3. An amortization of a debt is in a form of a gradient series of P5,000 on the first years, P4,500 on the second year, P4,000 on the third year and P3,500 on the fourth year. What is the equivalent present worth of the debt if interest is 5%?
Q: inelastic
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- Sofia borrows Php8000.00 from a bank that has an interest rate of 2% compounded quarterly.a.) How much is the money after 8 years?b.) How much is the money after 8 quarters?1. A mother wants to insure the education of his son. On the 7th birthday of the son, he invest in a fund the amount of P 200,000.00 earning at 6.5% interest rate compounded monthly; on the 10th birthday another P 200,000.00 at an interest rate of 7.3% compounded monthly: on the 15th birthday another sum of money at 8% compounded monthly. If on the 18th birthday the son have a total withdrawable amount of P1.3M, how much is the 3rd investment? 2. An engineer invest P3M in concrete making. In return, he receives P235,000.00 per year for 5 years. Compute for the rate of return on investment and the return on investment. 3. Two proposals are being considered for building a power plant. Proposal A: The construction ofa new plant costing 10M today. Proposal B: Construction of a smaller plant now for 6.8M and the expansion costing 5M after 5 years If money is worth 7.5% compounded quarterly, which proposal is better.To travel to Japan via private plane, Jamaica made a P100,000 loan which is to be repaid over a term of 2 years at 7.2% interest convertible quarterly. The lender wants only payments of interest until the end of the term when the loan balance P 100,000 must be repaid in full. The borrower will make level quarter-end payments to a sinking fund earning 6% payable quarterly. a. How much is each quarterly sinking fund deposit?b. Calculate the net interest paid in the 6th payment. (Hint: Net interest = Total payment at time t - Principal paid at time t) c. Calculate the sinking fund balance immediately after the 6th payment is made.
- 10. Find the amount of a sequence of annual payment of P700.00 each, the first due at the end od 7 years and the last at the end of 15 years, if money is worth 5% compounded annually.The term of a lease contract are as follows: Annual lease = ₱ 1.50M, first payment upon start of thelease, annual lease increase by 10% each year for 4 years. A single lump sum payment is acceptable atthe start of the lease based on an interest rate of 14 % compounded annually. Find the amount of thislump sum.Suppose that $30,000 is borrowed today at 12% interest. The loan is to be repaid by uniform annual payments for 5 years, beginning 1 year from now. Calculate the annual payment. A) $500 per year $8,322 per year C $108,140 per year D) $3603.00 per year
- 1. A mother wants to insure the education of his son. On the 7th birthday of the son, he invest in a fund the amount of P 200,000.00 earning at 6.5% interest rate compounded monthly; on the 10th birthday another P 200,000.00 at an interest rate of 7.3% compounded monthly; on the 15th birthday another sum of money at 8% compounded monthly. If on the 18th birthday the son have a total withdrawable amount of P1.3M, how much is the 3rd investment?A debt of $40,000 whose interest rate is 15% compounded semiannually, is to be discharged by a series of 10 semiannual payments, the first payment is to be made 6 months after consummation of the loan. The first 6 payments will be $6,000 each, while the remaining 4 payments will be equal and of such amount that the final payment will liquidate the debt, what is the amount of the last 4 payments?1. A man who won P300,000 in a lottery decided to place 50% of his winning in a thrust fund for the college education of his son. If the money will earn 14% per year compounded quarterly, how much will the man have at the end of 10 years when his son will be starting his college education? With complete solution
- Suppose that under the Plan of Repayment one should pay off the debt in a number of equal end-of-month installments (principal and interest). This is the customary way to pay off loans on automobiles, house mortgages, etc. A friend of yours has financed $15,000 on the purchase of a new automobile, and the annual interest rate is 6% (0.5% per month). a. Monthly payments over a 36-month loan period will be how much? b. How much interest and principal will be paid within three month of this loan?Suppose that under the Plan of Repayment one should pay off the debt in a number of equal end-of-month installments (principal and interest). This is the customary way to pay off loans on automobiles, house mortgages, etc. A friend of yours has financed $15,000 on the purchase of a new automobile, and the annual interest rate is 6% (0.5% per month). a. Monthly payments over a 36-month loan period will be how much? b. How much interest and principal will be paid within three month of this loan? Click the icon to view the interest and annuity table for discrete compounding when i = 0.5% per month. a. The monthly payment over a 36-month loan period is $ 456.3. (Round to the nearest cent.) b. Fill in the table below. (Round to the nearest cent.) Payment Number 1 2 3 Interest Payment $ $ $ Principal Repayment $ $ $ Remaining Loan Balance $ $ $P200, 000.00 was deposited on Jan. 1, 1988 at an interest rate of 24% compounded semi-annually. How much would the sum be on Jan. 1, 1993? a.P628, 170.00 b.P621,170.00 c.P661, 170.00 d.P621, 370.00