year. % c. You borrow $69,000 and promise to pay back $109,495 at the end of 6 years. % d. You borrow $11,000 and promise to make payments of $3,359.50 at the end of each year for 5 years. %b) suppose that the market interest rate is 5%. Calculate the present value of the following. Show how your answer is obtained. Calculation using a formula, not using excel. i) A fixed payment loan with annual payments of $163 that matures in three years.The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume 365 days in a year. P = $830, r = 2%, t = 2 years (Round to the nearest cent as needed.)