5. Calculate the difference between the future values of $12,000 payable in 6 years at 5% simple and 5% compounded annually interest rates.

Q: If $1, 200 grows to $1, 781 in 7 years, determine the interest rate over that period.

A: In the given question we require to calculate the interest rate which grows $1200 into $1781 in 7…

Q: Find the present value of the given future payment at the specified interest rate. $520 due in five…

A: Time value of money is a financial concept which is used to calculate the value of money in present…

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: What is the present value of a cash payment of $1.2 that you will receive in 5.3 years if the…

A: STEP 1 Given a certain rate of return, present value (PV) is the current value of a future financial…

Q: Determine the present value of a $3,500 perpetuity if the interest rate is 7%. If interest rates…

A: Given: Amount = $3,500 Interest rate = 7%

Q: Find the present value and the amount of 9,000 ordinary annuity payable quarterly for 8 years if the…

A: An ordinary annuity is a series of equal payments made at the end of consecutive periods for a fixed…

Q: (b) An annuity immediate has quarterly payments of P 5,000 for 6 years at a rate of 4% convertible…

A: Annuity immediate which starts at the beginning of period. Present value is the equivalent value…

Q: c. Calculate the future value of $8,000 in 5 years at an interest rate of 12% per year.

A: In this question we need to compute the future value of investment. We can calculate the future…

Q: What will be the present value, if $5,400 is discounted back 4 years at an interest rate of 3%…

A: given data future value = 5400 time period N = 4 * 2 = 8 interest rate = 3%/2 = 0.015 discounting to…

Q: a) How much is the principal repayment in the first year for a USD 100'000 annuity loan with an…

A: Data given: Loan amount= USD 100,000 Interest rate= 2.5% (assumed compounded annually) n=4 years

Q: b. Calculate the future value of $8,000 in 10 years at an interest rate of 6% per year.

A: In this question we need to compute the future value of $8000 after 10 years at 6% interest.

Q: 5. Suppose an annuity at 4% compounded semi-annually will pay $4000 at the end of each 6-month…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

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. Calculate the future value of $8,000 in 5 years at an interest rate of 6% per year.

A: In this question we require to calculate the future value from below details: Present value = $8000…

Q: Calculate the total present value at time 0 of a payment of £257 paid at time 4 and a payment of £67…

A: Using the PV formula given below, we can determine the Present value of an amount. PV = FV(1+r)n…

Q: 3. A 10,000 loan is taken out and the interest rate is 8 percent effective. Payments are made on the…

A: GIVEN, Loan is taken  - $10000            Interest rate  - 8% Paayment is to be completed in 10…

Q: 1. Compare the future values of Php1,000 with an interest rate of 5% compounded: 1. annually, 2.…

A: Given: Present Value: PHP1,000 Interest Rate: 5%   To compute:   Compare future values when interest…

Q: Find the present value of $51,250.00 due in 8 years at an interest rate of 4.5% per year compounded…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You are paid £3,500 annually for 8 years, with the first payment due in one year and the last…

A: Present value is the current worth of a future payment or stream of payments, taking into account…

Q: Calculate the future value of 6 payments at the end of the year of $10,000 with an annual interest…

A: 6 Payments at the end of the year = $10,000Interest rate = 8%Number of payments = 6

Q: Calculate the Future Value of 5,000 SAR made at the end of each year for 25 years, with an interest…

A: Future value of the amount is the amount that is being deposited and amount of interest accumulated…

Q: For the following amount at the given interest rate compounded continuously, find (a) the future…

A: Given, P = $5300 r = 3.4% = 3.4/100 = 0.034

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: Find the value of the ordinary annuity at the end of the indicated time period. The payment R,…

A: The ordinary annuity means a series of equal payments made at regular intervals at the end of the…

Q: $160 0 $90 1 $65 2 $65 3 Year $90 4 $17 5

A: Economically equivalent means that both cash flows have the same present value at a given interest…

Q: 0) (Annuity) Payments of $400 are to be made at the beginning of each quarter for 5 years orth 8%…

A: The future value of annuity is the amount accumulated over the time and amount of interest being…

Q: Find the present and the future value of quarterly payments of $2,000.00 for 5 years with interest…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: The income stream b = (1000, 1500, 2500, 4000) consists of payments made at the end of the next four…

A: The present value is calculated by discounting the cash flows at an appropriate discount rate for a…

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: You will receive a cash payment of $7072 in 7 years. If the relevant interest rate is 19.89%, how…

A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…

Q: The present value of a 6-year annuity is X. The annuity pays 5 at the end of the first month, 10 at…

A: Annuity are a series of payments being made at a regular period. Growing annuity with arithmetic…

Q: ) An interest rate of 5% compounded quarterly is equivalent to what rate compounded monthly?

A: Using excel Effective and Nominal Rate function

Q: 12. i) Calculate the amount received from a loan that charges interest in advance by 4% and must be…

A: Interest advance = 4% Here, we'll find P at the end of 3 years.

Q: 2. A payment of £30 will be made in 10 years. The annual effective interest rate is 7 % p.a. Compute…

A: payment = p = £30 Time = t = 10 years Interest rate = r = 7%

Q: By using the calculate the future value of a 5 - year ordinary annuity , if the annual interest is…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: % compounded quarter

A: Solution: Quarterly interest rate = 6%/4 = 1.5% Perpetuity quarterly payments = P600

Q: What is the present value of the following annuities? 70 a year for 3 -years discounted back to the…

A: Annuity referes to the payments made at regular interval. It could be ordinary annuity when payments…