A man bought an equipment costing P60,000 payable in 12 quarter payments, each installment payable at the beginning of each period. The interest is 24% compounded quarterly. What is the amount of each payment? P6,751.53 P7,371.91 P5,170.12 P8,241.74

Q: A loan of $10200 is to be amortized with quarterly payments over five years.  The interest on the…

A: A bond is said to be amortized if its principal (face value) on the debt as well as its interest…

Q: A loan of $2982 is repaid in three years. Find the amount of interest paid on the loan if it is…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: An $90,000 loan is amortized by payments of $1850 at the end of every six months at a rate of 2%…

A: A mortgage loan is a type of loan where funds are availed against an asset as collateral to the…

Q: Suntech Distributors, Inc., deposits $4,000 at the beginning of each 3-month period for 7 years in…

A: Formula: A = P [ 1 + ( r / N )NT ] Interest : Interest is a fee charged on the borrowed amount.

Q: A $23,300 loan is to be settled by making payments of $7,460 at the end of every six months. The…

A: Present Value of annuity is used to calculate the loan periodic payments. To calculate number of…

Q: You deposit 2,000 in an account that pays 7% interest compounded semiannually.after two years the…

A: The concept of time value of money will be used here. Money deposited today gets computed and hence…

Q: a. Calculate the interest component of Payment 10. Interest $. 1187.03 b. Calculate the principal…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: The interest rate on a $51,000 loan is 7.9% compounded semiannually. Quarterly payments will pay off…

A: Interest rate = 7.9% Compounded semiannuallyLoan Amount = $51000Loan payoff period = 12 YearsPayment…

Q: The interest rate on a $118,000 loan is 8.9% compounded semiannually. The monthly payments on the…

A: a) To calculate the interest component of Payment 210, we first need to find the balance of the loan…

Q: A $22,550 loan is to be settled by making payments of $6,862 at the end of every three months. The…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: What amount needs to be deposited into an account earning 4.3% interest compounded annually to have…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the…

A: The effective rate of interest refers to the return on savings or interest on the investment…

Q: A person deposits $1,000 for 5 years in an account that pays 7.2% per year compounded quarterly.…

A: Future value refers to the future date value when all cash flows are compounded at the given…

Q: You borrow ksh 1,000,000 from a bank for 5 years at 10% compound interest .The loan is repayable in…

A: Present value (PV)= 1,000,000 Time (t)= 5 years Rate (r)= 10% = 0.1   The present value is how much…

Q: A loan is repaid by making payments of $2000 at the end of every six months for 12 years. If…

A: Semiannual payment (c) = $2000 Semiannual period (n) = 24 (i.e. 12 years * 2) Nominal interest rate…

Q: A loan of $10200 is to be amortized with quarterly payments over five years.  The interest on the…

A: Amortization of a loan refers to the process of gradually paying off the loan debt over a specific…

Q: What is the amount of each payment if Plascote Industries borrows $32,600, at  an annual interest of…

A: for calculating amount to be paid for each installment we use PMT function in excel to determine the…

Q: A car loan of $46,700 is amortized over 8 years by equal end-of-month payments at 2.9% compounded…

A: Ans = 36019.15     =PMT((2.9%/12),8*12,-46700,0) = $ 545.65

Q: A payment of $700 is due in 3 years, and $5,000 is due in 5 years. What single payment made today…

A: PV=FV11+rn=$70011+4.54×1004×3+$500011+4.54×1004×5=$612.062293+$3997.59977=$4609.66206=$4609.66

Q: . A lump sum of $30,000 is invested at 6% compounded monthly for 15 years. For 15 years it then pays…

A: Present Value = $30,000 Interest Rate = 6% compounded Monthly Time Period = 15 Years

Q: Determine the interest earned after 10 years if $200 is invested in each of the following accounts:…

A: Future Value = Present Value * (1+r)^n Where, r = rate of interest per period i.e. 5.40%/12 = 0.45%…

Q: 02: A $150000 real estate loan at 9% compounded monthly is repaid by monthly payments over 20 years.…

A: Amortization schedule refers to the statement showing the amount of payment made on each period…

Q: Ten annual payments at an interest rate of 7% are made to repay a loan of $9000. Build the table…

A: Yearly Payments implies, regarding any Material Contract, the aggregate sum of the installments…

Q: A payment of $4,500 was made into an account at the end of every 3 months for 12 years. a. If the…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a future…

Q: A $22,550 loan is to be settled by making payments of $6,862 at the end of every three months. The…

A: We need to use NPER funfunction in excel to calculate number of payments for loan. The formula is:…

Q: A man paid 10% down payment of P1,500,000 for a house and lot this month of January. The rate of…

A: The present value of the loan is equal to the sum of the present values of all the future…

Q: The interest rate on a $55,000 loan is 8.2% compounded semiannually. Quarterly payments will pay off…

A: Here, Loan Amount $ 55,000.00GivenInterest Rate8.20%GivenTime Period in years14GivenCompounding…

Q: Mobius, Incorporated, has a total debt ratio of .32. a. What is its debt-equity ratio? (Do not round…

A: Debt to equity ratio is an important metric in corporate finance that is used to evaluate a…

Q: If you deposit $368.00 into an account paying 15.46% annual interest compounded quarterly, how many…

A: The concept of time value of money will be used and applied here. As per this concept the worth of…

Q: A man paid 10% down payment of P1,500,000 for a house and lot this month of January. The rate of…

A: Here, Interest Rate is 15% Compounding Period (C) is Semi- Annual i.e 2 Payment Period (K) is…

Q: Regular quarterly payments of $6000 are deposited into an account paying 3.19% interest, compounded…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: A loan of amount $15560.21 is repaid in 15 annual payments beginning 1 year after the loan is made.…

A: Loan = $15,560.21Interest rate = 5.1%First 6 payments = $1,000Final 9 payments = $2,000

Q: You deposit $4000 in an account that pays 6% interest compounded semiannually. After 3 years, the…

A: Compound interest is interest computed on both the initial principal amount and any accrued interest…

Q: If $6000 is invested in an account that pays 3% annual compounded interest, compare the amount in…

A: 1. Semi annual: Future value = Present value *(1+rate)^periods Future value =…

Q: An amount of $3,620 is deposited into an account earning 5% interest compounded quarterly. How much…

A: Amount invested: $3,620Interest rate: 5%Time period: 11 years and 9 months

Q: Suppose that at the end of each week for 30 years, $100 is deposited into an account that earns 6.8%…

A: Future value analysis is a tool that investors may use to assess the prospective ROI of various…

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.