Mrs. Santos placed an amount of 9,700 Php in an investment that pays an interest rate of 12%, compounded semi-annually. She wants her money to grow to a total amount of 50,000 Php. Then what is the total amount or the future value? And After how many years will his investment grow from 9,700 to 50,000?
Q: Jorge is considering an investment that will pay $4,650 a year for five years, starting one year…
A: Rate of return is an expected profit on an investment by an investor. It is a rate at which investor…
Q: John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to…
A: Present Value: The present value is the value of the sum received at time 0 or the current period.…
Q: Jerry intends to use the money from his loan (and his personal savings if necessary) to make an…
A: Effective rate of return is the actual interest rate received or paid by the depositor or borrower…
Q: Muaz will need $130,000 in 4 years to buy a piece of property. He plans to save money by making…
A:
Q: Assume that a couple invests $4000 each year for 4 years in an investment that earns 8% compounded…
A: Annuity refers to series of equalized payments that are paid or received at start or ending of…
Q: what is the future value of his investment cash flows at the end of three years? (Round to two…
A: Future value means the value of the assets at a specified time in future. It is very important for…
Q: Suppose Kay inherits $250,000, which she invests today at a rate of return of 9 percent compounded…
A: Future value of any investment is the total of compounded value of the investments made initially…
Q: Stephen claims that he invested $6,000 six years ago and that this investment is worth $28,700…
A:
Q: What is the present value of this investment if the interest rate is 3%?
A: Present value means the current value of money of some money in the future. PV factor = 1(1+r)n…
Q: Albert is planning to invest Php570 in a mutual fund at the end of each of the next eight years. If…
A: Amount of the investment in the mutual fund at the end of the last annuity payment can be calculated…
Q: Ms. Maya Manaco has P2,500,000 to invest for a ear. She can lend it to his brother who has agreed o…
A: Solution Given Alternative 1 Simple interest Rate 10% Present value 2500000…
Q: A contractor would like to invest in a real- estate development project and expecting to get $20,000…
A: Compounding interest rate is the rate applied on the initial amount invested or borrowed and the…
Q: Danilo Solis invested P2. 0 million pesos in an investment having a simple interest of 15%. But…
A: Danilo Solis invested P2.0 million pesos in an investment having a simple interest of 15%. But after…
Q: Long time ago Lisa had put an amount of $50,000 into an investment in the securities market. Now she…
A: Note: I am supposed to provide the solution of first three subparts. Please repost the remaining…
Q: JAX, Inc. has been offered the opportunity of investing $177,604 now. The investment will earn 7%…
A: The present value is the amount of investment made by the company or individual in the current time,…
Q: How much should Mr. Cruz invest if it will earn an interest of 8% compounded monthly during the…
A: Present Value: It represents the present worth of the future cash flows and is computed by…
Q: Fatma purchased land for OMR 10,000 If you expect a 12% annual rate of return on your investment…
A: Using excel FV function
Q: Mr. Bienvenido Bautista needs a fund of Php1,000,000 to renovate his house. To provide for this, he…
A: It can be calculated using =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Nper…
Q: Lloyd would like to save $4,300 at the end of every year for the next 3.5 years in a savings account…
A: Interest earned: If the cash basis of accounting is being used, then the amount of interest earned…
Q: roy gross is considering an investment that pays 7.6%, compounded annually. How muchwill he have to…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: our father paid $10,000 (CF at t = 0) for an investment that promises to pay $850 at the end of each…
A: We have to essentially find the disocunt rate at which this investment has NPV of zero. Thus, we…
Q: How much is the cash price of the car if Mrs Ocampo is to pay Php 21,000 monthly in 5 years? The…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: Ms. Pan Aram has set the goal of accumulating Php 4,000,000 for her son's college fund, which will…
A: Here, Future value of deposited amount = Php 4,000,000 Number of years = 18 years Interest rate = 8%…
Q: Michael wants to make an investment so that he would receive $4000 every 6 months for 5 years, with…
A: Since you have asked multiple questions, we will solve the first question for you. Please ask the…
Q: If Ms Chan is thinking of putting RM10,000 into the saving accounts at the end of each year for 10…
A: Annual deposits (PMT) are $10,000. The rate of interest (Rate) is 8%. The maturity (Nper) is 10…
Q: Assume that Dorothy Williams desires to accumulate $926,000 in 15 years using her money market fund…
A: We will follow the below steps to calculate the Compund interest rate-1.) Base amount is = $254222-…
Q: Walt is evaluating an investment that will provide the following cash flows at the end of each of…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Ms. Lee is thinking about her retirement fund and she still have another 15 years to reach her…
A: Annual deposit (P) = RM 4,800 Annual interest rate (r) = 6% Number of annual deposits (n) = 15
Q: Anna is buying $16,000 worth of rare coins as an investment. The dealer is charging her an annual…
A: Principal = $16,000 rate = 7.2% Interest for 48 months = $16,000*7.2%*4 = $4608
Q: Anthony and Michelle Constantino just got married and received $28,000in cash gifts for their…
A: Data given: Amount received =$28,000 PV=Amount to be invested = $28000 /2 = $14000 r=Rate = 10%…
Q: Kelvin has 45 years left until retirement and wants to retire with RM4 million. Assuming that his…
A: First we need to calculate he monthly payment to accumulate the amount required for retirement .…
Q: Isabella purchased $20,000 worth of 26-week T-Bills for $19,700. What will be the rate of return on…
A: Initial investment (P) =$19,700 Maturity value(S)=$20,000 since maturity period is 26 week= 26*7=182…
Q: All is expected to invest an amount of 50,000 AED per year from the end of his second year of…
A: First investment at end of year 2 Investment at end of year 2 = 50,000 Number of years for…
Q: Ken Francis is offered the possibility of investing $2,745 today; in return, he would receive…
A: Interest rate: It can be defined as the percent of the principal loan balance, charged by the lender…
Q: Fizal plan to invest RM2,000 in one of the Malaysian unit trusts each year for the next 18 years. He…
A: using excel FV function
Q: rest per year, and SOY Rural Bank pays 10% per year. If the total interest earned on the investment…
A: Ryan has invested in two different banks for the gain of interest income. The total investment is…
Q: Zachary has purchased an investment that he expects to produce income of $3,000 at the end of the…
A: IRR is the rate at which NPV is zero
Q: Bill Padley expects to invest $10,000 for 25 years, after which he wants to receive $108,347. What…
A: Future value table: This table shows the future amount of investment at specific rate and periods.…
Q: Sidney makes 10 annual deposits of 5,500 each into an investment account. The interest rate is 6%…
A: Investments are the ways through which money is saved in various financial instruments and accounts…
Q: If money is worth 5% compounded quarterly , find the future worth of a sequence of 12 semi annual…
A: Since you have asked multiple questions, we will solve the first question for you as per policy.…
Q: TVM calculator, compare the following if the investment pays 7%/a compound annually and payments are…
A: Future value of investment include the compound interest and payment made for the future.
