First simple bank pays 6.4 percent simple interest on its investment accounts. If first complex bank pays pays interest on its accounts compounded annually, what rate should the bank set if it wants to match First simple bank over an investment horizon of 10 years?

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4.5 years. If…

A: Final amount = $50,000Time = 4.5 years Rate = 6.23% compounded semi-annually

Q: How much money will be in s bank account after thress years, if the account pays 6% inerest…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Wasup Corp. is thinking of borrowing $190,000 from its bank at 8% annual interest rate. The amount…

A: The objective of the question is to determine the number of years it will take for Wasup Corp. to…

Q: You have a bank account that is currently worth 10,000. How long will it take the bank account to be…

A: The declared or promoted interest rate on a financial instrument, like a savings account or loan, is…

Q: Suppose a borrower makes a $100,000 loan with annual payments at a 10 percent rate and a 10-year…

A: Annuity:   An annuity is the series of payments which is received or paid for a fixed period of…

Q: How much will Kingston Technologies have to pay each year in 11 equal payments, starting 2 years…

A: Number of Payment = n = 11Time = t = 2 Present Value = pv = $900,000Interest Rate = r = 15%

Q: a) Payment of $5,000 per year for 6 years will repay an original loan of $25,000? b) Thirty-six…

A: Future Value = Present value ( 1 + i )n

Q: Suppose that you borrow $10,000 from a bank to purchase a car. You agree with the bank to repay the…

A: Given: Particulars Amount Loan $10,000 Interest rate 16% Years 1

Q: uppose that one has a bank loan for P15,584.48, which is to be repaid in equal end-of-month…

A: In this we need to calculate present value factor and from that you will get monthly payment.

Q: Jane Doe plans to make twelve end-of-month payments of $18,000 each on a short term investment…

A: The time value of money (TVM) is a financial concept that recognizes the idea that money has a…

Q: You invest $10,000 into a money market account that pays interest on a semi-annual basis (e.g.,…

A: We use NPER function in excel by taking present value as 10000 and future value as 20000 and…

Q: A company wants to have $40,000 at the beginning of each 6-month period for the next 4.5 years. If…

A: The given problem is on Annuity due Annuity due is an annuity whose  payment is due immediately at…

Q: If bank offers you to double your money in 12 years, what is the interest rate that it gives?

A: Given, Number of years 12.

Q: How much will Kingston Technologies have to pay each year in 11 equal payments, starting 2 years…

A: An annuity is a financial product that provides a regular income stream to an individual for a…

Q: Many locations require that recent be paid interest on their security deposits. If you have a…

A: Present Value = $1,800 Time = 1 year Rate = 3%

Q: A bank projects that the value of an account they hold will be $2, 000, 000 in 5 years. If the…

A: Future value (FV) = $2,000,000 Period (t) = 5 Years Interest rate (r) = 5% Mathematics constant (e)…

Q: Shylock Bank offers a savings account with an effective interest rate of 15% and weekly compounding.…

A: Given information: Effective annual interest rate (EAR) = 15% or 0.15 As the compounding is done…

Q: How much must be invested at the beginning of each year at 11%, compounded annually, to pay off a…

A: The problem relates to ANNUITY DUE. Annuity due is an annuity whose payment is due immediately at…

Q: How large must each annual payment be if the loan is for $50, 000? Assume that the interest rate…

A: Loan amount = $50,000Interest rate = 10%Period = 5 Years

Q: What is the internal rate of return on a $3,000 loan to be repaid as $3,500 twoyears from now?

A: An internal rate of return is the metric used in financial analysis for estimating potential…

Q: If you put $200,000 into your investment account now for 10 year at 5% annual interest, what is the…

A: Simple interest and compound interest are two different methods used to calculate the interest on a…

Q: What is the monthly payment for a $525,000 loan at 7.0% interest for 25 years with monthly payments?

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Here,

Q: An investment company pays 7% compounded semi annually. You want to have 14,000 in the future. How…

A: The idea of the time value of money (TVM) holds that a quantity of income is valued currently more…

Q: If you invest $1,000 in an account that pays an annual interest rate of 6.4%, compounded monthly,…

A: Computation:

Calculating the Return On A Loan