MA1C МАЗА A credit card charges 18% interest per year, compounded monthly. How much interest is charged per month? $50 is invested biweekly in an ordinary simple annuity, earning 3.5% interest per annum, compounded biweekly. What will the value of the annuity be in 10 years?

Q: Compute the present value of a perpetuity that pays $6,744 annually given a required rate of return…

A: Perpetuity is a financial term that refers to a stream of cash flows or a series of payments that…

Q: You deposit P10,000 today in savings account that pays 3% interest, compounded annually. How much…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: the bingo bank is paying 9% interest compounded monthly .a) if you deposit 1000 at the beginning of…

A: The future value of annuity due is the total future value of each cash flow which is made at the…

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: If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a…

A: Ordinary Annuity means a series of equal payments that are made over a fixed length of time at the…

Q: If you make quarterly deposits of $415.00 into an ordinary annuity earning an annual interest rate…

A: Future value of an annuity depends on the regular payments and interest rate applicable on the…

Q: (Annuity number of periods) How long will it take to pay off a loan of $49,000 at an annual rate of…

A: Compound = Monthly = 12Present Value = pv = $49,000Interest Rate = r = 9 / 12 = 0.75%Monthly Payment…

Q: What equal payments at the beginning of each 3 months for 5 years will discharge a loan of P18,000…

A: Loan amount = P18,000 Quarterly interest rate (r) = 0.03 (i.e. 0.12 / 4) Quarterly period (n) = 20…

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: You deposit $200 each month into an account earning 3% interest compounded monthly. a. How much will…

A: Time value tells that money received today by an individual has more value than that of receiving…

Q: Construct the Annuity Savings Model that satisfies: (a) The initial balance is $800, and each month…

A: Annuity Savings Model Balance at end of month = [Balance at beginning of month T-1 * (1+Interest%) +…

Q: ou make quarterly deposits of uch interest did you earn in those 9 years? ow much is in the account…

A: As there is more compounding the more interest is being accumulated and more is future value of…

Q: What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The…

A: Annuity = a = $4600Time = t = 4 YearsInterest Rate = r = 7%

Q: A growing annuity pays $1,000 at the end of the second year (t=2). The payment grows 3% per year…

A: Payment after second year = $1000 Number of payments = 5 Growth rate = 3% Discount rate = 8%

Q: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…

A: Number of period is 4 (2 x 2).

Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…

A: Option 1: Deposit $ 500 now Future Value = Present Value*(1+ Interest rate)n Solved using Financial…

Q: 4. You deposit $50 each month in an account that pays 4.2% compounded monthly. How much is in in…

A: Compounded monthly refers to the annual rate of interest where the interest accrues at the end of…

Q: An annuity due pays $17,250 every year for the next 6 years and earns a 7.34% annual return. How…

A: Annuity Due = a = $17,250Time = t = 6Interest Rate = r = 7.34%Type Payment = due = at the beginning

Q: By approximately how much more would the present value of annuity due compared to the present value…

A: The PV of an investment refers to the combined value of the cash flows of the investment at present…

Q: How much will the account contain after 9 years and 3 months? How much interest will be earned?

A: Deposit amount = $600  Interest Rate = 5±70 compounded quarterly i.e 4.3 or 5.7 compounded quarterly…

Q: How much money would you need to place in an account to have $1,000 10 years from today? Assume the…

A: The formula used as follows: Present value=Future value1+innt

Q: Recently, More Money 4U offered an annuity that pays 6.9% compounded monthly. If $1,060 is deposited…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: How much money must you invest today in order to withdraw 12,150 annually for 4 years of the…

A: Annual withdrawal = 12150 Monthly withdrawal (P) = 12150/12 = 1012.50 Period = 4  Years Number of…

Q: Suppose that you are to make annual deposit of $3,000 into a retirement account that pays 11%…

A: Future value of the amount is the worth of the current amount in some future specified date at given…

Q: Suppose you have $8,675,309 to deposit into a savings account for one year. The bank lets you choose…

A: Here Investor has $8,675,309 to deposit for 1 year @ 12% in two options: Compounded annually…

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: Recently, More Money 4U offered an annuity that pays 6.9% compounded monthly. If $1,038 is deposited…

A: Monthly deposit (C) = $1,038 Monthly interest rate (r) = 0.00575 (i.e. 0.069 / 12) Monthly period…

Q: the future value of an ordinary annuity

A: 1. FV of Ordinary Annuity​=C×(1+i)n−1​/i where: C=Cashflow per period i= interest rate n= number…

Q: magine you have a credit card balance of $1,000 that you would like to pay off within one year. The…

A: The credits cards are settled on the monthly payments and are paid by monthly payments and these…

Q: Assume you deposit $50,000 today in a bank account offering an interest rate of 7.50% per year,…

A: Maturity Amount = Principal x (1+Interest Rate)Maturity Period Interest Earned = Principal Amount -…

Q: What iS the fair market price today for an annuity that pays you $350 at the beginning of each month…

A: Annuity refers to the series of payment at regular interval for certain period.

Q: te.4 If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5%…

A: The objective of the question is to calculate the future value of an ordinary annuity. An ordinary…

Q: How much money would you need to deposit today at 16.12% annual interest compounded monthly to have…

A: Present value refers to the current value of the future cash flow. Present value can be determined…

Q: You buy an ordinary annuity today for $120,583, which promises to pay you $11,256 per year. If the…

A: An annuity refers to a series of cash flows that occurs on a periodic basis. The cash flow series…

Q: How much must you deposit into an account today so that you can have $20,000 in twelve years? Assume…

A: Here, Future value (FV) = $20,000 Time period = 12 years Interest rate = 6% compounded quarterly No.…

Q: Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If $1,706 is deposited…

A: Monthly deposit (C) = $1,706 Monthly interest rate (r) = 0.00425 (i.e. 0.051 / 12) Monthly period…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.