Suppose that you had deposited $125 in a bank account for each of the last 5 years. What annual interest rate is attached to this account if there is now (at the end of the fifth year) $758.92 in the account? A) 8% B) 10% C) 12% D) 14% E) 16%

Q: Jack opened an account 15 years ago and deposited $12,000 into it. The account now has $20,000 in…

A: Compound interest formula: A=P×1+rnnt where, A = final amountP = initial principal balancer =…

Q: How much would you need to deposit in an account now in order to have $5,000.00 in the account in 13…

A: Simple interest is an interest that is calculated on the initial investment.

Q: 7. Assume that today you made an initial deposit in the amount of $16,000 into a savings account…

A: Future value of an initial deposit paying simple interest is calculated using following equation…

Q: 1. you deposit $500 into an account that pays 4.2% interest compounded monthly. how much money will…

A: Given details are : Present value (investment today) = $500 Interest rate = 4.2% Time period of…

Q: Q2): A person deposits $28,500 into a savings account that earns 5% interest per year. At the end of…

A: Given That: deposited money(P)= $28500 Interest rate (r)=5%=0.05 per year Amount wants to be…

Q: Create an interest calculator that takes input of initial balance and calculates the account balance…

A: Investment refers to employing capital funds to generate capital gain yields. The investment…

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: 6. If you deposit $4,000 now, $5,000 at the end of 2 years and $6,000 at the end of 5 years into an…

A: The concept of money's time value reveals that any sum currently is worth more as compared to the…

Q: Suppose you invest $18,860.00 into an account earning an interest rate of 2.426% compounded…

A: The worth of an asset today at some point in the future based on an estimated rate of growth is…

Q: None

A: Given information: Annual deposit (PMT) = $910 Number of year (n) = 6 Interest rate (i) = 4% or 0.04…

Q: An amount of money P is deposited in a savings account that pays interest at a rate of r percent per…

A: It is simple formula which compounds the principal amount at number of times in a year. We use this…

Q: You have invested money in a savings account that pays a fixed monthly interest on the account…

A: A Compound interest where the interest earned on the principal amount earn interest as per the…

Q: ying a ye er 10 yea 30.000?

A: Formula to calculate the present value or the amount to be deposited today is: P = A/(1+i)^n Where P…

Q: 15. At the beginning of each of 7 years $500 was deposited on the account. At the end of each year…

A: Hence, the PMTs of $500 will be valued at $4,629.9013 at 7 years.

Q: You put $280 in the bank for 5 years at 8%. A. If interest is added at the end of the year, how…

A: Future value is directly proportional to the interest rate. If the interest rate is higher the…

Q: Suppose you invest $1,200 in an account paying 5% interest per year. a. What is the balance in the…

A: With compound interest, more interest can be earned compared to simple interest. This is because…

Q: If you make quarterly deposits of $425.00 into an ordinary annuity earning an annual interest rate…

A: Annuity is the series of equal cash payments over the period.

Q: Assume an individual is wanting to determine the monthly deposits if after 1 year based on monthly…

A: Future Value = 12,336.42 6% Continuous Compounding

Q: Suppose a bank pays you 2% annual interest compounded quarterly. You deposited $2,350. How much will…

A: Computation:

Q: How much will you have saved at the end of 15 years.

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: Assuming that four annual deposits of ($1000) are occurred but the first payment deposit at end of…

A: The annual payments are going to occur will be equivalent to the future value of annual payment that…

Q: Suppose you borrowed $3,000 at a rate of 8.8% and must repay it in 4 equal installments at the end…

A: Present Value = pv = $3000Rate of Retunr = r = 8.8%Number of Payment = n = 4

Q: If you deposited $1,500 into a savings account today, which pays 5% interest and left it alone for 7…

A: INFORMATION: RATE 5% YEARS 7 PMT (MONTHLY DEPOSIT) 0 PRESENT VALUE $1,500

Q: Starting tomorrow, you plan to withdraw equal amounts from the accor END of each of the next four…

A: Present value is the equivalent value of money today of future money to be withdrawn in future.

Q: 1. Assuming that you deposited $100 today in a bank at 6 percent annual interest rate. After four…

A: The objective of the question is to calculate the future value of a single sum of money invested…

Q: 7. You deposit R1 000 annually at the beginning of each of five years into a savings account paying…

A: Introduction: Future value can be referred to as the value of an underlying asset or security at a…

Q: The principal represents an amount of money deposited in a savings account subject to compound…

A: Compound = Annually = 1 Principal Amount = p = $6000 Interest rate = r = 5% Time = t = 3 years

Q: ____ value refers to the total value of the deposit after 7 years. Select one: a. principal b.…

A: The term Principal refers to amount deposited today. The term compound refers to ability of…

Q: 1. If $100 is deposited today in an account paying 9 percent compound annual interest, how much will…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Suppose you invest $19,640.00 into an account earning an interest rate of 2.399% compounded…

A: Future value of continuous compounding = Present Value *e^(rate*Term)

Q: If, starting one year from today, 12 equal annual deposits of $2,500 are made into an account…

A: Annual deposit (P) = $ 2500 Annual interest rate (R) = 0% Number of annual deposit (N) = 12

Q: 27. You hope to accumulate an account balance of $20,000 in 4 years by making a single deposit…

A: We need to calculate the amount to be deposited today - present value (PV)Future Value (FV) =…

Q: 1. If $100 is deposited today in an account paying 9 percent compound annual interest, how much will…

A: The first question is asking for the future value of a single sum. The formula for future value is…

Q: If in your Allied Bank account you deposit Rs.15,000 at the end of each year at 14% interest rate…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: 5. a) Complete the following table for the first 4 periods of an annuity that pays 8.2% compounded…

A: Considering the payments are made at the end of each month, hence period is one month. Interest…

Q: . If you were to deposit $399.27 into an account today that pays 8% interest annually, with a…

A: Present Value = pv = $399.27Interest Rate = rate = 8%Payment = pmt = $100Time = nper = 5 Years

Q: 3) What is the annual interest rate earned on a deposit that grew from $60 to $111.06 over the last…

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

Q: How much would you have to deposit into a bank at the beginning of every 6 months to have a total of…

A: We need to use future value of annuity due formula to calculate semi annual payment.whereFVn =future…

Q: 4) Find the account balance at the end of 10 years, if you deposit 15,000 in an account today if a.…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Suppose you deposit $2899 into an account today In six years the account is worth $3,754 the account…

A: The formula of discount rate has been derived from the formula of future value. The formula is:

Q: You just deposited $6,500 in a bank account that pays a 4.0% nominal interest rate, compounded…

A: Future value represents the value of an investment or asset at a future point in time, based on a…

Q: If you deposit RM5,072 in an account earning 9%, how much would you have in the account after 15…

A: Using the FV function in excel

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.