el started to deposit P5,000 quarterly in a fund that pays 1% compounded quarterly. How much will be in the fund after 6 years? WSS plumbing wishes to pay off a debt of P130,000 in 2 years. What regular payment would they need to make every month at 12% interest compounded monthly? To pay for his debt at 12% compounded quarterly, Riley committed for 8 quarterly payments of P28,491.2

Q: Juan invested $10,500 into a fund earning 7.50% compounded monthly. She plans to withdraw $700 from…

A: Working note for calculations. Note for Converting Quarter into years:- Number of year to deplete =…

Q: Daniel deposits $20,000 into an account earning interest at 6% per year compounded quarterly. He…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Derek currently has S12, 511.00 in an account that pays 6.00%. He will withdraw S5, 050.00 every…

A: Future value (FV) is a financial concept that projects the anticipated value of an investment or…

Q: Jason makes six EOY deposits of $2,000 each in a savings account paying 5% compounded annually. If…

A: The compound interest is calculated on the principal amount annually. It considers the present value…

Q: Michael wants to accumulate $38,000 in a fund with payments of $1,700 made at the end of every…

A: It can be calculated using=NPER(rate,pmt,pv,[fv],[type])Rate The interest rate for the loan.Nper…

Q: John already has $50,429 in his savings account. He plans to make contributions of $1,658 at the end…

A: The banks generally offer compounding interest, The interest is earned on interest and the interest…

Q: Anton deposits P400,000 today and another P200,000 in 6 years into a fund paying simple interest of…

A: Simple interest is a method of calculating the interest charged on a loan or the interest receivable…

Q: you are to receive $ 16700 from your trust fund in 7.5 years. you negotiate a deal where you can…

A: Future value refers to the value of current asset at some future date affected by interest and…

Q: First 30 Years PV 0 Next 25 Years PV 11.049 FV 98 0250.94 FV 0 Periods Rate 30 7.6% years Periods 25…

A: We need to break this question in to 2. In the first part we are going to determine the value of the…

Q: in 8 years (a) What amount should he deposit at the end of each quarter at 6% compounded quarterly…

A: We need to use PMT formula to calculate quarterly payment. PMT =FV*i(1+i)n-1 where FV =future value…

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A: This is a classic case of an annuity due, annuity perpetuity, annuity deferrals. First, we will…

Q: Robert wants to deposit $300 into a fund at the beginning of each month. If he can earn 10%…

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Q: Jesse invested her savings in a bank at 5.00% compounded quarterly. How much money did she invest to…

A: > Given data:> Annual interest rate = 5%> Effective annual interest rate =…

Q: Clara borrows $41,000 today at 2.9% per year compounded quarterly, to start her own buisness. she…

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Q: Benjamin borrows $50,000 from a lending institution for building a house. The lending institution…

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Q: What was the size of the periodic payments?

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Q: Whitney deposited $200,000 into a savings account that has an annual interest rate of 8% compunded…

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Q: John borrows $50,000 at an annual effective rate of 6% and will make payments 3. at the end of each…

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Q: open an annuity with $5,200.00 and makes monthly payments of $270.00 paid at the end of each month…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Christopher just borrowed $19,500.00 to buy a used minivan. The terms of the loan require him to…

A: Amount borrowed, pv $ 19,500.00Equal monthly payments, pmt $       340.10Period (years), nper6Extra…

Q: Angela invested $10, 500 into a fund earning 7.75% compounded monthly. She plans to withdraw $850…

A: Dear student, kindly check the answer in the explanation box below.Explanation:Part 1: Answer:To…

Q: withdrawal is to be made 5 years from now, how long will it take for the fund to be depleted?

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Q: help!! Hector needs $13,000 in 7 years. (a) What amount should he deposit at the end of each quarter…

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Q: Jaime Bickers invests $4000 at the end of each semiannual period for 8 years. His financial advisor…

A: Calculate the future value as follows:

Q: Mr. Joe  takes a loan P amount from the bank. The loan attracts an interest of 1.5% per month…

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Q: make regular equal payments to repay the loan. The payments will be semi-annual for 10 years with…

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A: FV is the future worth of cash flows that have occurred in the past or present.

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Q: Which of the following statement is INCORRECT?   Question 15 options:   1)  The finance manager…

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Q: Arthur just took out a loan from the bank for $16,900.00. He plans to repay this loan by making a…

A: To find the amount of the regular quarterly payment, X, we can follow these steps:1: Calculate the…

Q: Daniel deposits $20,000 into an account earning interest at 6% per year compounded quarterly. He…

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Q: Derek currently has $11, 936.00 in an account that pays 5.00%. He will withdraw $5,341.00 every…

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Q: To help purchase his new minivan, Eric is taking out a $17,000 amortized loan for 6 years at 5.9%…

A: The periodic payment on the loan is made to repay the loan. The periodic payment decreases the…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.