ones can deposit $5,000 at the end of each 6-month period for the next 12 years and earn interest at an annual rate of 8%, compounded semiannually. What will the value of the investment be after 12 years? If the deposits were made at the beginning of each period, what would the value of the investment be after 12 years assuming that he makes a payment at the end of year 12?

Q: avid deposits $2,000 per year at the end of the year for the next 20 years into an IRA account that…

A: The concept of time value of money will be used here. As per the concept of time value of money…

Q: Louis is saving for his retirement by making annual end of year deposits for 30 years into a bank…

A: Future value of Annuity: It is  the total value of annuity payments  accumulated at a specific  time…

Q: 21. On January 01, 2019, SUNOD NA ANG LEASES LTD. issued 3- year bonds with face value of P5,000,000…

A: Given: Face value = P5,000,000 Price = 99% Nominal rate = 10% Issue cost = P150,000

Q: You decide to open an individual retirement account (IRA) at your local bank that pays 8%/year…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Sam Musso is planning to retire in 20 years. He can deposit money at 12% compounded quarterly. What…

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

Q: Henry Jones is planning to retire in 15 years. He wishes to deposit an equal amount (A) every 6…

A: Time period = 15 years  Time duration semi-annual compounding Interest rate = 14% Semi-annual…

Q: Starting on the day he retires, Bob wants to receive payments of $10,000 at the beginning of each…

A: Present value of the amount is the worth of that amount in current times that is expected to be…

Q: You are scheduled to receive Rs. 360,000 in two years. When you receive it, you will invest it for…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Muaz will need $130,000 in 4 years to buy a piece of property. He plans to save money by making…

A:

Q: Aidan deposits $1000 at the end of each quarter in an account that pays 5.25% per year, compounded…

A: Solution: An equal amount invested every period is called annuity. So, future value of annuity = PMT…

Q: Jordan's investment manager offers her an interest rate of 8.0% compounded monthly on her…

A: Earlier Interest rate is 8% Compounded monthly Interest rate changed to  is 8% compounded annually…

Q: You have opened a financial instrument that requires the following for the next six years: An…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: Crystal's investment manager offers him an interest rate of 7.0% compounded on his investments. If…

A: An annuity with different compounding refers to a series of regular payments or receipts over a…

Q: Adrian's investment manager offers her an interest rate of 7.0% compounded monthly on her…

A: Here,Interest Rate is 7%Required Accumulated Amount is $424,000Time Period is 25 years

Q: A person agreed with a bank to deposit an amount of 500 dinars at the end of each year starting from…

A: The compound value of money can be depicted as the amount of interest generated on interest earned…

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $150/month into…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: James invests $15,000 in a 5-year Guaranteed Investment Certificate (GIC) with a variable interest…

A: Guaranteed Investment Certificate (GIC) : A Guaranteed Investment Certificate (GIC) is an investment…

Q: At the end of every 6 months, Tomas deposits $20,000 into a savings account, which pays an annual…

A: Compound = Semiannual = 2Saving Deposits = d = $20,000Interest rate = r = 12.3 / 2 = 6.15%Time = t =…

Q: Anuonyam plans to deposit GH¢80 in an account at the end of each of the next 20 years. If the…

A: Principal = GH¢80 Time = 20 years Rate = 17% Future value = ?

Q: Jake Werkheiser decides to invest $8000 in an IRA at the end of each year for the next 6 years. If…

A: The future value refers to the value of an investment or an amount of money at a specified point in…

Q: o acquires a loan of $300,000 to be paid off during 6 years with monthly payments. If the…

A: Monthly payments are equal fixed amount of payment that carry the payment for interest and loan but…

Q: A man deposits her annual bonus into a savings account that pays 8% interest compoundedannually. The…

A: In this question we need to calculate the amount in the saving account immediately after the fifth…

Q: Patrick makes payments of $250 per month at the end of each month. At the end of 10 years, he wants…

A: The rate of interest required to have the desired amount can be calculated with the help of rate…

Q: An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A: The present value means the present value of the payment of the future. It generally tells us what…

Q: Hannah plans to invest $6,500 at the end of each year for the next eight years. Assuming a 10%…

A: The amount which represents the value of investment after a specified period is known as future…

Q: Jones can deposit $5,000 at the end of each six-month period for the next 12 years and earn interest…

A: Future value of annuity is the future value of the same cash flows that takes place at the end of…

Q: kaye's housing loan worth 810,000 for 5 years was approved by the bank with an interest rate of 8%…

A: A loan refers to the amount of money taken by an individual from the lender by the borrower in case…

Q: Charlie wants to withdraw $12,000 each year forever from his account. At an interest rate of 6% per…

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

Q: John invests $ 350 on the last day of each month into an account for 4 years compounding monthly at…

A: Monthly investment = $350Interest rate = 7.5%Total number of years = 7 yearsNumber of years of…

Q: A man deposits ​$19,000 at the beginning of each year for 9 years in an account paying 6​%…

A: Future value refers to the method of time-value of money used for calculating the value of the…

Q: The Seattle Corporation has been presented with an investment opportunity which will yield cash…

A: Payback period is the time required to recover the initial amount of investment but does not…

Q: Jennifer opted for the plan that will pay her $ 52,000 annually for 15 years. The cash will be paid…

A: Honor code: Hi, there, thanks for posting the question. As per our Q&A honor code, we must…

Q: Anthony plans to deposit $500,000 now and $10,000 every 6 months for 5 years into an account.…

A: Deposit now (D) = $500000 Semiannual deposit (A) = $10000 n = 5 years = 10 semiannual deposits…

Q: Harry Taylor plans to pay an ordinary annuity of $6,000 annually for ten years so he can take a…

A: Ordinary Annuity is series to equalized payments received or made over periodic interval at end of…

Q: John contributes $5,000 per month into an account. How much will he have in the account after 25…

A: In the given question we require to calculate the future value of account after 25 years is john…

Q: Harry Taylor plans to pay an ordinary annuity of ​$4,900 annually for ten years so he can take a​…

A: Future value of annuity = A x [{(1 + i)^n - 1} / i]where,i = interest raten = number of periodsA =…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.