The buyer of a lot paid P110,000 down payment and agreed to pay P35 000 at the end of each six months for 5 years. If the payment is worth 8% compounded semi-annually. What is the cash price of the lot? O a. 393,881.35 O b. 530213.75 O c 322,393.88 O d. 398,381.56

Q: Which one pays more (for the same amount and same interest rate), a saving account with a simple…

A: Simple interest rate is the fixed rate of interest which remains unchanged during the invested…

Q: In order to recognize a question that requires fv of an annuity formula rather than just fv,…

A: Compounding: Compounding is the interest charged on interest. When any investment is made for…

Q: Why should we call an annuity a periodic payment problem?

A: Annuity- An annuity is a contract between an individual and an insurance company in which the…

Q: Explain the purchase-money mortgage?

A: Purchase-money mortgage: A purchase-money mortgage is a loan delivered to the debtor by the vendor…

Q: What is an annuity? How does it differ from a lump sum payment?

A: Annuity:An annuity refers to a series of payments made at regular time intervals. These are…

Q: In comparing an ordinary annuity and an annuity due, which of the following is true? a. The future…

A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…

Q: xplain the concept of time value of money in the context of simple interest. How would you use this…

A: Simple interest is the interest calculated above the original contribution to a savings account.…

Q: Which of the following describes how to calculate abond’s issue price?Face Value Interest Paymentsa.…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: À savings account should be used for your emergency fund and your O Short-term savings goals O…

A: Savings account is an account where short term funds are deployed with immediate use. It generally…

Q: what is the best thing to consider in solving general ordinary annuity?

A: Annuity means a set of finite number of payments which are the same in size and made in equal…

Q: What is the difference between life insurance and annuity?

A: Meaning:Life insurance is a cover on financial loss, and it is a contract between insurer and a…

Q: Why loan support is needed, explain.

A: Loans are any type pf financial credit facility in which a sum of money is lent by one party to…

Q: what is the difference between Simple perpetuity from general perpetuity?

A: Perpetuity refers to the incoming of equal infinite cash flows which arrive at the end of every…

Q: Why is it that in making same paymentsfor both ordinary annuity & that of annuity due, at the end we…

A: Annuities are the financial contracts that provide a steady income stream, often to retirees. The…

Q: Benefits of a savings account for borrowers ?

A: The saving account refers to the type of account in a bank that provides the facility to deposit the…

Q: What’s the difference between an ordinary annuity and an annuity due?

A: Annuity is the fixed sum paid on annual basis. In other words, annuity is the series of payment…

Q: For any investment, which will always have the higher future value : an ordinary annuity or an…

A: There are two types of annuity which are as follows: Annuity due: In contrast of ordinary annuity,…

Q: Explain Effective Cost of Two or More Loans?

A: When there is the existence of a situation, where the borrower takes an option to finance the…

Q: What type of retirement account is best?

A: One of the best retirement plan Public provident fund : Public provident fund (PPF) is a government…

Q: What are some instances of an ordinary annuity and annuity due in the real worl

A: This question tells about instances of an ordinary annuity and annuity due in the real world

Q: Create two or three word problems that involve the concepts of Annuity. Consider different types of…

A: There are two types of annuity which are as follows: Annuity due: Unlike an ordinary annuity,…

Q: If the question doesn’t state when payments are made- is the default ordinary annuity?

A: Annnuity is the series of reccuring payment made at regular interval.

Q: Explain mezzanine loan?

A: Mezzanine financing is a blend of both debt and equity financing. It is a way for firms to raise…

Q: Give an interesting feature of any perpetual annuity?

A: Interesting feature of any perpetual annuity: The feature of perpetual annuity is that, a stream of…

Q: What do we call the process of finding future value? Discounting Compounding Discount interest…

A: This is based on the concept of time value of money.   Amount put aside today or invested today…

Q: An annuity is a kind of financial contract. What's the difference between this and a one-time…

A: An annuity is a fixed series of payments over the period and contains a number of cashflows.

Q: Can someone give an example or scenario of deferred annuity?

A: Under deferred annuity, the investment is made with the insurance company and any taxes to be paid…

Q: ordinary annuity, annuity due, perpetuity, growing annuity or amortization topics.  Then describe…

A: A series of fixed periodic payments made at each interval indicates the annuity payments. These…

Q: k in deferred annuity

A: k = nt - 1 where k = The number of compounding periods in a year  n = number of years we intend to…

Q: Derive the formula

A: Future worth or Future value refers to the value of current asset at some future point of time on a…

Q: Illustration the mortgage for future advances?

A: The question is based on the concept of mortgage or security used for line of credit for future…

Q: How do I determine the present value of an annuity by single computation?

A: The capital is the backbone of the company, and the company will be willing to raise the capital for…

Q: why annuity due have larger value than ordinary annuity? with exampl

A: Annuity Due: Annuity due relates to a set of equal payments made at the identical interval at the…

Q: Differentiate Simple and General Annuity; and briefly discuss the subtypes of each.

A: Annuity sequence of payments made at equal (fixed) intervals or periods of time.

Q: Write the different types of loans available?

A: Types of loans available as follows: Debt Consolidation Loans: A consolidation credit is intended to…

Q: Explain in your own words the concept of the time value of money.

A: Introduction: The time value of money come from the concept that rational savers desire to obtain…

Q: 49. All of the following are elements of a suitable annuity Oa. determining the client's needs ob.…

A: In this question we will be selecting the incorrect statements regarding  Annuity sales.

Q: What is  a better investment Certificate of Deposit (CD) or Annuity and why?

A: Certificate of Deposit (CD) - Certificate of Deposit (CD) is a safe financial products i.e., low…

Q: What do we call the process of finding present value? discounting compounding discount interest…

A: The current worth of any sum is regarded as its present value. Any sum's accumulated worth in the…