1.A person buys a piece of lot P300,000 downpayment and 8 deferred quarterly payments of P8,000 each, starting 3 years from now . What is the present value of the investment if the rate is 12% compounded quarterly?

Q: ohn will have to wait three years to receive an inheritance. After the three years, he will receive…

A: given, semi annual payment for deferment period = 3 years Interest conversion period per year =2…

Q: Mr. Padilla agrees to pay P1,300.00 at the end of each month for 20 years, in purchasing a house.…

A: The PV of an asset refers to the value of all its future cash flows discounted at an assumed rate of…

Q: Howard receives  a tax bill from the Revenue  commissioners for €14000 he has the option to repay…

A: The present value shows what the value is today of some future sum of money. The present value of…

Q: Junly bought a lot in Conel as his investment. The owner sell it for P^(10),000 down payment plus…

A: Step 1 The interest that is accrued on both the initial principal and the interest that has already…

Q: Nina buys a piece of lot for P30,000 down payment and 8 deferred semi-annual payments of P 5,000…

A: Annuity: A contract between you and another party known as an annuity obligates the borrower to pay…

Q: Sam was injured in an accident, and the insurance company has offered him the choice of Php25,000…

A: Time value of money is a financial concept which is used to calculate the value of money in present…

Q: A couple has decided to purchase a $90000 house using a down payment of $18000. They can amortize…

A: Amortization is a strategy used in accounting to reduce the book value of a loan or intangible asset…

Q: Mr and Mrs Chong are considering two types of education saving for their children. Saving A requires…

A: Here, Details of Saving A: Deposit Amount is RM 500 at the end of each month Interest rate is 3%…

Q: obi owns a perpetuity that will pay $1,000 a year, starting one year from now. He offers to sell you…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: 15. Your sister bought a condominium unit for P9 300 000 through a condominium loan which she…

A: The total value of condominium is P 9,300,000 out of which 30% is paid with equity and the rest of…

Q: Mrs. Lazada is convince to invest to an insurance company with 4% interest compounded annually and…

A:

Q: Graham buys a piece of lot for P 200,000 down payment and 10 deferred semi- annual payment of P…

A: Down payment = P 200,000 Semi annual payment = P 8000 First payment period = 3 Years Number of…

Q: am was injured in an accident, and the insurance company has offered him the choice of Php25,000 per…

A: Annuity is a type of investment where periodic amounts are paid or received over a fixed period of…

Q: For its fiscal year-end, a company reported net income of $12 million and a weighted average of…

A: Diluted earnings per share is a measure that indicates the earnings of the company on a per-share…

Q: A man inherited a regular down payment of P200,000 every end of 3 months for 10 years. However, he…

A: We will apply the concept of time value of money here. As per the concept of time value of money the…

Q: Peter was receiving rental payments of $2,000 at the end of each month from his tenants of his…

A: A perpetuity is like an annuity in which cash flows are streamed for an indefinite period of time.…

Q: Tristan Sandino is selling his motorcycle. He has been offered $500 cash plus monthly payments of…

A: The problem requires the calculation of net present value so that the actual amount given for the…

Q: Engineer Pat want to have a pension from a fund that offers 6.5% interest to be compounded…

A: Annual withdrawal = P 150,000 Number of annual withdrawal = 15 Annual interest rate = 6.5% Quarterly…

Q: determine if Elora would be able to buy the land

A: First we need to determine the effective annual interest rate using the formula below:

Q: Jino sold his house. In addition to cash, he took a mortgage on the house. The mortgage will be paid…

A: Present value is also known as a present discounted value, in which the future value of cash inflows…

Q: Reuben Mahlangu invests quarterly an amount of R50000 over four years at an interest rate of 2% per…

A: Future value:Future value is a financial concept that refers to the amount of money an investment…

Q: A couple has decided to purchase a $180000 house using a down payment of $20000. They can amortize…

A: Here,

Q: Mr CJ needs a financial product to provide cash in the future: R10 000 at the end of the first year;…

A: Cash payment today is present value of future cash flow that is to be received in the future that is…

Q: 5. Masuku agrees to pay R250 at the beginning of each year for 15 years. If money is worth 42% p.a.…

A: In annuity due there are payments at the beginning of period and these are constant level payments…

Q: For $10,000, Kelly purchases an annuity - immediate that pays $ 400 quarterly for the next 10 years.…

A: The annual effective rate of interest refers to the total interest earned or paid on a loan or…

Q: Salvatore has the opportunity to invest in a scheme which will pay $7,500 at the end of each of the…

A: Net Present Value:Net present value (NPV) is the difference between the present value of inflows of…

Q: Alberto wants to buy a car in 10 years. This car costs $200, 000 today but its price inflates 4%…

A: The term "future value" typically refers to the value of an investment or amount of money at a…

Q: Peter Penniless owes Wendy Worth $5 000 due in two years from now, and $3 000 due in five years from…

A: annual rate = (1+ 12%/2)^2 - 1 = 12.36% Present value of the debt after making 4000 payment =…

Q: 1. Your sister bought a condominium unit for P9 300 through a condominium loan which she availed of…

A: price of condominium = P9300 downpayment = 30% financed amount = p9300 x (1-30%) = P9300 X 70% =…

Q: Jack sells his lawn-mowing business for $50,000 but the buyer wants to pay for it in two cash…

A: Present value of future amount is computed by following formula:-PV = wherePV = Present value of…

Q: Max buys a $2,000,000 house and makes a $500,000 down payment. The mortgage is for 30 years at 4%…

A: Monthly payments is calculated by EMI formula i.e. present value of annuity formula. For calculation…

Q: Mr. Rafiq owes Mr. Ahmed Rs. 7000 to be due in 5 years and Rs. 15,000 to be due in 7 ½ years. How…

A: Total amount Mr. Rafiq pay at the end of 6 years =Worth of $7,000 in year 6 + Worth of $15000 in…

Q: PART B.) George is loaned $100,000 in Year 0. Approximately (round up to the nearest year) many…

A: Any sum borrowed to meet specific personal or business funding needs is recognized as a…

Q: (Annuity payments) Emily Morrison purchased a new house for $180,000. She paid $60,000 upfront and…

A: The present value of all future payments should be equal to the cost of house financed.

Q: You just received an inheritance of $123,456. How long would you need to leave it in an RRSP earning…

A: Here, Inheritance Amount is $123,456 Monthly Payment for 20 years is $800 Interest Rate is 2.5%…

Q: A man is left with an inheritance from his father. He has an option to receive P2M at the end of 10…

A: An annuity is a type of investment contract or financial instrument that gives the receiver, or…

Q: if mr. rankie bought a piece of property for 100000 pesos down payment and 10 deferred semi-annually…

A: Time value of money is applied for calculation of the present value of an asset. All cash flows are…

Q: Zayden will receive an inheritance of R850 000 four years from now. His discount rate is a 9,2%…

A: Step 1:We use the formula:A=P(1+r/2)^2nwhereA=future valueP=present valuer=rate of interestn=time…

Q: Vanessa was supposed to make a payment of $3,500 in 2 years and another payment for $1,800 in 5…

A: Equivalent value today is the present value of both payments based on time and interest rate of…

Q: 8) An engineer received a bonus of $10,000. If he deposits it now at an interest rate of 8% per…

A: Let the money accumulate for n years. Bonus (B) = $10000 r = 8% Amount to be withdrawn after the…

Q: leslady told her that she can purchase it on installment basis to be paid with oney is worth 8%…

A: Loans are paid annual installments and these installments carry the payment for interest and payment…