4) Three years from now, Mr. Dela Cruz wants to start a business. In order to do that, he estimated that he needs initial capital of Php100,000. He can deposit an amount today in one of the following accounts: Account #1: offers 1.5% annual compound interest rate Account #2; offers a 1.4% annual interest rate compounded quarterly Account #3: offers a 1.1% annual interest rate compounded monthly Hint: Use the formula P- for annually for quarterly and monthly where m stands for the number of months (1+r) Which of the accounts will require the least deposit?

4) Three years from now, Mr. Dela Cruz wants to start a business. In order to do that, he estimated that he needs initial capital of Php100,000. He can deposit an amount today in one of the following accounts: Account #1: offers 1.5% annual compound interest rate Account #2; offers a 1.4% annual interest rate compounded quarterly Account #3: offers a 1.1% annual interest rate compounded monthly Hint: Use the formula P- for annually for quarterly and monthly where m stands for the number of months (1+r) Which of the accounts will require the least deposit?

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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Please took a picture pls so that i can see the proper format for the solution. Thanks.
Pool-N-Patio World needs to borrow $50,000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new inventory during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 73% interest. (Round your answers to the nearest 4 cent.) (a) Find the size of the monthly bank payment. Interest Portion Total Payment Balance Due (b) Prepare an amortization schedule for all four months of the loan. Principal Portion A A A Payment Number 0 1 2 3 4 A $ A LA +A $ A A A A A $ +A $ +A
1. Chris has saved $6500 towards buying a car which is valued at $23,500. They plan to borrow the remaining money. Chris is approved for a loan for 5 years at 3.9% p.a. interest compounded monthly. Answer the following questions, showing the process used for each calculation. A. Calculate Chris' monthly repayments B. Calculate the total interest charged on the loan C. Calculate the outstanding balance after 3 years D. What would Chris' monthly payment be if they were approved for a 4-year loan? E Compare the interest paid for the 4-year loan to the interest paid for the 5-year loan
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1. As a university scholar, you are entitled to a free one-way ticket from the university back to your hometown every year. Airplane tickets increase approximately Php 400.00 every year. Currently, the cost of a plane ticket from Manila to you city is Php 3500.00. How much should you request from the university to deposit in a saving account to fund your tickets for 5 years? Assume that the interest rate is fixed at 4%. 2.A business tycoon is planning to provide a scholarship to one deserving student that will provide a monthly allowance of P3,000.00 indefinitely, beginning one month from now. How much should be invested today to cover the scholarship if: a.) the interest rate is 12% b.) the interest rate is 12% and the first monthly allowance is given 1 year from now.

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