f a term deposit of Rs. 4000 earns an interest of Rs. 2500 in 50 months find the rate of interest.

Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) Amount of…

A: A key component of investment analysis, capital budgeting, and financial decision-making, present…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: What is the present value of a cash payment of $1.2 that you will receive in 5.3 years if the…

A: STEP 1 Given a certain rate of return, present value (PV) is the current value of a future financial…

Q: A deposit of $290 earns the following interest rates: 9 percent in the first year. 7 percent…

A: Deposit amount (P) = $ 290 First year interest rate (R1) = 9% Second year interest rate (R2) = 7%…

Q: 4.  a.)  What is the future value of an annuity due with an annual payment of $1,500 for four years…

A: Future Value is that amount which includes the interest earned and investment value which is…

Q: Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest…

A:

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Annuity refers to the contract that is made between the insurer and the insurance company for making…

Q: If you have only Rs.750 on Jan 1, 2007, what interest rate compounded annually for 3 years must you…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: Calculate the present value of an annuity due given the following information: number of periods =…

A: The present value of an annuity due is the current value of a series of payments or cash flows…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Amount of deposit(m): $800 Frequency(n): annually Rate(r): 1% Time(t): 30 years

Q: For the follwing case, determine the  number of years it wll take for the intitial deposit to grow…

A: The number of years it will take to reach the target can be computed with the help of log function.

Q: What is the amount of an annuity that consists of 100 monthly payments of $250 into an account that…

A: Given: Periodic payment (P) =$250 Rate of interest per month = 5% annually  Rate of interest monthly…

Q: If the intrest rate is a 12%p.a. the amount to be invested today to earn an annuity of rs.1000 for 5…

A: Interest Rate = 12% Annuity = 1000 Time Period = 5 years END OF PERIOD ANNUITY Investment = ?

Q: What is the future value of $10,000 on deposit for 5 years at 6% simple interest?

A: The objective of this question is to calculate the future value of a deposit of $10,000 for 5 years…

Q: Find the future value of the following ordinary annuities. Payments are made and interest is…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise…

A: As per the time value of money concept Value of the today's money is more important than the money…

Q: Find the rate of interest when Rs. 800 fetches Rs. 130 as simple interest in 2 years.

A: The provided information are: Principle= Rs. 800 Simple Interest = Rs. 130 Time = 2 years

Q: Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of…

A: given, A = $2000 n = 3.5 r = 4% pa but it is compounded quarterly therefore, frequency of…

Q: Mr. Zigong wishes to know about the future values of the single cash flow deposited  today that will…

A: The value of a cash flow deposited today and to be received in the future can be calculated using…

Q: Find the value of the ordinary annuity at the end of the indicated time period. The payment R,…

A: The ordinary annuity means a series of equal payments made at regular intervals at the end of the…

Q: Find the present values of these annuities due. a. What is the present value of $4,000 per month…

A: PMT=$4000 per monthNumber of payments=n=12Interest rate=4.8%Monthly interest rate=r=4.8/12=0.4%Find…

Q: Find the NPV and PI of an annuity that pays $500 per year for eight years and costs $2,500. Assume a…

A: 1.NPV means Net present value.It is calculated as follows:-NPV = Present value of cash inflows -…

Q: A sum of 12,500 amounts to 15,500 in 4 years at the rate of simple interest. What is the rate of…

A: Simple interest is defined as an interest type, which is an easy method for the calculation of an…

Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) Amount of…

A: An annuity is a stream of cash flows that are usually fixed in nature and that occur at regular…

Q: A defence certificate worth one hundred rupees now would be worth Rs. 425 at the end of 10 years.…

A: The value of any money generally varies with time and therefore its value of time describes the…

Q: Compute and compare the following interests situations if you deposit $2500 into an account with…

A: When we make an investment or deposit money in a bank our invested amount grows. This is because…

Q: A loan of $5000 earns $750 interest in 1.5 years. Find the rate of interest.

A: Interest amount = Principal * Rate * Time duration

Q: Find the present value of the ordinary annuity.

A: We can determine the PV of ordinary annuity using the formula below:In the formula above, PMT =…

Q: 2) A 15-Year annuity is purchased for 10,000 with level annual payment 800. what is the effective…

A: The time value of money is a concept in finance that takes into account the effect of compounding to…

Q: Consider each of the following deposit cash flow series. What will the final balance be (e.g.,…

A: Interest Rate = 10% Time Period = 5 Years

Q: A finance company uses the discount method of calculating interest. The loan principal is $5,000,…

A: Future Value = Present Value * (1+r)^n

Q: search annuities and calculate an annuity that pays you monthly (like a pension) for a 30 year…

A: Annuities are uniform periodic monthly payments that are paid over the period of time based on the…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: Find the amount accumulated FV in the given annuity account. HINT [See Quick Example 1 and Example…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: Find the future value of the following ordinary annuities. Payments are made and interest is…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: Determine the number of the years if a deposit of P905,000 will earn P105,350 if invested at the…

A: Given the deposit amount, the interest rate and the amount of interest, the number of years can be…

Q: Assume a 9% interest rate compounded annually. What annual deposit is necessary to give $10,000 in…

A: Future Value  $             10,000.00 Time Period 6 Interest Rate 9.00%

Q: Consider the following cases: Amount of Compounding Initial Stated Annual Frequency, m Deposit Case…

A: Given information: The four cases are given for computation of future value at the end of the each…

Q: Find the maturity value FV of the given loan amount. (Round your answer to the nearest cent.)…

A: Amount borrowed = $1,400 Interest rate = 7 1/8% Time = 3 years

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.