A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at an interest rate of 12% compounded annually A) s4,944 B $2,402 $4,804 $4,111

Q: a fully amortized loan is made for $1,00,000 at 6% for 30 years calculate total amount of interest…

A: The amortization schedule gives information to the borrower and lender about the payment due and the…

Q: nil Two payments of $8,000 and $2,400 are due in 1 year and 2 years, respectively. Calculate the…

A: Present value is the equivalent value today of the future value and the present value of both…

Q: Ten annual installments of 65,000 pesos each starting at the end of the eleventh year from now, is…

A: Annual installment (A) = 65000 pesos First payment starts at the beginning of 11th year. Number of…

Q: what is the nominal rate of interest compounded continuously for 8 years if the present worth factor…

A: Continuous Compounding N = 8 Present Value factor = 1.7506725

Q: A perpetuity-due with annual payments of 100 has a duration of 26.88 years at an annual effective…

A: Annual payment = 100 Duration of perpetuity due = 26.88 i = Interest rate

Q: A 3,000,000 peso loan is to be amortized at 4.55% quarterly for 2 years. Solve for the value inside…

A: Quarterly payment for loan will be, Where, P = Loan amount =3000000 r = Quarterly  interest rate =…

Q: Question 11: How much must be deposited now at 7% interest, compounded annually, to produce S1,000…

A: Interest Rate = 7% Annuity Amount = 1000 N = 10

Q: in year 0 of a uniform series of payments of $1,000 in years 2 thru 5 and another series of $2,000…

A: When a future cash flow is expressed as an equivalent value at today's worthiness based on the time…

Q: The present value of an annuity of “Y" pesos payable annually for 8 years, wit the first payment at…

A: We can use the concept of time value of money here. As per the concept of time value of money the…

Q: 9. How much is a periodic payment payable every quarter of a general ord accumulated value is…

A: N = 40 quarters (10 years) Future Value = 220,000 Interest rate = 6.5% compounded semi annually

Q: At an interest rate of 5% compounded annually, how much will a deposit of P2,000.00 be in 15 years.…

A: To calculate the future value we will use the below formula   Future value = PV*(1+r)t Where PV -…

Q: ₱1000.00 becomes ₱1500.00 after 5 years when it is compounded semi-monthly. Determine (a) the…

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

Q: A. How much is the amount of the loan? B. How much is the payment on the first period? C. For the…

A: The amount of the loan is the stated loan amount. The interest component can be calculated by…

Q: Find the lump sum deposited today that will yield the same total amount as this yearly payment (made…

A: Future value of annuity is computed as follows:-FV= A*whereFV= Future value of annuityA= annuityr=…

Q: 14) A loan of $8000 is to be repaid with monthly payments for three years at 12% interest compounded…

A:

Q: 2. $6500 was borrowed at an interest rate of 12% compounded semi-annually. If the loan is to be paid…

A: Given: Rate of interest(r) =12%p.aRate semi-annually=6%Time (t) =5 yearsTotal No. of…

Q: 5. How much interest must be paid on a loan of $4300 at 10% compounded semi- annually for 4 years?…

A: Formula: P x [ 1 + ( R / N )NT P = Principal R = Rate of interest N = Number of compounding periods…

Q: 01 %, compound monthly for three years. d 300000 Mexican Peso, compound interest of 4%, compounded…

A: Interest earned on the investment depends on the interest rate and period of interest and…

Q: ompute the annuity of the money ompounded monthly at the rate o O 665 O 755 O 801

A: Future value of annuity includes the annuity amount deposited and compound interest accumulated over…

Q: A 3,000,000 peso loan is to be amortized at 4.55% quarterly for 2 years. Solve for the value inside…

A: Here, Loan Amount is 3,000,000 pesos Interest Rate is 4.55% Time Period is 2 years Compounding…

Q: At an annual effective interest rate of i, the following two payment streams have equal present…

A: Present value refers to the current value of a future sum of money or cash flow, discounted at a…

Q: Find the semi-annual payment at the end of six months, the first payment is due at the end of 7.5…

A: An annuity is a type of security where periodic payments are made over a period of time. Deferred…

Q: What's the future value of an $1,100 quarterly payment for 25 years at 7% annual interest rate?…

A: Future value of annuity formula.FV = A* whereFV = Future value of annuity A = periodic paymentsr =…

Q: A 3,000,000 peso loan is to be amortized at 4.55% quarterly for 2 years. Solve for the value inside…

A: Amortization table:  An amortization table is a timetable that breaks down every monthly loan…

Q: An amount of $50,000 is borrowed for 11 years at 4.75% interest, compounded annually. If the loan is…

A: TVM refers to the implied ability of money to earn interest because money earned at an earlier date…

Q: What single payment at the end of year 5 is equivalent to an equal annual series of payments of…

A: future value of lumpsum payment : fv=A×1+rn Future value of annuity: FVA=A×1+rn-1r therefore, r =…

Q: The first payment of the perpetuity is K and each subsequent payment is 0.5% larger than the…

A: We first need to compute the PV of the remaining payments (9 payments) using the PV of ordinary…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: Working note:

Q: a b C סו d e Find the future value of ordinary annuity of the following items: Payment Period…

A: To Find: Sinking fund payment

Q: At an annual effective interest rate of i, the following two payment streams have equal present…

A: The PV of annuity can be found by using following formula:PV of deferred perpetuity formula is:

Q: a b C d e Amortization Payment Payment Period every year every 3 months every month every 6 months…

A: The amortized payment can be calculated using the present value of loan, payment frequency and…

Q: Find the present value of a perpetuity of P15,000 payable semi-annually if money is worth 8%…

A: A perpetuity is a series of continuous payments made at regular intervals. It can also be understood…

Q: Find the Present Value of payments at the end of each year for 30 years if the first payment il $100…

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

Q: P10,000 IS BORROWED FOR 75 DAYS AT 20% PER ANNUM SIMPLE INTEREST. HOW MUCH WILL BE DUE AT THE END OF…

A: Simple interest The method in which interest is charged only above the actual amount borrowed is…

Q: JL Bank offers a business loan with an initial amount of 6,000,000 pesos at a rate of 3% compounded…

A: Loan Amortization: It is the most common way of scheduling out  a fixed-rate credit into equivalent…

Q: A5 A 12-year loan is repaid with annual payments at the end of each year. For the first four years,…

A: x 3X

Q: . Find the equivalent interest rate per payment interval j, present value P and amount F.  1.…

A: The equivalent interest rate formula will be: Equivalent rate = New compounding period ×1 + RateOld…

Q: O O O O What is 6% loan back in f installme A. P3 O B. P7 C. P2 D. P3

A: The given problem can be solved using PMT function in excel. PMT function computes amortization…

Q: 5.  Find the present value of quarterly payments of P1000.oo that start at the end of 3 ¼   years…

A: Quarterly payment (P) = P1000.00 Interest rate = 16% Quarterly interest rate (r) = 0.16/4 = 0.04…

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.