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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 41P

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8. Ken acquired his sister's share of their business by agreeing to make payments of $4000 at the end of each year for
12 years. If the payments are deferred for 3 years and money is worth 5% compounded quarterly, what is the cash
value of his sister's share of the business?

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4. Tom agrees to make equal payments at the end of each year for 10 years to pay all interest and principal in purchasing a land worth $1,250,000 cash. If money is worth 8% compounded annually, find the annual payment.
8. Ken acquired his sister’s share of their business by agreeing to make payments of $4000 at the end of each year for 12 years. If the payments are deferred for 3 years and money is worth 5% compounded quarterly, what is the cash value of his sister’s share of the business?
Alice acquired his sister’s share of their business by agreeing to make payments of $5000 at the end of each year for 14 years. If the payments are deferred for 4 years and money is worth 4.5% compounded quarterly, what is the cash value of his sister’s share of the business?
3. Mr. Ramirez borrowed P150,000 to be amortized in 2 years by monthly equal payments. If Mr. Ramirez missed the payments during the first year, what amount must he pay in the following month to liquidate all his indebtedness if money worth 12%?
Mr. Bill purchased a new house for 110,000. He paid 20,000 down and agreed to pay the rest over the next 30 years in 30 equal end of the year payments plus 12 percent compound interest on the unpaid balance. What will these equal payments be?
At the birth of his daughter, Mr. Lucas Zulu invested K10,000 at 6% p.a. compounded annually. What amount would accrue to her if she left the money invested until she attained the age of:(i) 18 years; (ii) 21 years; (iii) 40 years; and(iv) 60 years?
3. Mr. Ramirez borrowed P150,000 to be amortized in 2 years by monthly equal payments. If Mr. Ramirez missed the payments during the first year, what amount must he pay in the following month to liquidate alIl his indebtedness if money worth 12%?
Erika inherits $20,000, and decides to invest it in an account earning 6.25% interest, compounded semiannually. How much money will she have in that account if she leaves it in there for 10 years?
16. Hanson borrows GHC 900.00 from Kwesi and the same amount from Mingle to start a business. He agrees to pay Kwesi 15% of the profits of the business cach year. He also agrees to pay Mingle 10% of the annual profits in addition 3% interest on his loan each year. a. Find how much Kwesi is paid in a year in which Mingle receives GHC 48,000.00 b. How much is Kwesi paid a year in which he receives GHC 12,750.00 more than Mingle?
At the birth of his daughter, Mr Lucas Dalitso Zulu invested K10,000 at 6% p.a.compounded annually. What amount would accrue to her if she left the moneyinvested until she attained the age of: (i) 18 years; (ii) 21 years; (iii) 40 years; and (iv)60 years?
Reymond agrees to make equal payments at the end of each year for 10 years to pay all interest and principal in purchasing farmland worth P1,225,000 cash. If money is worth 10% compounded annually, find the annual payment.
Bert receives an inheritance of $57,500 and decides to invest his money into an account that will pay 3.7% if the money is not withdrawn for 7 years. a. Complete the table depicting Bert's money and interest earned after the 7 year period. (round all dollar amounts to 2 decimal places) Quarterly Daily Compounding Continuously Amount in $ $Number $ Number Account Number $ Number $ Interest Earned $Number Number b. Find the difference between his money compounded quarterly versus compounded continuously. $ Number

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