5. If P13,000 is invested at the rate (0.08, m = 2), when will the compound...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
5. If P13,000 is invested at the rate (0.08, m = 2), when will the compound amount be P35,000? wwwwww 6. What simple interest rate would be equivalent to charging 3 1/2% compounded semi-annually, if I lend Nes P2,000 with the agreement that he will pay a single sum of money at the end of 5 years? 7. Tess borrowed a certain sum from Jack on Jan. 8, 1980 and signed a note promising to pay him a total of P10,000 at the end of 5 years. Jack sells this note to Ivan on Jan. 8, 1982. a. pay If Ivan insists on discounting the note at 4% compounded quarterly, what will he for the note? b. If Tess gets permission to delay her payment until Jan. 1, 1988, under the assumption that money is worth (5%, m = 2) after the note matures. What final payment is Tess required to make? 5. If P13,000 is invested at the rate (0.08, m = 2), when will the compound amount be P35,000? wwwwww 6. What simple interest rate would be equivalent to charging 3 1/2% compounded semi-annually, if I lend Nes P2,000 with the agreement that he will pay a single sum of money at the end of 5 years? 7. Tess borrowed a certain sum from Jack on Jan. 8, 1980 and signed a note promising to pay him a total of P10,000 at the end of 5 years. Jack sells this note to Ivan on Jan. 8, 1982. a. pay If Ivan insists on discounting the note at 4% compounded quarterly, what will he for the note? b. If Tess gets permission to delay her payment until Jan. 1, 1988, under the assumption that money is worth (5%, m = 2) after the note matures. What final payment is Tess required to make?
Expert Answer:
Answer rating: 100% (QA)
6 Using the formula for compound interest we have A P1 rmmt where A is the amount after t years P is the principal r is the annual interest rate m is ... View the full answer
Related Book For
Introduction to Finance Markets Investments and Financial Management
ISBN: 978-1118492673
15th edition
Authors: Melicher Ronald, Norton Edgar
Posted Date:
Students also viewed these accounting questions
-
Troy Long wishes to deposit a single sum of money in a savings account so that five equal annual withdrawals of $2,000 can be made before depleting the fund. If the first withdrawal is to occur 1...
-
If money is invested at the constant rate r, the time to increase the investment by a factor x is t = ln x / r (a) At what rate dt / dx is the time changing at x = 2? (b) What happens to dt / dx as x...
-
If $2,000 is invested at the end of every three months, what will be the total value after 10 years? The investments earn 13% compounded annually.
-
Rice and Flower were partners sharing profit and loss equally. Statement of Financial Position as at 31 December 2020. Non current Assets Premises Machinery Vehicles Fittings Current Assets Inventory...
-
Determine the magnitude of F 1 and its direction ? so that the resultant force is directed vertically upward and has a magnitude of 800 N. Fi 600 N 400 N
-
Fletcher Ball Bearings, based in Lewiston, Maine, is one of the worlds leading manufacturers of precision bearings and bearing products. Fletcher sells its products to many industries, including...
-
Marketable securities are classified under U.S. GAAP as either trading securities or available-for-sale securities. Regardless of their classification, marketable securities are accounted for at...
-
The principal product of Yangsoo Enterprises, Inc., is a multipurpose hammer that carries a lifetime guarantee. Listed next are cost and production data for the Yangsoo hammer. Direct materials...
-
ally's income statement for the year ended December 31, 2025, contained the following condensed information. Service revenue $839,000 Operating expenses (excluding depreciation) $624,000 Depreciation...
-
The unadjusted trial balance of Mesa Inc., at the company's year end of December 31 follows: Additional information and adjustment data: 1. The 12-month insurance policy was purchased and was...
-
Pomograte Corporation bought 75% of Sycamore Company's common stock, with a book value of$900,000, on January 2, 2014 for $750,000. The law firm of Dewey, Cheatam and Howe was paid$55,000 to...
-
Use the continuous compound interest formula to find the indicated value. A=$81,000; P= $59,871; r = 9.3%; t = ?
-
Currently, the term structure is as follows: One-year bonds yield 11.00%, two-year zero-coupon bonds yield 12.00%, three-year and longer maturity zero-coupon bonds all yield 13.00%. You are choosing...
-
Consider the parametric curve: x=8+11 cost, y=10+11 sint, The cartesian equation of the curve has the form (x - h) + (y - k) = R with h = k = R = and The initial point has coordinates: x = ,y= The...
-
Daily Oxygen. The density of air under standard temperature and pressure is about 1.29 kg/m. Typically, a person breathes about 0.50 L per breath. Approximately how many kilograms of oxygen (not...
-
A motor vehicle of total mass 5.7 Mg starts the ascent of a 1 in 50 gradient at a speed of 32 km/h and maintains a constant tractive effort of 3.5 kN throughout the total length of 600 m. The road...
-
Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 30...
-
ABC company leased new advanced computer equipment to STU Ltd on 1 January 2019.STULtd has to pay annual rental of $290,000 starting at 1 January 2019. It is a four years lease with ultimate rental...
-
As the executive of a bank or thrift institution you are faced with an intense seasonal demand for loans. Assuming that your loanable funds are inadequate to take care of the demand, how might your...
-
ABE Banc has the following asset categories: Cash .... $1 million Securities .. $4 million Loans .... ? Other assets . $2 million Total assets ... ? a. What would be the banks total assets if loans...
-
What is meant by the statement that foreign exchange quotations may be given in terms of sight drafts, cable orders, and time drafts?
-
The Manhattan Company has \($265\) million in assets, \($90\) million in current liabilities, \($135\) million in noncurrent liabilities, and \($40\) million in shareholders equity. Of the companys...
-
Presented below are common-sized income statement data for three well-known companies representing three different industries (pharmaceutical, beverage, and diversified): 1. Bristol-Myers Squibb 2....
-
Presented below are selected financial data for two competitors. Discuss why the return on assets increased for Company A but decreased for Company B. Company A. Company B Return on Assets Return on...
Study smarter with the SolutionInn App