Answered: How much will be paid every three…

How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth 5 1/8% compounded quarterly for 20 years?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

See similar textbooks

Related questions

Q: A corporation cannot survive if the original owners are the only ones to invest in terms of equty fi...

A: Equity financing is the method of getting capital in exchange for partial ownership of the company. ...

Q: Which of the following statements is false? A. Issuing bonds allows issuers to run their busi...

A: The price for bond implies to the consideration amount paid by investor for purchasing bond. In prov...

Q: If Rex wants to be a millionaire by the time he retires (45 years from now), how much does he need t...

Q: he following data was reported by Saturday Corporation: Authorized shares: 30,000 Issued shares: 25...

A: Authorized shares are the number of shares that a company is legally allowed to issue.

Q: Situation: Assume that you are planning to invest for the expansion of your business. You consider t...

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first ...

Q: For a sum of money to double itself in 10 years, what must be the rate of interest compounded annual...

A: The amount of money invested over a period of time with the assumption of investment growth at a spe...

Q: 2) A benefactor wishes to establish a trust fund to pay a researcher's salary for T years. The salar...

A: Perpetuity means a set of infinite numbers of payments which are the same in size and made in equal ...

Q: Lexi took out a loan from a loan shark with an interest rate of 5% bi-monthly, compounded semi-month...

A: Interest rate = 5% bi-monthly compounded semi-monthly Which means the interest rate is 5% every 2 mo...

Q: The price of a product is expressed as ?, PHP = 10 – 28? where ? is the demand. Which of the followi...

A: Solution:- Total revenue = Price of product x Total demand of the product

Q: When Microsoft went public, the company sold 2 million new shares (the primary issue). In addition, ...

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...

Q: The London Interbank Offered Rate (LIBOR) is published under the auspices of the British Bankers Ass...

A: LIBOR (London Interbank Offered Rate) is a benchmark interest rate. This is the rate at which big ba...

Q: An investor buys a property for $665,000 with a 25-year mortgage and monthly payments at 8.5% APR. A...

A: Mortgage Loans: A legitimate consent to acquire cash from a bank or other monetary association, part...

Q: eBook Problem Walk-Through Weston Corporation just paid a dividend of $2 a share (i.e., Do - $2). Th...

A: Dividend refers to that portion of the profits of the company which is distributed among the shareho...

Q: 20. Taxes and the Cost of Capital. Here is Icknield s market-value balance sheet (figures in $ milli...

A: The weighted average cost of capital is the average rate of return that a company gives to all its s...

Q: Long-term debt financing can have a possibility of more funding but is more risky in terms of long-t...

A: Long-term debt financing is the way of funding in which the institution lends long-term debt to the ...

Q: Lexi took out a loan from a loan shark with an interest rate of 5% bi- monthly, compounded semi-mont...

A: Let the principal = X Loan amount after 1 year (Y) = $14147.19 Interest rate = 5% bimonthly compound...

Q: (A) Find the monthly payment and the total interest paid. (B) Find the unpaid balance after 8 years.

A: Monthly Mortgage Payment: It is the payment made to the lender by the borrower for taking on a mort...

Q: A 18-month forward contract on a non-dividend-paying stock is entered into when the price of a stock...

A: Price of a stock = $35 Continuous compounding risk-free interest rate = 3% Time period = 18 months ...

Q: 6.4 Differentiate between Different Types of Consumer Lender Loan products Significant features They...

A: A commercial bank is a type of financial institution that conducts all public deposit and withdrawal...

Q: Explain the elements and the process of designing a business model

A: The profit-making strategy of a company is referred to as its business model. It outlines the produc...

Q: 2. Finance in an organization Corporate finance is concerned with the different aspects of a busines...

A: Financial management (FM) means managing all the activities related to funds whether raising the fun...

Q: Mr. Jones will invests P 5,000 in a fund at the end of each 6 months to accumulate P 100,000 to buy ...

A: Compounding of interest means, interest is received on principal as well as the earned interest amou...

Q: Ms. Harake gave a Php100,000.00 to Ms. Gonzaga at 18%. How much was the interest after 45 days?

A: Simple interest is a method of calculating the proportion of interest paid on an amount over a certa...

Q: 21. Find the number of interest periods to achieve the conditions set forth. A= $6000; P =$1000; int...

A: Interest can be accumulated on a daily, weekly, monthly, or yearly basis. Standard compounding frequ...

Q: It is a process needed in financial planning that examines the objectives using the individual's res...

A: Financial planning is very important for the personal finances and to have comfort in life.

Q: 29. Which of the following may increase by a relatively constant amount each period. O a. First Cost...

A: First cost is the initial cost incurred in the procurement of the asset, hence the first cost is sin...

Q: Question 2:: Mohamed is going to be paying AED 120,000 rent for his new apartment in JVC at the begi...

Q: Life inHow would you determine the amount to purchase? Should it be based on your current financial ...

A: Life insurance is a very important insurance tool that each and every individual should take.

Q: Q Search this Ey- Time value of money c. Find the PV of $1,000 due in 6 years if the discount rate i...

A: Since multiple questions are involved , we will answer 1st sub 3 questions as per prescribed policy....

Q: Apricot Computers is considering replacing its material handling system and either purchasing or lea...

