A man bought an equipment costing P65,000 payable in 10 quarterly payments, each installment payable at the beginning of each period. The rate of interest is 24% compounded quarterly. What is the Outstanding principal at the beginning of the period 6. (Hint: Construct an amortization schedule.) a.Php 38,095.416 b.Php 37,095.416 c.Php 36,095.416 d.Php 35,095.416

A man bought an equipment costing P65,000 payable in 10 quarterly payments, each installment payable at the beginning of each period. The rate of interest is 24% compounded quarterly. What is the Outstanding principal at the beginning of the period 6. (Hint: Construct an amortization schedule.) a.Php 38,095.416 b.Php 37,095.416 c.Php 36,095.416 d.Php 35,095.416

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A Php 111,205 was loaned at an interest rate of 0.06. 7 annual payments has to be settled, the first payment will start at the end of 3rd year. Compute for the principal amount remaining at the start of 6th year.
Halep Inc. borrowed $39,070 from Davis Bank and signed a 1-year note payable stating the interest rate was 8% compounded annually. 1. Using the Present Value of an Annuity of 1 TABLE4 or Figure B2 in the textbook E, calculate the factor. 2. Next, determine the annual payment amount. 3. Then, determine the interest portion of the payment for year 1. 4. Finally, determine the principal portion of the payment for year 1. Round to the nearest penny, two decimal places.
3. Complete an amortization schedule for a $38,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 7% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent. Beginning Balance $ % Interest Year 1 2 3 ɔ. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places. % Principal Payment $ % % % % Interest $ % Repayment. of Principal $ Year 1: Year 2: Year 3: % Why do these percentages change over time? I. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. Remaining Balance $ II. These percentages change over time because even though the total payment is constant the amount of interest paid…
A person borrowed an amount of one million dinars from a bank with compound interest, the annual rate of which is 10%, and it was agreed between the debtor and the creditor to pay the loan and the interest together in 3 equal installments, so that the installment would be paid at the end of each year. What is required is: a. Find the amount of the equal installment. B . Illustrate the appropriate depreciation schedule.
A deposit of $50,000 is made into an account that pays 10% compounded semiannually. How much would be in the account after 10 years? (a) $81,445 (b) $129,685 (c) $132,665 (d) $336,375
3. Convert 16% compounded monthly is equal to an effective interest rate. 4. Find the accumulated amount of ₱ 1000 after 5 years when deposited in a bank at rate of 16% compounded monthly
An amount of ₱234,000 is deposited in a bank paying an annual interest rate of 6.15%, compounded continuously. Find the balance after 3 years.
With solution 1. Find the compound amount and the interest if: Php25 350.00 is deposited in a savings account at 7% compounded semi-annually for 2 years and 6 months.
1. A farmer bought a tractor costing Php 25,000 payable in ten semi- annual payments, each installment payable at the beginning of each period. If the rate of interest is 26% compounded semi- annually, determine the amount of each installment. 2. A man bought an equipment costing P60,000 payable in 12 quarterly payments each installment payable at the beginning of each period. The rate of interest is 24% compounded quarterly. What is the amount of each payment 3. Find the difference between the sums of annuity due and ordinary annuity for the following data Periodic payment = P14,000 Payment interval = 3 months Term = 16 years Interest rate = 10% compounded quarterly
Happy Company sold a machine in exchange for a P750,000, 5-year, 14% note; interest is payable annually. How much is the total amount of interest collected for this note for 5 years? tart How much cash will be collected at the end of the term of the note? ssments ( Previous rences fessors

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