Money borrowed today is to be paid in 13 equal payments at the beginning of each quarter. If the interest is 2% compounded quarterly, how much was initially borrowed if quarterly payment is ₱ 42,003 if payments are done every beginning of the month

Q: A payment of $750 is due in 2 years, and $5,100 is due in 4 years. What single payment made today…

A: The concept of TVM refers to the interest-earning capacity of money because of which the money…

Q: What is the realized balance from a eriodic payment of 100,000 dinars to paid at the end of every 6…

A: We need to use future value of ordinary annuity formula to solve this problem Future value…

Q: How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum,…

A: Compound Interest: It is the interest on a deposit or loan computed based on the initial principal…

Q: Debts of $850 due in six months, $700 due in sixteen months, and $1100 due in three years are to be…

A: Time value of money is a concept of interest consideration in a transaction. Present value is…

Q: A debt of $1908 with interest at 6.3% compounded annually is to be repaid by equal payments at the…

A: Solution:- When a loan is taken, it is to be repaid in lump sum or in installments. If it is paid in…

Q: You agreed to make equal payments of 28,191 at the beginning of each months to discharge a debt due…

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Q: What size monthly payments should occur when $10.000 is borrowed at 6% per year compounded monthly…

A: When the interest on interest is charged on monthly basis, it is known as monthly compounding. It…

Q: A loan of $60000 at j4 = 6% is to be repaid over 20 years with semi-annual payments. a) How much…

A: Amortization refers to the systematic and regular repayment of the loan amount including the…

Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…

A: Individuals deposit a sum of money into savings accounts in order to earn interest and accumulate a…

Q: Compute the monthly payment on a $65,000 loan if the principal and interest are to be repaid in 84…

A: Monthly payments could be computed by using the present value formula. Present value of all the…

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

A: Future value (FV) = $150,000 Interest rate = 7.6% Semi annual rate (r) = 7.6%/2 = 3.80% Period = 18…

Q: A equal principal payment loan of $3000 is amortized by means of 12 quarterly payments, beggining…

A: Loan Amount = $3,000Total Number of Payments = 12Loan Principal Payment = $3,000 ÷ 12 = $250Interest…

Q: How much money should be on the account today in order for annually withdrawals of $100.00 to be…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: A person deposits $1,000 for 5 years in an account that pays 7.2% per year compounded quarterly.…

A: Future value refers to the future date value when all cash flows are compounded at the given…

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: A loan is repaid by making payments of $2000 at the end of every six months for 12 years. If…

A: Semiannual payment (c) = $2000 Semiannual period (n) = 24 (i.e. 12 years * 2) Nominal interest rate…

Q: The interest rate on a $57,000 loan is 8.6 % compounded semiannually. Quarterly payments will pay…

A: An amortized loan has been presented with all the details. Several questions follow on the interest…

Q: A loan of ​$3137 borrowed today is to be repaid in three equal installments due in one-and-a-half…

A: Investment is an excellent way to build wealth over the long term. By investing in assets like…

Q: n is to be repaid over 30 years, with month-end repayments of 5,000. If the interest rate is 4.1%…

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Q: What is the amount of each payment if Plascote Industries borrows $32,600, at  an annual interest of…

A: for calculating amount to be paid for each installment we use PMT function in excel to determine the…

Q: Month-end payments of $1,450 are made to settle a loan of $123,700 in 8 years. What is the effective…

A: Month-end payments = $1,450Loan amount = $123,700Number of years = 8 years

Q: A loan of $28,500 is repaid by payments of $725 at the end of every month. Interest is 3.4%…

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

Q: loan is repaid monthly and the annual effective interest rate is 6.9% pe nnum. The capital…

A: Loans are paid by the equal monthly installments and these monthly installments carry the payment…

Q: At what nominal rate compounded monthly will payments of Php1,800 at the beginning of each month for…

A: The impact of compounding will be used here which is based on the time value of money. The…

Q: Ten annual payments at an interest rate of 7% are made to repay a loan of $9000. Build the table…

A: Yearly Payments implies, regarding any Material Contract, the aggregate sum of the installments…

Q: What amount of money must be deposited today at 3% compounded quarterly for 3 years to be equivalent…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: How much must be deposited at the beginning of each quarter in an account that pays 5% compounded…

A: In this question payment per quarter has to be find out. Future value , rate of return and number of…

Q: a. Calculate the interest component of Payment 13. Interest b. Calculate the principal component of…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: What is the total amount that must be repaid on the following note $8,543 borrowed at 14.5% simple…

A: Simple interest is interest without compounding.

Q: If money is borrowed today with an amount of P50,000.00 and subjected to a 9% compounded quarterly…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: What Annual payments will replace a monthly payment of  at the start of each period for an insurance…

A: The future value of an annuity due is the future worth of a cash flow series paid/received at the…

Q: A $24,100 loan is to be settled by making payments of $6,980 at the end of every 3 months. The…

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Q: Regular quarterly payments of $6000 are deposited into an account paying 3.19% interest, compounded…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: If you borrow $5000 for five years and seven months at 9% compounded quarterly. How much is owed on…

A: Formula = Principal * [ 1 + Interest rate / 4 ]Number of quarters