A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at an interest rate of 12% compounded annually A) s4,944 B $2,402 $4,804 $4,111

Q: A payment of Php 25 000, 5 years from now is equivalent at 8% interest to an annual equal payment…

A: An ordinary annuity is a series of equal payments made at the end of each period for a specified…

Q: What is the realized balance from a eriodic payment of 100,000 dinars to paid at the end of every 6…

A: We need to use future value of ordinary annuity formula to solve this problem Future value…

Q: What is the future equivalent at EOY 8 of $5,000 annual payments made at the beginning of each year…

A: N = 8 years Annual Payment (PMT) = 5000 Beginning of year payments Rate (r) = 7%

Q: a) What is the present worth ofequal payments of $25,000 made semi-annually (i.e., twice every year)…

A: Semi annual payment (P) = $25,000 Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%

Q: Ordinary Annuity  2. A P35,000 debt is to be paid off in eight equal yearly payments, each…

A: Loan = 35,000 Number of Installments (N) = 8 Nominal Interest Rate = 10% Compounded Quarterly Number…

Q: A sum of 21600 is borrowed at 5% simple interest per annum and is a paid back in 4 equal annual…

A: The question is related to the Installment. The annual Installment is calculated with the help of…

Q: A loan $30.000 is to be amortized by equal payments at the end of each year for five years. The…

A: Given information: Present value of loan is $30,000 Number of years 5, Interest rate is 6% per…

Q: What is the quarterly payment on a loan of $22,000 for 5 years at i= 8% per year, compounded…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: A money is compounded annually at the rate of 6%, find the present value of a sequence of 12…

A: Semiannual payment (C) = P300 Number of semiannual payment (n) = 12 Semiannual interest rate (r) =…

Q: For a sum of money to double itself in 10 years, what must be the rate of interest compounded…

A: The amount of money invested over a period of time with the assumption of investment growth at a…

Q: What equal annual payment series is required to repay the following present amounts? $15,000 in six…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: 2. $6500 was borrowed at an interest rate of 12% compounded semi-annually. If the loan is to be paid…

A: Given: Rate of interest(r) =12%p.aRate semi-annually=6%Time (t) =5 yearsTotal No. of…

Q: 8.P6, 200.00 debts bear interest at 8% compounded annually. It is to be repaid in annual   payments…

A: When a loan is repaid by a series of equal periodic amounts, it is the case of amortization and…

Q: WHAT IS THE ACCUMULATED AMOUNT OF THE FIVE-YEAR ANNUITY PAYING P6,000.00 AT THE END OF EACH YEAR,…

A: Annuity is a stream of cashflows which may be constant, growing, increasing, declining or…

Q: What's the future value of an $1,100 quarterly payment for 25 years at 7% annual interest rate?…

A: Future value of annuity formula.FV = A* whereFV = Future value of annuity A = periodic paymentsr =…

Q: What single payment at the end of year 5 is equivalent to an equal annual series of payments of $800…

A: Here, Annuity Payment is $800 Annuity payment started in year 3 and ending in year 12 Interest Rate…

Q: What will be the compounded amount on a loan of P1.500 at 12% interest compounded quarterly for I…

A: Loan amount (PV) = P 1500 Annual interest rate = 12% Quarterly interest rate (R) = 12%/4 = 3% Period…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: Working note:

Q: A debt of P10,000 with 10 % interest compounded semi-annually is to be amortized by semi-annual…

A: Debt amount (PV) = P 10,000 Interest rate = 10% Semi annual interest rate (r) = 10%/2 = 5% Period =…

Q: A man owes P50,000.00 with interest at 9% payable semi-annually. What equal payments at the…

A: Semi-annual repayment is a payment made every six months to repay the debt amount with a certain…

Q: eries of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at an…

A: The given problem can be solved using PV function in excel. PV function computes present amount for…

Q: A loan of P50,000 is to be amortized by paying quarterly in 1 year. If money is worth 10% compounded…

A: Quarterly payment = Q Loan amount (L) = P 50000 r = 10% per annum = 2.5% per quarter n = 1 year = 4…

Q: At a annual effective rate of interest i, payment of $100 from now,$200 two years from now and $100…

A: YearsCash flows0-$200.001$02$2003$04$100Required:Annual effective interest rate=?

Q: a.) Present Value of all payments. (Answer: 108,138.03) b.) Equivalent semi-annual payments.…

A: Information Provided: Discount rate = 12.15% First year = 11,085 Second year = 23,819 Third year =…

Q: Q8. A owes B two sums of money: $1000 plus interest at 7% compounded annually, which is due in five…

A: The concept of TVM states that money has an inbuilt capacity to earn interest because of which money…

Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…

A: Given: Interest rate = 12% Semi-annual payments = $1000 Number of years = 3 Number of payments = 3*2…

Q: A LOAN OF P100,000 MUST BE REPAID BY A UNIFORM AMOUNT EVERY YEAR FOR 10 YEARS AT 10% INTEREST PER…

A: Solution: Amount of periodic payment = P100,000 / Cumulative PV factor at 10% for 10 periods…

Q: From Ordinary Annuities; Calculate parts A, B & C assuming they are Annuities Due. A.$600 per…

A: A.) Computation:

Q: 1. The present value of an annuity of P5,000 to be received at the end of each of the next six…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: An amount of P100,000 was borrowed and was to be repaid in ten installments at the end of every year…

A: Let the first payment = X Second payment = X + 1000 and so on n = 10 years r = 12% Loan amount (L) =…

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.