our rich uncle has just offered you to make you wealthy! For every amount you save in an insured bank account during the next 10 years, he will give you the total amount (excluding interest) that you saved to match it. Because your modest income permits you to save P2,000 per month for the next 10 years, your uncle will be willing to give you 240,000 at the end of the 10th year. If you desire a total of P1,00,000 10 years from now, what effective interest rate would you have to earn on your insured bank account to make your goal possible?

Q: Consider a uniform series of cash flows.  The first cash flow of $10,000 occurs at time 10 and the…

A: A cash flow is the movement of funds over a predetermined time period into or out of the financial…

Q: Q2. You want to purchase a car that worth $22,678 by making a down payment of $2,678 and paying the…

A: Cost of Car = 22,678 Down payment = 2,678 n = 48 annual rate = 8.5 or 8.5/12 = 0.70833%

Q: Susan Ng owns an eight-year-old Prius automobile. She wants to find the present worth of repair…

A: Here we are given a payment stream, we will find the present value of that using the present value…

Q: In 1915, Anas allegedly borrowed 7,000$ from a large New York bank on the condition that he would…

A:

Q: Suppose the interest rate is 6.9% APR with monthly compounding. What is the present value of an…

A: The nominal interest rate is 6.9% per year compounded monthly. There is a uniform annuity of $105…

Q: Suppose you invest $1,000 today, compounded annually, with an annual interest rate of 5.00%. What is…

A: Introduction: The present value of the investment is $1000 which earns an interest rate of 5%. Now…

Q: It costs $27,000 to retrofit the gasoline pumps at a certain filling station so the pumps can…

A: The answer is in the explanation.Explanation:1. Calculate the Monthly Profit:  The monthly profit…

Q: Today, you invest P100,000 into a fund that pays 28% interest compounded annually. Three years…

A: Compound interest formula : Final amount = Principal (1+interest rate/number of compounding…

Q: You earn SEK 10,000 for three years. After these three years, you have SEK 13,000. The interest rate…

A: Annual percentage rate (APR) refers to the yearly interest generated by a sum that's charged to…

Q: You are eligible for a 30 year fixed-rate home mortgage with an interest rate of 3.6% per year. If…

A: Present value is the concept that states that an amount of money invested today is worth more than…

Q: Mohamed wishes to deposit BD10,000 to a bank that will guarantee BD15,938.48 after eight (8) years.…

A: Here we need to assume the interest rate she is expecting from the bank.  Then following calculation…

Q: Today, an investment amounts to P8,000,000. What was the value of your investment in 2010 of t

A: Investment value today = 8,000,000 P Interest rate = 8 % Time = 2022 – 2010 = 12 years

Q: A loan was to be amortized by a group of four end-of-year payments. The initial payment was to be…

A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…

Q: Ireen wants to give her daughter Loaura a financial gift on the latter’s college graduation two…

A: As per the given information Present invested = 2000 Future worth = 5000 Interest compounded…

Q: If your investment plan pays an APR of 7% and you want to have $0.9 million when you retire in 27…

A: The Annual Percentage Rate (APR) is a financial term that represents the yearly return on an…

Q: Find the total amount after the investment period in semi-annual payments of 1000 pesos if the first…

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

Q: What is the annual rate of interest (in %) if P732 is earned in 9 months on an investment of…

A: The formula used is: SI=P×R×T100

Q: What is the future equivalent of $1,000 invested at 8% simple interest per year of 2.5 years?

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: You've won the lottery, and your winnings will pay out in equal quarterly payments (that is, you…

A: Step 1:The interest rate compounded monthly =15%Since there is quarterly payment, effective…

Q: Joe makes 12 monthly deposits of X each during a year at the beginning of each month, into a fund…

A: Given information Monthly deposit =X  interest rate compounded monthly =6% n=12 month Second year…

Q: Suppose you were given a one time gift of $10,000 to put into a savings account. The account earns…

A: Compound interest is the rate of interest that is used to calculate the value added to a loan or a…

Q: Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000. Cash…

A: Given:- Cash flow  time  5 = $ 5000 Annual growth in cash flow = 7% Number in cash flows = 9 Future…

Q: What is the annual rate of interest (in %) if P275 is earned in 10 months on an investment of…

A:

Q: Aurora wants to give her daughter Mara a financial gift on the latter’s college graduation two years…

A:

Q: Suppose that the parents of a young child decide to make annual deposits into a savings account,…

A: A future payment's present value is its current cash amount.  An annuity is a series of annual…

Q: $1150 (1+0.0644) 12 = 2,421,01 25. What is the value of $400 at interest rate of 5.87% after 10…

A: Present value formula:

Q: 1. A bank loan of P2,000.00 was made at 8% simple interest. How long would it take in years for the…

A: Through the lens of engineering, engineering economics examines the dynamic context of economic…

Q: An engineer has invented a new high-speed wireless charging system. The engineer is considering…

A: Cash Flow 50,000 and increase by 5000

Q: When you take your job, you decide to start saving for your retirement. You put $5,000/yr into the…

A: Monthly investment A= 5000 Rate of interest = 8% / year We have to calculate the amount of total…

Q: Your sister needs money and comes to you with a deal. She asks you to pay $2,000 at the end the…

A: Given,  Your Sister asks you to pay $2,000 at the end of the first yearIncreasing this by $500 till…

Q: Suppose that you are looking to acquire a foreign super car to match your newly bought mansion. The…

A: The present value (PV) is a financial concept that refers to the current worth of a future sum of…

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Q: If an amount of P6,041.72 is deposited into a savings account at an interest rate of 0.187, with 8…

A: Compounding period means the time period that times interest will be calculated in a year . For…

Q: Suppose you have an opportunity to invest in a fund that pays 11% interest compounded annually.…

A: Step 1: The remaining amount can be found as follows: Sl. No.ABCDEFGHI1Investment        5,000.00…

Q: from now (n = 2) in || a savings account that pays 10% interest, how much would you have at the end…

A: Formula:  Value at the end of ten years = amount in year 1*(1+I)n+amount in year 2*(1+I)(n-2)

Q: You are an avid 34 year old coffee drinker, and never miss a day without your $4.00 Starbucks caffe…

A: The value of money, then, is the quantity of goods in general that will be exchanged for one unit of…

Q: 2. You want to purchase a car that worth $22,678 by making a down payment of $2,678 and paying the…

A: Equated Monthly Installment( EMI), is the sum that must be paid each month to the bank or other…

Q: You are a Vice President of Finance for a small waste disposal company who has just been fined…

A: Answer; option (3) is the right answer.

Q: 3,500.00 for one year from a friend at an interest rate of ng a loan from a bank at a rate of 18%…

A: *Answer:

Q: At a certain interest rate compounded semi-annually, P5,000 will amount to P23500 after 10 years.…

A:

Q: Suppose that $100 is invested for five years at an interest rate of 8% per year, compounded…

A: D.  F = $100(F/P,8%,5) = $100(1.469) =$146.90 Option "D" is correct.

Q: se you make an annual bution of P11,036 each year t e fund for a niece. He is 5 yea nd you will…

A: Introduction,