Mrs. Lazada is convince to invest to an insurance company with 4% interest compounded annually and the maturity of 10 years. The investment can be partially or fully withdrawn any time. What is the present value withdrawable of her investment after maturity if she withdraws Pl0,000 on her 3rd year, PS,000 on her 4th year and P20,000 on her 8 year? Assume she pays P20,000 yearly

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Q: Frank and Fatima decide they will buy a two-bedroom garden-suite, with a 5750,000 mortgage from…

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Q: John and Mary as a couple wish to contribute a decent percentage of their earnings into individual…

A:

Q: Jordan's investment manager offers her an interest rate of 8.0% compounded monthly on her…

A: Earlier Interest rate is 8% Compounded monthly Interest rate changed to  is 8% compounded annually…

Q: Crystal's investment manager offers him an interest rate of 7.0% compounded on his investments. If…

A: An annuity with different compounding refers to a series of regular payments or receipts over a…

Q: Adrian's investment manager offers her an interest rate of 7.0% compounded monthly on her…

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A: Future value refers to an amount of the current asset at some future date. It is helpful for…

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A: NPV means Net present value. It is calculated by deducting present value of cash outflows from…

Q: James invests $15,000 in a 5-year Guaranteed Investment Certificate (GIC) with a variable interest…

A: Guaranteed Investment Certificate (GIC) : A Guaranteed Investment Certificate (GIC) is an investment…

Q: Sara purchased a three-bedroom, two-storey house for $209 000 with a 10% down payment. The mortgage…

A: The down payment refers to the money paid by the customer in the early stage of purchasing the…

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Q: how much money must be removed from the estate to purchase the annuity?

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Q: Puan Elly is planning to retire in 20 years and she plans begin withdrawing RM 50,000 anuallannually…

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Q: Marryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

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Q: Margo borrowis 51700 , agreeing to pay it back with 48 annual interest after 11 months. How much…

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Q: determine if Elora would be able to buy the land

A: First we need to determine the effective annual interest rate using the formula below:

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Q: Shane has a retirement plan with an insurance company. He can choose to be paid either $450 per…

A: Solution:- Every rational person wants to pay fewer amounts. So, the better option will be the one…

Q: Rachael also wishes to save for retirement. She can comfortably afford to invest R8 500 at the end…

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A: Interest can be defined as the cost of borrowing. It is the cost or fees paid by the borrower to the…

Q: (6) Marian has just purchased a house. She has a $400,000, 20-year mortgage with interest at an…

A: Loan Amount = 400,000 Time Period = 20 years or 240 months Rate = 4.5% Continuous Compounding

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A: Amortization of a loan refers to the systematic payment of the loan at regular intervals. These…

Q: Mr. Abdullah borrows $80,000 at 14 percent interest toward the purchase of a home. His mortgage is…

A: A term loan is a form of credit instrument in which money is lent to someone else in exchange for…

Q: Peter Penniless owes Wendy Worth $5 000 due in two years from now, and $3 000 due in five years from…

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Q: Amos takes out a 25-year repayment (amortising) mortgage of £100,000 at an annual interest rate of…

A: NPER here means the period in years.

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.