Mr. Cruz plans to deposit for the education of his 5 year old son, Php 5831 at the end of each year for 10 years at 11.41 % annual interest compounded annually. What will be the amount available after 10 years? - What is the present worth of a 6-year annuity paying P3,000.00 starting at the end of five years, with interest at 8% compounded semiannually?

Mr. Cruz plans to deposit for the education of his 5 year old son, Php 5831 at the end of each year for 10 years at 11.41 % annual interest compounded annually. What will be the amount available after 10 years? - What is the present worth of a 6-year annuity paying P3,000.00 starting at the end of five years, with interest at 8% compounded semiannually?

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 12E

See similar textbooks

Similar questions

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?
An engineer is entitled to receive P25,000 at the beginning of each year for 18 years. If the rate of interest is 4% compounded annually. 1. What is the present value of this annuity at the time he is supposed to receive the first рayment? 2. What is the sum of this annuity at the end of the 18th year? 3. Find the difference between the sum of this annuity which is paid at the beginning of each year and an annuity paid at the end of each year. Ans. 1. Р329,141.72 2. Р666,780.73 3. Р25,645.41
4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments if first receipt occurs today?
Me. Cruz plans to deposit for the education of his 5 years old son, 500 at the end of each month for 10 years at 12% annual interest compounded monthly. The amount that will be available in two years is?
Bob purchases an annuity that will pay him $10,000 a year for the next 15 years starting a year from now. Assuming a 5% annual interest rate, what is the value of this annuity? Choose the closes. a) $150,000 b) $103,797 c) $124,622 d) $77,217
A man wishes his son to receive ₱200,000 ten years from now. What amount should he invest if it will earn interest of 10% compounded annually during the first 5 years and 12% compounded quarterly during the next 5 years? Ans: ₱68,758.67
(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?
Winston and Bonnie pay $400 at the end of each 6 months for 5 years into an ordinary annuity paying 8% compounded semiannually. What is the future value at the end of 5 years?
Provide manual solutions to below mentioned problems. An engineer is entitled to receive P25,000 at the beginning of each year for 18 years. If the rate of interest is 4% compounded annually. 1. What is the present value of this annuity at the time he is supposed to receive the first payment?2. What is the sum of this annuity at the end of the 18th year?3. Find the difference between the sum of this annuity which is paid at the beginning of each year and an annuity paid at the end of each year. Answer. 1. P329,141.72 2. P666,780.73 3. P25,645.41
Hank made payments of $106 per month at the end of each month for 30 years to purchase a piece of property. He promptly sold it for $99,810. What annual interest rate would he need to earn on an ordinary annuity for a comparable rate of return? ◻️٪؜ (Round to the nearest hundredth as needed.)
Manuel is preparing for an income fund for his retirement. He wants to receive P 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?
Determine the exact simple interest on P5,000 for the period from Jan.15 to Nov.28, 1992, if the rate of interest is 22%.