A person has Php200,000.00 which he plan to put in an investment for 3 years. He is choosing between two investments. Investment A credits 5% interest compounded monthly, while investment B credits 5.3% interest compounded quarterly. Which investment is better?
Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…
A: Save 20% of Yearly Income Income in first year = 1,000,000 Savings in first year = 20% * 1,000,000 =…
Q: How much money would have to be deposited today to accumulate:
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
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A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: An investment that cost ₱300,000 was placed in a bank and the bank gave you a 4% compound interest…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
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A: As per the time value of money concept, the present value of an amount is more worth than the…
Q: A man borrowed Php 120,000 and promised to pay annually for 5 years The payment starts at “X pesos…
A: Borrowed amount (PV) = Php 120,000 Period (n) = 5 Years Interest rate (r) = 8% Growth rate (g) =…
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Q: Assume you placed RM25,000 in a savings account that pays an annual compound interest of 8% for 3…
A: Solution: With the Time value of money concept (Future value) we will be calculating amount of money…
Q: A man borrowed Php 120,000 and promised to pay annually for 5 years. The payment starts at "X"…
A: The repayment on a loan: A loan that is taken is repaid according to a repayment schedule that's…
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A: PMT function: The PMT function is a type of financial function which helps to determine the total…
Q: Denvert is planning to make two deposits, PhP 40,000 now and PhP 50,000 at the end of year 8. On the…
A: Here, First Deposit now is Php 40,000 Second Deposit at the end of year 8 is Php50,000 Annual…
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A: Introduction:- The devotion of an asset to achieve a gain in value through time is referred to as an…
Q: A MAN INVESTED 1/3 OF THE SUM AT 7% , 1/4 AT 8% AND THE REMAINING AT 10% FOR ONE YEAR. IF THE ANNUAL…
A: Let the investment amount be A
Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…
A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…
Q: Mr. Paul makes an initial investment of P6,000 for a period of 3 years. Find the value of the…
A: Honor code: Since you have asked multiple questions, we will solve the first question for you. If…
Q: You invest $17,000 at 6% interest, compounded monthly, for 2 years. Use the compound interest…
A: Compound Interest- It is interest which is earned on the principal amount invested and interest…
Q: You have paid $1,000 for an investment that will pay back $1,200 in 3 years. What interest rate does…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
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A: The present value of investment can be calculated using present value table or compound interest…
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A: A study that proves that the 1value of money today is higher than the future value of money is term…
Q: If you have PhP5,000.00, which of the following investment alternatives would provide the greatest…
A: Computation:
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A: Given, The amount to be accumulated is Php 100,000 Number of years is 5 years Rate is 12%
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A: Using excel FV function
Q: How much will be received in 6 years if Php35,000 is deposited in an account earning 5.5% interest…
A: Answer - Formula for Future Value - FV=PV(1+i)n, Where, PV = Present Value i= Interest Rate n =…
Q: You own Php35,000 from the bank for 3 years at 8.50% annual interest, and you will make equal…
A: Loan amount (P) = Php35,000 Monthly loan term (t) = 36 (i.e. 3 years * 12) Monthly interest rate (r)…
Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…
A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…
Q: A person invests $450 to be collected in 8 yr. Given that the interest rate on the investment is…
A: The future value of the cash flow is the current worth of a cash flow at a certain rate of interest…
Q: Tom decides to save Php 25,000 each month for the next five years. If he starts to invest all of…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: After 3 and a half years, the value of Joey's investment is at $200 000. How much was his initial…
A:
Q: A man intends to buy a machine via loan. He does so by depositing a down payment followed by…
A: In this we need to find present value of both and from that we can get initial deposit.
Q: William got a second loan for 78,000 dlls to be payable in 5 years with interest rate of 7.5 percent…
A: Loan amount (PV) = 78000 Period = 5 Years Number of monthly payments (N) = 5*12 = 60 Annual interest…
Q: If your money is compounded at 12% interest monthly, you have to save _____ monthly to accumulate…
A: Here, Interest Rate (r) is 12% Required Accumulated Amount (FV) is Php 10,000 Time Period (n) is 2…
Q: Mr. Paul makes an initial investment of ₱6,000 for a period of 3 years. Find the value of the…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…
A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…
Q: A Businessman wants to have P100,000 3 years from now. What amount should he invest now if it will…
A: Present Value is the current value of the future sum of money at the specific rate of return.
