Suppose an amount of Php 18000 is invested in an account with an annual rate of 4.5% continuously compounded. However, an amount of Php 5000 is withdrawn from the account after 4 years. Determine the amount in the account after 6 years. Determine also the rate of increase in the amount in the account at the 6th years.

Q: Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next following…

A: First deposit = P 1000 Annual increase = P 500 Period = 4 Years Annual interest rate = 10%

Q: Find the amount at the end of 5 years if Php17,535 is invested at 2.45% compounded quarterly.

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Sly, the amount of money increases at a rate proportional to the amount S present at time t, that…

A: When interest is compounded continuously, it means that it is added to the principal amount…

Q: An account was opened with an investment of OMR2,000 10 years ago. The ending balance in the account…

A: Rate of Interest is the rate which is earned on the investment done by the investor. Higher the…

Q: Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next following…

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

Q: Determine the interest earned after 10 years if $200 is invested in each of the following accounts:…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: 4. If $2,000 is invested in an account that earns 8.5% interest compounded annually for 5 years,…

A: Interest refers to the cost of borrowing funds or money from other parties. Interest usually is of…

Q: You place $4000 into an account paying 8% compounded annually. Inflation is 2.5% during each of the…

A: The real rate of return is the actual rate of return after taking inflation into account. The…

Q: 4. The amount of P50,000 was deposited in the bank earning an interest of 7.5% compounded…

A: The concept of TVM states that the money received now is worth more than the same amount of money…

Q: from this account and put into another account earning 2% effective annual interest. Find the…

A: When some amount is deposited by a person into the bank account regularly, bank provide interest on…

Q: n initial amount of 1400$ is invested in an account at an interest rate of 9% per year, compounded…

A: In finance we use the concept of time value of money to compute future values and present values.…

Q: Assume you placed RM25,000 in a savings account that pays an annual compound interest of 8% for 3…

A: Solution: With the Time value of money concept (Future value) we will be calculating amount of money…

Q: RM23,500 was invested in a bank for 3 years 7 months. If the interest rate offered was 9.6%…

A: Using excel FV function

Q: Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next following…

A: So in the question asked, We will first list down the important details provided 1) Deposit Amount =…

Q: 1.Calculate the compound amount when $4000 is deposited in an account earning 6% interest,…

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

Q: A sum of P10,000 was invested now and left for 6 years, at which this time the principal is…

A: Invested amount (P) = P 10,000 Interest rate (R) = 15.8% Period till first withdrawal (N1) = 6 Years…

Q: $10, 000 is deposited into an account earning 3% effective annual interest. At the end of each year,…

A: Interest is compensation to funds bearer for time factor of money. Effective Interest or EAR shows…

Q: Suppose $7000 is deposited in an account that pays 6% per year compounded semi-annually. Find (a)…

A: Compound interest is the interest calculated on the principal and the interest accumulated over the…

Q: 4. The amount of P50,000 was deposited in the bank earning an interest of 7.5% compounded…

A: Compound Interest Depositing the cash into the bank for a specific time period can benefit the…

Q: $7000 are invested in a bank account at an interest rate of 6 percent per year. Find the amount in…

A: Here,

Q: Find the compound interest earned if PhP 52,738 is deposited in a bank at 3.7% compounded monthly…

A: Compound Interest = P(1+r)^t - PWhere P = Principal = PhP 52,738R = Rate on interest = 3.7% / 12 =…

Q: A business loan worth Php 1,000,000 is to be repaid quarterly in 2 years . The interest rate is 10%…

A: in this we have to find present value FACTOR and find quarterly payment and solve remaining part.

Q: Ex. Find the amount and compound interest when Rs. 18,000 is invested for 4 years at 7% p.a. rate of…

A: Invested amount = Rs. 18,000 Interest rate = 7% Period = 4 Years

Q: Q) $15,000 is invested in an account at time 0. At the end of 4 years, Invested into the same…

A: Future Value Future value (FV) is the value of a current asset at a future date based on an assumed…

Q: If the interest is deposited into a non interest bearing account B, what is the balance in account B…

A: The first investment is effectively a payout annuity where the interest amount is withdrawn each…

Q: Payments of $1000 each are made at the end of every year for 6 years to a savings account. Calculate…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: How much will be received in 6 years if Php35,000 is deposited in an account earning 5.5% interest…

A: Compound interest is an investment method where the interest earned is reinvested back which earns…

Q: Suppose $2000 is deposited in a saving account that pays interest at an annual rate d 0.40%,…

A: The concept is of calculation of present value when interest rate is compounded continuously. In the…

Q: thousand pesos is deposited at the end of each year for 15 years into an account   earning 7.5%…

A: The compounding continously is logarithmic method of compounding of interest but this is imaginary…

Q: Find the accumulated value of an investment of $15,000 for 4 years at an interest rate of 4.5% if…

A: Compound interest is responsible to accelerates the growth of money. It grows an amount of money…

Q: 4. P1000 is invested every 3-months at 4.8% compounded continuously. How much will the annuity be…

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

Q: Encik Azhar deposited RM500 every quarter for five years in an account that paid 3.85% interest…

A: Here, Quarterly Deposit is RM 500  Interest Rate (r) is 3.85% Compounding Period (m) is Quarterly…

Q: If Php 5,000 becomes Php 9,734 after 12 years, when invested at an unknown rate of interest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: At the start of this year, $10,000 was deposited into an account that earns an effective annual…

A: The FV of the payment series refers to the value of the cash flows at a fixed future date assuming…

Q: How much money was originally invested?

A: Simple interest is a method for calculating the interest for loans and other borrowings. It identify…

Q: Regular quarterly payments of $6000 are deposited into an account paying 3.19% interest, compounded…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.