A: EUAC means Equivalent uniform Annual cost. It is the annual cost of maintaining an asset over its us...

Q: If the minimum attractive rate of return is 14%, which alternative should be selected?

A: Here we are given 4 different projects and the MARR (minimum attractive rate of return) is 14%. We c...

Q: Calculate the simple interest earned when P = $15,000, r = 7.5%, and t = 70 days using the ordinary ...

A: In simple ordinary interest, 360 days are used. P = $15000 r = 7.5% t = 70 days

Q: The IRR represents O The highest interest rate at which the cost of capital is minimized O The "brea...

A: Internal Rate of Return is the return where present value of cash inflows is equal to present value ...

Q: Another bond was issued on 6/1/2018 and has a 4% coupon rate, with interest paid semi-annually, and ...

A: Here, Issue Date of Bond is 6/1/2018 Maturity Date of Bond is 6/1/2043 Call Date is 6/1/2023 Purchas...

Q: Consider a Treasury bond with 8% coupon rate and 4 years to maturity (annual coupons). You enter int...

A: Forward price is the price at which the buyer will buy the underlying asseat a future date. This pri...

Q: 1. Calculate the effective annual interest rate for 15% corresponding to each of the following: a) c...

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...

Q: 3. Bond Prices Vulcan, Inc., has 7 percent coupon bonds on the market that have 13 years left to mat...

A: Par value (P) = $1000 n = Years till maturity = 13 Coupon (C) = 7% of P = $70 r = YTM = 8.4%

Q: How much money should be invested in an account that earns 6% interest, compounded quarterly, in ord...

A: Amount to be invested today = P r = 6% per annum = 1.5% per quarter Final amount needed (F) = $8000 ...

Q: Jones Software's stock currently sells for $22.00 a share. It just paid a dividend of $1.00 a share ...

A: Current stock price = D1/(r - g) D1 = Current dividend x (1 + g) = 1 x (1 + 0.07) = 1....

Q: Two machinės are av ay Foods must purchase a new gumdrop machin chine 7745 has a first cost of $10,0...

A: Total present value of all cost is capital cost of equipment and the equipment having less capital c...

Q: The day Jared was born, his parents invest P20,000 at 5.5% m=4. Find the value of the fund on Jared'...

Q: 7.21 Consider the following two bonds which make semiannual coupon payments: a 20- year bond with a ...

A: Bond Duration: The duration of a monetary resource that comprises fixed cash flow, like a bond, is t...

Q: If you borrowed P 10,000.00 from a bank with 8% interest per annum, what is the total amount to be r...

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified...

Q: Honda Motor Company is considering offering a $1,800 rebate on its minivan, lowering the vehicle's p...

A: Incremental profits are calculated as the difference between the profit earned before offering rebat...

Q: North American location known for its high temperature ocean surface and its much lower ocean temper...

A: Before investing in new projects or assets, profitability of the project is evaluated on the basis o...

Q: In buying a farm worth P 1,500,000 cash, the purchaser pays P 500,000 cash and agrees to pay the bal...

A: Payments are the modes of the cash outflow therefore, the person who pays the amount has to make it ...

Q: Hani owns a small construction company and is considering buying a new scissor to improve efficiency...

A: Annual saving needed to breakeven is amount of required to cover all expenses that are necessary to ...

Q: Compute for the iEff/bimonthly and iEff/monthly

A: Interest = 15% compounding semi-annually Computation of Annual effective interest rate iEff/annual...

Q: An private firm can buy a machine for $ 40,000. A down payment of $ 4,000 is required and the balanc...

A: The annual equivalency method is used to compare the two similar projects with the unequal term. Und...

Q: Calculate 1.04 as a ratio.

A: A ratio is a relationship between two variables that shows how much of one variable is contained in ...

Question

Please show the solution when not using Excel

How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth 5
1/8% compounded quarterly for 20 years?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Given,

VIEW

Calculation of the Periodic Payment is as follow:

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
What would the required payment be on a K1,000 loan that is to be repaid in three equal installments at the end of each of the next three years if the interest rate is 10%?
How much interest is payable each year on a loan of P2,000 if the interest rate is 10% simple interest per year when half of the loan principal will be repaid as a lump sum at the end of 3 years and the other half will be repaid in one lump-sum amount at the end of 6 years? How much interest will be paid over the 6-year period?
What is the maximum amount you should pay today for an investment that pays a single future cash flow of $25,000 in 5 years if the appropriate interest rate is 2% compounded semiannually?
What is the effective interest rate charged to a loan of P5,000 paid after 5 years amounting to P7,250? What is the nominal rate if it is compounded semi-annually? upload your solution with signature sifan ?
What is the payment for a loan of $320000 with an interest rate of 8.13% compounded monthly for 6 years?
How much will Kingston Technologies have to pay each year in 11 equal payments, starting 2 years from now, to repay a $900,000 loan. The interest rate is 15% per year?
A loan of 34000 is made at 5% interest, compounded annually. After how many years will the amount due reach 63000 or more?
What is the monthly payment to repay a 10 year loan of $200,000 at a nominal rate of 15% per year if the interest is compounded quarterly? Assume interperiod compounding.
How much interest will be owed on a loan of P15,500 at the end of 4 years and 7months using 15 percent simple interest per year?