The simple interest rate in a payment plan is 12%, and the principal amount borrowed is $10,000. Which function denotes the total amount that is paid back after t years. Of (t) = 10000 + 1200t Ok (x) = 10000 1.12t O 9(z) = 10000 + 12t %3D Oh (x) = 12000t

The simple interest rate in a payment plan is 12%, and the principal amount borrowed is $10,000. Which function denotes the total amount that is paid back after t years. Of (t) = 10000 + 1200t Ok (x) = 10000 1.12t O 9(z) = 10000 + 12t %3D Oh (x) = 12000t

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Complete the table below giving the principal P that must be invested at interest rate 10.5 %…

A: The Principal value is given as: P = A / (1+r/n)nt where, A = amount after t years r = compounding…

Q: Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar.…

A: Solution: Amount deposited to saving account = $3,000 Interest rate = 6% Period = 3 Years

Q: How much is the compensating balance if you need to borrow $350,000 for one year with 9% single…

A: The compensating balance is the extra amount that needs to be maintained at all times above the…

Q: 5. Under compund interest rate model, suppose effective discount rate is 5% (a) Calculate equivalent…

A: Guidelines: We will answer the first three sections of your question because you asked a question…

Q: 10. How long will it take the 200,000.00 loạn to accumulate to 300,000.00 at 7.5% compounded…

A: Calculation of time period to take 200000 loan to 300000 ( compounded semi annually ) are as…

Q: ESTION IS: The present value at j12 of a $10,000 payment today, followed by 32 monthly payments…

A: Present value is the equivalent value of money today of the future money based on the time value of…

Q: what is the value of $100

A: The future value of money is determined by compounding the original amount with interest. It…

Q: SIMPLE vs COMPOUND INTEREST Isimp. = P * r * t where P - principal amount (the initial amount you…

A: Simple interest = P * r * t where P = Principal amount r = rate of interest t = time period…

Q: Given i(26) = 6.375 %, find the equivalent nominal interest rate compounded monthly. Question…

A: Given information, Nominal interest rate compounded bi-weekly (i) = 6.375% or 0.06375Compounding…

Q: A company would like to have $400,000 in 6 years. How much should be invested semiannually into an…

A: Information Provided: Future value = $400,000 Period = 6 years Interest rate = 3.6% compounded…

Q: Use the formula A=P(1+rt) to calculate the maturity value of the simple interest loan when…

A: formula: A=P(1+rt) where, p=principal r=rate t=time in years

Q: A savings account’s value today is $150 and it earns interest at 1% per month. How much will be in…

A: Future Value = Present Value * (F/P, 1%,12) Where, Future Value =F Present Value = 150

Q: ompute the interest rate if future value (FV) = $7198, present value (FV) = $2694, and number of…

A: The future value any amount includes the amount that is being deposited and amount of interest being…

Q: How did it become 0.04768?

A: Here, To Find: Future value of loan =? Equal amount paid after every six months =?

Q: For each of the following cases, indicate (a) to what rate columns, and (b) to what number of…

A: Both future value of annuity and present value of annuity considers compounding in its calculation.…

Q: Suppose that the interest rate is 4%. What is the value of the discount factor, v? υ Enter a value…

A: An interest rate is given. We have to find the value of the discount factor and the discount rate.…

Q: \ A sum of OMR (160000) is invested at an interest rate compounded continuously. After 9 years the…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: All numbers are in millions of dollars, annual compounding, and interest rate = 10% for a-d and g:…

A: Future value of money includes the amount that is deposited and amount of interest accumulated over…

Q: Compute the number of years (t) if future value (FV) = $5575, present value (FV) = $1812, and…

A: Future Value (FV) is a financial term used to describe the value of an asset at a future date, given…

Q: Given below are the future value factors for 1 at 10% for one to five periods. Interest is…

Q: $160 0 $90 1 $65 2 $65 3 Year $90 4 $17 5

A: Economically equivalent means that both cash flows have the same present value at a given interest…

Q: A. Compute for the simple interest given the Principal, interest rate, and term 1. P = Php10,000 2.…

A: Principal Interest rate Period P r t 10000 4.50% 5 500000 15% 10

Q: Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar.…

A: Time value of money is a concept to determine the present value of a sum which is to be paid or…

Q: What is the present value of payments that are: year 0: 5000, year1: 10000, year2: 12500, year3:…

A: Present value shows the worth of future’s money at present time. It is also known as discounted…

Q: onsider a loan at 4.125% APR on 6 years for a $23,000 car a. Estimate the monthly payment (using…

A: Equated Monthly Installments are one part of the equally divided monthly outgoes to clear off an…

Q: If the annual interest rate is 12.9% and the dollar amount compounds daily, you would ( a. multiply…

A: Data given: Annual Interest rate=12.9% compounded daily. (Annual means N=1 year)

Q: 6. Determine the accumulated balance: $1200 invested in an account that cams interest at an APR of…

A: Future value of the investment that is compounded continuously can be calculated using the…

Q: Your client is invested in a registered indexed-linked annuity (RILA). The RILA contains a 7% floor,…

A: Year 1:The S&P 500 return is 12%.The cap rate is 10%, so the credited interest rate is capped at…

Q: Find the maturity value of $2,540 borrowed at 12 3/4% simple interest for 315 days. (Round your…

A: Present Value = pv = $2540Interest Rate = r = 123/4 = 12.75%Time = t = 315 / 365