Q: te
A: An annual or annualised return is a measurement of how much an investment has gained on average…
Q: JAX, Inc. has been offered the opportunity of investing $128,729 now. The investment will earn 8%…
A: Compound interest formula: A=P×1+rnn×t where, A = final amountP = initial principal balancer =…
Q: Steffi Derr expects to invest $10,000 annually that will earn 8%. How many annual investments must…
A: Future value: It can be defined as the value of an investment or any asset at a specified future…
Q: How long will it take for Michelle's investment to be worth $55,000 if she presently has $32,000 and…
A: In the given question we require to compute the time period from the following details: Present…
Q: Darwin has a capital of $ 7100 which he invests for 3 years at 7.6 % p. a. a)How much will he…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Benjiena would like to purchase a house and lot amounting to P10,000,000 in the span of five years.…
A: The compound interest is the interest which calculated on principal involves all accumulated…
Mrs. Santos placed an amount of 9,700 Php in an investment that pays an interest rate of 12%, compounded semi-annually. She wants her money to grow to a total amount of 50,000 Php.
Then what is the total amount or the
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- If Karen placed an amount of 9,700 Php in an investment that pays an interest rate of 12%, compounded semi-annually. She wants her money to grow to a total amount of 50,000 Php. What is the rate of interest and initial or principal amount? Then how many times is compounding done in a year?A real estate investor feels that the cash flow from a property will enable his to pay a lender Rs. 15,000 per year, at the end of every year, for 10 years. How much should the lender be willing to loan her if he requires a 9% annual interest rate ? Use excelKen Francis is offered the possibility of investing $2,745 today; in return, he would receive $10,000 after 15 years. What is the annual rate of interest for this investment?
- Ms. Maya Manaco has P2,500,000 to invest for a year. She can lend it to his brother who has agreed to pay 10% simple interest for the year, or she can invest it with a bank at 8% compounded quarterly for a year. Which of the alternatives will yield a higher interest? By how much? **Suppose Ted deposits $10,000 in a savings plan earning 5% compounded annually and Tess deposits $10,000 in a savings plan earning 10% compounded annually. Both leave their money on deposit for 40 years. Because Tess’s rate is twice as great as Ted’s rate, is it true that Tess will earn twice as much interest? Explain why or why not. Then show calculations to prove your point of view. What is the future value for each investment?Zachary has purchased an investment that he expects to produce income of $3,000 at the end of the first year and $4,000 at the end of the second year. If he requires an 8% rate of return compounded annually, what is the maximum amount that he can pay and still earn the required rate of return?
- Suppose James will have $25,000.00 for a down payment on a house in 6 years. How much would he have to invest today (present value) if his investment earns a nominal rate of 5 ¼ % compounded monthly? b. How much interest did James’s account earn during the 6 years?Stephen claims that he invested $6,000 six years ago and that this investment is worth $28,700 today. For this to be true, what annual rate of return did he have to earn? Assume the interest compounded annually. Can the excel and calculator solutions be provided?1.) Miller likes to invest in annuity that will pay him Php. 5000 at the end of each month for 5 years after his retirement. What is the present value of the annuity if the prevailing interest rate is 12% per year ? 2.) Dory deposits a certain amount of money into her savings account at the beginning of each quarter for the next 4 years. She wants to have Php. 100,000.00 after 4 years. If the interest rate is 8% compounded quarterly, how much does she have to deposit at the beginning of each quarter? Create an amortization table for each question.
- An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If the rate of interest earned on the investment is 8%, what is the present value of this investment? What is its future value? How do you solve this with excel?How long will it take for Michelle's investment to be worth $55,000 if she presently has $32,000 and can earn 10% interest, compounded annually?An aunt gifts you with $12,000, but only after you invest it for one year. She givesyou two choices.1. Invest the entire sum at 4.2% compounded monthly.2. Invest $1000 at 7.1% each month in an annuity that pays every month.(a) What is the future value of the money invested with method 1?(b) How much interest is earned with method 1?(c) What is the future value of the money invested with method 2?(d) How much interest is earned with method 2?(e) Which method would you choose?
