Exercise 2: 1. An investment amounting to P300,000 has an annual interest of 4%. How much discount will you get for paying the loan in 8 months? How much is the proceeds? 2. If you applied for a time deposit with an amount of P60,000 and an annual interest rate of 5%, the bank will give you a discount of P5,000. How long did the money stay at the bank? 1. Calculate the amount borrowed in a lending company with discount of P630 at annual interest rate of 4.2% paid in 9mos.

Exercise 2: 1. An investment amounting to P300,000 has an annual interest of 4%. How much discount will you get for paying the loan in 8 months? How much is the proceeds? 2. If you applied for a time deposit with an amount of P60,000 and an annual interest rate of 5%, the bank will give you a discount of P5,000. How long did the money stay at the bank? 1. Calculate the amount borrowed in a lending company with discount of P630 at annual interest rate of 4.2% paid in 9mos.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A:If I lend you $ 1500, at % 8 per year, what is the simple interest to be paid at the end of two years? B:An engineer deposits $ 1000 in an account. If the bank pays interest rate of 6% per year. compounded daily, how much money will have accumulated in the account after 6 years?
Subject:
Q: If in your Allied Bank account you deposit Rs.15,000 at the end of each year at 14% interest rate than how much accumulate in your account after 9 years.
Question 3: You just got a loan for $15,000 and you plan to pay it off in three years. Your monthly payments are $500 each. What is the interest rate that the bank is charging you? What if you did bi- monthly payments of $250? How much sooner will the loan be paid off?
Activity 2: Solve the following problems completely. 1. A loan of Php 300 000.00 is to be repaid in full after 2 years. If the interest rate is 9% per annum. How much should be paid after 2 years? 2. If a car loan of Php 790 000.00 requires a 20% down payment. How much is the mortgage? 3. A person borrowed Php 1 000 000.00 for the purchase of a car. If his monthly payment is Php 25 000.00 on an 8-year mortgage, find the total amount of interest. 4. A consumer loan worth Php 80 000.00 is to be repaid in 12 months at 8% convertible monthly. How much is the monthly payment?
help mee plss
QUESTION 3 Suppose you deposit $2.500 in a CD paying 8% interest, compounded every other month. How much will you have in the account after 15 years? Round your answer to the nearest cent. below is an example how to do problem mple 4 A certificate of deposit (CD) is a savings instrument that many banks offer. It usually gives a higher interest rate, but you cannot access your investment for a specified length of ime. Suppose you deposit $3000 in a CD paying 6% interest, compounded monthly. How much will you have in the accbunt after 20 years? In this example, Pa-$3000 1=0.06 -12 the initial deposit 6% annual rate 12 months in 1 year since we're looking for how much well have after 20 N=20 years 0.06 So P 3000 1+ 12 3D%2993061(round your answer to the nearest penny) %3D Let us compare the amount of money earned from compounding against the amount you would carn from simple interest Yars Simple Interest 6% compounded (S15 per month)monthly 0.5% each month 33900 $4800 $5700 $4046 55…
Siyles Assume twwo banks have different offers to take a lone. Where the amount will be compound monthly. How much money you must pay on 10 years. Bank A Bank B Loan 75,000 5.25% 25,000 Interest Rate 5% 1. Calculate the monthly compounded amount for Bank A and B algebraically. 2. Calculate the monthly compounded amount for Bank A and B using MS excel 3.Decide which bank you will select and why. 4. find the annual rate of interest, compounded quartile will money double in 4 years?
If you deposit $20,000 in a bank account that pays 5% interest annually, how much will be in your account after 5 years? A. $15,670.52 B. $18,525.63 C. $25,670.52 D. $15,525,63 E. $25,525.63
Q: If in your Allied Bank acqount you deposit Rs.15,000 at the end of each year at 14% interest rate than how much accumulate in your account after 9 years.
3. Compound interest Old Time Savings Bank pays 4% interest on its savings account. If you deposit $1,000 in the bank and leave it there: a. How much interest will you earn in the first year? b. How much interest will you earn in the second year? c. How much interest will you earn in the tenth year?
2.1 Explain the difference between a nominal interest rate and an effective interest rate. 2.2 A bank has quoted the interest rate on a loan at 15% compounded quarterly. Calculate the effective rate. 2.3 You need R70 000 in 6 years’ time in order to afford a new car. If you are able to earn interest at 8% compounded annually, how much do you need to invest today in order to afford the car? 2.4 If you had R30 000 today, at what annual interest rate would you need to invest your money in order to have the required R70 000 in 6 years’ time

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