8. A person has a land for sale and they have made two offers:a) First offer: ¢ 4,100,000 in cash and 12 monthly payments of ¢ 300,000.b) Second offer ¢ 3,800,000 in cash and 3 semi-annual payments of ¢ 1,400,000.Which of the 2 offers is more convenient if you can deposit the resources at 12%, compounded monthly?

Q: (Loan amortization) Mr. Bill S. Preston, Esq. purchased a new house for $140,000. He paid $10,000…

A: Purchase Price = $140,000Down Payment = $10,000Time = t = 10Interest Rate = r = 7%

Q: three years from now. What is the present value of the investment if the rate of interest is 12%…

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

Q: Mason took a $66,000 loan at 2.55% compounded monthly and decided to make end of month payments of…

A: No of Payments = nper = ?Loan = PV = $66,000Interest rate = rate = 2.55% per year = 2.55/12 =…

Q: * AFV IS 50,000* *annual rate is 9%* Build a calculator to solve for "t" In the column you should…

A: We need to derive an expression for the variable "t" in the time value of money equation showing the…

Q: A DIVORCE SETTLEMENT OF $40.000 IS PAID IN 40 MONTHILY PAYMENTS OF S1000 EACH, WHAT IS THE PRESENT…

A: Present Value of annuity =  P * {1-[1/(1+r)^n]/r} Where, P = Periodic payment  i.e. 1000 r =rate of…

Q: A motorcycle is for sale p60,500 cash or an installment terms p3,000 per month for 2 years at 12%…

A: The present value of the annuity is the present value of all the streams of cash flows that occur in…

Q: You owe your parents $15,000 (in present day dollars) and want to repay them in equal amounts the…

A: Present value = $ 15,000 Annual interest rate = 10.6% Number of compounding per year = 12 First…

Q: You have contracted to buy a house for $430,000, paying $130,000 down and taking out a fully…

A: Here, Cost of House is $430,000 Down Payment is $130,000 Annual Interest Rate is 5.7% Time Period of…

Q: your Sisler borrows $1,000 and evmpleyte promises to $ 2,000. 4 you wanl to atlea5r a 5to an you…

A: A = P 1+r100n Where  A = Amount P = Principal r = Rate of interest n = Number of years

Q: Determine the monthly payment that must be made, as well as the financial run, to acquire a Nissan…

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Q: You have decided to buy a used car. The dealer has offered you two options: (FV of $1. PV of $1. EVA…

A: Price of annuity is the present value of cash flow from the bond based on time value of money.

Q: E9-17 (Algo) Computing a Present Value Involving an Annuity and a Single Payment LO 9-7 You have…

A: Present value = {$670 x PVAF(2%, 30)} + {$12000 x PVF(2%, 30)} = ($660 x 22.396) + ($12000 x 0.5521)…

Q: PLEASE, THE ONLY CORRECT ANSWERS ARE THE STIPULATED ONES PLEASE, WRITE THE SOLUTIONS ON PAPER,…

A: (iii) The Annual Nominal Rate of Discount Convertible Monthly Equivalent to This Transaction This…

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A: The time value of money refers to the concept that a dollar received in the future is worth less…

Q: PLEASE, THE ONLY CORRECT ANSWERS ARE THE STIPULATED ONES

A: Let's solve the problem step by step:(i) To calculate the amount of interest accrued on the loan in…

Q: 10. Scott bought a $5,975 boat on the installment plan. The agreement included a 20% down payment…

A: In the installment purchase system, part of the price is paid upfront called 'Down payment'. Rest is…

Q: In buying a farm worth P 1,500,000 cash, the purchaser pays P 500,000 cash and agrees to pay the…

A: Here, Cost of Farm is P1,500,000 Down Payment is P500,000 Semi Annual Payment is P178,118.98 First…

Q: A lot can be acquired at down payment of P200,000.00 and a yearly payment of P30,000.00 at the end…

A: Value of annuity is calculated using following equation Value of annuity = P×1-1(1+r)nr Where, P is…

Q: 3. BMO administers a mortgage on someone's house. That mortgage obligates the homeowner to pay…

A: The objective of the question is to find the present value of the mortgage and the interest rate…

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A: The number of Monthly Payments required can be calculated with the help of NPER function of Excel.…

Q: Question number 7. Complete the amortization schedule.

