9 A farmer in a rural community in Iowa wanted to make an investment that would accumulate to $20,000 in nine months for needed farm equipment. The best available short-term interest rate was 3.5% per year. How much money would need to be invested to yield the desired amount?

Q: What is the amount of interest earned on $2,000 for five years at 10% simple interest per year?

A: here we calculate the interest earned by simple interest so the calculation as follow-

Q: Compute the interest rate if future value (FV) = $11461, present value (FV) = $3959,  and number of…

A: Compound interest is the interest computed on the principal and the interest accumulated over the…

Q: A vintner is deciding when to release a vintage of Sauvignon Blanc. If it is bottled and released…

A: The time value of money (TVM) reflects the idea that a sum of money has a different value today than…

Q: If you borrow $500 at an interest rate of 4% per year for two years, how much interest will you have…

A: The concept of simple interest involves the calculation of interest on a fixed principal amount over…

Q: How can we compute the effective interest rate for any duration of time?

A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…

Q: 1. An investment company advertises accounts that actually yields 13% interest per year when…

A: Given the information: Actual interest rate = 13% Use the below formula: Nominal interest rate = m ×…

Q: An investor (owner) has an option to purchase a tract of land that will be worth $20,000 in ten…

A: Compound interest rate is one of the methods of calculating interest rate. It calculates the…

Q: Find the present value of $5,500 in 10 months at 9.5% interest

A: Present value helps to find the current worth of any asset or it is the value of expected stream of…

Q: Compute the number of years (t) if future value (FV) = $13514,  present value (FV) = $1186, and…

A: The formula for calculating the present value from the future value is :-  PV = FV / ( 1+i)t

Q: Suppose you were given a one time gift of $10,000 to put into a savings account. The account earns…

A: Compound interest is the rate of interest that is used to calculate the value added to a loan or a…

Q: Assume that $150 invested a year ago will return $170 a year from now. What is the annual interest…

A: Present value(PV) is that value of an amount(A) of money that is worth today. It is less than the…

Q: If a bond with a normal value (N) of £100 and a coupon of 2.5% can be bought a a market price (P) of…

A: Given bond value = 100 Euros Counpon rate = 2.5 % = 2.5 % of 100 = 2.5 Euros Market price of bond =…

Q: A company showed equivalent annual cash flows of $400,000 for the first 7 years. If the cash flow in…

A: Equivalent annual cash flow (A) = $400,000Cash flow im year 1 (A1) =$320,000Uniform gradient (G) =…

Q: If you save $1,000 today and the annuel interest rate is 6%, what will that money be worth in 40…

A: Given, P = $1000 i = 6% t = 40

Q: What is the interest rate that would make $10,000 received in the first year equivalent to $3,500…

A: The objective of this question is to find the interest rate that would make a lump sum of $10,000…

Q: A bond pays a semiannual coupon, and the last coupon was paid 61 days ago. If the annual coupon…

A: The annual coupon payment = $75 The last coupon paid = 61 days ago Accrued interest =?

Q: How much should be put in an investment with a 10% effective annual rate today to have $10000 in…

A: The effective annual rate = 10% Future value of an investment = 10000 dollars Time period = 5 years

Q: A rich donor gives a hospital $950,000 one year from today. Each year after that, the hospital will…

A: Payment made at the end of year 1 = 950000 $ Time = 10 years interest rate = 10 % Increase in…

Q: The simple interest on a $6500 loan at 15% for 9 months is. a)$731.25 b)$7312.50 c)$73.13 d)$2925

A: Loan amount = 6500$ Interest rate = 15% Interest rate for 9 months = 15/12*9= 11.25% Interest…

Q: Uniform Payments You just graduated. Congrats. You need a car to get to your new job at Intel. Uncle…

A: Given  Present value or loan amount =$9000.Credit card rate =20% per year We know that 1 percent…

Q: If you had $1,000 now and invested it at 6%, how much would it be worth 12 years from now?

A: The following are the given data in the question: The current value of invested money = $1000…

Q: Your company plans to buy a new vehicle, with a loan payment of $400 per month for 60 months. You…

A: Present value refers to the current value of the future cash flows given at specific interest rates.…