Mr. Cruz invested P 20,000 for 1 year at 12% compounded monthly. At the end of 1 year, he reinvested all ( the principal and the interest ) at 6 % compounded continuously for 1 year. How much will the investment amount?

Q: A sum of money invested at 12% interest, compounded quarterly, will triple in amount in…

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

Q: Grandma wants to give you $420 at the beginning of each month while you are at school for 3 years.…

A: Periodic Payment (PMT) = $420 Time period = 3 years or 36 months n = 36 Interest rate = 4.8%…

Q: 6. Find the future value of RM10,000 which was invested for (a) 3 years at 6% compounded annually.…

A: ITEM 6To find the future value of the investments given the different compounding periods, we can…

Q: A bank sales a pledge of savings certificate of 500,000$ to pay 10 years later. to a 4% continuous…

A: The information which has been given to us is as follows:-   Future value is $500,000 n is given to…

Q: Given an effective interest per annum of 20%, compare the compound amount at the end of 10 years of…

A: An effective interest per annum of 20%, which is =(1+ i/n)^n −1 where: i=Nominal interest rate…

Q: You are saving for the down payment on a house, so you put $1,000 in an account every 6 months. If…

A: An interest rate is charged on the borrowing money of consumers. It is charged by the lender of the…

Q: You deposit $5000 each year into an account earning 8% interest compounded annually. How much will…

A: Uniform annual deposit (A) = $5000The interest rate on the deposits is 8% compounded annually. So i=…

Q: If you want to have $100,000 in your saving account in ten years, how much do you need to deposit…

A: The compounded monthly means interest is calculated and added to the principal monthly, while…

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

A: The effective annual rate (EAR) is the real percent interest that a borrower or investor pays on a…

Q: Solve the problem. The average cost of a 4-year college education is projected to be $120,000 in 17…

A: Future Value (FV) = $120,000Annual Interest Rate (r) = 9% or 0.09Compounding Frequency (n) = 4 times…

Q: ince the birth of her daughter, 16 years ago, Anika has deposited $75 at the beginning of every…

A: Future value (FV) is the value of an ongoing asset at a future date in light of an expected pace of…

Q: A department store has offered you a credit card that charges interest at 1.53% per month,…

A: Nominal interest rate and the effective annual rate are calculated as follows:-

Q: John borrows $10,000 at 18% compounded annually. He pays off the loan over a 5-year period with…

A: The loan amount is $10,000, the interest rate is 18%, and the time period is 5 year. Let us consider…

Q: If you desire to withdraw the following amounts over the next five years from the savings account…

A: Year Withdrawal 0   1 0 2 30000 3 33000 4 40000 5 36000