An investment will pay 5000 dollars at the beginning of 2001, and 3800 dollars at the beginning of 2005. What is the present value of the investment at the beginning of 1998, assuming an effective interest rate of 4.8 percent? Thank you!

Q: If Pat pays $15,334.65 for a $25,000 face-value, zero-coupon bond that matures in 8 years, what is…

A: Given-              F.V=$15,334.65              P.V=$25,000               n      = 1 year Where-…

Q: If Tanya's husband were to die, she and her children could live on $60,400 per year. Tanya makes…

A: Total income earned= 33,100+21,500 =$35600

Q: If a business borrows $12,700 and repays $22,225 in 5 years,what is the simple interest rate?

A: Simple interest formula for an amount of P for an interest rate r% of t years is given by the…

Q: Suppose that a 20-year government bond has a maturity value of $1000 and a coupon rate of 9%, with…

A: For 20 years, the government bond has a mutual value of $1,000 at a coupon rate of 9%…

Q: Matthew wants to set up a sinking fund that will be worth $100,000 after 20 years of monthly…

A:

Q: A debt of $7000 is to be amortized with 10 equal semiannual payments. If the interest rate is 5%,…

A:

Q: A debt of $7000 is to be amortized with 8 equal semiannual payments. If the interest rate is 10%,…

A: The amortization formula is given by R=P i1-(1+i)-n where R is the periodic payment for the borrowed…

Q: What will be the maturity value of ₱16,000 invested for 5 years at 15% compounded quarterly?

A: Formula: The compound interest formula is given by, A=P1+rnnt, where A-maturity value, P-principle…

Q: A child’s grandparents are considering buying a $40,000 face-value, zero-coupon bond at birth so…

A: A child’s grandparents are considering buying a $40,000 face-value, zero-coupon bond at birth so…

Q: If an interest rate of 5% results in interest of $50, what is the principal amount of the loan?

A:

Q: Determine the present value now of an investment of $3,000 made one year from now and an additional…

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Q: A debt of $6000 is to be amortized with 8 equal semiannual payments. If the interest rate is 12%,…

A:

Q: A $3,500 loan, taken now, with a simple interest rate of 7% per year, will require a total repayment…

A:

Q: A debt of $9000 is to be amortized with 10 equal semiannual payments. If the interest rate is 5%,…

A: Note that, here P = $9000, r = 0.05, and t = 5 years (since 10 equal semiannual payments).…

Q: A man purchases a $2000 diamond ring for a down payment of $200 and monthly installments of $88 for…

A: Given: Cost price of diamond ring, P = $ 2000 Down payment amount = $ 200 Monthly installment = $88…

Q: If $7,000 is borrowed and repaid with four quarterly payments of $600 during the first year and four…

A: Concept: A branch of mathematics which deals with symbols and the rules for manipulating those…

Q: A loan of $10,000 is to be amortized with 10 equal quarterly payments. The interest rate is 6%…

A: Solution

Q: If you purchase $22,000 in U.S. Treasury Bills with a discount rate of 4.1% for a period of 26…

A: Given data, Face value is $22,000 Discount rate is 4.1% Number of periods is 26 weeks

Q: You buy a house for $250,000, make a 20% down payment, and take out at 30-year mortgage at an annual…

A: Here, House price= $250,000 Down payment= 20% Effective interest rate= 4%

Q: The Department of Traffic Security of a city is considering the purchase of a new drone for aerial…

A: Given data A purchase 4 years ago cost $1,150,000 at an interest rate of 8% per year.

Q: A debt of $9000 is to be amortized with 6 equal semiannual payments. If the interest rate is 7%,…

A: A debt of $9000 is to be amortized with 6 equal semiannual payments. If the interest rate is 7%,…

Q: Suppose that a savings account pays an effective rate of interest of 11 percent. What is the…

A: Interest rate =11%

Q: Suppose your bank has a minimum interest policy for single-payment loans of $60. Using ordinary…

A:

Q: Suppose you want to purchase a $ 165000 house. If you put 20% down and finance the rest in a 25 year…

A: # Given: principal amount p=$165000 20% down payment  25 year mortgage  interest rate r=5.5%  then…

Q: does a simple interest investment generate less interest than a compound interest loan?

