a debt of $6000 due in four years and $7000 due in five years is to be repaid by a single payment of $5500 now and two equal payments that are due each consecutive year from now. If the interest rate is 16% compounded annually, how much are each of the equal payments

Q: How much interest is included in the accumulated value of $3200 paid at the end of every six months…

A: P = $3200t = 4 year(Semi annually)r = 6.5% Here, P = Principalt = Timer = Rate of interest

Q: Which of the following compounding rates is equivalent to an effective interest rate of 2.75% per…

A: An effective annual rate of interest refers to the real return on a savings account with the…

Q: An increasing annual uniform gradient series ends at the end of fifteenth year. What is the value of…

A: Present value of uniform inflow = Value of increasing annual uniform gradient series for 15 year For…

Q: What is the nominal interest rate in continuous compounding that is equivalent to an effective…

A: Considering the period of compounding and also the base (nominal) rate of interest, it is possible…

Q: Find the effective interest rate per payment period for an interest rate of 8%compounded monthly for…

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

Q: A series of equal quarterly payments of $5,000 for 10 years is equivalent to what present amount at…

A: Payment made quaterly = $5000 The time period for which the payment was made = 10 years Interest…

Q: just inherited $250,000 from my uncle’s estate. I would like to place that amount in the bank and…

A: Given the information: Inherited amount = $250000 Time = 15 years Interest rate = 12%

Q: If P500,000 is deposited at a rate of 11.25% compounded monthly, determine the compounded interest…

A: The formula used in the compound interest is  =P[1+(r/m)]mt-P A = the future value of the…

Q: Which of the following policies is used by a central bank to control the supply of money and…

A: A central bank use monetary policy to control the supply of money and interest rates. a). Fiscal…

Q: How many years will it take for an amount of $2500 to triple is invested at an interest rate of 6%…

A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal the…

Q: A $200,000 loan is to be repaid in equal yearly payments over 25 years at an interest rate of 4%…

A: First, we need to calculate the yearly payment for the loan. This can be done using the formula for…