10. A credit card company offers a deferred payment option for the purchase of any appliance. Flora plans to buy a desktop computer with monthly payments of P2,000 for 2 years. The payments will start at the end of 4 months. How much is the cash price of the desktop if the interest rate is 7% compounded monthly. a. 48,000.72 C. 41, 830.43 b. 43, 899.72 d. 16,000.00
10. A credit card company offers a deferred payment option for the purchase of any appliance. Flora plans to buy a desktop computer with monthly payments of P2,000 for 2 years. The payments will start at the end of 4 months. How much is the cash price of the desktop if the interest rate is 7% compounded monthly. a. 48,000.72 C. 41, 830.43 b. 43, 899.72 d. 16,000.00
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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Question
Answer question number 10,11 and 12.
Transcribed Image Text:a. 9 periods or94 semiannual intervals b. 3 periods or 3 semiannual intervals
c. 2 periods or 2 semiannual intervals
10. A credit card company offers a deferred payment option for the purchase of any
appliance. Flora plans to buy a desktop computer with monthly payments of P2,000
for 2 years. The payments will start at the end of 4 months. How much is the cash
price of the desktop if the interest rate is 7% compounded monthly.
a. 48,000.72
C. 41, 830.43
11. Mr. Agustin applied for a loan from a bank that gave him an option to pay 3,500
monthly for two years. The first payment is due after 2 months. How much is the
present value of the loan if the interest rate is 7.5% converted monthly?
a. 40, 404.20
C. 42, 929.25
12. A loan is to be repaid quarterly for 5 years that will start at the end of 2 years. If
the interest rate is 6% converted quarterly, how much is the loan if the quarterly
payment is 10,000?
a. 160,149.15
c. 173,246.68
d. 1 periods or 1 semiannual interval
b. 43, 899.72
d. 16,000.00
b. 40, 444.97
d. 43, 899.72
pnel
b. 169,149.15
d. 253,723.73
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