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Use the formula A=P(1+rt) to calculate the maturity value of the simple interest loan when P=$3400,r=6.6% and t=2 months.

3. Future value The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. The process for converting present values into future values is called four time-value-of-money variables. Which of the following is not one of these variables? O The present value (PV) of the amount invested O The duration of the investment (N) O The interest rate (I) that could be earned by invested funds O The inflation rate indicating the change in average prices This process requires knowledge of the values of three of

Forte Company estimates two scenarios of possible future notes receivable uncollectibles and the probability of each not being collected in the next year. The risk-free rate is 4%. (Click the icon to view the scenarios.) (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table. Requirement For each of the scenarios, compute the expected cash flow value based on the probabilities given. Compare the expected cash flows on each case. $ Estimated Loss 55,000 165,000 1,500,000 Total expected cash flow loss - Scenario 1 Scenario 1: Probability of Loss Occurring Scenario 1 Scenario 2 20 % 75 % 5% Expected Cash Flow Loss $ $ 11,000 $ 123,750 75,000 209,750 (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of an Ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) Scenario 2:…

Suppose that you want to take out a loan and that your local bank wants to charge you an annual real interest rate equal to 3%. Assuming that the annualized expected rate of inflation over the life of the loan is 1%, determine the nominal interest rate that the bank will charge you. What was the actual real interest rate on the loan if, over the life of the loan, actual inflation is 0.5%?

please do the following questions with full working

Estimate the annual percent rate for the add on loan Using the given number of payments and annual interest-rate. Use the formula APR = 2nr/n+1 N= 48; R= 8% APR=???

Choose the equation below that can be used to determine the value of "P" for a known interest rate, i.

The formula for computing interest on a note is: Principal of the notex Annual interest rate x Time expressed in fraction of year. True or False True False

What discount rate should a lender charge to earn an interest of 2 1/4 % on a 90-day loan? Hint: An interest rate r and discount rate d are said to be equivalent if these two simple rates give the same present value for an amount due in the future. Thus, r = d/(1 - dt) and d = r/(1 + rt)

Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar. (The annual interest rate for all problems is 6%.)   n = 3; i = 6% n = 6; i = 3% Future value of 1 1.19102 1.19405 Present value of 1 .83962 .83748 Future value of an annuity 3.18360 6.46841 Present value of an annuity 2.67301 5.41719 Redlands Inc. deposited $3,000 into a savings account on January 1, 2020. The account earns annual interest. The amount in the savings account on December 31, 2022 is $Answer.

Assess the following statements: 1. Simple interest calculations assume the interest earned is never reinvested. II. The real interest rate is the increment to purchasing power that the lender earns in order to induce him or her to forego current consumption. II. Earning a 5% interest rate with annual compounding is better than earning a 4.95% interest rate with semiannual compounding. IV. For any positive interest rate the present value of a given annuity will be less than the sum of the cash flows and the future value of the same annuity will be greater than the sum of the cash flows. All statements are correct. Two statements are incorrect. O Three statements are incorrect. Only one statement is incorrect.

Compound interest can best be described as: a. interest earned on the original principal b. the discount rate c. interest on interest only d. interest on interest and interest on original principal When we consider the time value of money, a peso received in the future: a.is worth less than a peso received today b. is worth more than a peso received today c. is worth the same as a peso received today d. depends on the compounding used to determine the relationship to a peso received today

a)  What is the present value of the following payment series when the interest rate is 3% YR1 = $200YR2 = $100YR3 = $370YR4 = $370YR5 = $370YR6 = $-300 b)  Convert the above payment series to a uniform payment series over 5 years, starting at year  1. c)  Convert the payment series in question 6 to a uniform payment series over 3 years starting at year 3.

You purchase a certificate of deposit and expect an inflation rate of 1.25% over the next year. Your nominal rate of interest is 2.1%. What is your expected real rate of return? O 0.85%O 1.25% -2.1% O -0.85%

Compute the interest rate if future value (FV) = $7198, present value (FV) = $2694,  and number of years (t) = 9

Use the present value tables to answer the following questions. Required:1) What is the present value of a $100,000 loan issued on January 1, 2020, due on January 1, 2025, discounted at 14% compounded annually? 2) What is the present value of a $100,000 loan issued on January 1, 2020, due on July 1, 2025, discounted at 16% compounded quarterly? 3) How much is the difference between the face amount of $25,000 and the present value of $25,000 due at the end of sevenyearsat9%compoundedannually?

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