A bank offers a 10% interest to be compounded annually. How much should a teacher deposits if he wants to receive Php 25,000 at the end of each year for 3 years? (Present Value of Ordinary Annuity)
Q: You borrow $11,000 from the bank at an interest rate of 6%, compounded annually. You are required to…
A: Compound interest is interest added to the principal amount of a loan or deposit, or interest on…
Q: A bank offers to pay you 6 percent compounded monthly. Franco decide to invest 1 million pesos for…
A: Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period = 1 Year Monthly period (n) =…
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) =…
Q: Suppose your bank pays 10% interest, compounded semiannually. Find out how much should be deposited…
A: Present value is the amount a person is willing to pay now, in order to get an amount for a…
Q: How much (in $) would the account be worth after 10 years?
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: 4. Vincent wants to deposit Php 5,000 at the end of each quarter, for 3 years in a bank that gives…
A: Given Principal = 5,000 Rate (r) = 8% pa or 2 % (8% /4) quarterly Period (n) = 12 periods (3 Yrs…
Q: Benjamin borrows $50,000 from a lending institution for building a house. The lending institution…
A: The question is based on the concept of amortization of mortgage loans. A mortgage loan is paid back…
Q: You purchase a car priced at 750,000 Php. You paid 10% as the down payment and the remaining balance…
A: P= 675,000 (after down Payment) r= 0.4% (monthly) n= 10 yrs* 12months= 120 months Calculate interest…
Q: A bank offers a 12% interest to be compounded annually. How much should a teacher deposit now if he…
A: Present value is the value of future cash flows discounted at a specified interest rate for a…
Q: 1. An employee obtained a loan of P 10,000 at the rate of 6% compounded annually in order to build a…
A: Since you have asked multiple questions, we will solve the first question as per policy. Please ask…
Q: You would Ilike to have $59,000 in 5 years for the down payment on a new house following graduation…
A: Note: No intermediate rounding is done, only the answer is rounded off to nearest whole number.a)…
Q: You would like to have $15,000 in 4 years for a down payment on a home. How much would you need to…
A: Future value or amount required for down payment = FV = $15,000 Semiannual period of annuity = t = 8…
Q: A student plans to deposit P1,500 in a bank now and another P3,000 for the next two years. If he…
A: Amount left can be calculated using the formula of the future value.
Q: If P30,000.00 is deposited each year for 10 years, how much annuity can a person get annually from…
A: Amount deposited each year for 10 years is P30,000 Cost of monry is 14% Total number of withdrawals…
Q: A company wants to have $40,000 at the beginning of each 6-month period for the next 4.5 years. If…
A: The given problem is on Annuity due Annuity due is an annuity whose payment is due immediately at…
Q: A loan of P30,000 was made with a rate of 15% annually. How many years will he pay an amount of P…
A: Loan amount is P30,000 Rate"r" is 15% Annually Total Interest paid is P6,000 Future Value is…
Q: Mr Ramos wants to accumulate Php100,000 in 5 years. He wants to deposit a regular amount at the end…
A: Given, The amount to be accumulated is Php 100,000 Number of years is 5 years Rate is 12%
Q: Mr. A wants to receive a consistent amount from a bank that offers 60% nterest to be compounded…
A: Interest Rate = 6% Compounded Annually First Withdrawal after 5 years Time Period for years (T) = 4…
Q: As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: If you borrow $9,000 and agree to repay the loan in six equal annual payments al an interest rate of…
A: Present worth is the value of the amount in current time which is expected to be paid or received in…
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: Hazli borrows an education loan from Usaha Bank for RM24,000. The payments will be made in…
A: Loan amount (PV) = RM24,000 Interest rate (r) = 10% Number of annual payments (n) = 5
Q: If P10,000.00 is deposited each year for 9 years, how much annuity can a person get annually from…
A: First we need to calculate future value of annuity for 9 years by using this equation FV of annuity…
Q: As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year…
A: Since you have asked a question with multiple sub-parts, we will solve the first three questions for…
Q: A man will deposit Php 200 with a savings and loan association at the beginning of each 3 months for…
A: Present value of deposit amount= Php 200 Time period (n)= 3 months for 9 years Interest rate= 5.5%…
Q: To help finance the purchase of a house and lot, a couple borrows P350,000. The loan is to be repaid…
A: Given Information : Amount borrowed = P350,000 Number of years = 8 Annual interest rate = 15%
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: how much money will have accumulated at the end of the 10-year period
A: Future Value of Annuity: It is the future worth of a series of cashflows/payments compounded over a…
Q: Suppose a graduate student receives a non-subsidized student loan of $11,000 for each of the 4 years…
A: Non-Subsidized Student Loan per year = $11,000 Time Period of Non-Subsidized Student Loan = 4 Years…
Q: PLEASE DONT USE EXCEL A bank offers a 10% interest to be compounded annually. How much should a…
A: Interest rate (r) = 10% Annual deposit (P) = Php 35000 Number of annual deposits (n) = 3
Q: To pay for your education, you've taken out $18,000 in student loans. If you make monthly payments…
A: Loan Amount = $18,000 Time Period = 10 Years Interest Rate = 3% compounded monthly
Q: To help finance the purchase of a house and lot , a couple borrows P350,000. The loan is to be…
A: The interest rate is the proportion of a loan that is charged as interest to the borrower. It is the…
Q: Mr. Jimin borrowed money to CBA Bank for $211,000 for business development the chicken farm. The…
A: Given, Loan Amount - 211,000 Interest rate = 9% (compounded monthly) Period - 12 years
Q: If you borrow $25,000 from a local finance company and you are required to pay $4,424.50 per year…
A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…
