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Ryan was 8 when his parents invested $4000 in a certificate of deposit that pays 6%. if ryan leaves the account alone until it reaches $10,000, how old will he be? (assume that the interest is not compounded annually.)

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# Tag: invested

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We can solve

this problem by first calculating the annual net cash inflow. This can be

solved by remembering that:

Payback period

= Initial investment / Annual net

cash inflow

6 years = $75,000

/ Annual net

cash inflow

Therefore,

Annual net

cash inflow = $12,500

Next, we

calculate for the cost. The cost we will consider here is the depreciation

value of the machine.

Annual depreciation

= $75,000 / 15 years = $5,000

Therefore the annual net operating income is:

Annual net operating income = $12,500 – $5,000 = $7,500

Simple rate of

return is calculated by:

Simple rate of

return = Annual net operating income / Initial

investment

**Simple rate of
return = $7,500 / **

**$75,000 = 0.1 = 10%**

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Mrs. Ming invested an amount of money in two accounts for one year. She invested some at 8% interest and the rest at 6% interest. Her total amount invested was $1,500. At the end of the year, she had earned $106.40 in interest. How much had Mrs. Ming invested in the account paying 6%?A.$117B.$680C.$760D.$820

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**Answer:**

**The correct option is B) $680.**

**Step-by-step explanation:**

Consider the provided information.

Her total amount invested was $1,500. At the end of the year, she had earned $106.40 in interest.

Let she invested x amount with 8% interest rate.

**Total amount she invested was $1,500, thus the amount she invested with 6% interest rate was 1500-x.**

Total interest she earn was $106.40

Write this information into mathematical form.

**Hence, she invested $820 with 8% interest rate.**

The amount she invested with 6% interest rate was 1500-x.

Substitute the value of x in above.

1500-820=680

**Hence, she invested $680 with 6% interest rate.**

**The correct option is B) $680.**

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Dividend collected at the end of 2013 = $2.50*500 = $1,250

Dividend collected at the end of 2014 = $4*500 = $2,000

Dividend collected at the end of 2015 = $3*500 = $1,500

Mony received from sellng the 500 shares at the end of 2015 = $20*500 = $10,000

Total returns at the end of 2015 = 1,250+2,000+1,500+10,000 = $14,750

Net gains = 14750 – 12000 = $2,750

Duration = 3 years

Realized total rate of return = 2750/12000 = 0.2292 = 22.9%

Answer: 22.9%

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**Answer:**

**The correct option is B) $680.**

**Step-by-step explanation:**

Consider the provided information.

Her total amount invested was $1,500. At the end of the year, she had earned $106.40 in interest.

Let she invested x amount with 8% interest rate.

**Total amount she invested was $1,500, thus the amount she invested with 6% interest rate was 1500-x.**

Total interest she earn was $106.40

Write this information into mathematical form.

**Hence, she invested $820 with 8% interest rate.**

The amount she invested with 6% interest rate was 1500-x.

Substitute the value of x in above.

1500-820=680

**Hence, she invested $680 with 6% interest rate.**

**The correct option is B) $680.**

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Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]

Pv present value 1200000

PMT semiannual payment 75000

R interest rate 0.0635

K compounded semiannual 2

N time?

1200000=75000[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]

Solve for n

1,200,000÷75,000=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]

16=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]

16×(0.0635÷2)=(1-(1+0.0635/2)^(-2n))

0.508=(1-(1+0.0635/2)^(-2n))

0.508−1=-(1+0.0635/2)^(-2n)

−0.492=-(1+0.0635/2)^(-2n)

0.492=(1+0.0635/2)^(-2n)

-2n=log(0.492)÷log(1+0.0635÷2)

N=-[log(0.492)÷log(1+0.0635÷2)]÷2

N=11.35 years

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Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]

Pv present value 1200000

PMT semiannual payment 75000

R interest rate 0.0635

K compounded semiannual 2

N time?

1200000=75000[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]

Solve for n

1,200,000÷75,000=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]

16=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]

16×(0.0635÷2)=(1-(1+0.0635/2)^(-2n))

0.508=(1-(1+0.0635/2)^(-2n))

0.508−1=-(1+0.0635/2)^(-2n)

−0.492=-(1+0.0635/2)^(-2n)

0.492=(1+0.0635/2)^(-2n)

-2n=log(0.492)÷log(1+0.0635÷2)

N=-[log(0.492)÷log(1+0.0635÷2)]÷2

N=11.35 years

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A total of $6000 is invested: part at 5% and the remainder at 9%. How much is invested at each rate if the annual interest is $530?

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An executive invests $20,000, some at 9% and some at 10% annual interest. If he recieves an annual return of 1,980,how much is invested at each rate?

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The depreciation component of a lease payment is** “to compensate the leasing company for the monetary value the car loses during your lease”.**

Lease payments have two segments: depreciation and interest. The depreciation partition takes care of the depreciation expense of the hardware over the rent term.

The depreciation part is determined as the underlying parity on the rent, which is the balanced promoted cost, short the end estimation of the rent, which is the leftover esteem, isolated by the term of the rent. The depreciation part may be known as the “depreciation charge” or just “depreciation.”

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