Define the term Interest?

Q: What are the two types of cashflows? Define each

A: The cash flow refers to the net flow of cash and cash equivalents in and out of the businesses or…

Q: What is a simple interest rate?

A: Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan or…

Q: a. The present value of $25,000 each year for 4 years at a / percent interest rate b. The present…

A: The formula for calculating the Future Value is: FV= PV(1+r)nwhere,FV= Future ValuePV= Present…

Q: You are going to get %10,000,000 in 45 years' time. What is the value of that money today assuming…

A: Present value can be calculated by using the following formula.

Q: 4. What is the annual interest rate if a simple interest loan of $15,000 for four months yields $975…

A:

Q: 4A Find the value of 'C’ in the figure below. Take the interest rate as 15%. C-? 10 15 23 Years…

A: Given: The interest rate is = 15% Years = 23 To Find: The value of C:

Q: Define the term effective semiannual interest rate?

A: The interest is the income generated by the capital in the economy. The interest is the amount paid…

Q: Write the formula developed for calculating compound interest?

A: Compound interest refers to the interest calculated on the principle amount, thus increasing the…

Q: 6.Compute the nominal interest rate of a continuously compounded loan if the effective interest rate…

A: In case of continuous compounding, effective interest rate is given by - r = ei - 1 where r =…

Q: What is Effective interest?

A: Effective interest rate can be described as the interest rate gained or paid in actual on a project.…

Q: How is the future related to the present value of a single sum?

A: The future value is that the sum of present value and also the total interest. the long run value…

Q: Ex Ante and Ex Post Real Interest Rates

A: Ex-ante is when we look at the future event based on all the possible predictions whereas Ex post…

Q: Jack promises to pay $1000 at the end of 6 months in obtaining a loan from a banker B who charges 6%…

A: Annual interest rate can be calculated by using the following formula.

Q: In how many years will $1,500 yield an interest of $200 at 2% simple interest?

A: given that, The principal sum is $1500 simple interest is $200 rate of interest is 2%

Q: 1. What is the amount of interest earned on $5,000 for eight years at 10% simple interest per year?

A: Since we only answer one question at a time, we will answer the first question. Please submit a new…

Q: You need to borrow $250,000 right now and can repay the loan in 9 months. Since you want to pay as…

A: Given; Amount needed to be borrowed= ₱250000 Time= 9 months Formula to calculate future value:-…

Q: When investing or saving money for retirement, which type of interest would benefit the most from?…

A: When investing or saving money for retirement which type of interest would benefit the most from?…

Q: Example 1: EOY NCF ($) 1 100 2 150 3 200 4 250 Calculate the present worth when interest rate is…

A: Following are the given information: Value of G = $50 Annuity, A= 100 Interest rate = 8%

Q: The effective interest rate on a mortgage with monthly payments is 9.38%. What is the monthly…

A: The difference b/w the effective-interest rate(ER) and the nominal-rate(NR) is that the NR does not…

Q: Summarizes some of the interest formulas?

A: Simple interest = (P*R*T)/100 where, P : Principal amount            R : Rate of interest per annum…

Q: 4. At what rate of simple interest will the sum of money double itself in 6 years.

A: Simple interest is determined by multiplying the day to day interest rate by the principal, by the…

Q: Explain Methods of Calculating Interest?

A: Answer -  Interest = It is the extra amount of money a lender which charge to a borrowers.  there…

Q: 1. What is an effective rate of interest?

A: The time value of money is the concept that an amount of money is worth more now than the same…

Q: How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5%…

A: Compound interest rate is addition to the interest of interest. It can be applicable both loan and…

Q: Please show work

A: The amount deposited 5 years ago is $1,000 and the amount deposited one year ago is $2,000.The…

Q: Suppose you deposited $200 at the end of every year for seven years in an account that earned 6%…

A: Compound interest formula: A =P (1+r)t

Q: You want to lend $12,000 as a bank deposit in a private bank with an interest rate 3 % per month.…

A: Compound interest refers to the interest rate that is calculated continuously for the given time…

Q: Describe what is Market interest rate?

A: The rate of interest which is determined by the interaction of demand for and supply of funds in the…

Q: Write the formula of Effective interest?

A:

Q: Please show work

A: suppose, the deposit in the account will be $5,000. Additional deposit is $4,000. Interest rate is…

Q: You borrow $10,000 agreeing to pay the balance in 10 equal annual installments at an interest rate…

A: here we calculate what should be the payments for the given by following method as

Q: What type of interest is the capital invested in a transaction is principal and at any time after…

A: Interest can be determined in two ways: simple interest or compound interest. Simple interest is…

Q: Real interest rate is always higher than nominal interest rate  True/False

A: # The difference between Nominal interest rate and inflation rate is given as real interest rate

Q: 2. What is the difference between simple interest and compound interest? Which is more expensive?

A: Answer: Simple interest: simple interest is calculated on the principal amount each period. Here the…

Q: Explain what is Principal Plus Interest?

A: Principal plus interest is that amount which is paid by the borrower to the lender after the agreed…

Q: Liz plans to deposit $20,000 in the bank now and another $5,000 two years from now. If she plans to…

A: Introduction: An annuity of payments is made at fixed distances. Examples of annuities are recurring…

Q: If a financial asset that is valued at $18,455 in the Stock Market today would be worth $39,200 in 2…

A: The interest rate is counted as a compounding interest rate in the market as the market money can be…

Q: Suppose that you put $4,500 in a savings account at the beginning of the year and that you are…

A:

Q: You borrow $500 from a family member and agree to pay it back in six months. Because you are part of…

A: Interest rate: It refers to the rate at which the person who had borrowed money from any person has…

Q: y due an

A: An annuity is a contract entered between a person and an insurance company in which either series of…

Q: Discuss and illustrate the different types of annuity.

A: Annuity refers to the contract between an individual and the insurance company where the individual…

Q: Which Interest rate is better to use the simple interest or compounded interest plan, explain your…

A: The interest rate is the amount charged on the principal by the borrower to the borrower to use the…

Q: Define interest rate.

A: The price paid by the lender for the use of assets expressed as a percentage of the principal is…

Q: 2. Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is offering…

A: 2.Given that   Greg wants to have $50,000 in five years.  He has $20,000 today to invest.  Time = 5…

Q: For the following cash flow find F for two cases , first , assume that the inter - period cash flow…

A: For the above cash flows downward arrows denote the cash outflows and the upward arrows denote cash…

Q: What is the meaning of interest rate

A: Financial institutions play an important role in an economy. They collect money from people who have…

Q: What is the present value of $100 one year from now if the interest rate is 10%? What is the present…

A: Interest rate: It refers to the rate at which the debtor has to pay the amount with the interest…

Q: What is Annual Effective Yield?

A: Yield refers to the earnings that are generated and then realized on a particular investment over a…

Q: What is meant by Prime interest rate?

A: Prime Interest Rate is the interest rate which is determined by the federal funds rate.