Answered: Find the maturity value of P30,000 at…

Business

Finance

Find the maturity value of P30,000 at the end of 4 1/2 years if the interest rate is 4% compounded semi-annually

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 8MC: Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future...

See similar textbooks

Related questions

Q: Calculate the inflation-free interest rate assuming that the inflation rate is 6% and the nominal…

A: Nominal Rate Rate = (1+Real Rate ) *(1+Inflation Rate) - 1 Real Rate = (1+Nominal…

Q: 10% compou

A: Future value computation aids in computing the ultimate sum, which includes both the initial…

Q: What monthly payment is required over 8 years to equate with a future amount P90,000? Assume…

A: Monthly payment refers to the amount which is paid on a periodic basis. The period of monthly…

Q: If you are expecting to get OMR 34595 at the end of 3 years. Calculate its present value if the…

A: Nominal rate of return 9% Compounding Quarterly Effective rate of return ((1+9%/4)^4)-1)…

Q: The interest rate on a GIC is 3.45% compounded semi-annually. What is the purchase price of the GIC…

A: Present value The amount of cash that must be invested in order to realize a given future objective…

Q: Find the Future value of the following deposits: P5000 two months from now, P3000 at the end of the…

A: The time value of money concept is the financial concept that deals with the time value or worth of…

Q: The interest rates over the next four (4) years are as follows: The annual effective interest rate…

A: Present value is the equivalent value of money today that is to received in the future based on time…

Q: Find the initial monthly payment on a 3/20 ARM of $178,802 if the interest rate is 5.35%. How long…

A: 3/20 means 3% discount you will get if you pay with in 20 days , if you not pay with in 20 days you…

Q: Calculate the inflation-free interest rate assuming that the inflation rate is 6% and the nominal…

A: Solution : As per the question Nominal Rate Rate = (1+Real Rate ) *(1+Inflation Rate) - 1 Real Rate…

Q: What is the future value in 12 years of $1,000 payments received at the beginning of each year for…

A: As a first step, let's gather all the information that question has to offer.Annuity investment = A…

Q: What is the present worth of P5000 deposited at the end of every three months for 5 years if the…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Find the maturity value and the compound interest if P10,000 is compounded annually at an interest…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: Suppose that you will receive annual payments of $16,500 for a period of 10 years. The first payment…

A: Present value is the current worth of the future payments to be made at a specific interest rate.…

Q: A one-year investment is certain to pay £650. If the annual interest rate is 6%. * Round your…

A: Present Value refers to the method or technique which calculates the value of cash flows today,…

Q: Use the present value formula to find the present value of P30,000, if the interest rate is 16%…

A: Future value = P 30,000 Annual interest rate = 16% Number of compounding per year = 4 Number of…

Q: In how many years is required for P2000 to increase by P3000 at interest rate of 12% compounded…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: If you are expecting to get OMR 41661 at the end of 3 years. Calculate its present value if the…

A: Given: Future value =OMR 41661Interest rate =9%4=0.0225No. of periods =3 ×4 =12

Q: 2. A payment of £30 will be made in 10 years. The annual effective interest rate is 7 % p.a. Compute…

A: payment = p = £30 Time = t = 10 years Interest rate = r = 7%

Q: What is the future value of $20 a week for 10 years at 6% interest? Assume the first payment occurs…

A: Number of weeks in 10 years = 10 x 52 = 520 Interest rate per week = 6%/52 = 0.1153846% =…

Q: What is the future value in 10 years of 1500 payments received at the end of each year for tge next…

A: In the given question, 1,500 will be received (invested) at the end of each year for next 10 years.…

Q: Determine the present value of a 3 year CSB with an interest rate of 3.9%, compounding…

A: present value=future value1+rmm×n r=rate of interest m=frequency of compounding n=number of years

Q: If you are offered a nominal interest rate of 5% per annum, compounded monthly, what is the…

A: In this question we require to compute the effective annual interest rate from following details:…

Q: You expect to receive $50,000 from your superannuation in 3 years from today. If the interest rate…

A: Please refer to the image below

Q: Given an interest rate of 12% per year, what is the present value of a perpetual stream of $1,000…

A: Present value of Perpetuity = Periodic amount/ rate of interest

Q: Given an interest rate of 6.5 percent per year, what is the value at date t = 8 of a perpetual…

A: Annual interest rate = 6.5% Annual payment = $ 900

Q: 2. How many years are needed for the loan to mature from P100,000 to P250,000 at the quarterly…

A: Loan amount (PV) = P100,000 Maturity amount (FV) = P250,000 Quarterly interest rate (r) = 7% Period…

Q: per year will accum

A: Deposit = 33047 $ Interest rate = 10 % Time = 10 years

Question

Find the maturity value of P30,000 at the end of 4 1/2 years if the interest rate is 4% compounded semi-annually

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Given an interest rate of 6.5 percent per year, what is the value at date t = 8 of a perpetual stream of $900 payments with the first payment at date t = 17?
Calcutate the inftation-free interest rate assuming that the inflation rate is 6% and the nominal interest rate is 18%. What annual savings, made at the end of each year for a period of 5 years, are required in nominal terms to ensure that at the end of 10 years you will be able ta withdraw R20,0000?
Use the present value formula to find the present value of P30,000, if the interest rate is 16% compounded quarterly, for 6 years.
Calculate the inflation-free interest rate assuming that the inflation rate is 6% and the nominal interest rate is 13%. What annual savings, made at the end of each year for a period of 5 years, are required in nominal terms to ensure that at the end of 10 years you will be able to withdraw R20,000?
Consider a loan of 25000 for a period of 30 years at a fixed apr of 9.5% the monthly payment is
If you are expecting to get OMR 34595 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly.
Find the Future value of the following deposits: P5000 two months from now, P3000 at the end of the 3months, 5000 at the end of the 6months, P10000 at the end of 10months, and P15000 at the end of 18months, if interest = 24% compounded monthly.
Assume annual mortgage payments of $12,000 for 30 years and an interest rate of 6.168% per year. What initial principal or PW will this repay?
A one-year investment is certain to pay £650. If the annual interest rate is 6%. * Round your answer to the nearest pound. What is the present value of the payment on the day of the investment?
2. A payment of £30 will be made in 10 years. The annual effective interest rate is 7 % p.a. Compute the convexity of this payment
Show the formula find the monthly payment of an ordinary if the present value is P18,500 with an interest rate of 10% compounded quarterly for 6 years.
An amortized loan of P100,000 with an interest rate of 8% per annum will be paid quarterly for 1 and 1/2 years. Determine the periodic payment. Then construct the amortization schedule.