QUESTION 8 You have taken a loan of $500,000 loan over 12 years at a 0% interest rate compounded monthly, which is rembursed with monthly payments What is the principal portion of the 73rd payment? O&2,314 18 Ob 3,407 19 Oc4496 O4207474

Q: 7 is invested at the end of each 6 months for 6 equal payments at 0.27 compounded semi - annually.…

A: Given information : Periodic investment  $  1,287.00 Interest rate 27% Total installments 6…

Q: Scheduled payments of $730 due today, $945 due in 3 months, and $935 due in 6 months are to be…

A: The time value of money mentions that the value of money changes with time. The worth of the money…

Q: Find the periodic payment R required to accumulate a sum of S dollars over t years with interest…

A: The FV of an investment refers to the cumulative value of its cash flows at a future date assuming…

Q: How much must be deposited at the end of each month for 9.5 years to accumulate to $3866.00 at 10%…

A: Accumulated value = $3866 Monthly interest rate (r) = 0.00833333333333333 (i.e. 0.10 / 12) Monthly…

Q: Given Period of Defferal Number of Payments 1) Monthly payments of P2500 for 3 years that will start…

A: NOTE : As per BARTLEBY guidelines, when multiple independent questions are given, then first…

Q: Complete the following using compound future value. (Use the Table 12.1 provided.) Note: Round your…

A: time = 10 years principal = $17,100 rate = 4% compounded annually   Amount of Future Value = P *…

Q: the final payment? (Round your answer to the nearest cent.) Final payment $

A: The future value of the annuity, which comprises all payments plus any interest generated, must be…

Q: Find the required monthly payment to accumulate 2,000 in 1 year and five months at an APR of 4.34 %…

A: Future value annuity is the future value of series of cash flows calculated at specified rate for…

Q: Calculate what $860 would grow to at 7% per year compounded daily for 9 years. (Use the Table 12.2)…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Determine the present value of payments of $100 at the end of each month for 20 years. Use a…

A: Monthly payment (P) = $100 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period = 20…

Q: Determine the principal P that must be invested at rate r = 3%, compounded monthly, so that $700,000…

A: Future value (FV) = $700,000 Interest rate = 3.50% Monthly interest rate (r) = 3.50%/12 =…

Q: f a Condura Ref. costs P 24,830 will have an interest of P 2505 monthly that is payable for a year,…

A: The rate of interest is the basis for the calculation of monthly, annual, or quarterly interest. Any…

Q: Find the future values of the following ordinary annuities: a. FV of $300 paid each 6 months for 5…

A: Future value of annuity is stream of recurring at regular interval cashflow compounded at specified…

Q: Determine how much is in the account on the basis of the indicated compounding after the specified…

A:

Q: Tony is converting an RRSP balance of $275,000.00 into a RRIF. Tony wants to receive $1,911.00 at…

A: Time value tells that money received today is of more value than that of receiving the same value…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: Future value (FV) = $150,000 Interest rate = 7.6% Semi annual rate (r) = 7.6%/2 = 3.80% Period = 18…

Q: You receive annual payments of $4,800 at the beginning of each year for 7 years. The discount rate…

A: The total value of yearly payments at a particular date in future for a given discount rate is…

Q: For $5,000, you can purchase an ordinary annuity that will pay you $920.23 each year for 8 years.…

A: The annuity is the periodic payment received in each period. The present value is the discounted…

Q: How much must be deposited at the end of each month for 7.75 years to accumulate to $1264.00 at 7%…

A: The given problem can be solved using PMT function in excel. PMT function computes savings/…

Q: Manually calculate the compound amount and compound interest for the following investment. Round…

A: Compounding period can be defined as the duration or length of time from one interest payment to…

Q: Find the equated date at which the original payments are equivalent to the single payment. State…

A: The objective of the question is to find the time at which the original payments are equivalent to…

Q: You deposit $200 in an account earning 7% compound interest for 6 years. Find the future value and…

A: Future value refers to the projected monetary worth of an investment or asset at a specified date in…

Q: Find the future values of the following ordinary annuities: a. FV of $500 paid each 6 months for 5…

A: Summary:Future Value of Annuity (a): $6,488.20Future Value of Annuity (b): $6,767.73Reason for…

Q: Compute the present value of an $1.200 payment made in nine years when the discount rate is 11…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

Q: ind the future values of the following ordinary annuities.

A: Future Value of Ordinary Annuity: It refers to the future worth of the annuity cash flows made at…

Q: Find the future values of the ordinary annuities at the given annual rate r compounded as indicated.…

A: The objective of the question is to calculate the future value of an ordinary annuity. An ordinary…

Q: . A lump sum of $30,000 is invested at 6% compounded monthly for 15 years. For 15 years it then pays…

A: Present Value = $30,000 Interest Rate = 6% compounded Monthly Time Period = 15 Years

Q: Find the present value of the following deferred annuity due. Periodic Made Payment Payment At:…

A: As per the given information: Periodic payment - $800Payment period - 3 monthsPeriod of deferment -…

Q: Find the lump sum deposted today that will yeld the same total amount as payments of $13.000 at the…

A: Present Value of Annuity: With respect to annuities, the present value of a contract is the current…

Q: Find the future values of the following ordinary annulties: a. FV of $500 paid each 6 months for 5…

A: The time value of money is a concept in finance that use the effects of compounding to evaluate the…

Q: Find the present value of the following perpetuity. Made At: beginning Perpetuity Payment $160…

A: Payment = p = $160Time = t = 3Interest rate = r = 4.1 / 12 = 0.34166666666%

Q: Suppose you deposit $2,000 at the end of eachquarter for ten years at an interest rate of 9%…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: What payments must be made at the end of each quarter to an RRSP earning 7.5% compounded annually so…

A: PMT refers to the periodic payment of the annuity or borrowings which when accumulated with a…

Q: If you contribute $1000.00 into an RRSP every six months for fifteen years and interest on the…

A: GIVEN, pmt =$1000 NPER = 15 X 2 =30 RATE = 8%2=4% PV=0

Q: Find the future values of the ordinary annuities at the given annual rate r compounded as indicated.…

A: concept. FV = A [(1+r)n - 1]r where , FV = future value of ordinary annuity A= timely payments (PMT)…

Q: Assume that a one-year CD purchased for $1000 pays an APR of 6% that is compounded semi-annually.…

A: Here, Value of CD is $1,000 Time Duration is one year Interest Rate is 6% Compounding period is…

Q: Determine the accumulated value of a 60-month annuity immediate with monthly payments of 30 using a…

A: Monthly payment = 30 Annual interest rate = 6% Monthly interest rate = 6%/12Months = 0.50% Period of…

Q: Find the future values of the following ordinary annuities:   FV of $700 paid each 6 months for 5…

A: Future value is the value of all future cash flows or the annuity fund continuously compounded at…

Q: ind the future values of the following ordinary annuities: ■. FV of $600 paid each 6 months for 5…

A: Future value refers to the value of current asset at some future date affected by interest rate,…

Q: o make a single payment of $2000 at the end of year 7 s $1000, and $900 made at the ends of years 1,…

A: Two cash flow are said to equivalent if the present value is equal today based on time value of…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.