Answered: Compute the interest rate if future…

Business

Economics

Compute the interest rate if future value (FV) = $11461, present value (FV) = $3959, and number of years (t) = 8.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A set of cash flows begins at $20,000 the first year, with a decrease each year until n = 10 years. If the interest rate is 7%, what is the present value when (a) the annual decrease is $2000? (b) the annual decrease is 10%?
Leon and Heidi decided to invest $2,500 annually for only the first eight years of their marriage. The first payment was made at age 25. If the annual interest rate is 12 percentage, how much accumulated interest rate and principal will they have at age 65?
Sally purchases a perpetuity immediate with annual payments that pays $4000 today and Payments increase by 5% per year. She will pay for it with a single payment exactly 6 years from today. Assume a constant force of interest of 7%. Calculate the size of the payment at time 6.
What is the interest rate that would make $10,000 received in the first year equivalent to $3,500 received each year for 4 years?
Compute the present value if future value (FV) = $6127, interest rate (r) = 8.2%, and number of years (t) = 13.
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $80,000 in a fund paying 3% per year, with monthly payments for 10 years PMT = $ Need Help? Watch It Read It
You want to borrow $1500 at 8% and you are willing to pay $210 in simple interest.How long can you keep the money
Find the uniform annual amount that is equivalent to a uniform gradient series in which the first year’s payment is $500, the 2nd year’s payment is $600, the 3rd year’s payment is $700, and so on, and there are a total of 20 payments. The annual interest rate is 9%.
all subparts please thank you
Suppose you borrow $5,000 at 7.25% interest for 14 months. What is the maturity value?
You borrow $2,000 from Gougo’s, a well-known loan consolidation outfit. The loan is an “unbelievably low” 2.5% per month compounded monthly. You have 2 years to pay back the loan. a. What is the nominal interest rate? b. What is the effective interest rate? c. If you wait until the end of year 2 to pay it off in one lump sum, how much must you pay? Use the “period interest rate” approach. d. If you wait until the end of year 2 to pay it off in one lump sum, how much must you pay? Use the “effective interest rate” approach. e. Of your payment in parts (c) or (d), how much is interest? f. Suppose you make equal end-of-month payments. How much is the monthly amount?
A bank features a savings account that has an annual percentage rate of r = 2.9% with interest compounded semi-annually. Chris deposits $4,000 into the account. The account balance can be modeled by the exponential formula S(t) P = n future value, P is the present value, r is the annual percentage rate, n is the number of times each year that the interest is compounded, and t is the time in years. (A) What values should be used for P, r, and n? r = n = nt r = P(1 + where S is the (B) How much money will Chris have in the account in 9 years? Answer = $ Round answer to the nearest penny. " (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year). APY = Round answer to 3 decimal places.