A P485,000 loan was originally made at a rate of 3% compounded semi- annually for 1 year. At the end of this period, the loan was extended for 2 years and 8 months, with a new interest rate of 4% compounded continuously, using simple interest for anything less than a year period. a. Find the final amount. b. Create the cash flow with the type of interest being labelled. c. Briefly explain the cash flow diagram.

A P485,000 loan was originally made at a rate of 3% compounded semi- annually for 1 year. At the end of this period, the loan was extended for 2 years and 8 months, with a new interest rate of 4% compounded continuously, using simple interest for anything less than a year period. a. Find the final amount. b. Create the cash flow with the type of interest being labelled. c. Briefly explain the cash flow diagram.

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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Display graphically cash flows (calculate repayment of the principal amount and interest for each period) on a differentiated-payment loan, if the principal amount is 2,000, maturity is 3 years, interest rate is 11% per year, and frequency of payments is semiannual.
A company takes a loan of $ 1,200,000 to a bank amortizable in 4 with an interest of 15% per year under the following conditions; The years and company will amortize the debt in constant values in all periods, with a three-year grace period. Determine the benefits that the company must pay for its debt. Build the cash flow diagram.
It is important to know how to build an amortization schedule when firms (or individuals) take out bank loans. It all start with calculating the monthly payment using the formula below.using the formula provided, do calculations to confirm the monthly payment for that loan based on the following information Loan amount (P): $60,000 Number of periods (n): 3 years = 36 months Interest (i): 12% per year = 1% per month (should be expressed as 0.01)
1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays monthly payments of $500. a. Calculate the accumulation rate b. Calculate the payment rate . c. Answer : How will the balance of the principal be at the end of the loan in relation to the original amount of the loan? Less, equal or greater? Provide calculations.
563, 000 loan was originally made at a rate of 2.5% compound quarterly for 1 year. At the end of this period, the loan was extended for 2 years and 6 months, with a new interest rate of 3% compounded continuously, using simple interest for anything less than a year period. a. find the amount after 3 years and 7 months. b. create the cash flow diagram for the borrowers perspective with the type of interest labelled respectively. c. briefly explain your solution.
Answer the following: Show the cash flow diagram and solutions. A bank give a certain interest rate compounded semiannually of Php. 7K will amount of amount of Php. 28K after 12 years . What is the amount at the end of 16 years?
What is the PRESENT VALUE of a ₱20,000 single payment with annual rate of 12% to be compounded annually that will be received after 5 years? A. ₱11,348.54 B. ₱22,400.00 C. ₱32,000.00 D. ₱35,246.83 Which of the following is an operating cash inflow activities? A. Receipt of loan from bank B. Proceed from sale of fixed assets C. Collection of accounts receivables D. Issued shares of stocks Which part of financial planning is meeting with the heads of other department and get information from them pertaining to the tactics that might be able to develop? A. develop a plan B. gather the relevant data C. establish the objective D. implement the plan Statement 1: Long-term financial planning focuses on big picture, such as capital structure and capital budgeting. Statement 2: Short-term financial planning focuses on ensuring that business has enough cash to pay all its liabilities.…
Show cashflow diagram and solution (not on ms excel pls) a loan association lends money at the rate of 15% compounded semiannually. A man borrows P50,000 payable in 16 semiannual installments, the first payment due at the end of two years reckoned from the date of the loan. how much is each of the semiannual installments?
5. An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a 5-year period with annual payments such that the third payment is P2,000 greater than the first two. The fourth payment is 1,000 greater than the third payment and the fifth payment is 1,000 greater than the fourth payment. Determine the size of the first payment, DRAW THE CASH FLOW DIAGRAM.
Problem #1: For the following cash flows, (receipt of 10,000 at t=0; payment of 15,000 at t=1; receipt of 12,000 at t=2; and receipt of 12,000 at t-6), various interest rates are applied: 3% for year 1; 4% for year 2, 5% for years 3 and 4, and 6% for years 5 and 6. Find the equivalent net value at t=5, i.e., Fs=? 10,000 12,000 3% 4% 5% 0 1 2 I 15,000 F₂-? I 12,000 5% 6% 6% m
f. A firm borrows RM36,000 from the bank at 8% compounded annually to purchase some new machinery. This loan is to be repaid in equal installment at the end of each year over the next 4 years. Required: 1 2 i. Yea r 3 4 ii. How large is the annual payment? Complete the following amortization schedule: Annuity Payment Beginning Amount Interest Repayment of Ending Principal Balance
A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money? Draw the cash flow diagramwith your solution.

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