A. Simple interest 1 Danny deposited Php 72,500 into a savings account that pays 2.3% simple annual interest. How much interest will Danny earn after 18 months? 1. Mary borrowed Php 250,000 from the company where she is connected with to buyher own car. She will pay it back in 3 years with 5% simple annual interest. How much interest will Mary pay? 2. John deposited Php 30, 000 in a savings account that pays 6% simple annual interest.Find his account balance after 9 months. 3. How long will it take to double a savings of Php 40,000, if it is deposited in anaccount that offers a simple interest of 10% per year?

A. Simple interest 1 Danny deposited Php 72,500 into a savings account that pays 2.3% simple annual interest. How much interest will Danny earn after 18 months? 1. Mary borrowed Php 250,000 from the company where she is connected with to buyher own car. She will pay it back in 3 years with 5% simple annual interest. How much interest will Mary pay? 2. John deposited Php 30, 000 in a savings account that pays 6% simple annual interest.Find his account balance after 9 months. 3. How long will it take to double a savings of Php 40,000, if it is deposited in anaccount that offers a simple interest of 10% per year?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A friend asks to borrow $53 from you and in return will pay you $56 in one year. If your bank is offering a 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $53 instead? b. How much money could you borrow today if you pay the bank $56 in one year? c. Should you loan the money to your friend or deposit it in the bank?
40. Josh has a savings account at a bank that charges a $12 fee for every monththat his balance falls below $1,000. His account has a balance of $1,526.23and he withdraws $700. What will his balance be in six months if he makes nodeposits nor withdrawals?A. $811.12B. $754.23C. $1,451.12D. $799.12
10. Kristine has $5,000 in an account today that pays 3% interest rate. Two years from now she withdraws $1,000 from that account to buy a laptop. How much will she have in this account in 6 years if she does not make any other deposits or withdrawals? Assume annual compounding. a. $4,844.75 b. $7,095.77 c. $4,776.21 d. $7,164.31 e. $4,970.26 11. Your grandaunt wants to buy an (ordinary) annuity that will pay her cost of living of $70,000 per year for 20 years. If the quoted interest rate today is 5% and the annuity compounds monthly, how much does this annuity cost? a. $872,354.72 b. $865,404.52 c. $883,897.66 d. $863,824.15 12. After graduation, you get a great job. You budget $1,000 per month towards housing. You'd like to buy a house. Assume that the interest rate = 4% for a 30-year mortgage. a. How much can you borrow? i. $209,461.24 ii. $207,504.40 iii. $694,049.40 iv. $24,999.98 b. Eight years into the mortgage, your company decides to relocate you to Hawaii. How much must you…
5. On June 1, Bertha Hammond deposited $545 in a savings account at Metro Sav- ings and Loan Association. At the end of November her interest was computed at an annual interest rate of 7%. How much simple interest did Bertha's money earn? 6. Jasper Brown deposited $743 20 in a savi pany on MayWAt the end O 7 % How much simple interest did dasper s money earn? the Suburban Trust Com- annual rate of
Abby earned $600 Abby earned $600 this summer babysitting. She decided to put this money in a bank that earns a 5% simple interest rate. How many years will it take to double her initial deposit? a) 10 yearsb) 12 yearsc) 15 yearsd) 18 yearse) 20 years
Problem #1. Jason's uncle loaned him $26,560 to help start a landscaping business. They agreed that Jason would pay off the entire loan plus 3.24% annually compounded interest in 4 years, and that in the meantime he would make monthly deposits into a bank account to make sure that he has the amount needed when the loan comes due. The bank will pay 2.09%. (a) Find the total amount Jason will need to repay the loan. Show your work. (b) How much should each of his monthly deposits be? Show your work.
Ay 3. Sam got a job at the Brick. He plans to save $500 every month for 3 years to buy a car. The savings account earns 2.25% compounded monthly. If he puts the money in his savings account at the end of each month, what will be the present value of the balance in the account at the end of the three-year term? a.$18 603.37 b.$18 000.00 c. $27 284.81 d.$17 390.19 e.$18 408.04
If Xavier borrowed $3400 form a bank at simple interest rate of 4.5% for one year. How much interest will Xavier need to pay after one year
4. Samuel opened an account in a bank with a deposit of RM3,000 during his daughter is 3 years old birthday. He aims to give her as a birthday present when she is 18 years old. If the bank pays 4.8% compounded every six months, calculate the total amount received by her daughter and the interest earned on her 18 years old birthday. No use excel.
Mr. Nailor invests $21,000 in a money market account at his local bank. He receives annual interest of 7% for 6 years. How much return will his investment earn during this time period? Use Appendix A. (Round "FV Factor" to 3 decimal places.) $10,521 $29,205 $31,521 $13,986

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