Q: 4. The interest rate on a savingsaccount is 3% . You deposit£100 today, then £100 at theend of the…

A: The objective of the question is to find the value of x that will empty the account after the final…

Q: Assume that l2t = 0.25% and that lit = 0. If the one-year interest rate is 5% and the two-year…

A: Preferred Habitat Theory: Investors have different preferences for maturity when it comes to bonds,…

Q: At an annual effective interest rate of 5%, an annuity immediate with 4N level annual payments of…

A: A future quantity of money or a series of cash flows' current value, discounted to account for time…

Q: 27.In a loan with 20% simple interest, the future amount is P2,000 more the principal after one…

A: Simple interest is quite simple there is no compouding of interest and there is no interest on…

Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

Assignment - 11. Quiz: Savings Accounts
SECTION 1 OF 1
QUES
ASSIGNMENTS
COURSES
Attempt 1 of 1
« <
3
4.
6 7
8
The simple interest rate in a payment plan is 12%, and the principal amount borrowed is $10,000. Which function
denotes the total amount that is paid back after t years.
Of (t) = 10000 + 1200t
Ok (x) = 10000 1.12t
O g(z) = 10000 + 12t
%3D
Oh (x) = 12000t
SUBMIT ANSWER
O ASK FOR HELP
TURN IT IN
here to search
100

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

If i= 14.8% per year, compounded monthly, What is the effective interest rate per semiannual? (ABET, S01) Select one: Oa. 15.85% Ob. 7.63% O c. 7.4% O d. 1.23% Oe. 7.91%
4. If you know the simple interest due on a P10 000 loan, explain how you can use that figure to calculate the simple interest due on a P50 000 loan for the same time period and the same interest rate. 5. If the principal of a loan is doubled but the time period and interest rate remain the same, how many times as large is the simple interest due on the loan? 6. If the principal of a loan is tripled but the time period and interest rate remain the same, how many times as large is the simple interest due on the loan?
Suppose that the interest rate is 5%. ކ އތރ What is the value of the discount factor, v? U=数字 Enter a value correct to 6 decimal places What is the rate of discount, d? d = 7 Enter a percentage correct to 2 decimal places A payment of £410 will be made in 8 years. What is the present value of this payment? £ 数字 Enter a value correct to 2 decimal places
I calculated the PV value of a $100 payment stream at 1% for 6 years payable at the beginning of the year to be $585.34. Likewise, if I have a balance today of $584.34 in 6 years this balance would be paid off if I deduct $100 at the beginning of each year at 1% interest. (See image capture 1) However I run into issues whe I use two interest rates. Time Payment Rate PV 0 $100 1% 100/(1.01)^0=100 1 $100 1% 100/(1.01)^1=99.01 2 $100 1% 100/(1.01)^2=98.03 3 $100 2% 100/((1.01)^2*(1.02))=96.11 4 $100 2% 100/((1.01)^2*(1.02)^2)=94.22 5 $100 2% 100/((1.01)^2*(1.02)^3)=92.38 The Total PV for this stream is $579.75. So why doesn't the following equation yield zero: Time Payment Rate Balance…
A loan of X is repaid with level payments of R payable at the end of each year for n years. You are given: (i) The interest paid in year 1 is 797.50. (ii) The principal repaid in year n-4 is 865. (iii) The principal outstanding at the end of year n-1 is 1,144.50. Determine X. A B с D E 9,500 10,000 10,500 11,000 11,500
Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar. (The annual interest rate for all problems is 6%.) n = 3; i = 6% n = 6; i = 3% Future value of 1 1.19102 1.19405 Present value of 1 .83962 .83748 Future value of an annuity 3.18360 6.46841 Present value of an annuity 2.67301 5.41719 Redlands Inc. makes semiannual deposits of $2,000 each June 30 and December 31 each year, beginning in 2020. The amount of money Redlands will have on December 31, 2022 immediately after the sixth and final deposit is $
0.1 x (0.8) fort = 1, 2, Problem 5. The spot rate of interest is defined by st 3, 4, 5. Find the present value of a 5-year annuity-due in which the first payment is equal to $1000, and each subsequent payment increases by 6% of the immediately preceding payment.
Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.) Time Nominal Interest Compound Compound Principal Period (years) Rate (%) Compounded Amount Interest $23,000 13 5 annually Need Help? Read It
2. A loan earns an interest of 12% compounded- quarterly and should be paid within 6 yrs. How much is the loan if the mode of payment is made this way: CFD *focal point at 4, and draw a cash flow diagram LIFT 2 3 4 $ 15,000 $ 30,000 P 0 1 $ 20,000 5 i=12% compounded quarterly F = P(1 + i)n P=F(1+i)" 6 $40,000 REMEMBER THIS!
Calculate the simple interest earned. Round to the nearest cent. P = $4700, r = 7%, t = 1 year
Complete the table, applying the concepts of Simple Interest. Show your complete solution. Principal (P) Interest Rate (r) Time (t) Maturity Value (A) (1) 3.2% 6 months P 37 000 P 140 000 (2) 18 months P 157 700 P 75 800 8 2 % (3) P 88 600 P 340 200 7.3% 10 years (4) P1 400 500 4.4% 12 years (5)
A debt payment that was due 6 months ago will instead be repaid with an equivalent value of $642.15 in 42 months from now. The interest rate is 1.42% compounded annually. a) What value of N should be used for calculations? b) What was the original value of the debt payment? Your Answer: Answer units

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS