1. What are the monthly payments on a $32,000 car, if the dealer allows $6,000 for a trade-in andthe buyer puts down another $2,000, and the terms are 5% for 60 months?2. A couple, at retirement, puts $1,200,000 into a policy that earns 5%. How much will theyreceive for the next 30 years?.0%71266

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Answered: 1. What are the monthly payments on a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jack sells his lawn-mowing business for $50,000 but the buyer wants to pay for it in two cash payments: $25,000 in two months from today and the balance in 1 year from today. How much will Jack need to receive as the final payment (in 12 months) if the interest rate he charges is 6% per annum compounding monthly?A.$25,584.91B.$25,248.14C.$27,446.42D.$26,805.39
4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the purchase price as a down payment. Your annual salary is $44,000 and you can save 18% of this salary every year. How long will it take for you to save for the required down payment? about _____ years?
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Use a bankers year: 360 days To complete the sale of a house, the you accept a 240-day note for $9,000 at 7% simple interest. (Both interest and principal are repaid at the end of the 240 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $9,108 after 80 days. What annual simple interest rate will the third party receive for the investment? Express your answer as a percentage.
Q18 Say that you purchase a house for $206,000 by getting a mortgage for $185,000 and paying a $21,000 down payment. If you get a 25-year mortgage with an interest rate of 6 percent, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.)PAYMENT? What would the loan balance be in ten years? (Round the payment amount to the nearest cent but do not round any other interim calculations. Round your final answer to 2 decimal places.)LOAN BALANCE? If the house appreciates at 2 percent per year, what will be the value of the house in ten years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)FUTURE VALUE? How much of this value is your equity? (Do not round intermediate calculations and round your final answer to 2 decimal places.)Equity?
Suppose you plan to retire in 40 years. If you make annual contributions of $12,000 into your retirement account for the first 8 years, and no more contributions to the account for the remaining 32 years. If the retirement account earns a fixed 6% annual interest, how much will you have at your retirement? Question 10 options: $739,166 $766,466 $793,766 $811,766 $829,766 $851,966
After retirement, you expect to live for 25 years. You would like to have $91,000 in income each year. How much should you have saved in your retirement account to receive this income if the annual interest rate is 9 percent per year? (Assume that the payments start one year after your retirement) Multiple Choice $1,472.33173 $893,85474 $2,275,000.00 $101,089.74
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22. A business loan worth P150,000 is to repay in quarterly installment for 2 years. How much is the quarterly payment if money is worth 7% converted quarterly? A. P35,500 В. Р37,500 С. Р38,500 D. P39,50 23. Dina decided to purchase a P1,500,000 house and lot. After deducting the down payment, the mortgage amount is P1,000,000. If the interest is at 10% compounded monthly, how much is the monthly installment if they plan to amortize the loan in 25 years? A. P9,000.25 B. P9,031.25 C. P9,051.25 D. P9,061.25 24. If a car loan of P500,000 requires a 30% down payment. How much is the mortgage? Д 350,000 B. P360,000 C. P670,000 D. P680,000
23. Dina decided to purchase a P1,500,000 house and lot. After deducting the down payment, the mortgage amount is P1,000,000. If the interest is at 10% compounded monthly, how much is the monthly installment if they plan to amortize the loan in 25 years? A. P9,000.25 B. P9,031.25 C. P9,051.25 D. P9,061.25
Vijay

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