You have $6,000 to invest in a 5-year certificate of deposit (CD) that pays 10% interest compounded annually.  How much will you have when the CD matures?

Q: $5000 that you have to pay in 7 annual installments of $1100 each, the first one at the end of the…

A: The given problem relates to RATE function in excel. RATE function computes interest rate for no. of…

Q: You have purchased a house and take out a $600,000 loan with a 30 year term at 5% nominal annual…

A: Information Provided: Loan amount = $600,000 Year = 30 Interest rate = 5% compounded monthly

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A: As per the given information: Amount of loan - $164,000 Rate of interest - 8% Period - 11 years To…

Q: How much would you need to deposit in an account each month in order to have $50,000 in the account…

A: Given: Future value = $50,000 Time =8 years Monthly period = 8*12 = 96 Interest = 4.5% So, monthly…

Q: How much will accumulate in an account with an initial deposit of $100, and which earns 10% interest…

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

Q: You are scheduled to receive Rs. 360,000 in two years. When you receive it, you will invest it for…

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

Q: ou deposit $500 in an account earning 7% interest compounded annually. How much will you have in…

A: Given information: Present Value of deposited money : $500 Interest rate : 7% Time period : 10 years…

Q: Suppose you currently have $20,000 and plan to purchase a 8-year certificate of deposit (CD) that…

A: Using the Future value and NPER function in excel

Q: You borrow $8000 to help pay your college expenses. You agree to repay the loan at the end of 6…

A: Present Value (PV) of loan = $8,000Annual interest rate = 9% or 0.09Quarterly interest rate (r) =…

Q: You've been offered a loan of $20000, which you will have to repay in 5 equal annual payments of…

A: Present Value = pv = $20,000Number of Payment = n = 5Payment = p = $6000

Q: You need $24787 in 5 years.  If you think you could earn an annual rate of 12.35%, what would be…

A: The concept of time value of money states that the money received today is worth more than that the…

Q: What is the future value of $2,500 deposited for one year earning a 14 percent interest rate…

A: In the given question we require to compute the future value of investment from following details:…

Q: You purchase a car priced at 750,000 Php. You paid 10% as the down payment and the remaining balance…

A: Using Excel pmt formula to calculate  monthly payments

Q: Suppose you have $1,000 and plan to purchase a 1-year certificate of deposit (CD) that pays 0%…

A: The maturity amount of a certificate of deposit can be calculated using the compound interest…

Q: You've been offered a loan of $10000, which you will have to repay in 10 equal annual payments of…

A: We take loans to buy large ticket items like a car or a house or to fund high expenses like college…

Q: Ebony wants to invest $1000 in savings certificates that bear an interest rate of 7.5% compounded…

A: We can determine the time taken for the amount to be a certain value by rearranging the formula…

Q: What will be your annual payment if you take nowa loan of $164,000 with annual equal repayments over…

A: Loan amount = $164,000 Loan period = 11 years Interest rate = 0.08 (i.e. 8%) Amount of annual…

Q: You can invest $5,000 today in an account that earns an annual interest rate of 8%. Using the…

A: In the given case, we have provided the current investment or initial investment, annual interest…

Q: If you were to make a deposit of $5,000 today in an investment account expected to pay 5% pa.…

A: The question is related to Time Value of money.When interest is calculated on total of previously…

Q: You need to have $33,500 in 14 years. You can earn an annual interest rate of 5 percent for the…

A: The deposit amount today is calculated as the present value of required amount in future. Present…

Q: you deposit $1,000 each year into an account earning 3% interest compounded annually. How much will…

A: Time value Value received today by an individual is of more worth than receiving the exact value in…

Q: You deposit $4000 in an account earning 3% interest compounded monthly. How much will you have in…

A: The amount after 10 years will be the future value of the initial deposit.

Q: You have the chance to invest $100 in a Certificate of Deposit (CD) paying 6 percent annual…

A: The account value after 5 years can be calculated with the help of future value function

Q: You invest $2,300 in a 4-year certificate of deposit (CD) that pays 3.2% interest, compounded…

A: In this question we need to compute the future value at the end of year 4.

Q: If you borrow $2,200 and agree to repay the loan in five equal annual payments at an interest rate…

A: Loan means lending money by one or more individuals or organizations to other individuals or…

Q: You plan to deposit $500 in a bank account now and $600 at the end of the year. If the account…

A: Solution: The amount in account after second deposit will be the future value of first deposit and…

Q: ou deposit $300 in an account earning 6% interest compounded annually. How much will you have in the…

A: Amount Deposited = $300 Interest Rate(r) =6% Years(N) =10

Q: You invest $150 right now (PV) at 5% in a 10-year certificate of deposit. What will the FV be at the…

A: Given: Present value = $150 Interest rate = 5% Years = 10

Q: If you want to earn 5% annual simple interest on an investment, how much should you pay for a note…

A: The question is based on the concept of time value.

Q: You deposit $4000 in an account earning 5% interest compounded monthly. How much will you have in…

A: Given: Interest rate = 5% Present value = $4,000 Period = 10 years

Q: You deposit $4000 each year into an account earning 2% interest compounded annually. How much will…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: Suppose you invest $3000 in a four-year certificate of deposit (CD) that pays 1.5% interest…

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

Q: You currently have a balance of $8,000 and you pay an interest rate of 12% per year on the card.…

A: Credit card  A tiny plastic card that may be used to purchase products or services without the need…

Q: You invest $3,000 in a Certificate of Deposit paying an annual compound interest of 1.26% for 10…

A: Principal amount, P = $3,000  Interest rate, r = 1.26%  Number of compounding periods, n = 10    The…

Q: Compute the future value of a $1500 deposit, after eight years, in an account that pays an interest…

A: Future value can be determined by compounding the present value.

Q: You need to have $30,750 in 11 years. You can earn an annual interest rate of 6 percent for the…

A: To calculate the deposit amount we will use the below formula   Deposit amount =…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: Determine the interest rate you will pay if you are approved for a loan of $112,000 with annual…

A: Interest Rate: It helps in the computation of the present value or future value of…