Instruction: Answer the following questions. Write your answer in the space provided. (A5) 1. By condition of a will, the sum of P 2,000 is left to a girl to be held in trust fund by her guardian until it amounts to P 50,000. When will the girl received the money if the fund is invested at 8% compounded quarterly?   2. When will the amount be tripled with an interest of 11.56%?  3. A man borrowed P 1,000,000 at interest rate of 12% per annum compounded quarterly. What is the effective rate?

Q: 7. What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…

A: When someone makes a deposit, they are paying a bank or other institution a set amount of money for…

Q: 1. P 1.00 is the principal which is invested at a nominal rate of 8% semi- annually. After one year…

A:

Q: (Using Appendix A) How much will be in the bank account at the end of 15 years if $ 100 is invested…

A: Semi-annual interest rate (i) = 8% / 2 = 4% Number of semi-annual compounding periods (N) = 2 x 15 =…

Q: Question: Below is a chart of three different interest rates valid over a five- year period. $2146…

A: Whenever an investor decides to invest in a project that will generate an income, they will consider…

Q: Gracie bought a CD for $810 that earns a 2.9% APR and is compounded quarterly. The CD matures in 5…

A: Given that, Present Worth (PW) = $810 rate = 2.9% or 0.029 (compounded quarterly) Time(t) = 5year

Q: Determine the effective rates of interest for the following nominal rates of interest: a.) 9%…

A: The formula for calculating effective rate of interest is r = (1 + i/n)n - 1 where, r is effective…

Q: 1. You have borrowed $40,000 at an interest rate of 11%. Equal payments will be made over a…

A: We can use the following formula to calculate the annual payment:Annual payment = [principal * (1 +…

Q: On August 4th, 2013, Joseph invested $12,000 in a fund that was growing at 4% compounded quarterly.…

A: The future value  is a financial term that indicates the worth of an investment or a quantity of…

Q: None

A: Step 1:a.We have i = 12%, n = 12$600 (P/A, 12%,12) = 600 * 6.1944 PV = $3,716.62  Step 2:b.here we…

Q: An investment of P2880 is made at the beginning of each month for 9 years and 4 months. How much…

A: We have given that the investment is made at the beginning of each month and A =₱2880 Length of…

Q: Compute the missing values in the following cash flow diagrams Question 1 What is the present value?…

A: Given a specific return rate, the present value of an investment is the current worth of that…

Q: An investment of $3523 is made at the beginning of each month for 5 years and 10 months. How much…

A: Total months(n) =years*12+months=5*12+10=70 interest rate per month (r)=1% Amount invested per month…

Q: Find the Present Value (today) of $144 to be received in two years at the interest rate of 15%.

A: Given information,  Future value (FV): $144 Interest rate (r): 15% Time period (n): 2 years To…

Q: 65. A 10% effective rate of interest is equivalent to what percent if compounded continuously? 9.53%…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: What equal monthly payments will repay an original loan of $1,000 in sex months at a nominal rate of…

A: The rate of interest is divided into two forms: effective interest rate and nominal interest rate.…

Q: ind the monthly house payment necessary to amortize the following loan. order to purchase a home, a…

A: Future value is the value of a resource at a particular date. It estimates the nominal future amount…

Q: At the time of retirement, a couple has $200,000.00 in an account that pays 8.4%compounded monthly.…

A: The formula for payout annuity is given below: P0=d[1-(1+rk)-nk](rk)       where, P0 = the account…

Q: Calculate the future value (rounded to the nearest whole number) of monthly deposits of R500, made…

A: Future value can be calculated as follows. Monthly interest rate (i) is 0.0033. Time period is 360.…

Q: Today you borrow $10,000 to pay for your expected college costs over the next four years, including…

A: A cash flow is a physical or digital currency motion. It is a transaction, particularly through one…

Q: A state lottery gives a winner the choice of receiving the winning amount in equal monthly payments…

A: Present Value Of Annuity: An annuity is a regular cash inflow that happens at the end of each period…

Q: 8. Consider a 10 year 6.50% annual coupon bond whose duration is 7.50 years when required rate of…

A: Let the par value be 100 Purchase price of bond = 6.5/0.065*(1-1/1.065^10)+100/1.065^10 = 96.94 Let…

Q: 2. Which of these gives the highest effective rate of interest? 16.35% compounded twice every month…

A: An effective interest rate is defined as an interest rate, which is applied on loan or financial…

Q: You wish to purchase a property for $400.000. You intend to make a 20% have two mortgage choices.…

A: The issue you raised has to do with mortgage options and personal finance. under particular, it…

Q: 3. What is the future value in year 10 of the series described in Problem 2?

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: You have just purchased 200 shares of General Electric stock at $15 per share. You will sell the…

A: Given that,   No. of shares purchased: 200 Cost of each share: 15 Ratio to be increased per year, 8…

Q: uestion 11 Find the monthly house payment necessary to amortize the following loan. In order to…

A: Loan amount is compounded monthly and number of months in a year is 12. Monthly interest rate is…

Q: A debt of $10,000 with interest at 8% compounded quarterly is to be repaid by equal payments at the…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: 2. Daniel invests $5,000 today into an investment account. Five years from today, he will begin…

A:

Q: Bobby has heard the importance of saving early for retirement. He wants to retire in 35 years. But…

A: Given,  Monthly Savings : $600 (PMT)Time to retire : 35 yearsTime to start savings : Now i.e 0Time…

Q: Tom Evers an attorney is planning for retirement. He earns $126,000 a year and estimates that he…

A: Given,  Tom earns $126,000 and estimates that he will need 80% of his salary for retirement in 10…

Q: 3. Suppose you make an annual contribution of $2,000 to your savings account at the beginning of…

A: Future value (FV) is a term used to describe how much, at some future point and with a particular…

Q: An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I…

A: Effective annual rate (EAR) implies a real interest rate which an investor is expect from his…

Q: Given the situation , choose the correct formula to solve the problem: What present value amounts to…

A: The formula for present value(PV) is given below: PV=FV×11+RN FV: future-value R: interest rate N:…

Q: You have two options for receiving money from an inheritance. Option 1 - Receive a single check for…

A: Here we are given the 2 payment options. And we will first derive the present value of both the…

Q: You have won a lottery that pays you $100,000.00 at the end of this year, $110,000.00 at the end of…

A: Present value is the value of investment in today's dollar.Future value is the value of investment…

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Annual interest rate = 9% Quarterly interest rate = 9%/4 = 2.25% Number of quarterly deposits = 8

Q: Suppose you borrowed $10, 000 at an interest rate of 12% compounded monthly over 48 months. At the…

A: Loan amount (P)=$10,000 Rate of interest =12% compounded monthly  This loan is a fixed payment loan…

Q: Find the net present value of the following cash flows, which can be purchased by an initial…

A: Here we calculate the net present value of the given cashflow by using the given information and…

Q: 1. How much must you deposit each year to have $20,000 at the end of 15 years with money worth 7%?

A: Future value = 20000 $ Time = 15 years Interest rate = 7 %

Q: 14) George Springer will make $5,000 monthly payments into his Canadian Retirement account. At…

A: Monthly payment to retirement account = 5000 In retirement, he will receive 10,000 per month for 15…

Q: QUESTION 31 If you have a $20,000 car loan for 3 years at 6% with monthly compounding and payments,…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…