A used car was purchased for $20,000 and sold 9 years later for $2,500. Its annual maintenance is listed below. Determine the annual cost of ownership. Year 0 N Amount $ 350 450

Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…

A: Effective rate of interest is rate which is computed after taking into account all the compounding…

Q: You invest $1,000 for 3 years at 6% per annum compounding quarterly. What is the equivalent annual…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: Determine the amount of time in years it takes 54,000.00 invested at 6.5% per annum to grow to…

A: The number of years required can be calculated with the help of future value function

Q: At what rate must 400 be compounded annually for it to grow to 716.40 in 10 years?

A: future value formula: future value = present value×1+rn where, r=rate n=number of years

Q: What is the PV of a stream of 5 consecutive CFs, starting next year.  The first CF =$5,000, and the…

A: Present value of unequal cash flows can be calculated by using this equation Present value(PV)…

Q: deposit placed in a savings account earning 8% a year will double in value in how many years

A: Money increases with time due to the interest rate on the money and due to the compounding of…

Q: How much should be invested now at 6.7% compounded semiannually to have $47,000 in 19 years?

A: The amount required to be invested today is calculated as present value

Q: An investment of $1,050 is made in an account compounded semi-annually at 6.8%. How much will the…

A: It can be calculated using FV function in excel. FV (rate, nper, pmt, [Pv], [type]) Rate The…

Q: The APY of a credit card is 62% per year. Payments are monthly. What is the APR of this car.

A: APY stands for Annual Percentage Yield and it is a standardized way of representing the interest or…

Q: What is the future value of a stream of receipts that is $1,000 in year 1 and which increases by 4%…

A: The future value of this stream of receipts can be calculated using the future value of an annuity…

Q: If interest is compounded at 6.5% per year, how long will it take for $50,000 to accumulate to…

A: Present value = $50,000   Future value = $88,600 Interest rate = 6.5% Let time taken = n years

Q: Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total…

A: Accounting ratios is a group of metrics used to measure the efficiency and profitability of a…

Q: tive rate? 4 % p.a compounded quarterly

A: Effective rate is the rate after considering the effect of the compounding.

Q: assuming a rate of 10% annually, find the FV of 1,000 after 5 yearas

A: The formula for the calculation of Future value is as follows: Future value=Present…

Q: How many years will it take $7400 to quardruple at an effective rate of 4.25%?

A: Using the Goal Seek function Excel

Q: What nominal rate per two-months is equivalent to an effective rate of 9.5% per year, compounded…

A: The nominal rate per two-months equivalent to an effective rate of 9.5% per year, compounded…

Q: How long would it take money to triple if it is invested at 6% compounded semi-annually

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

Q: How much will you accumulate if $200 per quarter is invested at a rate of 8% per year compounded…

A: The future value of the payment or amount is its value at the end of the maturity period which…

Q: How many years will it take for $14,000 to grow to $43,000 if you can earn an average rate of 8.8%…

A: Given information: Future value of amount is $43,000 Present value is $14,000 Average rate is 8.8%

Q: A sum of money invested at 2% per 6-month period (semiannually) will double in amount in…

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: At 8% compounded annually, how long will it take 750 to double?

A: Given information: Present value is $750 Interest rate is 8% Future value is double the present…

Q: If the APR is 10% and compounding is monthly, then the Effective Annual Rate is:

A: Using the Effective function in excel