Question 02 I. Bank X pays 12 per cent and compounds interest quarterly. If Rs 200,000 is deposited initially, how much shall it grow at the end of 6 years? Find effective annual rate (EAR)

Q: Q1: Calculate (PW) for annual payments (900$/year) if the first payment will deposit at the present…

A: PW is the present worth. The person is investing 900$ annually at the beginning of the year. The…

Q: 3. For payments shown in the following table, and assuming the interest rate (10%), what is the five…

A: Present value is the discounted value of money considering the interest rate and time of annual…

Q: How much will a $100 deposit made today be worth in 10 years if interest is compounded quarterly at…

A: Future value of the deposit includes the amount being deposited and amount of interest accumulated…

Q: Q6. You plan to deposit P100 into a savings account at the end of each month for the next 5 years.…

A: Note: The Answer, given for part b is mentioned incorrect, so we are solving the correct one for you…

Q: Find the future value for each of the following scenarios, where m is the periodic deposit and r is…

A: Part 2: Explanation:Step 1: Calculate the future value using the formula for compound interest:\[ FV…

Q: 1: A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Assume you make a deposit of $7,500 now into a saving account that pays 12% per year, compounded…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Q: 1. A $200 loan is offered with an annual simple interest rate of 6 percent. How much would the…

A: Amount payable = Loan *(1+ interest rate* time period)

Q: May I ask for an explanation and solution to the question for a better understanding. Thank you! 8.…

A: We have calculating future value FACTOR including interest rate and period of investment.

Q: 9 A deposit of $720 earns interest rates of 8 percent in the first year and 11 percent in the…

A: Deposit amount (P) = $720 Interest rate in year 1 (r1) = 8% Interest rate in year 2 (r2) = 11%

Q: What will a deposit of $2500 at 7.8% compounded semiannually be worth if left in the bank for six…

A: Formula for Future Value FV=PVx(1+r/2)nxt Where, FV = Future Value PV = Present Value r = rate of…

Q: What will be the compounded amount on a loan of P1.500 at 12% interest compounded quarterly for I…

A: Loan amount (PV) = P 1500 Annual interest rate = 12% Quarterly interest rate (R) = 12%/4 = 3% Period…

Q: At 8 percent interest rate per year (annual interest payment), how many years does it take to…

A: Answer: Calculation of the time it will take to quadruple the money: Formula, we will use here:…

Q: If we deposit rs 1000 today calculate the time taken for the deposit to double if the interest rate…

A: Present value is the current value or present worth of an amount which is received in present…

Q: Question 1 What is the future value of $650 deposited for one year earning an 10 percent interest…

A: Future Value refers to the compounded value of a single cash flow received today or multiple cash…

Q: If you deposit RM25,000 in an account earning an interest of 15% per annum, much would you have in…

A: Given: Present value = RM25000 Interest rate = 15% per annum Time period = 10 years To compute the…

Q: 22. A business loan worth P150,000 is to repay in quarterly installment for 2 years. How much is the…

A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…

Q: What will a deposit of $4500 at 7.8% compounded semiannually be worth if left in the bank for six…

A: N  = 6 years * 2 semi-annual period in a year = 12 I% = 7.8 PV = - 4500 Pmt = 0 P/Y = 2 (as…

Q: QUESTION 5 (a) RM 200 is invested every month for 2 years 7 months at 10 % compounded monthly. What…

A: Future value of annuity is referred as the value of group for the payments in recurrence at the…

Q: Q2. Deposits are to be made to an account as indicated in the table below which bears interest at…

A: Here,

Q: What's the future value of $1,225 after 5 years

A: Future value (FV) refers to a method of calculating how much the present value (PV) of an asset or…

Q: What is the value of the following payment stream 1 year from now, at a simple interest rate of…

A: solution Given Simple interest rate        =4.4% Amounts $10000 ,3 years ago $6000 ,1.25 years ago…

Q: Part B: Suppose a bank offers you a rate of 5% compounded quarterly. If you put $8,000 into this…

A: Given:Principal Amount (P): $8,000Rate (r): 5% per year = 0.05Time (t): 7 yearsNumber of Compounding…

Q: Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is…

A: We need to use future value of annuity formula to calculate annuity amount after 5 years. Future…

Q: What is the effective interest rate per payment period for an interest rate of 12% compounded…

A: The effective rate per period is the rate per period when the nominal rate is compounded at a…

Q: What amount of money deposited 25 years ago at 10% interest would now provide a perpetual payment of…

A: Since multiple questions are involved , we will answer 1st question as per prescribed guidelines and…

Q: O Interest Period O Discount Rate O Compounding Period Compounding Rate

A: Since there are multiple questions are given so as per answering guidelines we can do only first…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.