1. High Land Property Development Corp has a P10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 12% compounded monthly? PV = FV [PVFk,n] To get the PVFk,n (present value factor) = 1(1+r)t 2. Your sister borrowed P5,000 from you and promised to repay P5,550 in one year. What interest rates are implied by the lending arrangements? FV = PV [FVFk,n] or FV = PV x (1 + r)t 3. Z is purchasing an automatic washing machine in an installment basis. She is given 3 monthly installments of P6,000 per month with an interest rate of 10%. What is the price that Mrs Z is paying for the washing machine? PVA = PMT[PVFAk,n] or PMT [1 / r − 1 / r(1+r)t]
1. High Land Property Development Corp has a P10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 12% compounded monthly? PV = FV [PVFk,n] To get the PVFk,n (present value factor) = 1(1+r)t 2. Your sister borrowed P5,000 from you and promised to repay P5,550 in one year. What interest rates are implied by the lending arrangements? FV = PV [FVFk,n] or FV = PV x (1 + r)t 3. Z is purchasing an automatic washing machine in an installment basis. She is given 3 monthly installments of P6,000 per month with an interest rate of 10%. What is the price that Mrs Z is paying for the washing machine? PVA = PMT[PVFAk,n] or PMT [1 / r − 1 / r(1+r)t]
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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1. High Land Property Development Corp has a P10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 12% compounded monthly?
PV = FV [PVFk,n] To get the PVFk,n (
2. Your sister borrowed P5,000 from you and promised to repay P5,550 in one year. What interest rates are implied by the lending arrangements? FV = PV [FVFk,n] or FV = PV x (1 + r)t
3. Z is purchasing an automatic washing machine in an installment basis. She is given 3 monthly installments of P6,000 per month with an interest rate of 10%. What is the price that Mrs Z is paying for the washing machine?
PVA = PMT[PVFAk,n] or PMT [1 / r − 1 / r(1+r)t]
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