Assume you are investing $10,000 today for given amount of time at a given interest rate....
Assume you are investing $10,000 today for given amount of time at a given interest rate. What would DECREASE the total amount of money at the end of the investment period? Group of answer choices
a. Payment of compound instead of simple interest
b.Paying and compounding interest on both the principal amount and earned interest each period
c.Increasing the interest rate
d. Shortening the investment period
Homework Answers
Option (d) is correct
Shortening the investment period will DECREASE the total amount of money at the end of the investment period. When the investment period is shortened then the invested money will earn lesser interest than the normal period.
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Assume you are investing $10,000 today for given amount of time
at a given interest rate....
Calculator Mastery Problem: Time Value of Money Time value of money Due to both interest earnings...
Calculator Mastery Problem: Time Value of Money Time value of money Due to both interest earnings and the fact that money put to good use should generate additional funds above and beyond the original investment, money tomorrow will be worth less than money today. Simple interest Bolden Co., a company that you regularly do business with, gives you a $19,000 note. The note is due in three years and pays simple interest of 9% annually. How much will Bolden pay...
Kelsey owes $10,000 today but cannot make the payment. Instead she is to repay this amount...
Kelsey owes $10,000 today but cannot make the payment. Instead she is to repay this amount in two equal payments, one in 3 months from today and one in 9 months from today. If the focal date is 9 months from today and money is worth 4.5% compounded quarterly. The amount of the equal payments is (6 marks) a. $5,170.66 b. $5,112.81 C. $5,042.13 d. $5,141.73 Julia decides to purchase a new home and takes out a mortgage for $250,000....
Time 13. Calculate the total interest earned for the investment below. Principal Rate of Compound Compounding...
Time 13. Calculate the total interest earned for the investment below. Principal Rate of Compound Compounding Interest per Year Period $8200 2.8% quarterly 15 years
You will be asked to find the simple interest for an account. You have $10,000 in...
You will be asked to find the simple interest for an account. You have $10,000 in a savings account that pays 2% simple interest per year. Find the interest earned for the first year. Find the balance on an account that accrues compound interest . Given an investment, APR, compounding rate and length of investment find the balance after maturity. You have $10,000 in a savings account that pays 2% APR compounded monthly. Find the balance on the account after...
Match the following terms with the description below. Annuity Compound interest [Choose ] ✓ A series...
Match the following terms with the description below. Annuity Compound interest [Choose ] ✓ A series of equal payments made over equal time periods. The amount of money that accumulates at some future date as a result of making equal payments over equal intervals of time and The amount of money that, if invested at some rate of interest today, will generate a set number of equal periodic payments that are made The process of adding interest to principal for...
each blank has 2 drop down answers i will type the choices out 1.maturety payment OR...
each blank has 2 drop down answers i will type the choices
out
1.maturety payment OR principal
2. intrest OR principal
3. Period of time OR interest rate
4. period of time OR interest rate
5. present OR future
6. present OR future
7.interest rate OR annuity
8.Straight or blended OR simple or compound
9.simple OR compound
10.simple OR compound
11 compound OR simple
Mahadev and Jennifer are sitting together, with their notebooks and textbooks open, at a coffee shop....
The principal represents an amount of money deposited in a savings account subject to compound interest...
The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Find how much money will be in the account after the given number of years (Assume 360 days in a year.), and how much interest was earned. Int A P A = Pert n nt 1 + 38) Principal: $10,000 Rate: 5% Compounded: semiannually Time: 5 years A) amount in account: $11,314.08; interest earned: $1314.08 B) amount in account: $12,762.82;...
Calculator Compound Interest With compound Interest, the interest is added to principal in the calculation of...
Calculator Compound Interest With compound Interest, the interest is added to principal in the calculation of interest in future periods. This addition of interest to the principal is called compoundin This differs from simple interest, in which interest is computed based upon only the principal. The frequency with which interest is compounded per year will dictate many interest computations are required (1.e. annually is once, semi-annually is twice, and quarterly is four times). Imagine that Bolden Co., fearing that you...
