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: what is the total compounding period for 6 years 9 months converted quarterly?

A: The timeframe/period between the compounding of interest. For instance, in the event that one has a…

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: What will be the amount accumulated by each of the given present investments?(a) $6.000 in 12 years…

A:

Q: 1, $5,200 is invested each year at 4% compounded annually for 10 years. At the end of this time,…

A: Future value is a value of an investment or asset on a specific date in the future. To put it…

Q: SITUATION1: Five hundred pesos (P500.00) is deposited monthly to an account earning 7% compounded…

A: This is calculated using the following formula:FV = P * (1 + r/n)n*twhere:FV is the future valueP is…

Q: What is the amount of the quartery deposits A such that you w able to withdraw the amounts shown in…

A: Let Quarterly Deposit = A r = 8%/4 = 2%

Q: If I loaned 167,569 today and promised to pay it back after 5 years to the bank with monthly…

A:

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: You invest $5,000 per year at 8% nominal interest compounded quarterly. What is the future value…

A: Compound Interest is the interest calculated on the initial principal and also on the accumulated…

Q: If you deposit $5000 into an account paying 6% annual interest compounded semi-annually, how…

A: Given the deposit amount = $5000 Interest rate = 6% Future amount = $8000

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: Calculate the effective annual interest rate for 15% corresponding to each of the following: (d)…

A: Compounding is the act of accruing interest on both the initial principal and interest accumulated…

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: What is the effective annual interest rate for 10% compounded (a) semi- annually, (b) every four…

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

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: Elysa bought a car priced at $10,591 for 9% down and equal monthly payments for 6 years. If interest…

A: Loans are paid by equal and fixed monthly installments and these payments carry the payment for…

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: Find the effective interest rate per payment period for an interest rate of 8%compounded monthly for…

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

Q: Which of the following compounding rates is equivalent to an effective interest rate of 2.75% per…

A: The effective annual rate (EAR) is the real percent interest that a borrower or investor pays on a…

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: 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 you desire to withdraw the following amounts over the next five years from the savings account…

A: Year Withdrawal 0   1 0 2 30000 3 33000 4 40000 5 36000

Q: Find the present value of deferred annuity of P 900 every 3 months for 5 years that is deferred 3…

A: Given Information A = 900i = 10% compounded Quarterly = 10/4 = 2.5% or 0.025n = 5*4 = 20 Deferred…

Q: A series of equal semi-annual payments of $1,500 for 3 years is equivalent to what present amount at…

A: here we calculate the present amount with compound semi-annually so the calculation as follow-

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: Vince loaned a certain amount from a cooperative and promised to pay it back with 2.33 times his…

A: Loan Amount = A Maturity Amount = 2.33A r = 10.42%

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

A:

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: 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…

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: We are required to accumulate an amount of $80,000, therefore, this amount is the future value. FV =…

Q: Suppose that ​$5,000 is placed in a bank account at the end of each quarter over the next 9 years.…

A: GIVEN   P = $5000 No. of periods (n)= 9*4 = 36 compounded = 14%

Q: A series of equal semi-annual payments of $1611 for 4 years is equivalent to what present amount at…

A: Compound interest refers to a type of interest that is accumulate on both the principal amount as…

Q: A debt is amortized for 4 years by a series of payments that decreases annually by P 500, the first…

A: Initial Payment = 5,000 Interest rate= 5% Decreases by 500 every year n = 4 years

Q: Find the compound interest of P 2,500 invested at 8% compounded semiannually for 5 years and 6…

A: The interest on a loan or deposit is computed using both the original principal and the interest…

Q: compounde CO Dour after 10 year

A: Given that, Present value (P) = $650 Interest rate (i) = 3.2% or 0.032  Number of period ( n) = 10…

Q: Scott deposited $1,000 at the end of every month into an RRSP for 8 years. The interest rate earned…

A: This is the case of ordinary annuity for 8years but we need to calculate for first 4year and then…

Q: Find the time required for each initial amount to be at least equal to the final amount.    (i)…

A:

Q: What is the future worth of each given series of payments?(a) $8,000 at the end of each year for…

A: a. The investment is $8,000 at the end of each year and is repeated for 5 years and the rate of…