You invest​ $1500 today and another​ $2000 18-months from today in a fund earning j4 = 8% for the first 18 months followed by j2 = 6% thereafter. How much do you have at the end of 4​ years? A. $4274.59 B. ​$4276.84 C. ​$4007.79 D. $4377.73

Q: A young man has decided to go into the business at the age of 25, he deposits a certain amount and…

A: N = Number of deposits = 11  Annual Increase in deposit = 50,000 Future Value Required = 30,000,000…

Q: Suppose you make equal quarterly deposits of $1.000 into a fund that pays interest a rate of 16% per…

A: TIME VALUE OF MONEY  Time Value of Money is the value of money received today is more than the value…

Q: An engineer invests $10,000 a year for 20 years into a fund. At the end of the 20 years, how much…

A: Annual Payment = p = $10,000Time = t = 20 yearsInterest rate = r = 4%

Q: You deposit the following at the end of each year into a growth mutual fund that earns 11 percent…

A: Working note:

Q: In order to accumulate $1,000,000 over 20 years, how much would you have to invest at the beginning…

A: Future value of money is the amount of deposit done and amount of compounded interest accumulated…

Q: d) A person invests $50,000 in an investment that earns 6 percent. If $6,000 is withdrawn each year,…

A: Step 1 The idea of the time value of money (TVM) holds that a quantity of money is worth more now…

Q: Shah Rukh invested RM5 000 in an investment fund for three years. At the end of the investment…

A: Simple interest is the amount of interest which is incurred or earned over the period of time. Under…

Q: An engineer invests $10,000 a year for 20 years into a fund. At the end of the 20 years, how much…

A: We can determine the amount in the fund after 20 years using the formula below:

Q: Adam invested $9,000 at the end of each quarter for 6 years in an investment fund. If the balance in…

A: Quarterly deposit = $9000Future value = $245,500Quarterly period = 24 (i.e. 6 years * 4)Quaterly…

Q: None

A: Future value refers to the amount accumulated at the end of a certain period from the amount…

Q: )A businesswoman needs 55,000 in 10 years. What amount should be deposited in a fund at the end of…

A: Data given: FV= $55,000 Time (t) = 10 years Rate (r) = 10% compounded quarterly n= 4 Period = 10*4 =…

Q: Mr. Jones will invests P 5,000 in a fund at the end of each 6 months to accumulate P 100,000 to buy…

A: When an investor makes regular periodic deposits in an investment, this is known as an annuity. The…

Q: Steve Newman will invest $10,240 today in a fund that earns 12% annual interest. Click here to view…

A: To calculate the number of years it will take for the fund to grow to $50,044, we can use the…

Q: = sinking fund formula, calculate the

A: Payment per month refers to the amount which a borrower should at the end of each month or period to…

Q: YYou expect your retirement fund to be able to afford $40,000 a year, adjusted for 3% annual growth…

A: Payment = p = $40,000Growth Rate = g = 3%Time = t = 20Rate of Return = r = 10%

Q: 3. Able invested $5,000 in a fund for 45 years This fund gives an annual return on 7 percent per…

A: PV =$5000r=7% for first 20 yearsr=9% for next 25 years

Q: Question 10 Levi has $32,000 invested in his favorite mutual fund which earns 12.0% per year. If he…

A: The future value can be calculated byThe future value of annuity can be calculated by

Q: sit, Find the present value of all investments. H

A: Present Value: It is the present worth of future annuity payments being periodic in nature. It is…

Q: You are contemplating investing some surplus funds and the followingoptions are available:1. Invest…

A: The objective of the question is to determine which investment option is the second best in terms of…

Q: You invest $180 in a mutual fund today that pays 6.80 percent interest annually. How long will it…

A: Compound interest is a concept that plays a crucial role in finance and investing. It refers to the…

Q: A company deposited $10,000 into an investment fund at the beginning of every quarter for 3 years.…

A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…

Q: Consider an investment fund that starts out with £160,000. After one year, the value of the fund is…

A: Here,

Q: A consultant advises that a fund pays out $100,000 at the end of 5 years. Provided $12,000 is…

A: Annuity due are those payments that are made at the beginning of the year and ordinary annuities are…

Q: 28. You plan to make 40-quarterly deposits into a fund in order to have $10,000 at the end of 10…

A: Future value of money is the amount of deposit made and amount of interest accumulated over the…

Q: To what amount will the investment grow in 4 years? To what amount would the investment grow in 4…

A: The amount that is expected to be received at some future date after considering the interest rates…

Q: You deposit $2500 each year into an investment account that earns 8.5% interest for 20 years. Find…

A: Given Amount of deposit $2500. rate 8.5% for 20 years.

Q: You are contemplating investing some surplus funds and the following options are available: 1.…

A: The objective of the question is to determine which investment option would yield the second highest…

Q: Lauren's investment of $94,600.00 in a fund matured to $163,799.04 in 7 years. If the interest in…

A: The periodic rate is calculated using following equation Periodic rate, r = FVPV(1/n)-1 Where, FV is…

Q: 2. An investor is setting up a fund which requires 20 years of contributions. The investor pays £50…

A: The FV of an annuity refers to the value of its cash flows at a particular future date assuming it…

Q: I hope you could write the formula and process more clearly. Thank you so much

A: The value of the fund after 12 years is approximately £13,802.54.Explanation:Calculating the Value…

Q: Jimmy deposits $ 3,600 now, $ 2,500 3 years from now, and $ 5,800 6 years from now. Interest is 6%…

A: We need to use the present value and the future value formula below to calculate the required…

Q: 2. An investor is setting up a fund which requires 10 years of contributions. The investor pays £150…

A: An annuity is a financial product that provides a series of payments at regular intervals, typically…

Q: Mr. Jones will invests P 5,000 in a fund at the end of each 6 months to accumulate P 100,000 to buy…

A: The future value of an annuity refers to the value of a series of equal payments or cash flows at a…

Q: An investor needs $17,000 in 13 years. (a) What amount should be deposited in a fund at the end of…

A: Amount needed " FV" is $17,000 Time period is 13 years Interest rate is 7% Compounded Quarterly To…

Q: Morgan Newman will invest $9,280 today in a fund that earns 12% annual interest. Click here to view…

A: Given: Present value = PV = $9,280 Rate = I/Y = 12% Future value = FV = $50,795

Q: All computations must be done and shown manually Question 2 You are contemplating investing some…

A: InvestmentRateCompoundingNumber of…

Q: rdan deposited $23,500 into a fund at the beginning of every quarter for 20 years. He then stopped…

A: Future value is the amount being deposited over the period and the amount of interest accumulated…

Q: Hatim has invested in a fund that will provide him a cash flow of OMR 11700 for the next 20 years.…

A: Here, Annual Cash Flow is OMR 11,700 Discount Rate is 8.5% Time Period is 20 years

Q: Jimmy deposits $5,000 now, $2,800 3 years from now, and $5,200 6 years from now. Interest is 3% for…

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

Q: How much should GlassilueCat invest in a fund to be able to withdraw $22.000 at the end of every 3…

A: Present Value  The present value is the value of cash flow stream or the fixed lump sum amount at…

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.