19. If the difference between Simple Interest and Compound Interest on a certain sum of money in 2 years at 20 % p.a. is Rs. 800, then find the sum.

Q: The differences between simple interest and compound interest on a sum for 3 years at 5% per annum…

A: Future value under compound interest: Future value =Amount*(1+rate)^years Future value = Amount…

Q: am. 136.

A: Let's solve each part of the problem:1. **Present Value of the Annuity:**  We can use the present…

Q: Inc. as part o me company wh is worth 3.47%

A: Given the Present value of investment of two kinds one deposited for 1 year, and another for 7…

Q: ou are comparing two annuities. Annity ay $100 at the end of each month for 5 rs. Annuit B pays $100…

A: There are two types of annuities one at the beginning of period and one at the end of period.

Q: a) What is the present worth ofequal payments of $25,000 made semi-annually (i.e., twice every year)…

A: Semi annual payment (P) = $25,000 Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%

Q: Future Value Calculation: step-by-step calculation You deposit $500 at the beginning of each year…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Find the discount interest on Php 20,000 for 210 days at a discount interest rate of 8 3/4%. What is…

A: Present value: According to present value, a sum of money is worth more today than it will be…

Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 10% compounded…

A: A perpetuity is an annuity that gives payments but has no maturity period.

Q: 3. If money is worth 8% compounded quarter ly, determine the present value of the following: a. An…

A: Annuity is a series of equal cash flows occurring at regular intervals. A perpetuity is an annuity…

Q: If money is worth 8% compounded quarter ly, determine tne present value of the following: a. An…

A: Discounting is a technique which is used to compute the PV of future cashflows by using an…

Q: For a sum of money to double itself in 10 years, what must be the rate of interest compounded…

A: The amount of money invested over a period of time with the assumption of investment growth at a…

Q: Find the equivalent future worth of the following payments. Use 6% interest rate compounded…

A: Interest Rate = 6% Compounded Annually Month Month (in Years) = Month / 12 Cash Flow 0 0.00…

Q: If the intrest rate is a 12%p.a. the amount to be invested today to earn an annuity of rs.1000 for 5…

A: Interest Rate = 12% Annuity = 1000 Time Period = 5 years END OF PERIOD ANNUITY Investment = ?

Q: 8) Suppose an investment of $5.750.00 paying 6.5% nominal rate compounded semi-annually has a term…

A: Compound interest refers to an amount that is to be paid in addition with the principal amount or…

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: (a) Compute the present value of an annuity immediate that pays £50 per year for 10 years at an…

A: Present value refers to the current worth of the expected sum of the amount. It is computed by…

Q: 49. A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9% p.a. in 5 years. What is…

A: Simple interest is interest computed on principal amount only not on interest accrued or accumulated…

Q: 3

A: Future worth (FV) is the worth of a current resource sometime not too far off dependent on an…

Q: Find the rate of interest when Rs. 800 fetches Rs. 130 as simple interest in 2 years.

A: The provided information are: Principle= Rs. 800 Simple Interest = Rs. 130 Time = 2 years

Q: if the annual rate is 5% and the annual infinity (forever) payment is $200, what is the present…

A: A perpetuity is a security that pays for an infinite amount of time.The present value of a…

Q: At a certain interest rate the present values of the following two payment patterns are equal: (i)…

A: Payment 1: $350 at the end of 4 years plus $250 at the end of 11 yearsPayment 2: $500 at the end of…

Q: Calculate the future value of $5,000 in a. 4 years at an interest rate of 9% per year. b. 8 years at…

A: Step 1: Step 2: Step 3: Step 4:

Q: Qnl. A series of payments of 700 Riyals is made at the end of each quarter in an account for 5…

A: When an individual or company is making series of payments for the particular period of time then,…

Q: How much less is a perpetuity of $2,000 worth than an annuity due of the same amount for 30 payments…

A: Given information: Annuity : $2,000 Number of payments : 30 Rate of interest : 10%

Q: 1. Find the difference between the simple interest and compound interest on a savings account…

A: Simple Interest and Compound Interest   Calculating the interest above the principal amount is known…

Q: How is the accumulated value 12,373.78 if yearly payments of 20,000 are made?

A: Solution:- When an equal amount of payment is made each period at the beginning of period, it is…

Q: Find the present value of each future amount 6.3% 5)$15, 402 for 120 day si money earns 5:

A: As per the concept of time value of money the worth of money changes with passage of time. This is…

Q: We wish to make 6 withdrawals of 1000 each. 1 period Rate = 6% A. Is this an ordinary annuity or…

A: An annuity due is the annuity in which the payment is due for payment at the beginning of the…

Q: A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9 p.c.p.a. in 5 years. What is…

A: Interest amount = Rs. 4016.25 Interest rate = 9% Period = 5 Years

Q: What annuity is required over 10 yrs. to equate a future amount of P 15,000. assume  interest of 5…

A: Given, Future Value of annuity = 15,000 Need to find annual Installments to be made over 10 years

Q: 11. At the end of each of the next 6 years you will receive cash flows of $12,000. If the…

A: We need to use present value of ordinary annuity formula below to calculate value of annuity.  where…

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: Find the payment made by the ordinary annuity with the given present value. $237,277; quarterly…

A: The value of future cash flows today is called present value. The formula for the payment is given…

Q: 17. What is the present value of a $5,500 perpetuity starting in a year's time, then growing by 4%…

A: Option (A) $55,000Explanation:Given information, Cash flow at the end of year 1 (CF1) = $5,500Growth…

Q: Find at 5% p.a. effective the present value of an annuity-certain, payable annually in arrear for 40…

A: Effective Interest Rate = 5% p.a. Time Period (N) = 40 years Year Annuity Annual Increase 1…

Q: 3. A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9 p.c.p.a. in 5 years. What…

A: Simple interest is interest computed on principal amount only not on interest accrued or accumulated…

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: Compute the future value

A: Future value of ordinary annuities refers to the value of payments at a specified future date in…

Q: 8. What annuity is required over 12 years to equate with a future amount of 20,000? Assume i = 6% A.…

A: The time value of money is one of the core principles used in finance. It states that the sum of…

Q: What is the Macaulay duration of an increasing perpetuity-IMMEDIATE where the first payment is $100…

A:

Q: Find the amount of an ordinary annuity of 20 semi-annual payments of P1, 000 if interest rate is 12%…

A: Total Semi annual payments is 20 Interest rate is 12% compounded semi annually Amount of annunity is…

Q: Assume that l2t = 0.25% and that lit = 0. If the one-year interest rate is 5% and the two-year…

A: Preferred Habitat Theory: Investors have different preferences for maturity when it comes to bonds,…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.