You want to purchase a machine for your business and you are given 3 different payment schedules: Pay Php 1,500,000 in cash, upfront. ii. Pay equal amount of Php 395,000 for 5 years. iii. Immediate cash outlay of Php 195,750 and afterward Php 215,000 per year for 10 years Determine which schedule is least expensive and most expensive if the interest rate is 10.0%, compounded continuously. Answer must be justified by complete solution.

You want to purchase a machine for your business and you are given 3 different payment schedules: Pay Php 1,500,000 in cash, upfront. ii. Pay equal amount of Php 395,000 for 5 years. iii. Immediate cash outlay of Php 195,750 and afterward Php 215,000 per year for 10 years Determine which schedule is least expensive and most expensive if the interest rate is 10.0%, compounded continuously. Answer must be justified by complete solution.

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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If you are planning to apply for a personal loan and borrow PhP 50,000 and repay the principal and Interest for an agreed length of time of 6 years that is compounded monthly. Calculate the following manually. a. How much Interest would you pay for 6 years for each bank offer? b. How much monthly payment is needed for each bank offer? c. Which is the best option for you among the given choices below if you are to pay monthly for 6 years? Justify your answer and apply what you have learned on simple and compound interest. Bank (Personal Loan) Monthly Interest Rate A B с D E 1.3% 1.89% 1.22% 1.5% 1.25%
Suppose an engineer purchases a home and secures a loan of ₱2.5M from a commercial bank for 20 years at an annual interest rate of 9%. Find the monthly amortization of the loan. How much is the total amount paid over the life of the loan in Problem 1? How much is the total amount of interest paid over 20 years in Problem 1? I hope you can help me. Thank youu
If you are planning to apply for a personal loan and borrow PhP 30,000 and repay the principal and interest for an agreed length of time of 3 yedrs, a. How much monthly payment is needed for each bank offer? b. How much interest would you pay for 3 years for each bank offer? c. Which is the best option for you among the given choices below if you are to pay monthly for 3 years? Justify your answer and apply what you have learned on simple and compound interest. Bank (Personal Loan) Monthly Interest Rate A 1.3% B 1.89% C 1.22% D 1.5% E 1.25%
If you are planning to apply for a personal loan and borrow PhP 50,000 and repay the principal and interest for an agreed length of time of 3 years, a. How much monthly payment is needed for each bank offer? b. How much interest would you pay for 3 years for each bank offer? c. Which is the best option for you among the given choices below if you are to pay monthly for 3 years?
If you are planning to apply for a personal loan and borrow PhP 30,000 and repay the principal and interest for an agreed length of time of 3 years, How much monthly payment is needed for each bank offer? b. How much interest would you pay for 3 years for each bank offer? Which is the best option for you among the given choices below if you are to pay monthly for 3 years? а. с. Bank (Personal Loan) Monthly Interest Rate A 1.3% B 1.89% 1.22% D 1.5% 1.25%
Answer the Situation below correctly show your complete solution. A loan of 30 000.00 Php is to be paid monthly for 5 years that will start at the end of 4 years . If converted monthly at 12 % , how much is the monthly payment ?a . The type of annuity illustrated in the problem is _________________.b. The total number of payments is ______.c . The number of conversion period in the period deferral is ___________________.d. The interest rate per period is _________.e . The present value of the loan is_______. (I just need the Solution) Answers: a. Deferred Annuity; b. 60; c. 47; d. 0.01; e. 30 000.00 Php
Answer the Situation below correctly show your complete solution. A loan of 30 000.00 Php is to be paid monthly for 5 years that will start at the end of 4 years . If converted monthly at 12 % , how much is the monthly payment ?a . The type of annuity illustrated in the problem is _________________.b. The total number of payments is ______.c . The number of conversion period in the period deferral is ___________________.d. The interest rate per period is _________.e . The present value of the loan is_______.
PROBLEM SOLVING: A man intends to buy a machine via loan, He does so by depositing a down payment followed by additional monthly payments worth Php 2,000.00 each until the very last month of the period. The entire scheme is projected to cover worth Php 850,000.00 after 5 years. If the interest is 3% compounded quarterly, how much must have been the initial deposit?
You havefound the house of your dreams. The selling price is Php. 175,000.00 with an interest rate of 5.5%ocompounded monthly. Determine the monthly house payment if the loan is for: a) 30 years b) 15 years
1. A car costs Php 1,400,000. Suppose a man gives a down payment of Php 400,000 for the car, and then he loaned the balance from a bank. The bank charges a 5% interest rate, compounded monthly, on the loan, which he will pay monthly for 10 years. a. How much will be his monthly amortization? b. How much will be the total interest on this loan?
A loan of P 120,000 is to be repaid on installment every 6 months for 4 years. Find the size of the annuity payment, OP after 5th payment. The money is worth 20% compounded semiannually. Use the 2 methods. Answer of expert: "Since you have posted a question with multiple sub-parts, we will solve first three sub parts for you. To get remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.".
Solve the following problem with explanations 1. How much interest would your money earn if you deposited PHP 25, 000. 00 at a simple rate of 3% given the actual date from June 6, 2020 to March 25, 2021. 2. During this time of pandemic, many lending institutions offer a loan package to wage earners. Suppose loan company ABC offers you to borrow money amounting to PHP 50, 000 and payable in 4 years at a simple interest rate of 3% per annum, while loan company XYZ offers a 3% compounded annually. What loan company will you borrow money, then justify why you decide to choose to make loan with that particular loan company.

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