A man wants to recieve P800 immediately and pay it back in one year. The bank charges a simple discount of 6% payable at once. How much must be barrowed? What is the rate of interest?

Q: You need to turn $11,827 dollars into $18,864 dollars in 7 years.  Assuming you make no extra…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: How much would be in your savings account in seven years after depositing S290 today if the bank…

A: Future value is the value of current cashflow compounded at specified rate to future date. formula:…

Q: If you wish to withdraw P20,000 after 5 years at the interest rate of 5% compounded annually, how…

A: Amount to withdraw (A) = P 20000 n = 5 years r = 5%

Q: How much would you need to deposit in the account each month?

A: Information Provided: Future value = $410,500 Years = 15 Interest rate = 6.5% Deposits frequency =…

Q: Assume that you borrow $5000 and pay back the $5000 plus $250 in interest at the end of the year.…

A: Real interest rate: Principle = $5,000 Interest = $250 Interest rate =  2505,000×100%=5%

Q: Suppose Stephanie deposited the $50,000 in a fixed deposit. For the shortfall, she thought of…

A: To calculate the annual deposit we will use the below formula   Annual deposit = PV/[1-(1+r)-n]/r…

Q: Suppose you invest $100 in a bank account, and five years later it has grown to $134.39. What APR…

A: Investment (P) = $ 100 Future value (FV) = $ 134.39 Period = 5 Years

Q: 3. You have a bank deposit now worth $5000. How long will it take for your deposit to be worth more…

A: Time period for a present value to accumulate to future value is calculated by NPER function in…

Q: If you deposit OMR 7387 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: Time value of money says that a dollar today is worth more than a diollar in future. Future value is…

Q: A deposit of $350 earns the following interest rates: 8 percent in the first year. 6 percent in the…

A: Time value of money is the concept widely used by companies and individuals to determine the current…

Q: Compute and compare the following interests situations if you deposit $2500 into an account with…

A: When we make an investment or deposit money in a bank our invested amount grows. This is because…

Q: 3) quarter? We assume that the funds will be kept in rentier deposits generating an effective…

A: Perpetual Annuity  Quarterly annuity = EUR 3000 Interest Rate = 2% per annum = 2/4 = 0.50%

Q: If you deposit OMR 8854 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: Future Value  Future value  is the worth of any asset or any sum of money at a future date when such…

Q: You would like to have $20,000 in your account after 10 years. What must you deposit now in an…

A: Number of quarterly periods = Number of years*Frequency of compounding in a year = 10*4 = 40…

Q: Suppose that you want to avoid paying interest and decide you'll only buy the furniture when you…

A: Time, the value of money describes the money present today as more valuable than the money that will…

Q: Suppose that you would like to have $25,000 to use as a down payment for a home in five years by…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Assume that you deposit RM700 in a savings account that pays 5% per year over 6 years.  Your savings…

A: Financial institutions pay deposit account holders interest on their deposits. Deposit accounts are…