Suppose that you are obtaining a personal loan from your uncle in the amount of $20,000 (now) to be repaid in two years to cover some of your college expenses. If your uncle usually earns minimum 8% profit (annually) on his money, which is invested in various sources.   1) What minimum lump-sum payment two years from now would make your uncle happy?   2) If you pay yearly, how much should you pay each year?   3) If you pay every six months, how much should you pay every six months?

Q: You are planning to become a millionaire (i.e., save $1 M) over the next 30 years when you finally…

A: Time value of money The time value of money is the mostly accepted conjecture that there is more…

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Given: The interest rate is = 11% compounded quarterly The amount at 4th quarter is = $1,200 The…

Q: A person has made an arrangement to borrow $1,000 now and another $1,000 two years hence. The entire…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: You have selected an account that yields 3.85% compounded monthly to invest the $4,051,948 that you…

A: The effective annual interest rate (EAR), also called the annual percentage yield, means the true…

Q: An individual makes six annual deposits in a savings account starting one year from now that pays…

A: interest rate = 12% compounding continuously withdraws after 10 years for next 10 years = 15,000

Q: In one instance, a financial institution loaned you $60,000 for two years at an APR of 5.75% for…

A: First instance: Given , Principal = $60000 APR = 5.75% Time period = 2 years Thus, simple interest =…

Q: You are going to get %10,000,000 in 45 years' time. What is the value of that money today assuming…

A: Present value can be calculated by using the following formula.

Q: . Exactly 100 years ago, my greatgrandmother deposited P10450 in a large Philippine Bank as part of…

A: Present value is the value of investment in todays dollar.  Future value is the value of investment…

Q: How long will it take any sum to double itself with an 11% interest rate compounded continuously? a)…

A: Continuous compounding refers to compounding interest an infinite times in a year.  The formula…

Q: An annuity offers to pay £8,200 per year for 20 years, and the nominal annual bank interest rate is…

A: Given: The amount of annuity = £8,200 per year Years = 20 The rate of interest is = 6% compounded…

Q: 10. What is the annual interest rate on a 1000 dollars loan in which all interest is paid at the end…

A:

Q: You have a total of $2,520,000 in your retirement account right now. You plan on making a uniform…

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

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

A: The compound interest formula for semi annual basis is as follows: A=P(1+rn)nt Where,  A is the…

Q: Problem 4 fan investment of $8,000 is made today, what annual compound interest rate would be…

A: Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other…

Q: John Doe received the following information in a mailed advertisement: "You could borrow $4,400 for…

A: here by calculating the effective interest we conclude the better opportunity which are as follow-

Q: How much do you have to deposit now(with a second deposit in the amount of $600 at the end of the…

A: Cash flow schedule is given as Year   0 x 1 -600 2 250 3 250 4 250 5 500 6 500…

Q: To make CDs look more attractive as an investment than they really are, some banks advertise that…

A: Simple interest computes interest based only on the initial amount borrowed or invested, while…

Q: ou expect to receive the following: $2,784 at the end of each year for 12 years $16,636 today…

A: Interest rate = 8% so i = 0.08In the given payment scheme,we expect to receive$2,784at the end of…

Q: consider yourself unable to pay this month's rent due to financial issues. A Money lending company…

A: * Annual interest rate = per month interest rate * 12 * Effective annual interest rate : Here we…

Q: What is the amount of interest earned on $5,000 for eight years at 10% simple interest per year?

A: Since, you have asked more than one question, we will be answering the first one for you. If you…

Q: Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded…

A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…

Q: If you are interested in buying some shares of this stock for a total of $200 and will hold them for…

A: Introduction: The total of future investment returns discounted at a given level of expected return…

Q: Today you borrow $10,000 to pay for your expected college costs over the next four years, including…

A: A cash flow is a physical or digital currency motion. It is a transaction, particularly through one…

Q: Suppose that, to cover some of your college expenses, you are obtaining a personal loan form your…

A: Given  Total amount of money paid after three year =20223 Interest rate =10% compound monthly.

Q: have selected an account that yields 4.87% compounded every tl 4,125,000 that you have saved while…

A: *Answer:  Nominal interest rate = 4.87% Interest rate per quarter = 4.87%/4 = 1.2175% Effective…

Q: You have just purchased 200 shares of General Electric stock at $15 per share. You will sell the…

A: Given that,   No. of shares purchased: 200 Cost of each share: 15 Ratio to be increased per year, 8…

Q: A new home that costs $490,000 has presented itself. You want to make a 20% down payment and finance…

A: In the mention question, we are expecting an interest rate which is 4.375% but we are given quoted…

Q: On January 1, 2005, a person’s savings account was worth $200,000. Every month thereafter, this…

A: Part 2: Explanation:Step 1: Calculate the Future Value (FV) using the formula for compound…

Q: Suppose you want to withdraw $30,000 at the end of year 3 and another $30,000 at the end of year 5.…

A: When money is put somewhere, interest is accrued. Principal value refers to the original deposit,…

Q: An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I…

A: Effective annual rate (EAR) implies a real interest rate which an investor is expect from his…

Q: You were released from your current job and received a settlement of $54,000. The Canada Revenue…

A:

Q: Compound interest is a very powerful way to save for your retirement. Saving a little and giving it…

A: Formula for the future value of annuity is given as:

Q: Suppose you borrowed $10, 000 at an interest rate of 12% compounded monthly over 48 months. At the…

A: Loan amount (P)=$10,000 Rate of interest =12% compounded monthly  This loan is a fixed payment loan…

Q: Accumulate a $40,000 principal for 15 years under the rate (.05, m 4). What compound interest is…

A: Given information: Principal amount (P): $40,000 Time period (t)= 15 years Interest rate (r): 5%…

Q: $500 grows to $1,500 over a certain period and interest rate, what will be the present value of…

A: Present value represents the current worth of a sum of money that is to be received or paid in the…

Q: At what simple interest rate: a) Will $20,000.00 rise to $21,100.00 in one year? b) Will $720,000.00…

A: We have given  (a) Present value of money P= $20,000.00 Future value F= 21,100.00 and time = 1 year…

Q: A cash flow at time zero (now) of $14,551 is equivalent to another cash flow that is an EOY annuity…

A: A Cash flow at time zero (but now it is $14,551) is equivalent to another cash flow that is an…

Q: You are going to borrow $30,000 to purchase a car.  You agree to repay the loan in 36 monthly…

A: The nominal interest rate is the rate of interest charged on the loan amount. It is the sum total of…