A man will buy a house and lot worth P 300,000 in a subdivision in Metro Manila. His carrying charges is P 34,200 to the price of this house and lot.Further he will be obliged to pay it over a period of 20 years. Through his monthly amortization does not look much as a burden to his income, what isthe annual rate?Oi- 9.567%Oi- 9%O i= 10%Oi- 9.50%

In Accounting, Amortization refers to reducing the value for any asset specifically intangible asset…

Answered: A man will buy a house and lot worth P…

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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1. A house costs P500,400 cash. A purchaser will pay P100,000 cash, P50,000 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 liabilities at 7% compounded annually. Find the annual payment which may be made for 6 years. 2.Mr. Tolentino wants to deposit a lump sum on the day his son is born into an account bearing an interest of 5% compounded annually in order to withdraw P35,000 each on his son's 18th, 19th, 20th and 21st birthdays How much is the lump sum?
Time left 0:18 An entrepreneur will buy a house and lot worth P850,000.00 in a subdivision T Mandaluyong City. His carrying charge is P54,200.00 to the price of this house and lot. Further he will be obliged to pay it over 30 years. Though his monthly amortization does not look much as a burden to his income, what is the annual rate? O a. i 4.246% b. i 4.826% Oc. i 4.626% O d. i 4.426%
1. Your sister bought a condominium unit for P9 300 through a condominium loan which she availed of from a universal bank at a fixed annual rate of 8% for 10 years. How much would be your sister's monthly amortization if she is required to pay an equity of 30% of the total price of the condominium? How much is the remaining balance after the 36th payment?
Edwill just purchased a new home costing R1 107 900,00 by paying R120 000,00 cash on the purchase date, and agreeing to make payments at the end of each of the following eight years for the remainder owed; the first payment is due one year after the purchase date The interest rate is 7,4% per annum, compounded yearly. This is illustrated by the following time line: 3 6. yeans 0 7,4% per annum, compounded annualy Considering the amortisation schedule, the percentage, rounded to two decimal places, of the total payments made the first two years that will go toward repayment of interest, is A. 41,42%. B. 58,58%. C. 70,71%. D. 43,51%.
Mr. Ramos buys a house and lot that cost P450,000. He pays P75,000 as down payment and promises to pay the balance by monthly installment for 25 years. If money is worth 12% compounded monthly, a. How much is the monthly amortization? b. What is the outstanding balance at the end of 15 years? c. What part of Mr. Ramos payment goes to the interest? d. What part of the 181st payment goes to repayment of the principal? e. Find the total interest paid on the transaction? Please do on excel
Edwill just purchased a new home costing R1 107 900,00 by paying R120 000,00 cash on the purchase date, and agreeing to make payments at the end of each of the following eight years for the remainder owed; the first payment is due one year after the purchase date. The interest rate is 7,4% per annum, compounded yearly This is illustrated by the following time line ears 07, per anm, componded anmaly Considering the amortisation schedule, the percentage, rounded to two decimal places, of the total payments made the first two years that will go toward repayment of Interest, is
Mr. Padilla agrees to pay P1,300.00 at the end of each month for 20 years, in purchasing a house. What is the present value of this agreement if money is worth 15% compounded monthly? a P98,274.96 b. P98,742.96 OCP98,724.96 Od P96,724.96
Junly bought a lot in Conel as his investment. The owner sell it for P^(10),000 down payment plus 99,000 quarterly installment for 7 years. What is the fair market value of the lot when money can earn 9% compounded monthly?
Abe Washington sold some property in Oregon and will receive $40,000 in 5 equal payments of $8,000 at the end of each year from today. What is the present value of these future payments at an interest rate of 9% compounded annually? Round answer to the nearest dollar.
Muaz will need $130 000 in 4 years to buy a piece of property. He plans to save money by making equal quarterly deposits into an account earning 6.1% per year compounded quarterly. What is Muaz's quarterly deposit? a) $9218.01 b) $7235.51 O c) $1110.69 d) $871.81
5) George wants to purchase a new house that costs $185, 500. The terms of the sale are 10% down payment and the rest to be paid off at a 5.75% interest rate compounded monthly for 30 years. paying $974.28 for his monthly payment b.) how much will george pay in interest for the life of the loan
1. A man was offered a landbank certificate with a face value of P 100,000 which is bearing an interest rate of 8% per year payable semiannually and due in 6 years. If he wants to earn 6% semiannually, how much must he pay the certificate? Ans. P 90614.92

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