1.1 Indicate the difference between simple interest and compounded interest. (2) 1.2 Mr Omar wants to make an investment of R125 000 in one on the well-known banks in South Africa. He then approaches three banks (Bank A, Bank B and Bank C) which offered him different investment options. Bank A: 11,5% compounded annually for 5 years. Bank B: 11,11% compounded quarterly for 5 years. Bank C: 11, 3% compounded half yearly for 5 years. Calculate the return from each investment after 5 years and recommend to Mr Omar which bank should he invest in and why. (11) 1.3 Ms Marawa wants to join a ladies stokvel with her friends. She then chooses to be the last one to receive the money so that she can have a lot of money at the end of the year (December 2023). In their stokvel, they each contribute R2000 at the end of each month to the person who is supposed to receive the money. 1.3.1 Do you think that Ms Marawa made the right choice by choosing the last spot? Recommend the best spot to Ms Marawa.

6. If an investor intends to double $25,000 by investing in a bank that pays 7% interest per year, determine the time it would take to double the investment.

1. Calculate the future value of $9,000 invested (single amount) for ten years in an account with an APR of 6.3%. (Do not round interest rates.) a. If compounded annually? Future value = P (1+r)t 9,000(1+0.063)¹⁰= b. If compounded semiannually? c. If compounded monthly? d. Given equal rates, time, and investment amount, what effect does the frequency of compounding have on future values? What effect does the frequency of discounting have on present values? 2. Determine the rate that would be earned on a $25,000 investment if $100,000 is paid back in 25 years. Based on your answer, what factors would you consider in whether to invest or not. 3. A company has a $400 million liability that is due in 20 years. If the relevant discount rate is 5.25 percent, what is the present value of the liability? 4. What is the present value of an investment that will pay you $75 per year forever if the appropriate rate of return is 3%?

Give your answers in parts (a), (d)(i), (e) and (f) to the nearest dollar. Daisy invested 37000 Australian dollars (AUD) in a fixed deposit account with an annual a) 37000 x(1+b.4%) interest rate of 6.4% compounded quarterly. (a) Calculate the value of Daisy's investment after 2 years. = 60776 AUD, After m months, the amount of money in the fixed deposit account has appreciated to more than 50 000 AUD. m= 15, Find the minimum value of m, where mɛN. 31000×し+64%)>5000 I46.4%7 50000 5037000 37 Daisy is saving to purchase a new apartment. The price of the apartment is 200 000 AUD. (b) Daisy makes an initial payment of 25% and takes out a loan to pay the rest. 200 00 0 X (1-25%). - 150000 AUD, (c) Write down the amount of the loan. The loan is for 10 years, compounded monthly, with equal monthly payments of 1700 AUD made by Daisy at the end of each month. (d) For this loan, find (i) the amount of interest paid by Daisy. (ii) the annual interest rate of the loan. After 5 years of paying off…

(1) A man wants to invest a sum of P50,000 in two investments. The first investment earns a rate of interest 4 times that of the second investment. In 3 years the first investment grows to P37, 200. For 10 years, the second investment grows to P24,000. Note: Both investment is on simple interest. Find the sum invested in each rate of interest.

No.6 and 7. Step by step solution. I CANNOT UNDERSTAND EXCEL

4. The Bull bank has a $100,000 30 year loan that was made 6 months ago to a homeowner who is making monthly payments to yield an interest rate of 7% compounded monthly. It would like to sell the loan to increase its overall liquidity. a. What is the current balance on the loan? b. What would be the value of this loan to a potential buyer if it was guaranteed to remain outstanding for the entire holding period, assuming the buyer’s RRR was 6% compounded monthly?

P3-4 (similar to) Future value Grand Openìng Bank is offering a one-time investment opportunity for its new customers. A customer opening a new checking account can buy a special savings bond for $200 today, which the bank will compound at 7.5% for the next ten years. The savings bond must be held for at least five years, but can then be cashed in at the end of any year starting with year five. What is the value of the bond at each cash-in date up through year ten? (Use an Excel spreadsheet to solve this problem.) What is the value of the savings bond at the end of year five? (Round to the nearest cent.)

4. On 1/1/21 we sell equipment and accept a 3-year note receivable for $36,500. The market value is $36,500. Payments of $13,655 include both principal and interest and are to be made annually starting on 1/1/22. The present value of the payments is $36,500. The bank would require the purchaser to pay interest of 6% in order to borrow from them. The equipment cost us $90,000 and had a book value of $40,000. Note: Be sure to show the date of each journal entry. The 'right' journal entry on the 'wrong' date is wrong. a. Prepare an amortization table b. Prepare the journal entry for 1/1/21 c. Prepare the journal entry for 12/31/21 d. Prepare the journal entry for 1/1/22 Amortization table: Journal entries: Debits Credits 1/1/21 12/31/21 1/1/22

Assume that a firm has a $1,000,000 line of credit at an 4.94 percent rate of interest that requires a 17.0 percent compensating balance. If the firm borrowed $359,000 for 1 year, calculate amount of money available to use. Round the answer to two decimal places. Your Answer: