2. It is desired to have P200,000 two years from now by depositing an initial amount P, plus P50,00 on the 6th month and another P50,000 after 1 year. What would that initial amount be if interest rate is 12% pa compounded monthly?

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A: Quantum and timing of cash flows emanating from an investment decision are known. The present worth…

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A: Following is the answer to the question.

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A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: 4. Consider that you are depositing 1000 Riyals, annually, from year 2021 to year 2023 (as shown in…

A: Annual Deposit = 1000 Time period of deposits = 3 years Interest Rate = 10%

Q: 4. What is the equivalent amount today of an annual deposit of Php200000 for 15 years if money is…

A: Solution : Equivalent amount today of annual deposit means that amount which was represent the…

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A: Let the interest rate = r Final amount (F) = P 15938.48 Invested value (P) = P 10000 n = 8 years

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A: In order to know the time period required to reach a certain financial goal of an individual or…

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A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: If 5000 TL installments are deposited at the end of each year with 3% interest rate in order to save…

A: The number of installments can be calculated with the help of NPER function of Excel

Q: 4. Consider that you are depositing 1000 Riyals, annually, from year 2021 to year 2023 (as shown in…

A: First we need to find the future value of 1000 riyals deposits in year 2023. Then we need to find…

Q: What payment ten years from now is equivalent to P1,800 six years from now if the interest is 16%…

A: solution : a) interest rate =16% compounded annually 0 - 1 - 2 - 3 - 4…

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A: Future Worth is value of a current amount at future point of time. It is done by compounding that…

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A: Since the quoted interest rate is compounded quarterly, the effective interest rate will be used to…

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A: The future value is the amount that will be received at the end of a certain period. In simple…

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A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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A: Given Information : Present value (PV) = $2 million Future value (FV) = $2.36 million Number of…

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A: Given: Year Amount 1 0 2 0 3 P33,000 4 P33,000 5 P33,000 6 P33,000 7 P33,000 8…

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A: Annual Deposit = 10,000 Interest Rate = 12% Future Value Required = 1,000,000

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A: The equivalent cash price of mixer is the sum of down payment and present value of annuity.

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A: Given: Annual payments = $10,000 Interest rate = 6% Period = 10 years

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A: To Find: Annual deposits Lumpsum payments

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A: Let the single payment today = X Payment in year 2 (P2) = $1700 (After 8 quarters) P6 = $4400 (After…

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A: The concept of money's time worth indicates that any sum of money is worth more currently than the…

Q: ered by a bank an interest rate of 6.5% per annum, compounded annually. How much money will the…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

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A: Present Value is the amount of money's worth on the present day which to be received/paid in future,…

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A: To calculate the present value of cash flow where the annual income is fixed we use the formula, PV…

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A: Future Value: The future value is the amount that will be received at the end of a certain period.…

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A: Present value includes the value without interest rate and future value includes the value with…

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A: A concept that implies the future worth of the money is lower than its current value due to several…

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A: Present value is today equivalent value of cash flows that are to be received in the future period…

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A: present value = r = n =