4. A certain company sells engines worthP1,000,000 cash. If paid on installment basis, itrequires a down payment DP with the balancepayable in 8 quarterly payments at an interestrate of 8% pa compounded quarterly. Whatmust be the required down payment if the firstof the quarterly payment of P100,000.00 ismade after six months?O P 262,980.65O P 281,815.54O P 259,050.50O P 204,297.49

We need use loan amortization formula(PV of annuity) to calculate loan amount PV =PMT1-1(1+i)ni…

Answered: 4. A certain company sells engines…

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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Assume that a one-year CD purchased for $1000 pays an APR of 6% that is compounded semi-annually. How much is in the account at the end of each compounding period? (Calculate the interest and compound it each period rather than using the compound interest formula. Round your answers to the nearest cent.) first period $ second period $ How much total interest does it earn? (Round your answer to the nearest cent.)$ What is the APY? %
On January 1, a company agrees to pay $15,000 in six years. If the annual interest rate is 3% , determine how much cash the company can borrow with this agreement. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value 15,000 Table Factor 4 Amount Borrowed
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1. value: 1.00 points RBC Royal Bank approved a four-year $20,000 Royal Buy-Back Car Loan to Zaman at 7.5% compounded monthly. The monthly payments are to reduce the balance on the loan to the Royal Bank's guaranteed buy- back value of $7250. Calculate the monthly payment. (Round your answer to the nearest cent.) PMT $
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