Bobby was desperate. He borrowed $600 from a pawn shop and understood he was to repay the loan starting next month with $100, increasing by $10 per month for a total of 8 months. Actually, he misunderstood. The repayments increased by 10% each month after starting next month at $100. Use a spreadsheet to calculate the monthly interest rate that he thought he was to pay, and what he actually will pay.

Q: An individual makes six annual deposits of $2,000 in a savings account that pays interest  at a…

A: Given  To solve the given problem, we need a cash flow diagram. There are six annual deposits of…

Q: Jack borrowed $10,000 from Mr. Jill on July 11, 2018 and promised to pay it by December 21, 2018.…

A: Given the borrowed amount = $10000 Interest rate = 15% Total number of days between the given months…

Q: Find the nominal rate compounded monthly which is equivalent 12% compounded quarterly. write your…

A: The Effective Interest Rate is utilized to work out the effective annual interest rate in view of…

Q: Assume you borrow $30,000 today at a rate of 13%. The loan will be returned over a five-year period,…

A: To calculate the annual payment for a loan using a spreadsheet, use the PMT function in Microsoft…

Q: How long will it take money to double itself if invested at 10% compounded annually?

A: Compound interest formula: F = P (1 + r)n Where F is the future value P is principal value r is…

Q: A bank saving account offers 4% compounded on a quarterly basis. A customer deposit $200, in this…

A: Since the bank offers 4% compounded on a quarterly basis, the interest rate is 1% per quarter. The…

Q: You borrow $700,000 at 3% interest for 30 years on a mortgage.  How much total will you pay back on…

A: Compound interest is also referred to as "interest that is not simple." Compound interest does not…

Q: What is the effective interest rate per month if the interest rate is 9% compounded continuously?

A: The effective interest rate refers to the rate of interest that paid on an investment after to take…

Q: How many years will it take for an investment to be twice its value if it earns 8% compounded…

A: We use the rule of 72 here. No. of years needed to double any investment = 72/ interest rate

Q: You purchase a house for $250,000 directly from the buyer who owns the home outright. You pay a 20%…

A: Equivalent annual payment (EAP) or single payment can be calculated by using the following formula.

Q: An automobile loan of $15,000 at a nominal rate of 10% compounded monthly for 36 months requires…

A: Based on the need of question , simple mathematical calculations have to be done to find out values.…

Q: If you invest $4,000 at 3% interest compounded monthly, how long will it take you to reach $5,000 ?

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

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Nominal rate of interest (r) =8% compounded quarterly.Withdrawal at the end of the 4th quarter is…

Q: A person borrowed $200 for one month and paid $30 in interest. However, she did not know whether the…

A: We can calculate the total amount to be repaid and the annual interest rate for both simple and…

Q: You deposit $2000 in an account earning 8% interest compounded continuously. How much will you have…

A: When you earn compound interest, you earn interest on both the money you've saved and the money…

Q: ou borrow $5,000.00 and repay it back in monthly payments of $200.00 for three years. What is the…

A: Borrowed Amount = 5000 Monthly Payment = 200 n = 3 years

Q: How long will it take money to quadruple itself if invested at 13% compounded annually?

A: Money quadruples meaning current value becomes four time in n years.

Q: How many years will it take an investment to triple if the interest rate is 8%compounded?

A: The rule of 115 can be used to calculate the number of years that take an investment to triple.

Q: Michelle Hunter received $250,000 from an insurance company after her hus- band's death. Michelle…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: Find the equivalent rate of interest of 9% compounded quarterly to an interest rate compounded…

A: Given interest rate = 9 % compounded quarterly quarterly rate = 9/4 = 2.25 % effective interest rate…

Q: How long (in years) will it take to quadruple a money if it earns 2% compounded semiannually?

A: Compounding refers to a process in which the interest is accumulated on the principal amount as well…

Q: John borrows $10,000 at 18% compounded annually. He pays off the loan over a 5-year period with…

A: The loan amount is $10,000, the interest rate is 18%, and the time period is 5 year. Let us consider…

Q: How long will it take for a money to quadruple itself if invested at 12% simple interest rate.

A: Future value is calculated by the following formula when there is a simple interest rate. FV = P(1 +…

Q: Miho invested $5000 in a bank that pays an annual interest rate of 9% compounded continuously. What…

A: Invested amount = $5000 Annual interest rate = 9% Total time period = 15 years

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Here we calculate the amount of the quarterly deposits by using the given cashflow , so the…

Q: You deposit $200 each month into an account earning 5% interest compounded monthly. a) How much will…

A: The future value of a deposit refers to how much the deposited money will grow over time,…

Q: Suppose you borrowed $10, 000 at an interest rate of 12% compounded monthly over 48 months. At the…

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Q: Suppose that $100 is invested for five years at an interest rate of 8% per year, compounded…

A: Given: Amount=$100 Interest rate=8% Number of years=5 To find: Amount at end of 5 years

Q: It is known that the total interest paid over a 5- year period is $4,200. What was the principal…

A: In case of compound interest, amount at the end of the year is compounded and not the initial…

Q: Calculate the total interest earned, if you save $68 each month, Starting today, for 11 more…

A: Here's how to calculate the total interest earned on your savings:1. Define variables:Monthly…

Q: You are going to borrow $30,000 to purchase a car.  You agree to repay the loan in 36 monthly…

A: The nominal interest rate is the rate of interest charged on the loan amount. It is the sum total of…

Q: Jamie saves P4000 every three months in a bank that pays 0.85 compounded monthly. How much will be…

A: Given: The principal amount is = P4,000 The interest rate is = 0.85% compounded monthly Time period…

Q: Find the nominal rate compounded monthly which is equivalent 14% compounded quarterly.

A: The compounded quarterly rate can be first converted to a yearly rate and then can be divided…

Q: The following equation describes the conversion of a cash flow into an equivalent equal- payment…

A: A cash flow diagram is a graphical representation of the inflows and outflows of cash over a…

Q: Lia wishes to have $3000 after 3 years in an account that draws 6% nominal interest compounded…

A: In this question we have to find out the principal value with the help of the above information.

Q: Jesse wanted to double his money at 3% annual interest compounded monthly. How long will it take to…

A: