During a long vacation you got an internship position at tullow and managed to invest Ghc5000 at EDC at 12%. What will be the difference between how much you would have at the end of 7years if the money is compounded compared to if simple interest is implied?

Q: You have an investment account that started with $3,000 10 years ago and which now has grown to…

A: To maintain and increase the buying power of the money invested, an investment's rate of return…

Q: Your friend plans to invest $1,000 per month into an account expected to have an effective annual…

A: Here, EAR is 6.2% Monthly payment (PMT) is $1,000 Required Amount (FV) is $100,000

Q: if you can earn 2.5% per year  on your investment how  long  will it take to double your money

A: According to the given question, we are required to compute how long the time period will take to…

Q: How much will you have saved after 6 years by contributing $1,200 at the end of each year if you…

A:

Q: You can expect annual benefit of $15,800 if you deposit $142,200 in a bank account right now. The…

A: Pay back period is the period required to recover the initial cost of the project.

Q: You would like to save for a car. You would like to have $20,000 saved in 4 years. You decide to…

A: Future value required (FV) = $ 20,000 Annual interest rate = 6% Monthly interest rate (r) = 6%/12 =…

Q: Which is a better offer? Provide your computation to prove your answer. 1. You need 120,000 to start…

A: Step 1: In this question we will be evaluating the loan credit of following since you need 120,000…

Q: years from today, and 2,000 four years from today. What will the value of your account be 4 years…

A: The future value is the estimated value of an investment that accounts for compound interest or…

Q: You just borrowed $15,000 from a finance company to start a business. If you are required to repay…

A: The objective of the question is to calculate the expected real rate of interest given the amount…

Q: You are thinking on purchasing some assets that will give you 5,000€ per year, starting in 5 years,…

A: In order to decide whether to purchase the asset we need to find out the present value of cash…

Q: You plan to save Php7,000 per year, beginning immediately. You will make 3 deposits in an account…

A: Answer= Php23,261

Q: If you borrowed money from your friend with simple interest of 8%, how much money did you borrow if…

A: Future value = P 50,000 Annual interest rate = 8% Period = 7 Months

Q: You plan to graduate in 4 years, and then travel to Italy for 3 weeks. The trip will cost $ 1,600.…

A: PV function in Excel returns the present value of an annuity.Syntax: =PV(rate, nper, pmt, fv)

Q: You put ​$300 per month in an investment plan that pays an APR of 2.5​%. How much money will you…

A: Monthly deposit (d) = $300 Monthly interest rate (r) = 0.00208333333333333 (0.025 / 12) Monthly…

Q: An investor put his money in an investment earning 10 1/2% simple interest rate per annum. If his…

A: simple interest formula: A=P×1+RT given, p 12.30 MILLION R=10.5% T=15 / 12 YEARS

Q: You’ve received a bonus of R104,613.95 at work and want to invest the money so you can afford a new…

A: The worth of money in future is calculated using the following formula:

Q: How much must you invest each month, for 5 months, starting next month

A: SOLUTION:- $6,163 needed per month for 8 months, starting 12 months from now. Interest rate =…

Q: During a long vacation you got an internship position at Bartelby and managed to invest $5000 at EDC…

A: Amount invested (A) = $5000 Interest rate (i) = 12% Duration (n) = 7 years

Q: At your new job, you will be making monthly deposits of  $285 into a 401k.  If you think that you…

A: Data given: Monthly deposit=$285 N=6 years Rate=13.57%   Required: Amount in 6 years

Q: You own a hotel that you will receive EURO. 150,000 in rental income for next year. The rent will be…

A: Solution:- When an equal amount is receivable each period with a constant growth rate over a number…

Q: makes deposit to a shor Inve n 1% !), what will the account balance be af

A: Simple Interest = Principal (initial deposit) * Interest Rate * TimeWhere:Principal = initial…

Q: A broker wants to sell a customer an investment costing $100 with an expected payoff in one year of…

A: Investment cost = $100Expected payoff = $106Borrowings = $90Interest on loan = 4%To find: Customer's…

Q: How much will you have in 2 YEARS if you save $100 each MONTH and your account earns 4% interest PER…

A: N = 24, PV = 0 rate = 4%/12 PMT = 100 use FV function in Excel with type as 0

Q: What is the excel function and formula for this question?   Off-The-Books Investment Firm, LLC, has…

A: The return which is determined in terms of percentage which is expected to be earned on investment…

Q: You plan to save Php3,500 per year, beginning immediately. You will make 4 deposits in an account…

A: The implied value/amount of an asset as of a particular date in the future based on a growth rate…

Q: You just got your first engineering job. How much money would you have to save per vest the money…

A: Since the same amount is needed to be saved per month, it is an annuity. The future value of annuity…

Q: Please solve via excel and show calculation steps to solve table.   Scenario: You have decided to…

A: Bond Amortization is distribution of loan amount and interest on each balance of loan, over the…

Q: How much time will it take you to accumulate $500,000, assuming you invest $15,000 today and $150 /…

A: The time value of money concept states that the value of a certain amount of money on the future…

Q: Suppose that an amount in Kina, is invested in a private financial institution, with interest…

A: As we are finding the final amount, that will be in future, thus we will use the future value…

Q: Star. An advertisement of an investment firm states that if you invest P500 in their firm today you…

A: Investment (PV) = P500 Future value (FV) = P2000 Period = 10 Years Quarterly period (n) = 10*4 = 40…

Q: Jenny needs to borrow from you a P500 now, and will pay you back P570 in a year. Is that a good…

A: Answer) Calculation of Rate of Return on Investment Rate of return on investment = (Maturity amount…

Q: how much will you have 4 years from today?

A: In the given case interest is 5.7%. But in the question it is not mentioned that whether it's simple…

Q: three years ago maxwell invested 6020. In 1 year from today he expects to have 9120. If maxwell…

A: The objective of this question is to find out how much Maxwell expects to have in 5 years from…

Q: Suppose you save $4,000 per year at the beginning  of each year for 3 years and earn 5% interest per…

A: The formula for the calculation of future value of annuity due is as follows: Future value of…

Q: You just borrowed $15,000 from a finance company to start a business. If you are required to repay…

A: The expected real rate of interest is the rate of interest that an investor expects to receive after…

Q: You are opening an investment account that will earn 6.5% compounded annually. You will invest…

A: The concept of time value of money will be used here. As per the concept of time value of money any…

Q: ou plan to graduate in 4 years, and then travel to Italy for 3 weeks. The trip will cost $1,500. If…

A: Using excel PV function

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.