1. What is the present worth of a P1000 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 15%? 2. Find the annual payment to extinguish a debt P15,000 payable for 6 years at 12% interest annually. 3. A factory operator bought a diesel generator set for P 20,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8.5% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?
1. What is the present worth of a P1000 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 15%? 2. Find the annual payment to extinguish a debt P15,000 payable for 6 years at 12% interest annually. 3. A factory operator bought a diesel generator set for P 20,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8.5% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?
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
Related questions
Question
100%
45. Minutes. I already bought bartlet I hope u can help me to answer this activity of mine.1
![1. What is the present worth of a P1000 annuity starting at the end of the third
year and continuing to the end of the fourth year, if the annual interest rate is
15%?
2. Find the annual payment to extinguish a debt P15,000 payable for 6 years at
12% interest annually.
3. A factory operator bought a diesel generator set for P 20,000.00 and agreed to
pay the dealer uniform sum at the end of each year for 5 years at 8.5% interest
compounded annually, that the final payment will cancel the debt for principal
and interest. What is the annual payment?
4. A man paid 10% down payment of P200,000 for a house and lot and agreed to
pay the 90% balance on monthly installment for 60 months at an interest rate of
10% compounded monthly. Compute the amount of the monthly payment.
5. What is the accumulated amount of five-year annuity paying P 10,000 at the end
of each year, with interest al 6.5% compounded annually?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7069985f-5918-4d91-b083-eb6a9a1ef77d%2Fc6b59b49-158a-4cfa-bbf8-b5e539e18358%2Fcmifnnb_processed.gif&w=3840&q=75)
Transcribed Image Text:1. What is the present worth of a P1000 annuity starting at the end of the third
year and continuing to the end of the fourth year, if the annual interest rate is
15%?
2. Find the annual payment to extinguish a debt P15,000 payable for 6 years at
12% interest annually.
3. A factory operator bought a diesel generator set for P 20,000.00 and agreed to
pay the dealer uniform sum at the end of each year for 5 years at 8.5% interest
compounded annually, that the final payment will cancel the debt for principal
and interest. What is the annual payment?
4. A man paid 10% down payment of P200,000 for a house and lot and agreed to
pay the 90% balance on monthly installment for 60 months at an interest rate of
10% compounded monthly. Compute the amount of the monthly payment.
5. What is the accumulated amount of five-year annuity paying P 10,000 at the end
of each year, with interest al 6.5% compounded annually?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education