A contractor bought a concrete mixer at P150,000 if paid in cash. The mixer may also be purchasedby installment to be paid within 7 years. If money worth 9%. The amount of each annual payment(P),if all payments made at the beginning of each year, is?

The annual payments to be made at the beginning of the year can be calculated with the help of…

Answered: A contractor bought a concrete mixer at…

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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$255,000 is borrowed to purchase a block of land. It is to be repaid with monthly repayments at 4.2% interest over 25 years: (HINT: Use AMORT on your calculator) (a) Calculate the monthly repayments. (b) How much interest is paid over the life of the loan? (c) How much is still owed at the end of 10 years?
A contractor’s price for a new building was $96,000. You decide to buy the building, making a payment of $12,000 down and financing the balance by making equal payments at the end of every 6 months for 12 years. Interest is 7.3% compounded semi-annually. B) For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance at the end of first installment? how much interest is paid how much of the principal is repaid what is the loan balance? C) For the fifteen payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance at the end of first installment? how much interest is paid how much of the principal is repaid what is the loan balance?
A company buys a machine for $18,000, which it agrees to pay for in five equal annual payments, beginning one year after the date of purchase, at an annual interest rate of 7%. Immediately after the second payment, the terms of the agreement are changed to allow the balance due to be paid off in a single payment the next year. What is the final single payment? Solution: 1. Draw the CFD by yourself; 2. First, calculate annual payment amount for the first 2 years: O A= + 7%, • )=18000x =$ o The final payment is the • worth of the : unpaid payments. 3. Second, Calculate the single payment amount due at the end of the 3rd year: F=S
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A farmer bought a rice harvester worth ₱ 1.45 M if paid in cash. The tractor may be purchased by installment to be paid within five years. Money is worth 8% compounded annually. Determine the amount of each annual payment if all payments are made (a) at the end of each year, and (b) at the beginning of each year
A company has had record profits and decided to use some of the profits to pay for manufacturing improvements. If the company can invest $1,600,000.00 in an a annuity will that will make payments at the beginning of every six months for 4 years. If the annuity pays 5.6%, compounded semi-annual. What is the size of payments that the company can expect?The payment amount will be $. (Round to 2 decimal places.)
An employee obtained a loan of P10,000 at the rate of 6% compounded annually in order to repair a house. How much must he pay monthly to amortized the loan within a period of 10 years?
A car is to be purchased in monthly payments of P19,500 for 5 years starting at the end of 3 months. How much is the cash value of the car if the interest rate used is 10% converted monthly?
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AAA Company is considering the purchase of a new equipment, paying PHP17,000 every year for 7 years, each payment being made in the beginning of each year. The seller figured interest at thirteen percent. What was the cash price of the equipment?

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A contractor bought a concrete mixer at P150,000 if paid in cash. The mixer may also be purchased by installment to be paid within 7 years. If money worth 9%. The amount of each annual payment(P), if all payments made at the beginning of each year, is?