Kratos plans to build a new house in Midgard and borrows €100,000. The loan states that the money has an interest rate of 10% compounded annually. In 30 years, Kratos must pay back the loan completely. If he is to pay a uniform amount at the end of every period, determine the monthly annuity. Show complete solution

Q: Consider a uniform series of cash flows.  The first cash flow of $10,000 occurs at time 10 and the…

A: A cash flow is the movement of funds over a predetermined time period into or out of the financial…

Q: Jack borrowed $10,000 from Mr. Jill on July 11, 2018 and promised to pay it by December 21, 2018.…

A: Given the borrowed amount = $10000 Interest rate = 15% Total number of days between the given months…

Q: Find the future value of an annuity consisting of payments of $270 per quarter for four years at the…

A: Payments of $270 per quarter for four years at the rate of 8% compounded quarterly.  Total number of…

Q: if money is worth 10% compounded monthly, compute the present value of a perpetuity of P2500 payable…

A: The concept of perpetuity refers to an infinite series of identical flow of cash. The present value…

Q: How much money would you have to deposit monthly for five consecutive years starting at the end of…

A: Future value will be computed as the total sum of value of series of payments (i.e. PMTs) in future…

Q: Assume you borrow $30,000 today at a rate of 13%. The loan will be returned over a five-year period,…

A: To calculate the annual payment for a loan using a spreadsheet, use the PMT function in Microsoft…

Q: Andi loaned P200,000 from a local bank to be paid back uniformly in five years. How much will he pay…

A: Loan amount = 200000 Time = 5 years Interest rate = 5 % compounded continuously Effective annual…

Q: You have a habit of drinking a cup of Starbuck coffee ($2.00 a cup) on the way to work every morning…

A: The price of a Starbuck coffee = $2 per cup Number of year = 30 years Interest earned = 5% Per day…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The compound interest formula for semi annual basis is as follows: A=P(1+rn)nt Where,  A is the…

Q: Chen's family is saving for a home renovation that they would like to pay for with cash. They would…

A: According to this question  P= $150,000 A1=10,000 i=5% per year n=15 years  We have to find the…

Q: John invested P100,000 at an interest of 9% compounded quarterly. How many years should John invest…

A: Compound interest (also known as compounded interest) is the interest on a loan or deposit that is…

Q: Alp Bilgin deposits $33.000 in a saving account that pays 9% interest compounded monthly. Four years…

A: The objective of the question is to calculate the total amount in the account eight years after the…

Q: Find the nominal rate compounded semi-annually which is equivalent to 16% compounded monthly. What…

A: Given: Interest Rate (r): 16% Compounding (m) per period: 12 New Compounding (q) per period: 2

Q: What will be the required monthly payment torepay a loan of $72,000 in eight years if the…

A: Interest is the cost of capital. There are primarily two ways to calculate the rate of interest.-…

Q: Which of the following compounding rates is equivalent to an effective interest rate of 2.75% per…

A: An effective annual rate of interest refers to the real return on a savings account with the…

Q: If the accumulated amount is P11500 at 4% compounded annually. Calculate the principal amount after…

A: Given, Information Amount = P 11,500Rate = 4% or 0.04Time = 7 year

Q: Q2. Maria loaned an amount of 100,000Php payable in 15 equal quarterly instalments. The first…

A: Compounding basically refers to an asset's ability that can generate returns that are then…

Q: Consider a 30,000 dollars investment which has an annual interest rate of 10%. What is the value at…

A: In the mentioned question, we are given the investment and annual interest rate. With the given…

Q: An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A: The payments that are made at equal intervals of times can be considered as annuites. There are…

Q: Michelle Hunter received $250,000 from an insurance company after her hus- band's death. Michelle…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: Mrs. Akhtar is planning to place her savings earned by selling her jewelry in a bank account. She…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: You plan to retire in 30 years and plan to contribute the same amount of money each year to your…

A: The annual withdrawal in the post-retirement period is $100,000. This continues for 20 years and…

Q: ind the equivalent effective interest rate of 6.05% when compounded continuously.   Write your…

A: Given  nominal interest rate i=6.05% compounded continuously. We have to calculate the equivalent…

Q: A $100,000 mortgage at 4.9% compounded semiannually with a 30-year amortization requires monthly…

A: Mortgage amount = $100,000 Interest rate = 4.9% compounded semiannually Time period = 30-year…

Q: just inherited $250,000 from my uncle’s estate. I would like to place that amount in the bank and…

A: Given the information: Inherited amount = $250000 Time = 15 years Interest rate = 12%

Q: If P500,000 is deposited at a rate of 11.25% compounded monthly, determine the compounded interest…

A: The formula used in the compound interest is  =P[1+(r/m)]mt-P A = the future value of the…

Q: If you invest $150,000 at an interest rate of 10% compounded annually, what is your total balance…

A: The interest rate is the income earned by the investment in the economy. When the money is invested…

Q: At a certain interest rate compounded quarterly, P1T will amount to $5T in 10 years. What is the…

A: Given  Present value P=$1T Future value F= $5T Time = 10 years We have to calculate the rate of…

Q: A 20-yr loan is being negotiated with a savings and loan company. $50,000 is to be borrowed at 8%…

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

Q: If a rate of 3% interest is compounded monthly, the effective rate of interest is somewhat less than…

A: The genuine interest rate attached to an investment or loan is described by the effective yearly…

Q: If P =10, 000, i(2) = 8%, compounded semi-annually and t = 15 years. Find the %3D %D compound…

A: Given; P= 10000 i= 8% t= 15 years A=P1+rnnt where; P is principal Amount r is interest rate n is…

Q: Pedro, who deposited P500,000.00 today with a financial Institution M, agreed with the latter that…

A: To find the future worth after 14 months firstly we need to find monthly compounding interest rate .…

Q: Mr. Zzz deposited $25,000 in a bank which offers a compound annual interest of 7%. How long will it…

A: Given,  Principal = $25,000  Rate of interest = 7%  Amount = $35,800

Q: Find the present value of a $50,000 annuity payable each three months for ten  years but deferred…

A: Given that, Payment at the end of period (R) = $50,000 Periodic rate (i) = 0.12/3 = 0.04 as there…

Q: What single amount at the end of the sixth yearis equivalent to a uniform annual series of $7,500per…

A: Annual uniform amount = 7500 Time = 10 years = 12 years Interest Rate = 10%

Q: Identify the number of times interest calculated in a year if the interest is compounded every three…

A: when the interest rate is compounded every 3 months then it has to be calculated for 4 times in a…

Q: mon is planning to retire in 20 years. He wishes to deposit a regular amount every six months until…

A: Retirement in 20 years After Retirement = 80,000 for 10 years r = 8%

Q: Lindsey plans to deposit her annual bonus into a savings account that pays 3% interest compounded…

A: formula for the future value is given as:  F = P(1+R)t Where P : Present valueF: future valueR :…