How much would need to be saved annually for 6 years to get 100 000 € by the time the last deposit is made? The interest rate is 2.15 % and the source tax is 30 %. Future value Number of payments Interest rate Source tax Net interest rate Payment

Q: Suppose you borrow $8500 for a term of five years at a simple interest and 8.25% APR. how much is…

A: Interest is the cost of borrowing the money.

Q: The unpaid balance of an installment loan is equal to the present value of the remaining payments.…

A: 1) Monthly Payment  = P * r * [(1+ r)n/({1 + r}n -1) Where, P = Principal borrowed = (car price -…

Q: How much would be in your savings account in seven years after depositing S290 today if the bank…

A: Future value is the value of current cashflow compounded at specified rate to future date. formula:…

Q: ou borrow X for 10 years at an annual effective interest rate of i = 6%. If you pay the loan amount…

A:

Q: How much will a $100 deposit made today be worth in 10 years if interest is compounded quarterly at…

A: Future value of the deposit includes the amount being deposited and amount of interest accumulated…

Q: What is the present worth of annually payments ( 2000 $ ) if the first payment will deposit after…

A: All deposits will happen at the start of each year. So, the first payment will be at start of 6th…

Q: how much would you have to deposite if you wanted to have $49000 in five years?annual interest rate…

A: The formula to calculate present value is as below:

Q: What is the future value in 4 years of €1,000 invested in an account with a stated annual interest…

A: Amount Invested is 1,000 Time period is 4 years Interest rate is 10% To Find: Future Value…

Q: Assuming an interest rate of 6.88% compute how much income you will have each month if you save $500…

A: A fixed amount of money paid to an individual throughout, without any end is known as an annuity.…

Q: Comprehensive problem) You would like to have $52.000 in 16 years To accumulate this amount, you…

A: The FV of an investment refers to the combined value of its cash flows at a predetermined future…

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: How much should you pay today for a 10 year annuity that will provide annual payments of $10,000?…

A: Annual payment = $10,000Interest rate = 4%Period of annuity = 10 years

Q: What is the present value of a stream of payments where the Year 1 payment is $120,000 and the…

A: The objective of the question is to calculate the present value of a growing annuity. A growing…

Q: A book offers 0.35 anual simple interast rate for a particular depost How much interest will be…

A: Given,Interest rate = 0.35% or 0.0035Principal value = 2,000,000 pesosNumber of years = 5

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: You wish to accumulate $100,000 through monthly payments of $100. If you can earn interest at an…

A: To calculate the time period for a required future value with given periodic deposits at a given…

Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?

A: In the given question we need to compute the future value of $700 deposited today for one year at 4%…

Q: 5. If P50,000.00 is deposited each year for 10 years, how much annuity can a person get annually…

A: Annuity means a finite number of payments which are the same in size and made in equal intervals of…

Q: How much the monthly payment on a $135k home be if you get 3.6% interest over a 15 year loan with a…

A: Given information: Amount of loan : $135,000 Interest rate : 3.6% Time period : 15 years Balloon…

Q: preser savings accO for 50 vears If interest is 6%? The present sum is closest to:

A: Given information : Periodic withdrawal 1000 Tim period 50 Interest rate 6% Since the…

Q: What's the present value of a perpetuity

A: Perpetuity means a series of equal infinite cashflows, that occur at end of each period with…

Q: Under what interest rates would you prefer a perpetuity that pays $2 million a year to a one- time…

A: This question require us to compute the interest rate in case of a perpetuity.

Q: How much should you deposit now into a certificate of deposit (CD) at a bank, if the CD matures 10…

A: To calculate the principal amount deposit in the bank , we have to use the following formula : A = P…

Q: What's the future value of $1,200 after 5 years if the appropriate interest rate is 6%, compounded…

A: The objective of the question is to calculate the future value of an investment of $1,200 after 5…

Q: A one million peso loan is to be paid annually at an interest rate of 8.00% pa compounded monthly.…

A: Loan amount (L) = P 1 million Interest rate = 8% compounded monthly. We need to find the annual rate…

Q: Suppose you have a k5000 bank deposits. The interest rate is 6% compounded quarterly for 1 year.…

A: The effective annual interest rate (EAR) represents the actual interest rate earned on an investment…

Q: At 8 percent interest rate per year (annual interest payment), how many years does it take to…

A: Answer: Calculation of the time it will take to quadruple the money: Formula, we will use here:…

Q: If we deposit rs 1000 today calculate the time taken for the deposit to double if the interest rate…

A: Present value is the current value or present worth of an amount which is received in present…

Q: What is the future value of an annuity due if your required return is 10%, and payments are Php1,000…

A: Given:

Q: What is the value today of a money machine that will pay $1,507.00 per year for 10.00 years? Assume…

A: The concept of time value of money will be used here. To compute the future value we compound the…

Q: With a 0.07 interest rate, approximately how much money must be invested today in order to withdraw…

A: Amount invested today = P{[1 - (1 + r)^-n] / r}

Q: Question:  if you have to pay 50000 rupees after 10 years and interest rate is 8% in the bank , how…

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

Q: How much interest did you earn during the entire period of time?

A: Annuity is the deposition of a fixed amount at fixed interval of time over a specified period.…

Q: If P dollars is borrowed at a rate or r per year to be paid back in t years, the monthly payment…

A: The amount borrowed as a loan needs to be repaid back to the lender along with the interest.…

Q: You want to establish an annuity that will pay you $14,000 per year for 22 years. If the prevailing…

A: We need to use present value of ordinary annuity formula to calculate amount we need to deposit…

Q: Caculate the amount of interest paid on a loan of $25,000 with a rate of 4.5% compounded monthly for…

A: GIVEN, LOAN (P) = $25,000 R=4.5% N=10 YEARS M = 12( MONTHLY COMPOUNDING)

Q: How many years will it take for a uniform annual deposit of size A to accumulate to 10 times the…

A: The rate of interest is 10% or 0.1. Assume, The present value is $1. The future value is $10(times…

Q: How much do you have to deposit today so that beginning 11 years from now you can withdraw ​$12,000…

A: Given, Amount that can be withdrawn from years 11 to 16 is $12000 Additional amount at end of 16 th…

Q: Suppose that you borrow $125,000 using a 15-year loan with an annual interest rate of 4% with…

A: Present value of annuity is computed as follows:-PV=A*wherePV= present value of annuityA= periodic…

Q: At 10% interest rate, how much should you invest today to be able to withdraw P10 000.00 annually…

A: rate = 10%, FV = 0, N = 10, PMT = 10,000 use PV function in Excel

Q: If you deposit $5000 into an account, how many years will it take for the account to be worth $9350…

A: A = $9350 P= $5000r = 8.25%

Q: You borrow 112000 for 10 years from a bank in order to renovate your flat. The effective interest…

A: Whenever a loan is taken or some amount is borrowed by a person he wants to calculate the repayments…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.