An engineer deposits $3,000 into a saving account at the end of the first year. He w increase the amount in the account by 2% a year for 10 years. If the interest rate is 8% p year, what is the present worth of the amount in the account?

Q: An investment plan pays 15% per year, compounded annually. How much would have to be invested every…

A: A=P(1+Rn)nt40000=P(1+1512)12(10) 40000=P(2.25)120 40000=P(1.83)P=21,857.92

Q: A bank advertises it pays 4% annual interest, compounded daily, on savings accounts, provided the…

A: The effective rate of interest is the return on a savings account or an investment, whose interest…

Q: Mr. Johnson borrows $100 000 at 10% effective annual interest. He must pay back the loan over 30yrs…

A:

Q: If you have a loan of 140,000 at 9% per year over 20 years and you repay the loan every month for…

A: A loan is a sum of money that is borrowed from a lender with the agreement to repay it, usually with…

Q: John is assessing whether a more efficient motor with a life of 10 years should be installed on a…

A: The capacity or ability of a person to perform work is expressed in terms of energy. The movements…

Q: annuity pays $5000 each year for 5 years starting today. It pays $6000 per year for year 7 to year…

A: A cash flow is a real or virtual movement of money: a cash flow in its narrow sense is a payment,…

Q: On their saving accounts, Al- Rajhi Bank offers an annual interest rate of 16% nominal, Compounded…

A: Interest is the amount paid in excess of the principal amount by the borrower to the lender. There…

Q: A man wishes to have 30,000 when he retires 16 years from now. If he can expect to receive 4% annual…

A: Step 1: Given Value for Calculation Future Value = fv = 30,000Number of Payment = n = 16Interest…

Q: Mary invested $7500 in an account and received $8250when she closed the account3 years later. What…

A:

Q: You take out a 30 year mortage at an annual interest rate of 6% which you will repay in monthly…

A: A mortgage is a type of loan specifically used to purchase real estate, such as a home or a piece of…

Q: 3-17 You are planning to withdraw $100 in Year 1, $150 in Year 3, and $200 in Year 5. At a 5%…

A: Given:Year=1, FV=$100Year=3, FV=$150Year=5, FV=$200i=5%

Q: What is the present worth of cash flows that begin at $15,000 and increase at 8% per year for 10…

A: In a formal financial context, the Present Worth (PV) of a Cash Flow is a single, current dollar…

Q: You want to borrow $1500 at 8% and you are willing to pay $210 in simple interest.How long can you…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: assy invested $1000 at 12% simple interest, calculate its value after 5 years

A: Introduction: The future value can be calculated by adding all the interest amounts of 5 years with…