A house costs Php400,000 cash. A purchaser will pay Php90,000 cash, Php60,000 at the end of 2 years, and a sequence of 6 equal annual payments starting with one at the end of 4 years, to discharge all his liability as to the principal and interest at 7% compounded semi-annually, find the annual payments which must be made for 6 years.

A house costs Php400,000 cash. A purchaser will pay Php90,000 cash, Php60,000 at the end of 2 years, and a sequence of 6 equal annual payments starting with one at the end of 4 years, to discharge all his liability as to the principal and interest at 7% compounded semi-annually, find the annual payments which must be made for 6 years.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

How much should Engr. Cruz deposit now, if after 10 years, this will amount to Php 100,000. Interest rate is 12% compounded semiannually?
Mr. Cruz plans to deposit for the education of his 5 year old son, Php 5,000 at the end of each month for 10 years at 12% annual interest compounded monthly. What will be the amount available 11 years after his last deposit?
What effective annual interest rate corresponds to the following situations? nominal interest rate of 5% compounded semi annually nominal interest rate of 6% compounded monthly nominal interest rate of 7% compounded quarterly а. b. c. How much should Engr. Fernandez deposit now, if after 12 years, this will amount to Php 120,000. Interest rate is 12% compounded semiannually?
Engr. Dy deposited an amount of Php 9654.5 in a bank’s savings account with interest 6.4% compounded quarterly. What amount will he get at the end of 16 months?
First Bank is sending university alumni an invitation to obtain a credit card, with the name oftheir university written on it, for a nominal 11.9% interest per year after 6 months of 0%interest. Interest is compounded monthly. Starting in the second year, the APR increases to anominal rate of 23.9%.a. What is the effective annual interest rate for the first year?b. What is the effective annual interest rate for the second year
An engineer borrowed an amount of a certain bank that can be payed for four years end of the year installments, of which the first payment of falls after three years. If the 1st payment will be PHP 100,000.00 but increases by 8% every year thereafter, how much did he borrow if the interest rate is also 8%? Provide a Cashflow diagram
A man borrowed Php 120,000 and promised to pay annually for 5 years. The payment starts at "X" pesos. The man intends to increase his payments by Php 5,000 at the end of each successive year. If the interest rate is 8% compounded annually, how much will the first payment be? If the man decides to pay annually with 8 equal payments with the first payment to be made after 4 years, what will be the amount of the annual payment? Construct the cash flow diagram for both cases.
PLEASE ANSWER THIS NOT IN EXCEL. THANK YOU! Sarah loans an amount from a bank and promise to pay at the end of 8 years and 5 months all her debt amounting to P305,822 at an interest rate of 10.115% compounded bi-monthly, determine the following: Effective interest rate, % Amount loaned.
A series of 10 annual payments of Php 200, 000.00 is equivalent to two equal payments, one at the end of 15 years and the other at the end of 20 years. The interesi rale is 8%, compounded annually. What is the amounl of Ihe two equal payments?
What is the future worth of a series of equal year end deposits of $2.800 for 13 years in a savings account that eams 10% annual interest if the following were true? (a) All deposits are made at the end of each year? (b) All deposits are made at the beginning of each year? O Click the icon to view the interest factors for discrete compounding when i 10% per year. (a) The future worth of a series of equal year-end deposits made at the end of each year is $ (Round to the nearest dollar) (b) The future worth of a series of equal year-end deposits made at the beginning of each year is $ (Round to the nearest dollar)
The financial officer of a construction company that has just made a net profit of$45,000 on a building construction contract wants to deposit enough of theearnings into an interest-generating fund so that she will have $100,000 topurchase a new power-shovel. The existing power-shovel is three years old andwill have to be discarded when it is 18 years old. How much must the financialofficer deposit if she can earn 7% interest compounded quarterly on herinvestment?
I need help with this problem I'm getting the final answer as 13,565.24 but it is incorrect. The correct answer is 16,247 using the annuity formula. please solve and show all of your work