Before deciding to deposit her money at the credit union, Heather checked the interest rates at her local bank as well. The bank was paying a nominal interest rate of 9.8% compounded quarterly. If Heather had deposited $1,700 at her local bank, how much would she have had in her account after 13 years? O $644.03 $5,985.09 O $266.60 O $1,872.82
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- Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Zoe deposited $900 in a savings account at her bank. Her account will earn an annual simple interest rate of 7%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 13 years? O $967.41 $2,168.86 O $163.00 O $1,719.00 Now, assume that Zoe's savings institution modifies the terms of her account and agrees to pay 7% in compound interest on her $900 balance. All other things being equal, how much money will Zoe have in her account in 13 years? O $1,719.00 O $963.00 O $2,168.86 O $151.82Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Emma deposited $500 in a savings account at her bank. Her account will earn an annual simple interest rate of 9%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 11 years? O $145.00 O $1,290.21 O $995.00 O $549.05 Now, assume that Emma's savings institution modifies the terms of her account and agrees to pay 9% in compound interest on her $500 balance. All other things being equal, how much money will Emma have in her account in 11 years? O $1,290.21 O $116.12 O $545.00 O $995.00 Suppose Emma had deposited another $500 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest rate of 9% but with quarterly compounding. Keeping everything else constant, how much money will Emma have in her…Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed Interest rates are used throughout this question. Ava deposited $1,300 in a savings account at her bank. Her account will earn an annual simple interest rate of 8.2%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 5 years? $206.60 $1,927.88 $1,415.34 $1,833.00
- Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume fixed interest rates are used through out this question. Sophie plans to loan $700 to her friend who will pay a simple interest rate of 98% every year for tle loan. If no payment are made and no futher borrowing occurs between them for 11 years, then how much money will sophie's friend owe her? a. 168.60 b. 775.32 c. 1454.60 d. 1957.60 Now assume that sophia's friend volunteers to pay the compound intereST INSTEAD OF SIMPLE INTEREST FOR HER LOAN. if interest is accured at 9.8% compounded annually, all other things being equal, how much money will sophia's friend owe her in 11 years? a. 1454.60 b. 768.60 c. 191.84 d. 1957.60 Sophia has another investment option in the market taht pays 9.8% nominal interesrt, but its compounded quarterly. keeping everything else constant, how much money will sophia have in 11 years if she invests $700 in this fund. a.…2. Simple versus compound interest A. Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Emma deposited $500 in a savings account at her bank. Her account will earn an annual simple interest rate of 9%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 11 years? $995.00 $145.00 $1,290.21 $549.05 B. Now, assume that Emma’s savings institution modifies the terms of her account and agrees to pay 9% in compound interest on her $500 balance. All other things being equal, how much money will Emma have in her account in 11 years? $545.00 $116.12 $995.00 $1,290.21 C. Suppose Emma had deposited another $500 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest…9. Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Jacob needed money for some unexpected expenses, so he borrowed $2,138.41 from a friend and agreed to repay the loan in three equal installments of $800 at the end of each year. The agreement is offering an implied interest rate of . Jacob’s friend, Devan, wants to go to business school. While his father will share some of the expenses, Devan still needs to put in the rest on his own. But Devan has no money saved for it yet. According to his calculations, it will cost him $31,897 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $3,800 at the end of every year in a mutual fund, from which he expects to earn a fixed 6% rate of return. It will take approximately for Devan to save enough money to go to business school.
- In the situation described below, identify the initial payment, the term interest rate, andthe number of compounding periods. Use this to express the future value of the asset. Your uncle’s sister Marjorie (to whom you are not related) is a loan shark. Your friendRon borrowed $1200 from her 63 days ago. She charges him 5% every 9 days, and hehasn’t made any payments.Jina obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 7.45%. Her loan is for $12,700 for 62 days. Assume eachday is365of a year. Answer each part below.Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas.(a) Find the interest that will be owed after 62 days. (b) Assuming Jina doesn't make any payments, find the amount owed after 62 days.Keiko obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 9.65%. Her loan is for $16,500 for 76 days. Assume each day is of a year. Answer each part below. 365 Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 76 days. (b) Assuming Keiko doesn't make any payments, find the amount owed after 76 days.
- Charmaine obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 9.65%. Her loan is for $17,100 for 76 days. Assume each day is of a year. Answer each part below. Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 76 days. (b) 1 365 s Assuming Charmaine doesn't make any payments, find the amount owed after 76 days. $ 3To start a new business, Alysha intends to borrow $25.000 from a local bank. If the bank asks her to repay the loan in 5 equal annual instalments of $6,935.24, determine the bank's effective annual interest rate on the ipan transaction. With annual compounding, what nominal rate would the bank quote for this loan?Answer the given problem. Problem: Mrs Talla obtained a loan of P200,000. She has to repay the loan by equal payments at the end of every six months for 5 years at 2% interest compounded semi-annually. Find the periodic payment. (Prepare an amortization schedule) The given picture is only a sample of amortization schedule please refer to it. Thank you.