For winning first prize in an essay contest, you are offered a choice of prizes: A. a single payment of P dollars now; or B. two payments: $300 one year from now and $400 two years from now. To the nearest cent, what would P have to be in order for choices A and B to have equal value? Assume that all payments will be deposited as soon as they are received into an account paying 5% interest, compounded annually.

Q: Suppose a man borrowed $300 from a friend and agreed to pay him 20% annual simple interest when he…

A: so given a man borrowed $300 from a friend and agreed to pay him 20% annual simple interest when he…

Q: Mr. A borrows P 12,000.00 with interest at 6% for two years from Mr. B. What should Mr. B accept in…

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Q: 2.7

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Q: A man wishes to have P1,400,000.00 when he retires 15 years from now. If he can expect to receive 4%…

A: We will find out the required value.

Q: If a family borrows $12,033 for an addition to their home, and the loan is to be paid off in monthly…

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Q: Determine the interest earned after 10 years if $200 is invested in each of the following accounts:…

A: Given data: The principle (P) is $200 The time(T) is 10 years Rate of interest (R) is 6%   The…

Q: Jessi has borrowed $500,000 to buy a new home and will repay the loan with monthly repayments over…

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Q: If you paid $56 to a loan company for the use of $1, 401 for 118 days, what annual rate of interest…

A: Compound interest formula:    I = Prt        Where           I =Interest           P = Principal…

Q: interest (to the nearest dollar) would be saved on the following loan if the home were financed for…

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Q: How much interest (to the nearest dollar) would be saved on the following loan if the condominium…

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Q: Grandma Riley wants to help Scott while he's in college by giving him a $220 monthly allowance for 5…

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Q: Wayne Pinski wishes to buy a stove and a refrigerator from an appliance dealer. The cost of the two…

A: Consider that the combined price of the two items is, $2800 down payment is  $700 Therefore, the…

Q: Suppose that the total interest that will be paid on a 25-year mortgage from a home loan of $130,000…

A: The loan = $ 130,000Interest is = $ 380,000Total loan and the interest= ( 130,000 + 380,000)= $…

Q: Wendy has set up an ordinary annuity to save for a retirement home in 10 years. If her monthly…

A: Monthly payments = $400Ordinary annuity has an annual interest rate = 5.4%Time = 10 years

Q: Hi! how much would need to be placed into the account initially if $16,422 is the amount Karen would…

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Q: A man purchases a $2000 diamond ring for a down payment of $200 and monthly installments of $88 for…

A: Given: Cost price of diamond ring, P = $ 2000 Down payment amount = $ 200 Monthly installment = $88…

Q: Suppose that you decide to borrow $17,000 for a new car. You can select one of the following loans,…

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Q: The minimum monthly payment for Brian's credit card is 3.5% of his balance or $25, whichever is…

A: Brian's balance at the end of his billing cycle=$722 The minimum monthly payment for Brian's credit…

Q: Often, through​ government-supported programs, students may obtain​ "bargain" interest rates such…

A: Please refer to the solution in next step.

Q: To save for retirement, Karla Harby put $475 each month into an ordinary annuity for 18 years.…

A: Amount karla put before interest (P) = 475 Tenure (t) = 18 years = 18 *12 Intrest will be compounded…

Q: If $800 is borrowed and the interest after 6 months is $72, what is the annual interest rate for a…

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Q: A couple borrows $250,000 to purchase their first home.  If the bank charges the couple 6.0%…

A: Given:    P = 250000   n = 12 ( compounded Monthly )   t = 30    r = 6% = 6/100 = 0.06

Q: Find the amount of money owed at the end of 5 years if $60,000 is borrowed at 7% per year compounded…

A: Here we have to find amount of money at the end of 5 years if money borrowed is $60, 000 at 7% rate…

Q: Wayne Pinski wishes to buy a stove and a refrigerator from an appliance dealer. The cost of the two…

A: Total cost of stove and refrigerator is $2800 down payment is $600. So remaining cost to be paid is…

Q: Your electric bill is $128. You are charged 12% simple interest for late payments. How much do you…

A: Solution-: Given: Amount of  electric bill is $128. Rate of simple interest =12% . How much do you…

Q: If money is worth 14%, what payment on August 29 would be equal in value to a payment of $86,900 due…

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Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. c. If you pay…

A: Given that, loan amount P=$175,000, monthly payment PMT= $975, Interest rate r=4.5% and frequency of…