A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 5.5% interest rate on deposits and​ loans: How much would you have in one year if you deposited the $55 ​instead? How much money could you borrow today if you pay the bank $58 in one​ year? Should you loan the money to your friend or deposit it in the​ bank?

Q: When you were born, your family started to deposit 1,000 USD each month in the bank. The bank offers…

A: Amount deposited each month in the bank = 1,000 USD  Annual deposited amount (PV) = 1,000 USD × 12…

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A: Given information: Deposit (Present value) : OMR 8141 Rate of interest : 8% Time Period : 5 years…

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A: Amount to be doubled means invested amount becomes twice of what is invested , Therefore ,  Amount…

Q: 1. Hannah deposited 1,500 in a bank with an interest rate for 1 year. What is the future of her…

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A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Your brother lends you $1000 and you promise to repay $1,500. If he wants at least a 5% return on…

A: Future value is the future worth of a cash flow at a certain rate and period of time. Future…

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Q: If you deposit in a bank $200 today, $250 a year from now, $150 in the second year and $300 in the…

A: Future value is the expected value of current sum in a future date at given interest rate.

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A: Computation of the implied rate of this transaction is shown as follows: Hence, the implied rate on…

Q: Your credit card carries a 23.99%interest rate. You want to pay off your balance of $8700 with equal…

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Q: Carlo is to purchase his dream car he needs to find a way to get P2,500 in cash right now! Carlo…

A: Future  value= Present value × (1+ periodic rate)^n where, N= number of period  Periodic rate= 8.5…

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A: WORKING AND EXPLANATION

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A:

Q: Andrew has purchased a new car. He want to set aside enough money in a bank account to pay the…

A: Present value of future cash flows Discount rate 5%

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A: Annual percentage rate refers to the charge which is paid by the borrower to the lender on the loan…

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A: Interest Rate = 6% APR Previous Balance = $1,173 Calculation of Number of days between is as follow:…

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Q: Boatright wants to withdraw $2000 from an account at the end of year 1, $4000 at the end of year 2,…

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Q: John wants to borrow 75,800 from a bank payable in 3 years and 9 months. if the bank charges 9.5%…

A: Note:  It is assumed that the loan is given on a simple interest rate basis. Simple Interest refers…

Q: A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is…

A: a) Future value = Present value * (1+rate)^year

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A: The 15% mentioned in the flier is the stated rate or the nominal rate. It is not the effective…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: APR = 9%Previous balance = $1156No of days = 31To find: Amount owed.

Q: A local bank is advertising that you can double your money in eleven years if you invest with them.…

A: In Simple rate of interest there is no effect of compounded Amount= principal * (1+rate*time)

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A: Finance Charge is the amount of interest being charged on the borrowed amount from the lenders.

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Q: Determine whether each scenario below is a savings/investments question or a loans question. 1.…

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Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Here's a breakdown of Kathy Lehner's credit card balance, incorporating the interest calculation and…

Q: Jamila wants to deposit OMR 5000 in a bank fixed deposit for 8 years. She has the following bank…

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Q: Please provide working to the solution for the question below: You have just graduated and need…

A: Solution:- Interest rate is also known as opportunity cost. So, the amount of loan granted will be…

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A: Future value of a present value is the value of that amount after taking into account the time value…