Determine the present equivalent value of $400 paid over a period of 7 years  in each of this situations:  (a) The interest rate is 12% compounded annually  (b) The interest rate is 12% compounded quarterly  (c) The interest rate is 12% compounded continuously

Q: A sum of money invested at 12% interest, compounded quarterly, will triple in amount in…

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

Q: If a bank says that it has a 5% nominal interest rate, but money is compounded monthly in that bank,…

A: An effective annual interest rate is basically the actual return on a savings account or on any…

Q: b) $4,500 at the end of each year for 15 years at 4.75% compounded annually.

A: The amount invested each year = $4500 Total number of years = 15 years The interest rate earned in…

Q: homeowner planning a kitchen remodeling can afford a $700 monthly payment. How much can the…

A: Given,   R = $700  Time = 5 years  Rate (r) = 9%

Q: 6. Find the future value of RM10,000 which was invested for (a) 3 years at 6% compounded annually.…

A: ITEM 6To find the future value of the investments given the different compounding periods, we can…

Q: value of $ 20000 at the end of 10 years

A: (a) FV ($) = 20000 + (20000 x 7% x 10) = 20000 + 14000 = 34000

Q: The present value of $20,000 each year for 4 years at a 5% interest rate is approximately The…

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

Q: If you want to have $100,000 in your saving account in ten years, how much do you need to deposit…

A: The compounded monthly means interest is calculated and added to the principal monthly, while…

Q: How much must be invested now at 6% simple interest to accumulate $1,000 at the end of 5 years?…

A: Information extracted in the question: Simple interest = 6% Future value = $1000 Time = 5 years

Q: A series fequal quarterly payments of $5,000 for 10 ears is equivalent to what present amount t an…

A: here we calculate the given by following method as follow;

Q: Compound Interest. Determine the future value of $700 which is invested at 10% interest which is…

A: Introduction: Given the present value = $700 Interest rate = 10% Time period = 8 years

Q: Ronny borrowed a sum of $5,000 from his uncle Dennis and after three years paid a sum of $5,000 and…

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

Q: If P500,000 is deposited at a rate of 11.25% compounded monthly, determine the compounded interest…

A: The formula used in the compound interest is  =P[1+(r/m)]mt-P A = the future value of the…

Q: car loan at an interest rate of 9% compounded monthly to be repaid over 60 months, where 9% is the…

A:

Q: Fir a $5,000 loan repayment over 2 years at 12%. Find the monthly payment

A: Introduction: The loan amount is $5000 which has to repay in 2 years by making monthly payments.…

Q: Compute the effective annual rate of interest (a) for 6% compounded monthly; (b) at which $1100 will…

A: When the benefits of compounding over time are factored in, the real return on a savings account or…

Q: You have $25,000 in an account that pays 6% interest compounded annually. You want to make equal…

A: Deposit in Year 1 = $25000Annually compounded interest rate = 6%Duration = 8 years

Q: What is the present worth of each of the given series of payments?(a) $2.700 at the end of each…

A: The present worth can be calculated using following formula: Here, FV is the future value. r is the…