Nicholas is required to pay Steven $7,000 today but he wishes to postpone the payment for 210 days. What amount should Steven be willing to accept from Nicholas in 210 days if he can earn 2.25% p.a. simple interest on his money?

Q: Tracy wants to have $400,000 when she retires in 40 years' time. How much should she deposit at the…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: Barry wants to re-model the store that he has for his business. His cousin Diego agrees to give him…

A: An agreement which carry terms and condition of loan is called loan agreement (LA). LA is written…

Q: Derek currently has S12, 511.00 in an account that pays 6.00%. He will withdraw S5, 050.00 every…

A: Future value (FV) is a financial concept that projects the anticipated value of an investment or…

Q: y is retiring from his job soon at which time his employer will make the following offer: A…

A: Present value is the equivalent today of the future cash flow based on the time value of money and…

Q: 1. Robert borrowed a certain sum of money from Joey on June 1, 1994 and signed a note promising to…

A: A promissory note is a financial instrument that is issued on a current date with a promise to pay a…

Q: Leon's 6-month premium for auto insurance is $754.34, if he pays it all at once. If he decides that…

A: In order to make the decision regarding the payment of insurance premium to be paid minimum, we are…

Q: Chelsea was supposed to pay Jacob $4,800, 6 months ago, and $1,500, 5 months from now. If she wants…

A: Present value is a financial concept that reflects the current worth of a sum of money to be…

Q: Tabitha had to pay her friend $1,200, 3 months ago and he has to pay $510 in 4 months. If her friend…

A: Present value:A financial concept known as "present value" emphasises the time value of money by…

Q: Karl Yates needs $5,000 to pay for the remodeling work on his house. A contractor agrees to do the…

A: Given, The amount required is $5,000 Rate of interest is 6.3% Term is 10 months

Q: Mr. Ross has been awarded a bonus for his outstanding work. His employer offers him a choice of a…

A: Option 1 8000 Today   Option 2  Annuity of 2500 for 4 years   Cost % = 8%   We will choose Option 2…

Q: Timothy is retiring from his job soon at which time his employer will make the following offer: A…

A: To help Timothy decide which option to choose, compare the present value of the annuity (the $15,000…

Q: Shane has a retirement plan with an insurance company. He can choose to be paid either $450 per…

A: Solution:- Every rational person wants to pay fewer amounts. So, the better option will be the one…

Q: Peter buys an item from Sue and signs a note to pay $315 in 10 months. Then, 3 months before the…

A: Due to the legal duty for a business to return borrowed monies in the future, sometimes with…

Q: Karl Yates needs $9,000 to pay for the remodeling work on his house. A contractor agrees to do the w…

A: The today value of future amount is the equivalent amount based on time period and interest rate…

Q: Maxwell has been offered a choice by his employer of $2,000 paid annually at the beginning of the…

A: We can use the PV of annuity due formula to determine the PV of all future annual payment. The…

Q: Benjamin knows that he will be receiving $100,311 to settle an insurance claim, but he will not…

A: Simple discount refers to the method of calculation of the amount received and interest paid where…

Q: find the simple interest rate

A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as…

Q: Karl Yates needs $6,000 to pay for the remodeling work on his house. A contractor agrees to do the…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: Sam is planning to retire in the next few years and wondering how much his annual CPP would be if he…

A: There are various factors on which the CPP retirement pensions depends such as: 1) Age in which the…

Q: Roberto borrowed $10,000 dollars from the mafia guy down the block Guido Colombo at a rate of 30% on…

A: Variables in the question:Loan amount on 1/1/2020=$10,000 Rate=30% (assumed compounded…

Q: settle a loan on March 24th, 2018 by paying $6,500. What amount should he pay if he decides to…

A: Loans are easy source of money but these loans are to be paid with interest and these interest carry…

Q: a) If you knew Uncle was going to die in 5 years, which option would you choose? How much money…

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: Cyrus had promised to pay Steven $8,500 on Oct 10th but would like to pay him back a few weeks later…

A: Interest is an extra amount which is paid on borrowed or deposited amount. It increased the value of…

Q: Bob has lost his job and had to move back in with his mother. She agreed to let Bob have his old…

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

Q: How much would Hector have to put in the CD today to gain $28,500 in 30 years?

A: Compound Interest is being provided on the accumulated opening balance of the account.The Opening…

Q: Derek decides to buy a new car. The dealership offers him a choice of paying $518.00 per month for 5…

A: A purchase can be made by paying in cash or paying in installments.