A civil engineer plans to own a 300 m² lot after 5 years for an estimated cos 570,000. To accumulate this amount, he will make equal year-end deposits i und earning 12% compounded annually. However, at the end of the 2nd year, married his girlfriend and decided to build a 250,000 worth house on the lot he planning to buy. What should be his annual deposits for the last 3 years? ANS. P 163,810.80
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Compute the given problem and provide cashflow diagram.
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- In 4 years, Jennifer Videtto will need to purchase a delivery van for her plumbing company. She estimates it will require a down payment of $ 10,000 with payments of $ 950 per month for 48 months. (a) Find the total amount needed in 4 years of amortization and compare it to the cash value of delivery van assuming 12% compounded monthly. (b) W nill she have enough if she invests P 2200 at the end of every quarter for 4 years and earns 6% compounded quarterly? What strategy will you recommend?An engineer who is about to retire has accumulated $50 000 in a savings account that pays 6% per year, compounded annually. Suppose that the engineer wishes to withdraw a fixed sum of money at the end of each year for 10 years. What is the maximum amount that can be withdrawn? Answer the question and explain how you arrived at your conclusion.A civil engineer who is about to retire has accumulated 750 000 in a savings account that pays 6%per year, compounded annually. Suppose that the engineer wishes to withdraw a fixed sum of moneyat the end of each year for 15 years. What is the maximum amount that he can withdraw? Note: Also draw its cashflow diagram
- 4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the purchase price as a down payment. Your annual salary is $44,000 and you can save 18% of this salary every year. How long will it take for you to save for the required down payment? about _____ years?Jim Ryan, an owner of a Burger King restaurant, assumes that his restaurant will need a new roof in 7 years. He estimates the roof will cost him $9,000 at that time.What amount should Jim invest today at 6% compounded quarterly to be able to pay for the roof? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount to be investedWHICH INVESTMENT?Jan Reus sold her home and has $ 18.000 to invest.She believes she can earn 8% compounded quarterly Find the compound amount if she invests for (a) 3 years and (b) 6 years. (c)Then find the additional amount earned due to the longer time period.
- 2) You decide to buy a house costing $6,000,000. You pay $1,000,000 down, and the remainder will be paid inmonthly installments over 25 years at 3.9% compounded monthly. a) What is the monthly payment?b) What is the outstanding balance after making the 100the payment?c) What is the equity after making the 100the payment?d) How much of the 100the payment will go to the principal and how much to interest?e) How much interest will be paid over the entire length of the loan? TVM SOLVERQ3. Ricardo plans to own a 1 hectare lot after 10 years for an estimated cost of P5M. To accumulate this amount, he will make equal year and deposits in a fund earning 15% compounded annually. However, at the end of the 7th year, he decided to turn it into an agricultural farm and is planning to buy seeds and other things worth P2M. What should be his deposits in the last 3 years? Answer: A = P822,214.23An engineer currently has nothing saved for his retirement, which will start 6 years from today. He wants to receive P68,500 each year for 5 years during retirement. The first of these payments will be received 6 years from today. He can earn a return of 7.6% per year in his account. How much does this engineer need to save each year for 6 years to have exactly enough to meet his retirement goal if he makes his first contribution to savings one year from today and all contributions are equal?
- Earl Miller, owner of a Papa Gino’s franchise, wants to buy a new delivery truck in 6 years. He estimates the truck will cost $30,000. If Earl invests $20,000 now at 5% interest compounded semiannually. How much more or less will Earl have for the truck at the end of 6 years? (Round your answers to the nearest cent.)An engineer currently has nothing saved for his retirement, which will start 6 years from today. He wants to receive P68,500 each year for 5 years during retirement. The first of these payments will be received 6 years from today. He can earn a return of 7.6% per year in his account. How much does this engineer need to save each year for 6 years to have exactly enough to meet his retirement goal if he makes his first contribution to savings one year from today and all contributions are equal? Show complete manual computation with cash flow diagram.12. Marlon can purchase a company car for his real estate business for $30 000. Interest lost on the money used for the purchase is estimated at 6% per year, compounded quarterly. Alternatively, Marlon can lease the car for $4000 per year. a) Calculate the cost of keeping the car for five years, and then selling it for $12 000. Include the cost of lost interest on the money used for the purchase. b) Calculate the cost of leasing the car for five years. c) Which plan is a better deal for Marlon? How much more would he pay with the other plan?
