Complete the following table: (Use Table 15.1.) Note: Round your intermediate calculations and final answer to the nearest cent. Selling price Down payment Amount mortgage $ 150,000 $ 30,000 Rate 7% Years Monthly payment 30 First Payment Broken Down Into Interest Principal Balance at end of month

Q: At what per annum rate must $344 be compounded monthly for it to grow to $771 in 9 years? (Round to…

A: Compound = n = Monthly = 12Present Value = pv = $344Future Value = fv = $771Time = t = 9 *12 = 108

Q: How long will P150 400 grow to P200 000 at 4 3/4%? (A 6.94 years (B) 7 years (c) 6 months (D 0.69…

A: Present value (PV) = P150400 Future value (FV) = P200000 Interest rate (r) = 4 3/4% = 4.75% Period =…

Q: How did you calculate PVF (9%,20th year)

A: Present value factor is a metric based on the time value of money. It is used to calculate the…

Q: Accumulate 1,200 for 26 years and 3 months at 5 ½% compounded quarterly

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: What is the effective annual rate for an APR of 10.30 percent compounded quarterly?

A: Effective Annual Rate: It represents the real annual rate considering the compounding effects are…

Q: Which of the following would generate the greatest value at the end of 10 years? $100 invested at 8%…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: You invested $23355 for 12 years at 6.68% per annum. How much more would you receive at the end of…

A: Investment amount = $ 23355 Period = 12 Years Interest rate = 6.68%

Q: 9000 invested at an apr of 4.8% for 14 years =

A: Future value is the expected value of the current sum in a future date at a required rate of return.…

Q: If 16% pa is an annual percentage rate (APR) compounding every quarter, which of the following is…

A: APR (r) = 16% per annum compounded quarterly

Q: Effective rate? 8% p.a compounded quarterly

A: Effective annual interest rate(EAR) refers to the real rate of return that we earn on our savings or…

Q: Effective rate? 12% p.a compounded quarterly

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: $5,100 is invested at 6% compounded annually. what is the amount of the account at the end of 3…

A: Under Compound Interest Method, Interest is accumulated with the principle.

Q: Nominal rate is 5.28% with quarterly compounding. The effective annual rate (EAR) is closest to…

A: To calculate the effective annual rate we will use the below formula   Effective annual rate =…

Q: What is the present value of $84,253 to be received or paid in 5 years discounted at 11% by factor…

A: The Present Value Factor (PVF) for nth year discounted at rate r (r%) can be expressed as:

Q: At what per annum rate must $232 be compounded monthly for it to grow to $617 in 10 years?

A: The time value of money is a concept that recognizes the principle that the value of money changes…

Q: Find the sum of money that accumulates to $3479 16 at 9.5% compounded quarterly in seven years,…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: At what annual rate monthly compounded would $1 grow to $10 in 17 years? 0 16 % 14.5 % 0 14 51 %…

A: Annual rate of return refers to the percentage of earnings on the investment made for the given…

Q: If the arithmetic gradient is 1000$ and interest rate is 10% what the present sum of company after 5…

A: The arithmetic gradient is a special case of cash flow series, in the series cash will either…

Q: tive rate? 4 % p.a compounded quarterly

A: Effective rate is the rate after considering the effect of the compounding.

Q: tive rate? 7% p.a compounded quarterly

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: 2. Convert 12% compounded semi-annually to "r" compounded quarterly.

A: We need to use effective annual rate formula to calculate  Effective rate =1+rnn -1 where r=nominal…

Q: e? 6 % p.a compounded monthly

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: ed quarterly for a 11,000, 5 1/2% m=4 redeemable at 110% at the end of 11 years and quoted price

A: The given problem can be solved using RATE function in excel. RATE function computes yield to…

Q: What is the equivalent rate of 10% compounded semi-annually to compounded weekly? O 9.7672% O…

A: Effective rate of interest is the rate of interest compounded as per the tenure.

Q: According to the yields below, what is the 2-year forward rate 3 years from now? Answer as a percent…

A: The expectations theory states that long-term rates are purely determined by the forward rates along…

Q: In what time (years) will P5,000 to P7,000 at 6% compounded quarterly

A: Present value (PV) = P 5000 Future value (FV) = P 7000 Annual interest rate = 6% Quarterly interest…

Q: What is the effective annual rate for an APR of 11.60 percent compounded quarterly? Multiple Choice…

A: Interest Rate = r = 11.60%Compound = n = Quarterly = 4

Q: Find the sum of money that accumulates to ​$5111.39 at 7.7% compounded quarterly in two years, four…

A: given, FV = $5111.39 R= 7.7% M =4 ( quarterly compounding) N= 2 YEARS 4 MONTHS = 2+412years =2.33…

Q: Principal: $16,100 Interest rate: 28% Compounded quarterly Calculate the effective rate (APY) of…

A: APY = [(1+ r/n)^n] - 1 where, r = 28% n =4   as interest is compounded quarterly

Q: What is the accumulated value of ​$500 invested for 17 years at 4.2​% p.a. compounded ​(a)​…

A: The future value of any investment or amount refers to the accumulated value that includes the…

Q: 5000 invested at an APR of 3.1% for 25 years is

A: Annual Percentage Rate (APR) is annual rate of interest charged to borrower and paid to lender. To…

Q: With an interest rate of 8 percent, the present value of $100 received two years from now is…

A: Present Value is the current price of future value which will be received in near future at some…

Q: What present value amounts to $6511.30 of its invested for 3 years at 9% compounded semi-annual?

A: Present value is the current value of a future value or stream of future cash flows at specified…

Q: Effective rate? 20 % p.a compounded quarterly

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: The 5-year spot rate is 10.5% and the 4-year spot rate is 8.8% What is the 1-year forward rate, 4…

A: Solution:- Forward rate means the rate decided today for a future date.

Q: The past five monthly returns for Kohls are 4.11 percent, 3.62 percent, −1.68 percent, 9.25 percent,…

A: Number of returns (n) = 5   Average return is know as arithmetic average return.

Q: Your grandfather has offered you a choice of one of the three following alternatives: $11,500 now;…

A: Present value refers to the current value of a future amount of money or cash flow, based on the…

Q: At what per annum rate must $373 be compounded monthly for it to grow to $756 in 10 years? (Round to…

A: We can use future value(with compound interest) formula to find the annual rate.FV=PV*(1+r/n)^nt

Q: At nominal rate compounded quarterly will P0.5 million accumulated at P760,000 in 4 years?

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: At what per annum rate must $357 be compounded monthly for it to grow to $760 in 11 years? (Round to…

A: To calculate the annual interest rate we will use the below formula   Annual interest rate =…

Q: 5,100 invested for 9 years at 9% componded annually will accumulate to?

A: Interest is the opportunity cost calculated on the principal amount for the mentioned time period.…

Q: At what per annum rate must $319 be compounded daily for it to grow to $625 in 11 years? (Round to…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

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.