1. A loan of Php 2,500 is made for a period of 13 months at an interest rate of 5%, compounded bimonthly. What future amountis due at the end of the loan period?2. A man deposits Php 6,000 in a strange bank that promises 1.5% simple growth interest for 'w' years. After that, 2% interestwill begin for 'x' years, which is to be compounded semiannually. If the man wishes the future amount to be up by 147% itsprincipal amount. How many years should the money sit in this strange bank given that the time of "x" is twice as much as"w"?3. If you let your friend borrow Php 50,000 for an interest rate of 5% compounded continuously, when does your greedy selfbecome a millionaire?

(1.) The formula for calculating the future amount due on a loan with compound interest is: FV= P ×…

Answered: 1. A loan of Php 2,500 is made for a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Calculate the simple interest due on a 72-day loan of P3,000 if the annual interest rate is 4%.
A loan of php 2500 is made for a period of 13 months, from january 1 to january 31 the following year at an interest rate of 5%, compounded quarterly. What future amounts is due at the end of the loan period?
A Php 111,205 was loaned at an interest rate of 0.06. 7 annual payments has to be settled, the first payment will start at the end of 3rd year. Compute for the principal amount remaining at the start of 6th year.
The interest rate on a $115,000 loan is 8.6% compounded semiannually. The monthly payments on the loan are $900. (Round your answers to 2 decimal places.) a. Calculate the interest component of Payment 200. Interest S b. Calculate the principal component of Payment 135. Principal c. Calculate the final payment. Final payment
For a short-term cash requirement of 85,000 TL, a 12-month maturity loan with equal installments will be withdrawn from the bank. If the monthly interest rate is 1.75, prepare the loan payment table (loan amortization table) by finding the monthly payment amount.
A loan of R40 000 is granted at an interest rate of 18% pa compounded monthly. In order to amortize the loan, regular equal payments of R400 will be made every three months starting three months after the loan was granted. The balance outstanding (rounded to the nearest cent) on the loan immediately after the twenty-first payment is made is equal to:
Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal payments at the end of each year. The interest rate is 5 percent per year.PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS.
basic ARM is made for $220,000 at an initial interest rate of 6 percent for 30 years with an annual resetdate. The borrower believes that the interest rate at the beginning of year (BOY) 2 will increase to 7 percent. Required:a. Assuming that a fully amortizing loan is made, what will the monthly payments be during year 1? b. Based on (a) what will the loan balance be at the end of year (EOY) 1? c. Given that the interest rate is expected to be 7 percent at the beginning of year 2, what will the monthlypayments be during year 2? d. What will be the loan balance at the EOY 2 ? e. What would be the monthly payments in year 1 if they are to be interest only?
You are preparing a loan amortization table for a 1-year loan of $1000 with a monthly interest rate of 1%. What is your principal payment in month 3 of the amortization schedule?
3. A person borrows $5,000 at an interest rate of 18%, compounded monthly. Monthly payments of $180.76 are agreed upon. а) What is the length of the loan? b) month to pay off the entire loan balance? What is the total amount that would be required at the end of the sixth
Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $17,900 with an annual interest rate of 09.00%. The loan will be repaid over 22 years with monthly payments. 1. What is the Loan Payment? 2. What portion of this payment is Interest? 3. What portion of this payment is Principal? 4. What is the Loan balance after first monthly payment?
A loan for RM6,500 with a simple interest rate of 18% was made on June 15 and due on September 15. a) Find the exact interest. b) Find the ordinary interest.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

1. A loan of Php 2,500 is made for a period of 13 months at an interest rate of 5%, compounded bimonthly. What future amount is due at the end of the loan period?