For 2(a)-2(c) using the following information. You borrow $10,000 today with interest rate 7%, and you...
For 2(a)-2(c) using the following information. You borrow $10,000 today with interest rate 7%, and you plan to pay the bank back with 8 equal annual payment. Let us assume the first payment happen at the end of each year Principal beg. Payment Yearyear end year Interest Principal 2(a) how much is the annual payment? We were unable to transcribe this image
PLEASE SOLVE ITT Compare the interest earned by $10,000 for four years at 9% simple interest...
PLEASE SOLVE ITT
Compare the interest earned by $10,000 for four years at 9% simple interest with interest earned by the same amount for four years at 9% compounded annually Why does a difference occur Click the icon to view the interest and annuity table for discrete compounding when 9% per year. The simple interest earned is $ (Round to the nearest dollar.) The compound interest earned is $ (Round to the nearest dollar) There is a difference in the...
Calculator Mastery Problem: Time Value of Money Time value of money Due to both interest earnings and the fact that money put to good use should generate additional funds above and beyond the original investment, money tomorrow will be worth less than money today. Simple interest Bolden Co., a company that you regularly do business with, gives you a $19,000 note. The note is due in three years and pays simple interest of 9% annually. How much will Bolden pay...
Kelsey owes $10,000 today but cannot make the payment. Instead she is to repay this amount in two equal payments, one in 3 months from today and one in 9 months from today. If the focal date is 9 months from today and money is worth 4.5% compounded quarterly. The amount of the equal payments is (6 marks) a. $5,170.66 b. $5,112.81 C. $5,042.13 d. $5,141.73 Julia decides to purchase a new home and takes out a mortgage for $250,000....
Time 13. Calculate the total interest earned for the investment below. Principal Rate of Compound Compounding Interest per Year Period $8200 2.8% quarterly 15 years
Match the following terms with the description below. Annuity Compound interest [Choose ] ✓ A series of equal payments made over equal time periods. The amount of money that accumulates at some future date as a result of making equal payments over equal intervals of time and The amount of money that, if invested at some rate of interest today, will generate a set number of equal periodic payments that are made The process of adding interest to principal for...
each blank has 2 drop down answers i will type the choices
out
1.maturety payment OR principal
2. intrest OR principal
3. Period of time OR interest rate
4. period of time OR interest rate
5. present OR future
6. present OR future
7.interest rate OR annuity
8.Straight or blended OR simple or compound
9.simple OR compound
10.simple OR compound
11 compound OR simple
Mahadev and Jennifer are sitting together, with their notebooks and textbooks open, at a coffee shop....
The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Find how much money will be in the account after the given number of years (Assume 360 days in a year.), and how much interest was earned. Int A P A = Pert n nt 1 + 38) Principal: $10,000 Rate: 5% Compounded: semiannually Time: 5 years A) amount in account: $11,314.08; interest earned: $1314.08 B) amount in account: $12,762.82;...
Calculator Compound Interest With compound Interest, the interest is added to principal in the calculation of interest in future periods. This addition of interest to the principal is called compoundin This differs from simple interest, in which interest is computed based upon only the principal. The frequency with which interest is compounded per year will dictate many interest computations are required (1.e. annually is once, semi-annually is twice, and quarterly is four times). Imagine that Bolden Co., fearing that you...
For 2(a)-2(c) using the following information. You borrow $10,000 today with interest rate 7%, and you plan to pay the bank back with 8 equal annual payment. Let us assume the first payment happen at the end of each year Principal beg. Payment Yearyear end year Interest Principal 2(a) how much is the annual payment? We were unable to transcribe this image
PLEASE SOLVE ITT
Compare the interest earned by $10,000 for four years at 9% simple interest with interest earned by the same amount for four years at 9% compounded annually Why does a difference occur Click the icon to view the interest and annuity table for discrete compounding when 9% per year. The simple interest earned is $ (Round to the nearest dollar.) The compound interest earned is $ (Round to the nearest dollar) There is a difference in the...
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