26. Mr. Cruz wanted to buy a house and lot worth P5M ten years from now so he decided to invest his money. How much should Mr. Cruz invest if it will earn an interest of 8% compounded monthly during the first 3 years, compounded quarterly for the next 4 years and compounded annually during the last 3 years? Create a cash flow diagram and show a complete solution 27. Mariel owes P30,000 in 5 months with interest at 7% and another P14000 is due in 11 months with interest at 9%. These two debts are to be replaced with a single payment due in 9 months. Determine the value of the single payment if money is worth 6.5%, using the end of 9 months as the focal date. Create a cash flow diagram and show a complete solution.

26. Mr. Cruz wanted to buy a house and lot worth P5M ten years from now so he decided to invest his money. How much should Mr. Cruz invest if it will earn an interest of 8% compounded monthly during the first 3 years, compounded quarterly for the next 4 years and compounded annually during the last 3 years? Create a cash flow diagram and show a complete solution 27. Mariel owes P30,000 in 5 months with interest at 7% and another P14000 is due in 11 months with interest at 9%. These two debts are to be replaced with a single payment due in 9 months. Determine the value of the single payment if money is worth 6.5%, using the end of 9 months as the focal date. Create a cash flow diagram and show a complete solution.

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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Similar questions

Mark deposits $50,000 now into an account which will eam interest at a rate of 7% per year, how much money can he withdraw annually, if he makes his first withdrawal 4 years from now and he wants to make a total of 8 withdrawals? MANUAL CALCULATION AND CASH FLOW DIAGRAM THANKS
Direction: Solve manually, use 5 decimal in interest rate, and draw the cash flow diagram. A woman is considering giving an endowment to a university in order to provide payments of P5000 and decreasingly by 4% at the end of each quarter during a year. If interest rate is 10% compounded monthly, what is the capitalized equivalent that must be deposited now so that the bi-monthly payment can be repeated forever?
Mr. Walid wishes to open a deposit account, he makes 3 deposits: 1 now for $5, $10 after 7 years and $20 at the end of 8th year. The interest rate is 6% per year.Draw the cash-flow diagram
Solve it correctly please. I will rate accordingly.
You purchased a house for 850,000 cash 4 years ago. You can sell it today for 980,000. What rate of return did you earn on this investement? Round your answer to the nearest tenth of a percent.
Solve the following question with complete solution and include cash flow diagram in handwritten form: A recent government study reported that a college degree is worth an extra Php 37754 per quarter income compare to high school graduate. If the interest is 6 % per year compounded quarterly and you work for 30 years, what is the future compound amount of this extra income? (Round off the interest rate to 5 decimal places)
4. Jasmine bought a laptop amounting P 45,00 in an installment basis with 1.5% annual interest. She provides a P5000 down payment and promise to pay P3000 at the end of 1st year, 9000 at the end of 2nd year. 4000 at the end of 5th year and the remaining balance at the end of 8th year. Find the remaining balance and create a cash flow diagram. 5. Emmanuel is a money lender who gives 15% interest rate annually to allIl borrower. Jessie borrowed $9000 to him. Based on the contract, Jessie needs to pay the borrowed money and its interest in 8years Jessie decided to deposit his payment twice a year and the bank provides him 3% interest compounded semi-annually. Find the sem-annually deposit to pay the borrowed money and interest. 6. Find the rate of interest if the principal value is $28000 with an interest value is $9000 after 5 years.
John bought a car worth Php 1,000,000 if paid in cash. If paid on installment basis, he will pay Php 250,000 downpayment, Php 300,000 at the end of one year; Php 400,000 at the end of three years and a final payment at the end of five years. Interest rate is 20% compounded annually. a. Construct the cash flow diagram if paid on installment basisb. What will be the amount of the final payment?
Suppose you decide to save P3,000 per month for the next three years. If you invest all of these savings in an account which will pay you 5% compounded monthly, determine (a) the total amount in the account after 3 years and (b) the amount of interest earned.Note: Include cash flow diagram if possible
engineering economics John bought a car worth $ 100,000 if paid in cash. If paid on installment basis, he will pay $ 20,000 downpayment, $ 30,000 at the end of one year; $40,000 at the end of three years and a final payment at the end of five years. Interest rate is 20% compounded annually. a) Construct the cash flow diagram if paid on installment basis: b) What will be the amount of the final payment?
1.) Mr. Roanito wants to put money in an account that pays 5% interest each year, compounded annually. How much must he deposit in the account today if his aim is to have 5,000 PHP in the account at the end of six years? 2.) If the rate of interest is 5.23 percent compounded weekly, calculate the Present Value of 534PHP that will be returned in fifteen years. 3.) Find the Present Value of a money flow that is 1000 PHP at the end of the first quarter but drops by 50% each quarter for the next 18 months at a 5% compounded monthly interest rate.
Assuming Paulin will receive: Years 1 through 3 = $1000PHP 1,500 a year Years 4 through 6 = $1000PHP 1,500 a yearYears 7 through 9 = $1000PHP 1,500 a year with all cash flows to be received at the end of the year. If Pauline requires an 11% rate of return, what is the present value of these cash flows?

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