1% per day, compounded daily. If you borrow $80 at the beginning of the year, how...

1% per day, compounded daily. If you borrow $80 at the beginning of the year, how much will you owe one year later?

Expert Solution

We use the formula:
A=P(1+r/365)^365n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=80*(1+0.01)^(365*1)

=80*37.7834343

=$3022.67(Approx)

jeff jeffy answered 2 years ago

A Bigbank Visa card charges interest at a nominal rate of 24% per year, compounded daily....

A Bigbank Visa card charges interest at a nominal rate of 24% per year, compounded daily. If a person has an outstanding balance of $500 on this card, (i) What will be the balance after 1 week, 30 days, 120 days and 365 days, if he makes no payments in the interim? (ii) What is the growth factor over 1 day, 1 week, 30 days and 1 year of his debt? (iii) What is the APR of this card? (iv)...

In order to buy a car, you borrow $31,500 from a friend at 9%/year compounded monthly...

In order to buy a car, you borrow $31,500 from a friend at 9%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments. How much interest is in the 23rd payment? $enter a dollar amount

In order to buy a car, you borrow $19500 from a friend at 6%/year compounded monthly...

In order to buy a car, you borrow $19500 from a friend at 6%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments. a. How much are the monthly payments? b. How much interest in in the 23rd payment? c. What is the remaining balance after the 37th payment?

(Manually Calculate) A newspaper costs $1.00 a day. The interest rate is 6% annually, compounded daily....

(Manually Calculate) A newspaper costs $1.00 a day. The interest rate is 6% annually, compounded daily. a. If the newspapers’ price never changed, what should the newspaper charge for a lifetime subscription assuming you will live for 50 years? b. What should it charge if you can pass on the subscription to your descendants and they can continue to do the same in perpetuity? c. What should it charge for a perpetual subscription if the newspaper expects to raise its...

You will make 4 deposits of $5,000 per year beginning in year 3. How much will...

You will make 4 deposits of $5,000 per year beginning in year 3. How much will you have in the bank at year 10 at an interest rate of 6%? Simple interest

If you invest $22,267 today at an interest rate of 9.98 percent, compounded daily, how much...

If you invest $22,267 today at an interest rate of 9.98 percent, compounded daily, how much money will you have in your savings account in 21 years?

1. You deposit $12,000 today into an account that pays you 12% annual interest, compounded daily....

1. You deposit $12,000 today into an account that pays you 12% annual interest, compounded daily. How much MORE will you have in 40 years, than if the compounding was only computed annually (as opposed to daily)? a. $340,363.55 b. $1,356,895.45 c. $1,456,975.20 d. $1,116,611.65 e. $3,403,635.50 2. You want to set up an endowment fund at pwc that will provide $1M in scholarships to students annually, forever. Given an expected return of 6.5%, how much do you need in...

1. Assume that all discount rates are 4% per year, and semi-annually compounded. You are given...

1. Assume that all discount rates are 4% per year, and semi-annually compounded. You are given the following semi-annual coupon bond. · Settledate: 1-Jan-2019 · Maturity date: 1-Jan-2024 · Annual coupon rate: 6% · Coupons paid semi-annually · Yield to maturity: 4% · Par value: $1000 Time to maturity: T=5 years - Calculate the bond price using (y + Delta_y) as the bond's yield to maturity. Round to six digits after the decimal - Calculate the bond price using (y...

You have found three investment choices for a one-year deposit 11.7 % APR compounded monthly, 11.7 % APR compounded annually, and 10 8% APR compounded daily

You have found three investment choices for a one-year deposit 11.7 % APR compounded monthly, 11.7 % APR compounded annually, and 10 8% APR compounded daily. Compute the EAR for each investment choice (Assume that there are 365 days in the year) (Note Be careful not to round any intermediate steps less than six decimal places) The EAR for the first investment choice is% (Round to three decimal places) The EAR for the second investment choice is % (Round to three decimal...

It is recommended that the daily intake of sodium be 2600 mg per day. From a...

It is recommended that the daily intake of sodium be 2600 mg per day. From a previous study on a particular ethnic group, the prior distribution of sodium intake is believed to be normal with mean 3000 mg and standard deviation 300 mg. If a recent survey resulted in a mean of 3500 mg and standard deviation of 350 mg. Obtain a 99% Credible Interval for the mean intake of sodium for this ethnic group. Let n=1 . You don't...

Question