A:

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. c. If you pay…

A: Given that, loan amount P=$175,000, monthly payment PMT= $975, Interest rate r=4.5% and frequency of…

Q: Suppose a credit card has an APR of 22.41% and changes its compounding period from daily to monthly.…

A: Suppose a credit card has anAPR of 22.41% and changes itscompounding period from dailyto monthly.…

Q: At what simple interest rate per annum will ₱20,000 accumulate to ₱25,000 in 3 years?

A: Solution:-

Q: Calculate the simple interest earned on a investment of  $ 700,000                           after…

A:

Q: When must an obligation of P3,483 be made  to extinguish a loan of P3,000 which bears interest at 4%…

A: Let x be the number of days after which an obligation of P3,483 is to be made to extinguish a loan…

Q: What would be the selling price of a 10-year bond with a face value of P100,000, interest at 20%…

A:

Q: Suppose you want a $22,000 car right now, but cannot afford it so you instead get a loan. The loan…

A: Given Suppose you want a $22,000 car right now, but cannot afford it so you instead get a loan. The…

Q: What simple interest rate will convert a $200 investment into $220 in one year?

A: we know the formula: simple interest (SI)=P×r×t100 where P is the principle(investment) amount, r is…

Q: 15.) Find the APR to the nearest half-percent on a $3700 loan that is repaid at 7% add-on interest…

A: answer is in next step

Q: A debt of $8000 is to be amortized with 10 equal semiannual payments. If the interest rate is 9%,…

A: Given the debt amount $8,000. Number of payments is 10 equal payments (Semiannually). Rate of…

Q: A retiree requires an annual income of at least $9000 from an investment paying 7.5% annual…

A: Given: A retiree requires an annual income of at least $9000 from an investment paying 7.5% annual…

Q: Suppose you make a single deposit of $8000. Calculate the amount of money you will have in the…

A: Given query is to find the amount after 5 years.

Q: If you pay $8,400 for a 20-year zero coupon bond with a face value of $40,000, what is your annual…

A:

Q: A debt of $5000 is to be amortized with 6 equal semiannual payments. If the interest rate is 9%,…

A:

Q: If you owe $2000 on a credit card with 18% annual interest compounded monthly, how i) much money…

A:

Q: If you purchase $28,000 in U.S. Treasury Bills with a discount rate of 4.3% for a period of 26…

A: Consider the given information.

Q: What is the maximum amount you can borrow with a 30-year mortgage if you can pay $725 a month and…

A: Note that, here the periodic payment PMT=$725, interest rate i=4.2%=4.212×100=0.0035, and the number…

Q: A company estimates that it will need $161,000 in 18 years to replace a computer. If it establishes…

A: Use formula of compound interest

Q: The highway department expects the cost of maintenance  for a piece of heavy construction equipment…

A:

Q: A homebuyer wishes to finance the purchase with a $95,000 mortgage with a 20-year term. What is the…

A:

Q: How much should a $10,000 facevalue, zero-coupon bond, maturing in 10 years, be sold for now if its…

A: Face value =$10000number of years, n=10rate of interest, r=8%=8100=0.08

Q: If $1000 is borrowed and the interest after 24 months is $300, what is the annual interest rate for…

A:

Q: what is the FV of the investment. Round  to nearest cent. $7,000 for 4 years at 4.75%  annual…

A:

Q: A debt of $5000 is to be amortized with 12 equal semiannual payments. If the interest rate is 7%,…

A: Debt amount=$5000/-  interest rate=r=0.072=0.035 compounded twice a year n=12…

Q: A debt of $6000 is to be amortized with 6 equal semiannual payments. If the interest rate is 9%,…

A: We know that-