A: Monthly payment is calculated below:

Q: 4.- A house in Spain can be purchased with an initial payment of $20,000 and bi-monthly payments of…

A: Bi-monthly payment (C) = $1,200Bi-monthly interest rate (r) = 0.0138333333333333 (i.e. 0.083 /…

Q: Step 7 Part (3): Calculation of new annual deposable amount: Answer: New annual deposable amount is…

A: We will give you the steps for how the amount 5823.77 is calculated . we have;

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A: The money's time value concept indicates that any sum is worth more now as compared to the upcoming…

Q: E9-17 (Algo) Computing a Present Value Involving an Annuity and a Single Payment LO 9-7 You have…

A: Present value refers to the function used under time, value of money for calculating the present…

Q: 15. Helen Barns wishes to purchase a new home and borrows $389,000 with a repayment plan of 25…

A: Step 1: The calculation of the annual payment  AB1Borrowings (PV) $3,89,000.00 2Years (N)253Interest…

Q: The Assured Independence Bank has offered to lend you $200,000 on a line of credit. Interest is…

A: Here the term 2/10 n 45 means there is a discount period of 10 days, we will deduct the discount…

Q: 5. What is the amount of each annuity payment if a 5-year ordinary annuity has a future value of Php…

A: The ordinary annuity would be providing the valuation of income added at the end of each year to get…

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A: Annual amount = $16,400Cash flow at end of year 8 = $164,000Number of years = 8Annual interest rate…

Q: Mr. Torres paid PhP200,000 as downpayment for a farm. The remaining amount is to be settled by…

A: Equivalent monthly rate formula:- [1+(5%/2)]^(1/6) - 1   Then we will calculate cash price of firm…

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A: Principal = $75,000Number of years = 5Interest rate = 12%Let P is the payment done in year 1Every…

Q: Determine the future amount of money that will be withdrawn when i= 12% per year, compounded…

A: Using excel FV function

Q: Question 10

A: compound interest: this is used in case of lump-sum money accumulates in the future if interest is…

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A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

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A: Answer -    The future value annuity formula calculates the value at the end of given period i.e. n…

Q: Assume that ABC Islamic bank provides ‏Murabahah financing to ‏Hanif for the purpose of house…

A: Income statement:An income statement stands for the statement that shows profits and loss of the…

Q: hr.3 answer must be in proper format or i will give down vote

A:

Q: Please answer only question B, because I sent already A in a separate question. Thank you! a) The…

A: In this we have to calculate the interest for period and find out the required period.

Q: QID 204. 8 years from now you will need $750,000 to renovate a rental property. At an interest rate…

A: Amount required in 8 years = $750,000Interest rate = 9% (Compounding semi-annually)Number of years =…

Q: -5% O Dunno% O 12% O 20% O 4%

A: IRR is the internal rate of return which any investment must earn to make investment efficient and…

Q: An attorney charges a fixed fee on $250 plus 10% commission on settlements. Which equation…

A:

Q: What’s the rate of return you would earn if you paid Php753 for a perpetuity that pays Php78 per…

A: Present value is the value of the future expected/calculated amount as of today. It is calculated as…

Q: An investor agrees to pay R1500 amount after 13 years. In return he will receive R10 000 in 10 years…

A: Payments = R1500 immediately R3000 after 7 years R X(Let) after 13 years Interest Rate 7% for 1st 5…

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A: a) Let the first payment = P Payment growth rate = 15% r = 18% per annum = 1.5% per month

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.