6. An investment of P3,000,000.00 earns interest of 9% compounded continuously. the effective rate of interest? 7. What rate in percent compounded monthly is equivalent to 18% compounde annually? 8. When compounded bi-monthly, P150,000.00 becomes P223,183.00 after 5 year

Q: money is invested at a nominal rate of interest of 8% for a period of 4 ye effective rate if it is…

A: The effective rate is the rate considering the effect of compounding on the interest rate and always…

Q: Calculate the future value of $5000 if it is invested at an interest rate of 16% compounded…

A: The worth of an investment or asset on a certain date in the future is referred to as its "future…

Q: 1. How much is the compound interest on P12,500 at 6% for 8 years? 2. How much will P15,000 amount…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: 1. Find the compound amount and interest if: a. P 45 000 is invested at 5% compounded quarterly for…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: For an investment that earns 11.0% compounded monthly for two years, how many compounding periods…

A: The period during which interest on an investment or loan is computed and added to the principal…

Q: An investment of $4838.57 earns interest at 4.9% per annum compounded annually for 2 years. At that…

A: Future value can be calculated usingFV (rate, nper, pmt, [Pv], [type])Rate The interest rateNper…

Q: P1,500 is invested every 4 months at 3.8% per annum compounded quarterly. How much will the annuity…

A: The Compound Interest of an investment is used for a longer period of time. In the compound…

Q: An investment of $11,550 is deposited for 3 years at 2.2% compounded monthly. At this point, the…

A: Deposit=$115503 years , interest rate is 2.2% compounding monthly5 years, interest rate is 1.95%…

Q: Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is…

A: Here, Quarterly Payment is P2,000 Interest Rate is 12% Compounding Period is Quarterly i.e. 4 Time…

Q: How much compound interest is earned on a 6.5-year investment that has a rate of return of…

A: Future value (FV) = $ 9600 Period = 6.5 Years Period in quarters (n) = 6.5*4 = 26 Interest rate = 6%…

Q: A sum of P1,000 is invested now and left for eight years at which time the principal is withdrawn.…

A: We will use the concept of time value of money here. The concept says that money earns interest and…

Q: Money borrowed today is to be paid in 6 equal payments at the end of six quarters. If the interest…

A: P =A[(1 + i)n- 1 ]/(1 + i)ni   Wherein   i Means Rate of Interest A Means Annuity Payment N means…

Q: 1. What is the difference between the compound interests on ₱5000 for 1 year at 4% per annum…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: An amount of $12 000 is invested for a period of 9 months at 3% p.a. compounded monthly. The…

A: We need to use the FV formula to determine the value after 9 months. The formula is as below FV = PV…

Q: 4. RM27,000 was invested for 5 years. The interest rate offered was 6% compounded every 2 months for…

A: The future value of the investment will depend upon the interest rate for the period and the…

Q: If 2400 dollars is invested in an account for 10 years. Find the value of the investment at the end…

A: Amount invested is $2400 Time period is 10 years To Find:  4.2% compounded semiannually 4.2%…

Q: ن فن d. b. C. write al vestment as a ne, in years. Determine the value of the investment to the…

A: The concept of time value of money will be used and applied here. As per the concept of time value…

Q: 1. If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded…

A: This pertains to compound interest. Compound interest accrues on both the initial principal as well…

Q: What will be the maturity value of P12,000 invested for four (4) years at 15% compounded quarterly?…

A: The question is based on the concept of the time value of money, the value of money keeps on…

Q: R150 000 is invested at a compound interest rate that is compounded quarterly. After 6 years the…

A: An annuity is a financial product or investment contract that provides a series of regular payments…

Q: (4) Calculate the total amount of money that would be accumulated if an amount of money of GH¢ 6,000…

A: An annuity is the sum total of all the periodic payments or investments made over the period of time…

Q: 1. A principal of £100 is invested at a rate of 4% per annum. How much money will there be at the…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: If R197 is invested at 11% per annum (pa) compounded quarterly and after 3 months the interest rate…

A: Data given: Amount= R197 Rate=11% p.a. (compounded quarterly) After 3 months: Rate=9% p.a.…

Q: What is the FV of $1,000 in 15 years if it earns an annual rate of 9.5% quarterly compounded?…

A: FV means future value. It is the compounded value of a sum of money invested today. Money invested…

Q: An investment of S6,560 earns interest at the rate of 5% and is compounded quarterly. What is the…

A: Investment = 6560 Interest rate = 5℅/4 = 1.25℅ per quarter N = 28 quarters (7 years)

Q: Ex. Find the amount and compound interest when Rs. 18,000 is invested for 4 years at 7% p.a. rate of…

A: Invested amount = Rs. 18,000 Interest rate = 7% Period = 4 Years

Q: a. Determine the equal payment series coumpound amount factor after 8 years b. Determine the total…

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: Q) $15,000 is invested in an account at time 0. At the end of 4 years, Invested into the same…

A: Future Value Future value (FV) is the value of a current asset at a future date based on an assumed…

Q: A sum of £100 is invested in a savings account at the end of each quarter for seven years.  Interest…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: What is the discounted value of ​$1513.00 paid at the end of every month for 7 years if interest is…

A: Present value The current worth of future cash flow is known as the present value. The present value…

Q: How much will be received in 6 years if Php35,000 is deposited in an account earning 5.5% interest…

A: Compound interest is an investment method where the interest earned is reinvested back which earns…

Q: A certain investment earns P2,000 in 18 months at a rate of 8% simple interest. How much is the…

A: Simple interest is interest that is paid or calculated solely on the principal sum of money. It does…

Q: An investment involves annuity of 2424 php compounded 32.4 times a year at an interest3.24%. The…

A: Here, To Find: Annual difference in annuities if the interest is compounded only once a year =?

Q: How much should be invested in an account paying 10% compounded quarterly for it to accumulate to…

A: Present Value is the current value of the future sum of money at the specific rate of return.

Q: RM600 is invested for 4 years 10 months. This investment is offered an interest rate of 9%…

A: Using excel FV function

Q: How much is P1200 worth at the end of 1 year if the interestvrate of 5.5% is compunded quarterly

A: Formula: A = P(1+r/n)^nt Where,  A = Amount. P = Principal amount = P1200 r = rate of interest =…

Q: The amount of $10,000 is invested and will be worth $21,000 in nine years. What in the continuoushy…

A: Continuous Compounded Interest rate is the interest rate that is calculated on the principal amount…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.