SHOW SOLUTION 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
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.SHOW SOLUTION
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
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- SHOW COMPLETE AND ORGANIZED SOLUTION1) A man wishes to bequeath to his son P100,000 ten years from now. What amount should he invest now if it will earn interest of 8% compounded annually during the first 5 years and 12% compounded quarterly during the next 5 years?2)If you are to invest your money, which is a better option: 12% compounded monthly, 12.20% compounded quarterly, 12.35% compounded semi-annually or 12.5% compounded annually?3) Determine the ordinary and exact simple interest on P60,000.00 for the period from January 16 to November 26, 2008 if the rate of interest is 14%A man can sell his business for $800,000 cash or for $125,000 plus $12'I a. Find the present value of the annuity that is offered if money is worth 10%; compounded annually. b. If he takes the $800,000, spends $125,000 of it, and invests the rest in a 9-year annuity at 10%, compounded annually, what size annuity payment will he receive at the end of each year? c. Which is better, taking the $125,000 and the annuity or taking the cash settlement? a. Find the present value of the annuity that is offered if money is worth 10%, compounded annually. (Type an integer or decimal rounded to the nearest cent as needed.)Deffered Annuity Show solution and cash flow. I have a friend, and he wants to lend an amount of ₱250,000 today. Then he wanted to pay it back in twenty annual installments of ₱30,000 starting three years from today and he said, I can earn 8% of it. Will I accept his request under these terms?
- Art wants to know how much he'll have to invest today to receive an annuity of $8,000 for three years if interest is earned at 10% annually. He'll make all of his withdrawals at the end of each year. How much should Art invest? A. $19,895.20 B. $20,400 C. $23,280 D. $21,600How much money should Mohammed and Fatima deposit annually for 20 years in order to provide an income of $30,000 a year for their next 10 years, assuming a rate of return of 4%? O 9,171 O 8,711 O 7,171 O 8,171What amount of money invested today at 15% interest can provide the following scholarships: ₱30,000 at the end of each year for 6 years; ₱40,000 for the next 6 years and ₱50,000 there after?
- Follow the sequence: 1. Given 2. Formula to be used: 3. Required 4. Cash flow diagram (for annuity problems) 5. Manual Solution (box the final answer) A man wishes to prepare the future of his 10-year-old son. Determine the monthlysavings that the man should make with interest of 5.41% per annum to amount P120,000 at the time his son will be 18Current Attempt in Progress Your grandfather is retiring at the end of next year. He would like to ensure that his heirs receive payments of $9,600 a year forever, starting when he retires. If he can earn 6.10 percent annually, how much does your grandfather need to invest to produce the desired cash flow? (Round answer to 2 decimal places, e.g. 15.25.) Present value of investment $Solve the following problems: a. Give the discount of ₱ 750 for 15 years at 7% compounded monthly. b. At the birth of a child, what sum should his father invest in order to provide the child with ₱ 20,000 at age 21 if the money earns 10% compounded quarterly?
- If your trust fund promises to pay you RM25,000 on your 24th birthday (6 years from today) and earns 9% compounded annually, then what is the trust fund's present value?If you invest P25,000 at 8% interest compounded annually, approximately how much money will be in the account at the end of 10 years? a. P31,000 b. P46,000 c. P54,000 d. P75,000 3. A John wants to surprise his mother with a gift for her birthday, which is five vears away. He 2.K (Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated $15,000 at the end of 15 years. To do this, you plan on depositing 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 reach your goal? To reach your goal, your annual deposit must be $ (Round to the nearest cent.)