Question
In: Finance
on a certain amount of money, the difference between the compound interest of a year payable...
on a certain amount of money, the difference between the compound interest of a year payable 4 times per year and the simple interest for a year is AED150. IF THE RATE OF INTEREST IN BOTH CASES IS 5% what is the value of this amount
Solutions
Expert Solution
Simple interest
P = Principal amount, N = No of years, R = Rate of Interest
= 
Compound interest
Amount = Compund Interest + Principal ie, A = C I + P
Compound Interest (CI) = A - P
The difference between the compound interest of a year and the simple interest for a year is 150
That is , Compound interest - Simple interest = 150
Therefore the Value of this Principal Amount = 
jeff jeffy answered 1 year agoRelated Solutions
(Compound interest with non-annual periods) Calculate the amount of money that will be in each of...
(Compound interest
with non-annual
periods) Calculate the amount of money
that will be in each of the following accounts at the end of the
given deposit period:
Account Holder
Amount Deposited
Annual Interest Rate
Compounding Periods Per Year (M)
Compounding Periods (Years)
Ted Logan
$1,100
12%
4
6
Vern Coles
95,000
12
6
3
Teena Elliott
9,000
12
1
5
Wade Robinson
120,000
8
2
4
Eunice Chang
28,000
18
3
5
Kelli Craven
16,000
10
12
5
PLEASE round...
(Compound interest with non-annual periods) Calculate the amount of money that will be in each of...
(Compound interest with non-annual periods) Calculate the
amount of money that will be in each of the following accounts at
the end of the given deposit period:
Account Holder
Amount Deposited
Annual Interest Rate
Compounding Periods Per Year (M)
Compounding Periods (Years)
Theodore Logan
1,000
16%
1
5
Vernell Colles
94,000
10%
2
3
Tina Elliot
7,000
8%
3
6
Wayne Robertson
120,000
8%
4
3
Eunice Chung
29,000
18%
6
4
Kelly Cravens
17,000
10%
12
5
(Compound interest with non-annual periods) Calculate the amount of money that will be in each of...
(Compound interest with non-annual periods) Calculate the
amount of money that will be in each of the following accounts at
the end of the given deposit period: Account Holder -Amount
Deposited- Annual Interest Rate- Compounding Periods Per Year (M)-
Compounding Periods (Years) Theodore Logan III $ 1,000 12 % 1- 6
Vernell Coles 94,000 8- 2 -2 Tina Elliot 9,000 10- 4 -4 Wayne
Robinson 120,000 10- 12- 3 Eunice Chung 28,000 18- 3-4 Kelly
Cravens 14,000 12- 6= 3...
(Compound interest with non-annual periods) Calculate the amount of money that will be in each of...
(Compound interest with non-annual periods) Calculate the
amount of money that will be in each of the following accounts at
the end of the given deposit period: Account Holder Amount
Deposited Annual Interest Rate Compounding Periods Per Year (M)
Compounding Periods (Years) Theodore Logan III $ 1 comma 000 18
% 4 10 Vernell Coles 96 comma 000 8 2 3 Tina Elliot 9 comma 000 10
3 4 Wayne Robinson 119 comma 000 10 12 5 Eunice Chung 30...
Suppose you have a certain amount of money in a savings account that earns compound monthly...
Suppose you have a certain amount of money in a savings account
that earns compound monthly interest, and you want to calculate the
amount that you will have after a specific number of months. The
formula is as follows:
f = p * (1 + i)^t
• f is the future value of the account after the specified time
period.
• p is the present value of the account.
• i is the monthly interest rate.
• t is the...
Explain the difference between simple interest and compound interest. Provide an example of each.
Explain the difference between simple interest and compound
interest. Provide an example of each.
1. What are the differences between simple interest and compound interest 2. With regards to money:...
1. What are the differences between simple interest and
compound interest
2. With regards to money: What are the differences between
future value and present value?
3. What considerations do you need to take when considering
"time value of money"?
4. Why is the following statement true? "A dollar today is
worth more than a dollar tomorrow."
At a compound interest of 5% per year, the amount that $10,000 one year ago is...
At a compound interest of 5% per year, the amount that $10,000
one year ago is equivalent to now is closest to: Group of answer
choices less than $8,000 between $8,000-9,000 between $9,000-10,000
greater than 10,000 None of the answers is correct
lindsay borrowed a certain amount of money for 5 years at an annual simple interest rate...
lindsay borrowed a certain amount of money for 5 years at an annual
simple interest rate of 6.2%. if the maturity value oj the loan was
$4,135, what was the total amount interest she paid on the
loan?
Explain the difference between simple and compound interest and describe a scenario when the benefits of...
Explain the difference
between simple and compound interest and describe a scenario when
the benefits of one outweighs the other. Provide specific
examples.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Allocation: Fixed and Variable Costs, Budgeted Fixed and Variable Costs Biotechtron, Inc., has two research laboratories...
- Do you think that there is still institutionalized racial discrimination in the United States today and...
- Computer Security Consider a desktop publishing system used to produce documents for various organizations. a. Give...
- Review the discussion question and answer below. Do you agree with the answer? why or why...
- For the assignment you have to do two thing Passing arguments when running the jar or...
- Explain how biology, culture, and their interaction shape sex differences.
- Write a program that computes the tax and tip on a restaurant bill for a patron...
ADVERTISEMENT