A new iphone model is offered at Php 78799 cash but can be acquired through installment at an interest rate of 12% per year compounded monthly. How much will you pay for the installment every month for two years? Note: Do not round in between solution. Final answer round to the nearest whole number.

Q: Suppose you wish to borrow Php 20,000,000 to buy a parcel of real estate. The lender is willing to…

A: The loans are paid by the monthly payments and these monthly payments carry the payment for interest…

Q: Use technology to complete parts (a) through (c) below. a. Find the monthly payment for a loan of…

A: Loan amount (PV) = $ 5000 APR  = 12% Monthly interest rate (r) = 12%/12 = 1% Term = 20 Years Number…

Q: Construct an amortization schedule (monthly) with the followings: House Price: 700,000 Down Payment:…

A: We take loans from a bank to buy big ticket items like a house or a car.The loan is repaid through…

Q: 1. A television set is for sale at ₱ 13,499 in cash or on installment terms, ₱ 2,500 each month for…

A: When given two repayment options of payment in annuity, one must select the option with lowest…

Q: You want to purchase a machine for your business and you are given 3 different payment schedules:…

A: Given, Three payment schedules Rate of interest is 10%

Q: erve three decimal places for non-terminating decimal values. Draw the cashflow diagram for each…

A: In insurance there are periodic payments made for the insurance some payments goes for investment…

Q: You borrowed $20,000 to be paid back in four equal payments at anannual interest rate of 8%. The…

A: Loan Installment is that which includes the interest & principal amount. which is paid by the…

Q: 3. Amortization Schedule. Use Excel and calculator. You decide to buy a new BMW that costs $50,000.…

A: Amortization refers to the systematic and regular repayment of loan amount over a period of tenure…

Q: Discount Interest Solve the following. Show solutions. Round off answers up to 2 (two) decimal…

A: Notes are issued at discount and discount depends on the time and interest rate on the note.…

Q: If you buy a computer directly from the manufacturer for $2,815 and agree to repay it in 36 equal…

A: Present value = pv = $2815 Compound = monthly = 12 Number of payment = n = 36 Interest rate = r =…

Q: You would like to purchase a car with a negotiated price of $39,000, and the dealer offers financing…

A: Present value refers to whether money received in the current period or today is worth more than…

Q: A lending company advertises that for a fee of P10, you can immediately borrow up to P200 for one…

A: Annual rate of return = (Monthly fee / Amount Borrowed) * 12 Amount Borrowed = P200 Monthly Fee =…

Q: can be purchased by paying a down payment of P15 ents, the first installment to be after two years…

A: Here, Interest Rate is 15% Compounded Semi-annually Details of First Option: Down Payment is…

Q: A 5-year $10,000 loan with a 15-year amortization period is being offered at the rate of 10%…

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

Q: If you buy a computer directly from the manufacturer for $2,456 and agree to repay it in 36 equal…

A: a)Monthly Payment Monthly Payment = P * r * [(1+ r n] / [(1+r n) -1] where, P = Principal borrowed…

Q: what would the remaining payment look like over five years

A: Future payments are the expected cash payoffs either in the form of cash receipts or cash payments…

Q: If you buy a computer directly from the manufacturer for $2,417 and agree to repay it in 36 equal…

A: 1. Present value of annuity. PV = A * 1-(1+r)-nr where , PV = Present value of annuity. A = periodic…

Q: You want to purchase a 2nd hand MacBook Pro but you can’t pay it in cash. You agreed to pay it in…

A: Present value of annuity due The present value of annuity due is applied to find out the value of an…

Q: You purchase an RV by making a down payment of $10,500. The terms of your finance agreement have an…

A: The cash price or the purchase price will be the current worth of all the payments made on a monthly…

Q: A television set is for sale at P13,499 in cash or on installment terms, P2,500 each month for the…

A: Cash basis: In the cash basis purchase we have to pay a lump-sum amount at the time of purchase,…

Q: You sign a mobile phone contract agreeing to pay £30 at the end of each month for the next two…

A: Present value (PV) is a financial concept used to determine the current worth of future cash flows…

Q: loan of $5000 is taken out today. It is due with interest at j4 = 8% in 2 years. Instead, the…

A: Loans have interest rate and payments are made based on the interest and time period of loans and…

Q: Determine the purchase price of a new home if it was financed with a 10% down payment and payments…

A: A mortgage (or loan) with a fixed annual stated rate is the net amount of borrowings that a borrower…

Q: In negotiating a contract for your business, you have to decide between receiving $45000 now, or…

A: Interest rate (r) = 0.0515   Payment 1 (CF0) = $20,000 Payment 2 (CF4) = $35,000     We will…

Q: If you buy a computer directly from the manufacturer for $3,237 and agree to repay it in 48 equal…

A: a loan, payments made by the borrower are typically applied first to the interest owed, and then to…

Q: A new phone is for sale at Php13499 in cash or in instalment terms, Php2500 each mobth for the next…

A: Present value of any deposit is the discounted value of the intermediary and terminal values at…

Q: The buyer of a car makes a down payment of P225000 and pays P20794.52 at the end of each month for 5…

A: Down payment (DP) = P 225000 Monthly payment (P) = P 20794.52 Period = 5 Years Monthly period (n) =…

Q: A local bank advertises the following deal: "Pay us $100 at the end of each year for 11 years and…

A: In perpetuity is type of annuity in which there are payments forever and for indefinite period of…

Q: Loan Payments (Annual) a. If you take out an $23,000 car loan that calls for 4 annual payments…

A: An annuity is a financial product that provides a stream of income payments at fixed intervals,…

Q: Discount Interest Solve the following. Show solutions. Round off answers up to 2 (two) decimal…

A: Data given: P=Php24600 D=12%=0.12 t=9 months =9/12=0.75

Q: You plan to buy a car for R250 000, you will give a deposit of R25000. The remainder of the cost…

A:

Q: A new iphone model is offered at Php72,000 cash but can be acquired through installment at an…

A: Cash price (PV) = Php. 72,000 Interest rate = 2% Monthly interest rate (r) = 2%/12 =…

Q: 2.You are paying Php3,500/month on your motorcycle loan for 3 years with an interest rate of 10%…

A: Monthly interest rate (r) = 0.008333333333 (i.e. 0.10 / 12) Monthly period (n) = 36 (i.e. 3 years *…

Q: What effective annual rate (EAR) are they charging us on the loan?

A: Effective Annual Rate: It refers to the true annual rate on a loan/credit or on investment since it…

Q: A local bank advertises the following deal: Pay us $100 at the end of each year for 10 years and…

A: A financial concept known as the time value of money acknowledges that money that is available now…

Q: You want to be able to withdraw $1, 500 from your account each month for 20 years after you retire…

A: The given problem can be solved using PV and PMT  function in excel. PV function computes current…

Q: A borrower takes out a 5/1 Hybrid ARM for $450,000 with an initial contract interest rate of 3.5%.…

A: A mortgage with an adjustable rate has a variable interest rate based on the loan's outstanding…

Types of Money Market Instruments