If you are to invest your money, which is a better option: 12% compounded monthly, 12.20% compounded quarterly, 12.35% compounded semi-annually or 12.5% compounded annually?

Q: Consider a credit card with a balance of $7000 and an APR of 12.5%. If you want to make monthly…

A: The objective of this question is to calculate the total amount paid over 11 years to clear a credit…

Q: You borrow $11,331 and repay the loan with 5 equal annual payments. The first payment is supposed to…

A: The loans are paid by the equal periodic payment and these payments carry the payment of principal…

Q: Calculate the future value of the following two cases: a. LE150,000 deposited in an account that…

A: Loan amount = LE150,000 Interest rate = 8%  Time period = 7 years

Q: rescott Bank offers you a five-year loan for $69,000 at an annual interest rate of 8.5 percent. What…

A: The value of money changes with time. Therefore, the time value of money considers the worth of…

Q: uppose your firm has an obligation to pay an annuity with 18 annual payments of $80,000. The first…

A: Annuity payment is a  series of payments lasting for some specific period. An annuity payment for a…

Q: Find the interest rate (or rates of return) in each of the following situations. Do not round…

A: The rate of return is a measure used to evaluate the profitability or performance of an investment.…

Q: Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.)…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: You borrowed $20,000 to be paid back in four equal payments at anannual interest rate of 8%. The…

A: Loan Installment is that which includes the interest & principal amount. which is paid by the…

Q: A bank loan requires you to pay $88,000 at the end of each of the next eight years. The interest…

A: The objective of the question is to calculate the present value of the loan payments and to complete…

Q: Semi-annual payment of the loan 800,00 pesos for 5 years with an interest rate of 9% compounded…

A:

Q: What is the present value of a perpetuity of $8,447 per year given an interest rate of 8.2%,…

A: A perpetuity is an annuity stream of cash flows that continues forever.

Q: May I ask for an explanation and solution to the question for a better understanding. Thank you! 8.…

A: We have calculating future value FACTOR including interest rate and period of investment.

Q: If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the…

A: The effective rate of interest refers to the return on savings or interest on the investment…

Q: Suppose you want to borrow $90,000 and you find a bank offering a 20-year term for a loan of that…

A: Compound = Monthly = 12Present Value = pv = $90,000Time = t = 20 * 12 = 240Interest rate = r = 7 /…

Q: Assume you borrowed $20,000 and the terms of the loan include paying 4% interest for a period of 10…

A:

Q: Basic ARM is made for $250,000 at an initial interest rate of 6 percent for 30 years with annual…

A: Initial amount of loan = $250,000Interest rate for : Year 1 = 6% & Year 2 onwards = 7%Period =…

Q: Fill in an amortaization table for a loan of $9,300 to be paid back over 4 years, semiannually. At…

A: The amortization table is a table that shows the payment, interest and principal repayment of each…

Q: Use PMT = n to determine the regular payment amount, rounded to the nearest dollar. Your credit card…

A: Present value of any deposit is the discounted value of each intermediary and terminal value.

Q: You borrow $5000 now and agree to pay this whole amount back in three payments Poyment 1. SX in 2…

A: Discounting of money is the process of determining the present value of future cash flows. The…

Q: Find the monthly house payments necessary to amortize the following loan. Then calculate the total…

A: 1). Monthly payment is calculated using following equation Monthly payment = A×(r/m)(1-1(1+r/m)n×m)…

Q: Find the total amount that must be repaid on the following note described. $8,573 borrowed at 16.5%…

A: The accumulated value for the borrowed amount with simple interest rate can be calculated with the…

Q: Find the total amount that must be repaid on the following note described. $8,593 borrowed at 18.5%…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Calculate the present value of the following:   a-1. Annual payment of $1,175 for 11 years at 4%…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: Q. No. 02: Find the future value of the following annuities. The first payment in these annuities is…

A: Using Excel FV Function

Q: Find the amount borrowed for the loan described. (Round your answer to the nearest cent.) R =…

A: Here, Semi Annual Payments is $878.80 Interest Rate is 5.8% Compounding Period is Semi Annual i.e 2…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: Principal =13000 interest rate =5% quarterly interest =1.25 Period 8 years =32 quarters

Q: $5476.6 monthly  If you can afford to pay the monthly payment from the above calculation, how much…

A: Here, Monthly Payment is $5476.6 Time Period (n) is 20 years Interest Rate (Rate)  is 6.25%…

Q: pic: Perpetuities 2. A series of bimonthly payments will begin immediately and will continue…

A:

Q: Calculate the present value of the following annuities, assuming each annuity payment is made at the…

A: Using Excel function: =PV(rate,nper,pmt,fv,type)Option 1) =PV(9%/2,3*2,-5600)= 28,884.09Rate= 9%/2 =…

Q: What's the future value of $20,000 after  8 years if the appropriate interest rate is 5.75%,…

A: The formula to compute future value at compounded interest as follows:

Q: Find the total amount that must be repaid on the following note described.

A: Simple interest Amount = Principal Amount x  Rate of Interest x Time  Amount Repaid = Principal…

Q: how much must you repay at the end of the 6 months?

A: Information Provided: Amount borrowed = $500 Interest rate = 6% Time = 6 months or 0.5 year…

Q: Create an amortization table in Excel for a new car loan for 30,000 for six years at 5%. Determine…

A: The long-term loan that was obtained from the lender is being repaid in monthly mortgage…

Q: A bank has agreed to lend you $127,800 for a home loan. The loan will be fully amortized over 57…

A: Amortization is a term used in business to describe the process of spreading payments out over time.…

Q: An accounting firm agrees to purchase a computer for $180,000 (cash on delivery) and the delivery…

A: An annuity refers to a financial product or arrangement in which a series of fixed payments or…

Q: Ma1. An insurance company advertises that $2,483.76 will purchase a 8 year annuity that pays $200…

A: Compound interest is interest on the principal including the accumulated interest from earlier…

Q: K a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: Periodic deposits in the given case can be the annual payments or annual deposits that can be made…

Q: Suppose you currently have $2,000 and plan to purchase a 3-year certificate ofdeposit (CD) that pays…

A: Given information: Principal is $2,000 Interest rate compounded is 4%, Number of years is 3