Nominal and effective interest A building is priced at $300, 000. If a down payment of $20,000 is made and a monthly payment is required thereafter for 2 years, what is the amount of that monthly payment if the interest is charged at a rate of 11%, compounded monthly.

Q: A man secured a 8,057 loan at 2% interest rate, Find the annual amortization to extinguish it in 1…

A: Loan amount = 8057 Interest rate = 2 % Monthly rate = 2 / 12 = 0.167% Time = 12 months  Therefore…

Q: Your visa card charges 1 % interest every month, what are the nominal and effective interest rates…

A: The nominal interest rate per year can be calculated as follows: Thus, the nominal interest rate is…

Q: Simple and Compound Interest . Calculate the amount deposited 1 year ago to have SR1000 now at an…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: You have borrowed $300K to purchase a house. The term of the mortgage is 15-year fixed with a…

A: here we calculate monthly payment and  increase in pay off mortgage in 10 year by using the formula…

Q: For the transactions shown below, determine the amount of money in the account at the end of year 3…

A: The total amount of cash and cash equivalents a corporation receives and expends cash is referred to…

Q: Tyrone wants to spend $14,500 on a new car three years from now. He opens a savings account and…

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

Q: Jackie takes out a loan for $38,000 at an interest rate of 6% for a period of 5 years. Assuming she…

A: A loan is a sum of money that is borrowed from a lender with the expectation of being paid back,…

Q: WHAT IS THE PRINCIPAL AMOUNT OF P300,000.00 FUTURE PAYMENT TO BE MADE IN 5 YEARS AT 8% INTEREST…

A: Present value refers to the discounted value of a future cash flow . When we compute time value of…

Q: value of $ 20000 at the end of 10 years

A: (a) FV ($) = 20000 + (20000 x 7% x 10) = 20000 + 14000 = 34000

Q: e interest earned by $15,000 for seven years at 7% simple interest with interest earned by the same…

A: Simple Interest refers to the simplest method of charging interest, it is calculated as multiplying…

Q: What is the future worth of P600 deposited at the end of every quarter for 4 years if the interest…

A:

Q: YVETTE AND AARON DEPOSITED A JOINT ACCOUNT AN AMOUNT OF P1000 AT BPI AT 5% INTEREST COMPOUNDED…

A: given that,  Principal (P)= $1000 Annual Rate (R)= 5% Time (t in years)= 8 compounded annually

Q: Mr. Cruz invested P 20,000 for 1 year at 12% compounded monthly. At the end of 1 year, he reinvested…

A: P = 20,000 r = 12% = 0.12 t = 1 year n = 12 Compounded monthly = P(1+r/n)nt…

Q: 1 a. Your company is buying a machine tool that costs $575,000. They will pay for the machine in…

A: Cost of machine = $575,000 Installments is to be paid for = 8 years  Interest rate = 10% Compounded…

Q: Compounded Continuously an investment of  $400 at a rate of 35% for 2 years. what is the future…

A: Given information: Present value (P)= $400 Interest rate (r)= 35% Compounding= continuously Time…

Q: What is the present worth of a 3-year annuity paying 3,500.00 at the end of each year, with interest…

A: Present value is that the thought that states associate degree quantity of cash these days is price…

Q: asphalt road requires no upkeep until the end of 3 years when P70,000 will be needed for repairs.…

A: Clear solution given below,

Q: you paid $3,100 to a bank to pay off a debt you borrowed 3 years ago with 12% annual interest rate.…

A: Present worth refers to the current value of an expected cash flow in the future based on the time…

Q: condominium unit can be bought at a down payment of 150000P and a monthly payment of 10000P for 10…

A: A1 = 150000 A2 = 10000 n = 10 i = 0.01

Q: The amount of P150,000 was invested at 12% interest compounded quarterly 10yrs years ago. What is…

A: The formula used is: A=P1+R100twhen compounded quaterlyA=P1+R4004twhere P is the PrincipalR is the…

Q: A low cost house and lot is worth 500, 000.0 in cash. If purchased on installment basis, it requires…

A: The term “instalment” is defined as the equal payment made by the individual who has taken the loan…

Q: if I loaned 167,795 today and promised to pay it back after 5 years to the bank with monthly…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: Karly borrowed $6,200 from her parents for 4 years at an annual simple interest rate of 2.8%. How…

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

Q: Given a loan for $58,000.00 at an interest rate of 16.15% for 5 years, determine your annual payment…

A: The objective of this task is to determine the annual payment amount for a loan of $58,000.00 with a…

Q: You are 65 years old and about to retire. You have $100,000 saved in a retirement account and would…

A: Period cash flows depict a series of flows of cash in which equal amounts tend to happen at periodic…

Q: What will be the balance at the end of 5 years for $30,500 now at 10% annual interest, if compound…

A: Future value is the value of current cashflow at future date compounded at specified rate. formula:…

Q: Sally purchases a perpetuity immediate with annual payments that pays $4000 toda and Payments…

A: Specifics of annual payment - Increases by 5% annually  Paid for 6 years    Let the payment in first…

Q: You want to borrow $1500 at 8% and you are willing to pay $210 in simple interest.How long can you…

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

Q: The nominal rate is 1% per month and compounding occurs monthly, what is the effective rate for 12…

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

Q: Compute for the iEff/semi-annual and iEff/year 9% Compounded quarterly Payment made every 6 months…

A: Let We have concider given that   Nominal annual interest rate (APR) = 9% Folding frequency =…

Q: An investor wishes to deposit an amount of money next year so that at the end of ten years from now…

A: The compound interest refers to a situation whereby interest income corresponding to an…

Q: Nadia needs to have 59,039 dollars to buy a new car 9 years from now. How much does she need to save…

A: Nadia needs to have $59039 at the end of 9 years.Rate of interest = 7.35% per year compounded…

Q: How much money would you need to deposit today at 9% annual interest compounded monthly to have…

A: Correct : A. $7007

Q: What equal amount (Q) must be deposited at the beginning of each year for the next 5 year s in a…

A: The financial product paying out a fixed payment stream to individuals being used as a stream of…

Q: If $3000 invsted in a compound interest account for 4 years, amounts to $3612, what is the annual…

A: Given, P+I = A = 3612 P = 3000 n = time = 4 years Compound interest Rate = r = ??

Q: You are taking a $5000 loan. You will pay it back in four equal amounts, paid every 6 months…

A: The effective annual interest rate is the interest rate that is actually earned or paid on an…

Q: What is the future value of $1,540 invested for 5 years at 5% interest compounded monthly? Round…

A: Given: The principal amount is = $1,540 Years = 5 The rate of interest is = 5% compounded monthly To…

Q: Faisal deposits $3,854 in a fund paying 3% annual compound interest; after 4 years the fund…

A: Initial deposit P =$3854 For the first 4 years, the interest rate is 3%  For the next two years, the…

Q: Jim Duggan made an investment of $10,000 in a savings account 10 years ago. This account paid…

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