4. Janjan has a promissory note due in 2 years, whose maturity is 100,000 pesos. a. Determine the present value if the rate of interest is 12% compounded semi-annually. b. Determine the effective rate of interest if it is compounded quarterly.
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kindly show and tell what is ther formula used to solve the problem thank you
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- Assume that 1500 Php is deposited in an account in which interest is compounded annually at a rate of 6% for 5 years. How many times is compunding done in a year. What is the initial or rincipal amount. then what is the rate of interest?A payment of $4,500 was made into an account at the end of every 3 months for 12 years. a. If the interest rate for the first 6 years was 4.00% compounded monthly, calculate the future value at the end of the first 6 years. b. If the interest rate for the next 6 years was 7.00% compounded annually, calculate the future value at the end of the 12 year term.2. Deposit the principal amount of P10,000 into a savings account that pays interest at the rate of 5%. What is the amount in the account after 1 year if the account is: a. compounded annually b. compounded semi-annually c. compounded quarterly d. compounded monthly e. Which is advantageous to the investor?
- A payment of $4,500 was made into an account at the end of every 3 months for 12 years. a. If the interest rate for the first 5 years was 6.00% compounded monthly, calculate the future value at the end of the first 5 years. Round to the nearest cent b. If the interest rate for the next 7 years was 4.00% compounded annually, calculate the future value at the end of the 12 year term. Round to the nearest centa. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments atthe end of each of the next 3 years. The interest rate is 8% compounded annually.b. What percentage of the payment represents interest and what percentage representsprincipal for each of the 3 years? Why do these percentages change over time?1. Mr. M. Rogue obtains a loan of P60,000.00 to be paid by equal periodic payment at the end of each 3 months for 3 years at 8% interest compounded quarterly. How much is the periodic payment?
- Direction: Compute the annual interest, total interest, and amount to be received or paid at the end of the term for the scenario below using a simple interest assumption and compound interest assumption. You deposited ₱5,000 from the savings of your daily allowance in a time deposit account with your savings bank at a rate of 1.5% per annum. This will mature in 6 months.You deposited P5,000 from the savings of your daily allowance in a time deposit account with your savings bank at a rate of 1.5% per annum. This will mature in 6 months. Compute the annual interest, total interest, and amount to be received or paid at the end of the term for this scenario above using a simple interest assumption and compound interest assumption.Asa Khumalo purchased a vehicle to the value of R224987 today and expects to make repayments for the next 7 years. The bank charges Asa at 12% pa compounded monthly. Interest rates are expected to change after the 56th month to 13%, determine the new payments.
- A person wants to deposit $10,000 per year for 6 years. If interest is earned at the rate of 10 percent per year, compute the amount to which the deposits will grow by the end of the 6 years if: a . Deposit of $10,000 are made at the end of each year with interest compounded annually. b. Deposit of $5,000 are made at the end of each 6-months period with interest compounded semiannually.Find the future value of a deposit of $15000 at 6% interest compounded monthly for 11 years. On September 8, Peter Pun started an annuity. He arranged to have $85 deducted from his end- of-month paychecks. The money would earn 7% interest compounded monthly. (a) Find the future value of the account on December 1 using an Amortization Formula. (hint: there are three payments/periods; September, October and November)On January 1, you deposit K100 in an account that pays a nominal interest rate of 11.33463%, with daily compounding. How much will you have on October 1, or after 9 months? (273 days)