Q: Dave put $22,000 in an investment that is compounded yearly at a rate of 7%. The investment is over…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: Miko has P250,000 to invest at 6% compounded monthly. Find the maturity value if he invest for (a) 2…
A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…
Q: You invest $19,000 at 18% interest, compounded monthly, for 2 years. Use the compound interest…
A: Given, Investment = $19,000 Interest = 18% Compounding Frequency = Monthly for 2 years The…
Q: You want to start saving for retirement. If you deposit Php2000 each year at the end of the next 60…
A: Future value = Annuity * FVAF ( rate, years )
Q: If money is worth 5% compounded quarterly , find the future worth of a sequence of 12 semi annual…
A: Since you have asked multiple questions, we will solve the first question for you as per policy.…
Q: You would like to have an accumulated amount of Php 60,000 in a savings account that pays you an…
A:
Q: If you borrow money from your friend with simple interest of 12%, find the present worth of P20,…
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…
Q: Alexander invests $5,000 at an interest rate of 1.4% per quarter. How much is the investment worth…
A: Future value is the value of the current assets or some amount that is invested today and amount…
Q: A. A person wants to generate fourintallments of $1,000 in the following four years. How much money…
A: Discounting the future cashflows provides the present value.
A = p ( 1 + r/n ) ^nt
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- Your brother has asked you to help him with choosing an investment. He has OMR 5000 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 4.25 percent with the interest being paid quarterly. What will be the value of the investment in two years? wut ofA person has Php200,000.00 which he plan to put in an investment for 3 years. He is choosing between two investments. Investment A credits 5% interest compounded monthly, while investment B credits 5.3% interest compounded quarterly. Which investment is better?Investment A requires you to pay $30,000 at t = 0 and you will receive $49,000 after five years. Investment B costs $73,000 and provides a cash flow of $128,000 after seven years. What is the rate of return for each of the two investments?
- You are given a choice of taking the simple interest on $100,000 invested for 4 years at a rate of 6% or the interest on $100,000 invested for 4 years at an interest rate of 5.5% compounded daily (use 360 for n). Which would you select? Explain your process, your conclusion, and give the difference in the two investments. Show all work.An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If the rate of interest earned on the investment is 8%, what is the present value of this investment? What is its future value? How do you solve this with excel?You are able to invest $100 at the end of 1 year into an investment earning 6%. At the endof year 2, you are going to add $1,000 to this investment and at the end of year 3, you are going to addanother $1,000. What will the investment be worth at the end of year 3?
- You have a chance to buy an annuity that pays Php2,500 at the end of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? SHOW MANUAL SOLVINGLenter wishes to have php. 36,000 after 1 year and 3 months to be used for their educational tour. How much should he invest in his account today if the interest rate is 6.5%?An investor paid $58,000 for an investment. He will get $5,780 for every two years (forever). What is his effective annual rate of return? a) 4.98% b) 9.97% c) 4.86% d) 0.00%
- You are saving for a new house. You place $47,000 into an investment account at the end of each year for five years. How much will you have after five years if the account earns (a) 5%, (b) 7%, or (c) 9% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1) a. b. C.. Annuity Annual Interest Payment Rate Compounded $ 47,000 47,000 47,000 5% 7% 9% Annually Annually Annually Period Invested 5 years 5 years 5 years Future Value of Annuity $ 59,985.23 65,919.93 72,315.33 4You have a chance to buy an annuity that pays Php2,500 at the end of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?You're deciding between two investments. Both earn 8%. Investment A pays you 8% annually on a $10,000 investment for five years. Investment B pays you semi- annually on a $10,000 investment. Which do you prefer and why? Investment B - it pays $109 more Investment A - it pays $109 more Both investments pay the same need more information