A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?

Q: What is the present value of $1,000 paid at the end of each of the next 56 years if the interest…

A: Present value is the current worth of the amount deposited or received in future date.

Q: A certain amount of investment was made annually for 10 years at an interest rate of 6%. On the 14th…

A: Present Value: Amounts of money or streams of cash flows that are anticipated in the future are…

Q: If $600 is invested in an account with an annual interest rate of 14.5%, compounded continuously,…

A: We need to use the formula of continuous compounding belowA=P(e)rn  where   A=future valueP=present…

Q: The sum of P1000.00 is invested now and left for 8years, at which time, the principal is withdrawn.…

A: The future value of an amount invested in an account depends on the interest rate and the time…

Q: w much will be in an account at the end of five years the amount deposited today is $10,000 and…

A: The given problem can be solved using FV function in excel. FV function computes  future value for…

Q: What is the future value of an annuity of $2,000 invested at the end of each of the next six periods…

A:

Q: financial institution is offering a six-year term deposit that will pay 7% per annum compounded…

A: 1) Value at end of 5 years  Solved using Financial Calculator  PV = -125,000 I/Y = 7/4 = 1.75 N = 5…

Q: n initial amount of 1400$ is invested in an account at an interest rate of 9% per year, compounded…

A: In finance we use the concept of time value of money to compute future values and present values.…

Q: If $27,800 is invested in an account that earns interest at an annual rate of 2.8%, compounded…

A: We need to use future value continuous compounding formula below to calculate number of years.A =…

Q: 5 years from now payments: $500 of 6 years. What est rate of 6% cc

A: in this we have to find out present value of all and future value of remaining.

Q: P2000 is invested in a high interest account for one and half (1 1/2) years . the interest rate is…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: What equal payments at the beginning of each year for 10 years will discharge a debt of 110,000…

A: Debt amount (PV) = 110,000 pesos Interest rate (r) = 8% Number of payments (n) = 10 Equal payment =…

Q: A sum of P1,000 is invested now and left for eight years at which time the principal is withdrawn.…

A: We will use the concept of time value of money here. The concept says that money earns interest and…

Q: What is the present equivalent of $ 180,000 to be received in 15 years when the interest rate is 7%…

A: Time value of money (TVM) means that the amount of money received in the present period will…

Q: A sum of P10,000 was invested now and left for 6 years, at which this time the principal is…

A: Invested amount (P) = P 10,000 Interest rate (R) = 15.8% Period till first withdrawal (N1) = 6 Years…

Q: An account pays 4 percent interest (yearly effective). 10,000 dollars is deposited into that account…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: How much money would be accumulated in15years for a deposit of $15,000 made at the end-ofyear zero…

A: The formula used as follows:

Q: Ferris Bueller has borrowed from the Ferrari Bank at a rate of 7% and will repay the laon with…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: Suppose that $1,000 is invested for 4 years at an interest rate of 12%, compounded quarterly. How…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: A debt is amortized for 4 years by a series of payments that decreases annually by P 500, the first…

A: Time period = 4 years First payment of lease = P 5,000 Annual decrease = P500 Interest rate = 5%

Q: what amount must be deposited today in order to make quaterly withdrawals of 300 for 15 years where…

A: The quarterly withdrawals are in the form of annuity and the amount that needs to be deposited today…

Q: What is the future value of 1,000 over five years if 8% interest is paid annually ?

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: (1) calculate the future value if $6,000 is deposited initially at 11% annual interest for 5 years.

A: In this question we need to compute the future value from following details : Initial deposit =…

Q: if $204 is deposited in a savings account at the beginning of each year for 12 years and the account…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: $15,000 is invested for 5 years at an annual simple interest rate of 17%. a) what will you earn in…

A: Interest = Principal * Rate * Time

Q: A deposit of $5,000 per year is done starting at year 1 for 5 years. The sum of $60,000 is required…

A: Future value of the annuity is the amount that is being deposited each period and also amount of…

Q: . A sum of $145,000 is invested now and left for 8 years, at which time the principal is withdrawn.…

A: As there is more compounding more is effective interest rate and more is for monthly compounding.…

Q: How much will be in an account at the end of five years the amount deposited today is $10,000 and…

A: The given problem can be solved using FV function in exceL. FV function computes amount BALANCE in…

Q: Find the amount at the end of 2 years and 7 months if 425000 is invested at 8% compounded quarterly…

A: Simple interest method is one in which the interest earned during a period does not earn interest.…

Q: If $0,000 per quarter is invested in an account that eams a nominal annual interest rate of 9%…

A: The amount in the account at the end of the 6 years is the future value. The nominal annual rate…

Q: You deposit $4000 in an account that pays 6% interest compounded semiannually. After 3 years, the…

A: Compound interest is interest computed on both the initial principal amount and any accrued interest…

Q: If $2, 000 is invested for two years after which it grows to a value of $2112.40. What is the…

A: Investment amount (PV) = $2,000Investment future value = $2,112.40Number of years = 2 years

Q: A loan of 20,000 is to be repaid as follows. Payments of p are to be made at the end of each month…

A: Amount of Loan = 20000 Principal amount to be paid in total 96 installment = 20000-5400 = 14600…

Q: You have borrowed $60,000 at an interest rate of10.5%. Equal payments will be made over a…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: If $20,000 is set aside for 4 years after 16 years. Uniform deposits starting 3 years from now and…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. There are…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.