Which one pays more (for the same amount and same interest rate), a saving account with a simple interest rate or with compounded interest rate?

Q: How can we calculate an Effective Interest Rate Based on a Payment Period?

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

Q: How would an increase in the interest rate effect the present value of an annuity problem (all other…

A: Present value of the annuity The amount of money that would be required today to support a series of…

Q: If you're calculating the present value of future payments, you're using an annuity. Is this…

A: The question explains about  the present value of future payments, you're using an annuity.

Q: o calculate the Internal Rate of Return, you need to know what interest rate to start with. True or…

A: Internal rate of return (IRR) is the rate at which NPV is zero

Q: What is an annuity? How does it differ from a lump sum payment?

A: Annuity:An annuity refers to a series of payments made at regular time intervals. These are…

Q: Which factor determines how much will be saved at different interest rates?

A: The time preference of the consumer for consumption helps in determining the amount that will be…

Q: What is going interest rate?

A: An interest rate is the rate which is applicable on loan and the borrower has to pay the interest…

Q: Explain the addition to the interest rate, HELOC borrowers consider the issues?

A: Home buyers mostly take loans to buy the home and they will pay the debt in equated installments.…

Q: What’s the difference between an ordinary annuity and an annuity due?

A: Annuity is the fixed sum paid on annual basis. In other words, annuity is the series of payment…

Q: For any investment, which will always have the higher future value : an ordinary annuity or an…

A: There are two types of annuity which are as follows: Annuity due: In contrast of ordinary annuity,…

Q: w do yo

A: The effective interest rate is the actual interest rate earned or paid on an investment or loan over…

Q: How can we determine the Net Present-Worth Amounts at Varying Interest Rates?

A: Answer: Net present worth is an estimation method applied to various time intervals when cash flows…

Q: Which one of the theories states that “the rate of interest is set in the market for money…

A: Interest rates are fluctuated based on different parameters of the economy. There are different…

Q: e. What is an annuity due? How does this differ from an ordinary annuity

A: Annuity refers to a series of equal payments made at the same interval.

Q: Illustrate with examples , that Interest rate is equivalent to the savings rate from the deposits?

A: Interest received It is the amount that is received to a person for the investment made. A rate at…

Q: How can we determine the borrowing rate of return?

A: The borrowing rate of return is the return that is charged on the borrowings made by the firms or…

Q: How does the present value of a future payment change as the time to receipt islengthened? As the…

A: Present Value of a future payment is calculated  based on the length of time and the interest rate…

Q: 96,000 98,400 100,8 384,000 393,600 403,4- 1,200,000 1,080,000 960,0 86,000 88,150 90,35

A: 1. Computation of Operating Profit -

Q: What is the internal rate of return? How is it used? How does it relate to the concept of compound…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: E Loan Amount Is $430,000 Loan is a 7/30 Balloon Loan Annual Interest Is 3.75%, with monthly…

A: Given, Loan amount is $430,000 Interest rate is 3.75% Loan is 7/30 balloon loan, which means, after…

Q: What is the formula used in annuity due if your looking for the compounded interest rate with given…

A: Present Value of an Annuity is used when a business wants to know how much amount it should pay for…

Q: If a person charges interest on a loan transaction equivalent to the inflation rate than will it be…

A: Time value of the money is the value of the money which a person must use in order to know how much…

Q: How would an increase in the interest rate or a decrease in the number of periods until the payment…

A: Interest rate is defined as an amount of an interest due per period as the proportion of amount,…

Q: How does the interest rate adjust?

A: Interest rate levels are based on two factors- supply and demand of credit: an increase in the…

Q: How are Effective Interest Rates calculated?

A: Effective interest rate is the interest earned on the investment or saving account.

Q: Can someone give an example of the following: 1. Ordinary Annuity 2. Annuity due

A: An annuity refers to a fixed stream of payments made at equal intervals. These are created and sold…

Q: how do you figure out interest rate change

A: Interest rates play an important function in the financial market, influencing different areas of…

Q: What is the Cumulative interest payment?

A: Cumulative interest payment is the sum of all previous interest payments that are made for an…