What's More Activity 2.1 Read each statement and answer the question that follows. 1. If P = P85,500, and r = 1.25% compounded monthly for 1 year, find the compound interest. What is the first component that should be computed? What formula will be used? How much is the maturity value?. How will you find the simple interest?. How much is the simple interest? 2. If F = P50,000 with the rate 1.5% compounded quarterly for 5 years find the present value and compound interest Which should be find first present value or compound interest? How are you going to express the rate in decimal?. What formula will you use in finding the present value? How much is the present value? How will you find the compound interest? How much is the compound interest?

What's More Activity 2.1 Read each statement and answer the question that follows. 1. If P = P85,500, and r = 1.25% compounded monthly for 1 year, find the compound interest. What is the first component that should be computed? What formula will be used? How much is the maturity value?. How will you find the simple interest?. How much is the simple interest? 2. If F = P50,000 with the rate 1.5% compounded quarterly for 5 years find the present value and compound interest Which should be find first present value or compound interest? How are you going to express the rate in decimal?. What formula will you use in finding the present value? How much is the present value? How will you find the compound interest? How much is the compound interest?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

1
Liz plans to deposit $20,000 in the bank now and another $5,000 two years from now. If she plans to withdraw $8,000 three years after her last deposit, what will be the amount of money left in the bank after three years of her withdrawal? Use a 10% interest rate and draw a cash flow diagram.
2
Annuity 2. What is the accumulated value of a $25 payment to be made at the beginning of each of the next three years if the prevailing rate of interest is 9% compounded annually?
Tess wanted to have P100,000 on her bank account at the end of 8 years. She plans to deposit an amount at the beginning of each month at an interest rate of 3.5% compounded quarterly.a. What is her monthly deposits?b. What is the present worth of these deposits? *Please show your correct answer and solution to this problem. ASAP! Thanks!*
Question 3 Suppose you wanted to become a millionaire at retirement. If an annual compound interest rate of 11% could be sustained over a 30-year period, how much would have to be deposited yearly inorder to accumulate $1 million? What if the interest rate is 8%?
Please answer everything in the photos including the graph.
can you solve it with formulas?please make your text readable.
Compare the interest earned by $9,000 for six years at 7% simple interest with interest earned by the same amount for six years at 7% compounded annually. Why does a difference occur? The simple interest earned is $ ?