Quantity of bananas Year Price of bananas Price of backrubs Quantity of backrubs $1.00 $6.00

Q: The present value of a perpetuity paying $20 at the end of every four years is $43. Find i.

A:

Q: a perpetuity has a price of $750 and an annual interest payment of $35,

A:

Q: Maria takes out a 30-year mortgage for $235,136 at an annual interest rate of 4.2%. How much does…

A: Given values PV = $235136r = 4.2% / 12 = 0.35% per monthn = 30 years * 12 months/year = 360 months

Q: The advantage of a loan is that: its transaction costs are low. it can be tailored to the needs of…

A: Loan: A loan is a sum of money borrowed from a lender with the agreement that it will be repaid,…

Q: We need to find an effective interest rate that covers the payment period. Illustrate this concept…

A: Effective interest rate can be described as the interest rate gained or paid in actual on a project.…

Q: How is the future related to the present value of a single sum?

A: The future value is that the sum of present value and also the total interest. the long run value…

Q: What is the Decision Rule for simple Investments?

A: In a simple investment, cash flows change sign only one time. For example, negative cash flow in the…

Q: What will be the Savings given that income is $3200 and APS is 0.48

A: The data presented in the question above is:- Income = $3200 Average propensity to save = 0.48…

Q: Luis and his best friend Faith want to spend as much time as possible at the local amusement park…

A: The objective of the question is to find out how much Faith will owe Luis after they buy season…

Q: could you show how to determine the bond's present value without a calculator?

A: When interest rate rises to 4%: Given, Face value= future value= $1,000 Yield to maturity= 4% Time=…

Q: Summarizes some of the interest formulas?

A: Simple interest = (P*R*T)/100 where, P : Principal amount            R : Rate of interest per annum…

Q: Find the savings if the income is $8443 and the consumption is $4022

A: Here, given information is: Income: $8443 Consumption: $4022 To find: savings

Q: You borrow $800 from a family member and agree to pay it back in nir months. Because you are part of…

A: Simple interest is denoted as the procedure for solving the interest amount for a given principal…

Q: Calculate the simple interest earned. Round to the nearest cent. P = $3000, r = 3.1%, t = 23 days

A: Simple interest is calculated as the product of principal , interest rate and time.  So,  I = P × r…

Q: What are other ways to invest in Real estate? Are they long term or short term?

A: Real estate refers to land and any physical property or structures that are permanently attached to…

Q: At what rate of interest will an investment double itself in 10 years?

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

Q: A financial institution (loan shark ) is willing to lend you $400. You pay $450 after one week. a)…

A: The effective interest rate will be including the compounding period into consideration while…

Q: A financial institution is willing to lend you $2,000. However, you must repay $2,008 at the end of…

A: An investment is a possession or thing bought with the intention of making money or appreciating in…

Q: Is the cash flow broken into four parts? What are they?

A: Answer - Cash Flow - Cash flow means the amount of cash present at a given time which cash used in…

Q: An engineer invests $5,800 at the end of every year for a 35-year career. If the engineer want $1…

A: Rate of return is a financial measure used to evaluate the profitability or performance of an…

Q: What does the interest rate you determine represent?

A: The interest is a specific percentage of the principal amount that is lent, borrowed, or deposited…

Q: Fred takes out a loan for $1300 at an interest rate of 5% for a period of 5 years.  Calculate the…

A: Interest, in the context of finance and economics, refers to the cost of borrowing money or the…

Q: What is the Deferred Savings Plan?

A: A  deferred savings plan is a plan  which allows the taxpayer to pay money in  the plan and  then…

Q: What is the U.S 6 month interest rate?

A: In the mentioned question we have been asked about the 6-month interest rate of the U.S.

Q: You take out a loan of $12,000 to pay for a piece of equipment. You plan to repay the loan in 16…

A: Suppose you want to pay the first installment at the end of the year. So 16 equal payments of $1100…

Q: James has been working as a Mechanical Engineer ever since he graduated five years ago. Two years…

A: A credit score is a numerical representation of an individual's creditworthiness, which is used by…