2. Utilizing the present value interest formula ?? = ??(1 + ??)−??, how long did it...
2. Utilizing the present value interest formula ?? = ??(1 + ??)−??, how long did it take for $650 to amount to $700 at an annual rate of 5% compounded annually? (10 POINTS) What was the effective rate?
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2. Utilizing the present value interest formula ?? = ??(1 +
??)−??, how long did it...
Q007 Future Value -Present Value 1 a. Suppose that the inflation rate is 3.8% (which means that the overall level of prices is rising 3.8% a year). How many years will it take for the overall level o...
Q007 Future Value -Present Value 1 a. Suppose that the inflation rate is 3.8% (which means that the overall level of prices is rising 3.8% a year). How many years will it take for the overall level of prices to double? Solution: We want to find the number of years it will take for $1 worth of goods or services to cost $2. Think of $1 as the present value and $2 as the future with an interest rate of...
What is the present value of an annuity that pays $352 at the beginning of each...
What is the present value of an annuity that pays $352 at the beginning of each year for 47 years if the annuity earns 12% annually? An account pays 2% annual interest compounded monthly. What is the effective interest rate on this account? If you deposit some money into a bank account today, to the nearest year, how long will it take to triple your deposit if it earns 11% annually? What is the present value of an annuity that...
1. What is the interest earned from a savings of P10,000 at a simple interest rate of 107 per year for 5 years...
1. What is the interest earned from a savings of P10,000 at a simple interest rate of 107 per year for 5 years? (5 points) 2. How long does a man need to invest P5,000 to be P9,000 at an interest rate of 10 compounded annually? (5 points) 3. What is the rate of interest, compounded monthly charged to an investment of P2 000 that pays P1, 205 per month for 2 years. (5 points) 4. How much annual deposit...
1. Determine the discount rate assuming the present value of $940 at the end of 1-year...
1. Determine the discount rate assuming the present value of $940 at the end of 1-year is $865? 2. $9,800 is deposited for 12 years at 5% compounded annually, determine the FV? 3. If $2,800 is discounted back 4 years at an interest rate of 8% compounded semi-annually, what would be the present value? 4. Consider a newlywed who is planning a wedding anniversary gift of a trip to Canada for her husband at the end of 10 years. She...
(a) How long will it take an investment to double in value of the Interest rate...
(a) How long will it take an investment to double in value of the Interest rate is 6% compounded continuously? (Round your answer to one decimal place.) 11.6 years (b) What if the interest is compounded annually? (Round your answer to one decimal place.) x years
10. Finding the interest rate and the number of years The future value and present value...
10. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security of $10,000 will be worth $14,693 five years in the future, assuming that no additional deposits or withdrawals are made, what is the Implied interest rate the investor will earn on the security? O 4.80% O 6.00% O 6.40% O...
1. Calculate the present value of $50,000 to be received in 15 years assuming an annual...
1. Calculate the present value of $50,000 to be received in 15 years assuming an annual interest rate of 6%. 2. Calculate the present value of $1,000,000 to be received in 20 years assuming an annual interest rate of 5%, compounded monthly. 3. Calculate the future value of $1,000 invested for 5 years assuming an annual interest rate of 20%. 4. Calculate the future value of $12,000 invested for 18 years assuming an annual interest rate of 12%, compounded monthly....
Present value What is the present value of a security that will pay $20,000 in 20...
Present value What is the present value of a security that will pay $20,000 in 20 years if securities of equal risk pay 12% annually? Round your answer to the nearest cent. Time for a lump sum to double How long will it take $500 to double if it earns the following rates? Compounding occurs once a year. Round each answer to two decimal places. a. 3% year(s) b. 9% year(s) c. 21%. year(s) d. 100%. year(s) Time for a...
I. SIMPLE INTEREST: 1. How much is the amount and the accrued simple interest of $...
I. SIMPLE INTEREST: 1. How much is the amount and the accrued simple interest of $ 18,950; at 6.585% for seven years and nine months? 2. Find the difference between the exact simple interest and the ordinary simple interest when calculating $ 15,180 at 8.625% for 60 days? 3. If you deposited $ 18,750 at what%, would you accumulate an amount of $ 57,156.25 in five years? II. COMPOUND INTEREST: (annual and parts of the year) 1. Find the amount...
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present...
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 3 2021, of a five-period annual annuity of $3,800 under each of the following situations (EV. 51. PV 51. EVA 051. PVA O SI EVADA $1 and PVAD of $11) (Use appropriate factor(s) from the tables provided.) Ched my w 1. The first payment is received on December 31, 2022, and interest is compounded annually 2. The first payment is received...
Q007 Future Value -Present Value 1 a. Suppose that the inflation rate is 3.8% (which means that the overall level of prices is rising 3.8% a year). How many years will it take for the overall level of prices to double? Solution: We want to find the number of years it will take for $1 worth of goods or services to cost $2. Think of $1 as the present value and $2 as the future with an interest rate of...
1. What is the interest earned from a savings of P10,000 at a simple interest rate of 107 per year for 5 years? (5 points) 2. How long does a man need to invest P5,000 to be P9,000 at an interest rate of 10 compounded annually? (5 points) 3. What is the rate of interest, compounded monthly charged to an investment of P2 000 that pays P1, 205 per month for 2 years. (5 points) 4. How much annual deposit...
(a) How long will it take an investment to double in value of the Interest rate is 6% compounded continuously? (Round your answer to one decimal place.) 11.6 years (b) What if the interest is compounded annually? (Round your answer to one decimal place.) x years
10. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security of $10,000 will be worth $14,693 five years in the future, assuming that no additional deposits or withdrawals are made, what is the Implied interest rate the investor will earn on the security? O 4.80% O 6.00% O 6.40% O...
Present value What is the present value of a security that will pay $20,000 in 20 years if securities of equal risk pay 12% annually? Round your answer to the nearest cent. Time for a lump sum to double How long will it take $500 to double if it earns the following rates? Compounding occurs once a year. Round each answer to two decimal places. a. 3% year(s) b. 9% year(s) c. 21%. year(s) d. 100%. year(s) Time for a...
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 3 2021, of a five-period annual annuity of $3,800 under each of the following situations (EV. 51. PV 51. EVA 051. PVA O SI EVADA $1 and PVAD of $11) (Use appropriate factor(s) from the tables provided.) Ched my w 1. The first payment is received on December 31, 2022, and interest is compounded annually 2. The first payment is received...
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