4.The buyer of a certain machine may pay either Php 20,000 cash down payment and Php 20,000annually for the next 6 years, or pay Php 35,000 cash and Php 20,000 annually for the next 5years. If money is worth 12% compounded annually, which method of payment is better for thebuyer and by how much?

Answered: Image /qna-images/answer/bb07a549-0926-4676-81b1-e9f4b9438751.jpg

Answered: 4. The buyer of a certain machine may…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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10) Abby at age 3, is given $400,000 and the amount is invested at 5% annually. if abby takes 5 equal annual payments within 8 years, what is the size of each payment?
General Annuities I. Solve for A and S given the following:1. R = Php 3 000, j = 5%, m = 4, t = 5 years, payment interval = 1 month2. R = Php 10 000, j = 4.5%, m = 12, t = 10 years, payment interval = 3 monthsII. Answer the following problems.3. The buyer of a resort pays Php 10 000 000 in cash and agrees to pay Php 2 500 000 at the end of every six months for 10 years. Assuming that money is worth 6% per year compounded monthly, how much is the equivalent cash value of the resort?4. A man will deposit Php 12 000 at the end of every 6 months for the next 10 years that pays 6% interest compounded quarterly. Find the amount of the annuity at the end of 10 years.
James has an investment worth $175,609.50. The investment will make a special payment of X to James in 1 month from today and the investment also will make regular, fixed monthly payments of $1,440.00 to James forever. The expected return for the investment is 1.23 percent per month and the first regular, fixed monthly payment of $1,440.00 will be made to James in one month from today. What is X, the amount of the special payment that will be made to James in 1 month? An amount less than $58,600.00 or an anmount greater than $179,600.00 An amount equal to or greater than $58,600.00 but less than $88,950.00 An amount equal to or greater than $88,950.00 but less than $146,400.00 An amount equal to or greater than $146,400.00 but less than $176,000.00 O An amount equal to or greater than $176,000.00 but less than $179,600.00 Com SHEMA
A loan of $26,000 is paid off in 36 payments at the end of each month in the following way: Payments of $650 are made at the end of the month for the first 12 months. Payments of $650 + x are made at the end of the month for the second 12 months. Payments of $650 + 2x are made at the end of the month for the last 12 months. What should x be if the nominal monthly rate is 12.2%?
The debtor wants to pay off a debt due from three amounts: 1000 riyals, 1500 riyals and 2000 riyals, on dates separated from today by 30, 35 and 40 days, in one batch after 38 days. What is the basic value of the payment, given that the rate used is 10%?
Suppose that a loan is being repaid with 60 equal monthly payments, the first coming a month after the loan is made. If the rate of interest is 9.7 percent convertible monthly, and the amount of principal in the 22nd payment is 230, how much interest is in the 44th payment? Thank you!
17) Determine the simple Interest Rate applied to a Principle of $100,250 over 10 years if the total interest paid equals the Principal.
The monthly payment for a loan of Php150000 payable for 3 years at 12% compounded every end of each month is Php4982.15. Show Solution. a. True b. False

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