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- Consider the following accumulated amounts.1. A deposit of P100,000 at an annual simple interest rate of 5% accumulates to A at the end of 5 years.2. A deposit of P100,000 at an annual simple interest rate of 6% accumulates to B at the end of 4 years.3. A deposit of P100,000 at an annual simple discount rate of 3% accumulates to C at the end of 8 years.4. A deposit of P90,000 at an annual simple discount rate of 5% accumulates to D at the end of 5 years.5. A deposit of P90,000 at an annual simple discount rate of 4% accumulates to E at the end of 6 years.Which deposit accumulates to the biggest amount: A, B, C, D or E?Give typing answer with explanation and conclusion A deposit of $450 earns the following interest rates: 9 percent in the first year. 7 percent in the second year. 6 percent in the third year. What would be the third year future value?Compute the present value of a $5,800 deposit in year 1, and another $5,300 deposit at the end of year 4 using an 8 percent interest rate
- A deposit of $290 earns the following interest rates: 9 percent in the first year. 7 percent in the second year. 6 percent in the third year. What would be the third year future value?Problems 1. The following are exercises in future (terminal) values: a. At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual interest rate of (i) 100 percent? (ii) 10 percent? (ii) 0 percent? b. At the end of five years, how much is an initial $500 deposit followed by five year-end, annual $100 payments worth, assuming a compound annual interest rate of (i) 10 per- cent? (ii) 5 percent? (iii) 0 percent? 65Method A assumes simple interest over nal fractional periods, while Method B assumes simple discount over nal fractional periods. The annual eective rate of interest is 20%. Find the ratio of the present value of a payment to be made in 1.5 years computed under method A to that computed under Method B
- The principal P is borrowed at a simple interest rate R for a period of time T. Find the loans Future Value A or total amount due at the time. P= 39000 R= 6.5% t= 3 yearsUsing the appropriate interest table, answer the following questions. (Each case is independent of the others.) a. What is the future value of 20 periodic payments of $4,000 each made at the beginning of each period and compounded at 8%? b. What is the present value of $2,500 to be received at the beginning of each of 30 periods, discounted at 5% compound interest? c. What is the future value of 15 deposits of $2,000 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the fifteenth period.) d. What is the present value of six receipts of $1,000 each received at the beginning of each period, discounted at 9% compounded interest?If the interest rate is 13% compunded semi-annually made on the account, and the obligations are given below: Deposit of P13,521 at the end of 3 and a half years. Withdrawal of P20,812 at the end of 5 years. Semi-annual deposit of a perpetuity of P1,200 starting at the end of 6 and a half years. Determine the following: a.) Present value of all the obligations made on the account. b.) Additional amount of withdrawal at the end of 5 years to balance the cash flows. NOTE: DO NOT USE EXCEL
- the difference between the future values of a deposit accumulated for 15years at a rate of 9.5% compounded per annum and the future value of same deposit over the same period at 7.75% compounded quarterly is 375. find tge depositA deposit of $1300 will be after 3 years $1639. If the interest is compounded annually, what is the annual interest rate: Select one: O a. 8.02% O b. 8.5% O c. 10.25% O d. 6%The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume 365 days in a year. P = $830, r = 2%, t = 2 years (Round to the nearest cent as needed.)