A $5000 payment due 1 1/2 years ago has not been paid. If money can earn 3.25% compounded annually, what amount paid 2 1/2 years from now would be the economicequivalent of the missed payment?
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- F1. A $6300 payment due 2 1/2 years ago has not been paid. If money can earn 3.90% compounded annually, what amount paid 3 1/2 years from now would be the economic equivalent of the missed payment? (Round your answer to 2 decimal places.) Equivalent paymentA $6400 payment due 3 1/2 years ago has not been paid. if money can earn 3.95% compounded annually, what amount paid 4 1/2 years from now would be the economic equivalent of the missed payment? (Round your answer to 2declmal places) Equivalent payment 30:56PLEASE don't use excel for this. Show the solution with formula needed. COMPOUND INTEREST 1. When compounded bi-monthly, P150,000.00 becomes P223,183.00 after 5 years. What is the nominal rate of interest?
- Computing Future and Present Values When answering the following questions, round your answer to the nearest whole number Do not use a negative sign with your answer. What is the future value of equal payments of $20,000 made at the beginning of each of 5 periods, compounded at 7%? Answer 5. What is the present value of equal payments of $16,000 made at the end of 8 periods, compounded at 6%? The payments are deferred for 3 years. AnswerPlease do not use excel If money is woth 5 1/2% compounded annually, what single payment now equivalent to 45 annual payments of 35,000 each with the first payment due in five years?(1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?
- What is the present value of $25,000 to be recieved in 15 years at a (a) 6.2 percent rate and (b) 9.6 percent rate? Explain why the present value is lower when the interest rate is higher?What is the present value of $2,225 per year, at a discount rate of 9 percent, if the first payment is received 8 years from now and the last payment is received 23 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)The present sum needed to provide for an annual withdrawal of $2,000 for 20 years beginning 5 years from now at an interest rate of 0.12 per year is closest to: Note: The given interest is already in decimal form. Do not round in between solution. Final answer round to the nearest whole number. No need put comma and UOM (unit of measure).
- My last question may have seemed confusing to the last agent that answered it. I'm going to use $100 as the principal amount and 10% as the rate. If compounded daily is suppose to change the frequency at which it is compounded then why does 100(1+.1/365)365(1)=110.51 if compounded 365 times in a year? 100(1+.1/1)1=110 if compounded only once per year?If compounded interest is taking the percentage of the principal amount(+interest) then adding it to the amount per compound why is it basically the same answer if it was compounded 365 times as it was one time?Shouldn't compounding be the percentage of the principal amount(+interest) each time it is compound? If you have $100 and it is compounded once shouldn't it come out to $110 the first time, $121 the second time and $133.10 the third time? If frequency of when it is compounded is suppose to be the only thing that changes then shouldn't the amount that was compounded 365 times be substantially greater than the one that was only…You are repaying a loan of ${A} by making payments at the end of every quarter for {B} years. Interest is {C} % compounded {D}. Solve for the missing value and complete the partial amortization table below. Do not use units, negative values, or comma separators (eg. use 10000 not $10,000). {A} $54,000 {B} 5 Missing variable: Partial amortization table: PAYMENT NUMBER 0 1 2 3 TOTAL AMOUNT PAID {c} 2.15% INTEREST PAID {D} semi- annually PRINCIPAL REPAID *** OUTSTANDING PRINCIPAL BALANCE $54,000.00 $0.009. A 6% compounded monthly has an equivalent rate of 1.2042%, how many times does it pay every year?Group of answer choices 5 2 3 4 11. How long in years will a certain sum of money to doubles its amount when deposited at a rate of 1% compounded bi-monthly?Group of answer choices 69.37 yrs 68.37 yrs 70.37 yrs 71.37 yrs