Q: If P30,000 is deposited each year for 9 years. How much annuity can a person get annually from the…
A: An annuity refers to a fixed amount or stream of payments or deposits made. Therefore, it helps in…
Q: A.) A man has deposited $50 000 in a retirement income plan with a local bank. This bank pays 9% per…
A: The requirement is to find the annual withdrawal. This amount will be the same for all 12 years. The…
Q: A bank offers and investment account that has an annual interst rate of 9.9%, compounded quarterly.…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per…
A: Future Value = Present Value * (1+interest %)^N Future Value = 100*(1.0325)^7 Future Value =…
Q: A student takes out a short-term loan to pay for tuition, books, and supplies. If the simple…
A: Total repayment = Principa amount + Interest on loan
Q: A merchant put in his P2000 to small business for a period of six years. With a given interest rate…
A: Investment (P) = P 2000 Interest rate (r) = 15% Period (n) = 6 Years
Q: Suppose a graduate student receives a non-subsidized student loan of $11,000 for each of the 4 years…
A: Loan amount is the amount that is borrowed by the lender for fixed interest rate and for fixed…
Q: Assume that you keep RM5,555 in the savings account at Affin Bank with an interest of 15 percent per…
A: Saved amount = RM 5,555 Annual interest rate = 15% Period = 5 Years
Q: A man makes a payment of 1450 at the beginning of every month on a bank that offers 6% interest. How…
A: To calculate the amount of loan we will use present value of annuity due formula that is as follows:…
Q: A man will deposit Php 200 with a savings and loan association at the beginning of each 3 months for…
A: Saving account is a financial facility offered to individuals who want to save their money. It…
Q: Tim needs to borrow money today. He agrees to pay back the loan via 30 equal monthly installments of…
A: Present Value of annuity refers to the value of cash flows today of a series of equal cash flows or…
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- (1) A certain annuity pays P 80 at the end of every 3 months for 12 years. If the present value of the annuity is P 1,200 and the accumulated amount is P 2,000 determine the nominal rate. (2) How much should Mr. Sy invest on a bank that offers 10% interest so that he would earn Php1,000 each year in perpetuity. (3) Don Jose deposited Php5,000,000 on a bank that earns 10% compounded annually. Five years later he died. His will states that his beneficiary is an orphanage which will be receiving the money in perpetuity a year after he died. How much is the yearly fund the orphanage will be receiving?A man has deposited ₱50 000 in a retirement income plan with a local bank. This bank pays 9% per year, compounded annually, on such deposits. What is the maximum amount the man can withdraw at the end of each year and still have the funds last for 12 years?2. Manuel is preparing for an income fund for his retirement. He wants to receive ₱ 15 500 at the beginning of each month for the next 25 years. The income fund pays 10.5% per year compounded monthly. How much must Manuel deposit now to pay for the annuity?
- Mrs. Quiton deposited Php 120,000.00 into a college fund at the beginning of every month for 10 years . The fund earns 9% annual interest , compounded monthly . She paid at the end of the month . How much is in the account right after the last deposit ? 1. What is the type of annuity illustrated in the given problem? A. Simple Annuity B. General Annuity C. Deferred Annuity D. Complex Annuity 2. Determine the present value of the deposit. A. Php 12,000.00 B. Php 30,000.00 C. Php 60,000.00 D. Php 75,000.00A student decides to make annual payments of Php 1619 into a bank that has a nominal interest of 4% compounded semiannually. How much money will this student have accumulated in this bank account at the end of 13 years?Every three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which formula to compare with cash payment? A. Future value of IB. FV of AnnuityC. Present Value of ID.
- An engineer loans an amount of P500,000 at a local commercial bank at 4% compounded quarterly. How much is his monthly payment if he is required to pay at the end of each month for a period of 5 years?ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal monthly payments over a period of 30 years. The interest rate is 12 percent. Required: If the monthly payment is $2,571.53, how much of the first payment is interest expense, and how much is principal repayment?\1. An employee obtained a loan of P 10,000 at the rate of 6% compounded annually in order to build a house. How much must he pay monthly to amortize a loan within a period of 10 years? 2. How much money would you have to deposit for 5 consecutive years starting one year from now if you want to be able to withdraw P 50,000 ten years from now? Assume the interest is 14% compounded annually. 3. A certain annuity pays P 80 at the end of every 3 months for 12 years. If the present value of the annuity is P 1,200 and the accumulated amount is P 2,000 determine the nominal rate. 4. An annual deposit of P 1,270 is placed on the fund at the end of each year for 6 years. If the fund invested has a rate of interest of 5% compounded annually. How|| much is the worth of this fund at the end of 9 years? 5. A man owes P 10,000 with interest at 6% payable semi-annually. What equal payments at the beginning of each 6 months for 8 years will discharge his debt? 6. A farmer bought a tractor costing P…
- To pay for your child's education, you wish to have accumulated P15,000 at the end of 15 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 6 percent compounded annually, how much must you deposit each year to obtain your goal?To help finance the purchase of a house and lot , a couple borrows P350,000. The loan is to be repaid in equal monthly installment over a period of 8 years. If the interest rate is converted monthly, how much is the monthly payment at 15% 5. interest?Mr. Sebastian avails the loan offered by his company with a minimal interest of 1.5% every 6 months. He borrows ₱150,000 and agrees to discharge his loan by paying a series of 10 equal semi-annual payments. The first payment is due at the end of 2 years. What amount should he pay every 6 months? Also draw the cashflow diagram