Activity 8: Give Me the Periodic Payments of the following General Annuities. 1. Monthly payment of the future value of P 50,000 for 1 year with an interest rate of 10% compounded quarterly. 2. Quarterly payment of an accumulated amount of P 80,000 for 2 years with interest rate of 8% compounded annually. Semi-annual payment of the loan P 800,000 for 5 years with an interest rate of 9% compounded annually.
Activity 8: Give Me the Periodic Payments of the following General Annuities. 1. Monthly payment of the future value of P 50,000 for 1 year with an interest rate of 10% compounded quarterly. 2. Quarterly payment of an accumulated amount of P 80,000 for 2 years with interest rate of 8% compounded annually. Semi-annual payment of the loan P 800,000 for 5 years with an interest rate of 9% compounded annually.
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
Related questions
Question
Solve for activity no.8
Transcribed Image Text:month for 5 years with the same interest rate. Which fair market value between these
5 years at 9% compounded annually. The other investment scheme is P12,000 per
Kat received two offers for investment. The first one is P 150,000 every year for
(10)(12)
even p
d quarterly deposit R
salution.
aring
nded
+Sa2) =
= (1 + (1)
interval.
(12)
0.05.
(12)
(1+12
12
1+ (12)
12
= (1.05)1/12
sits
(12)
= (1.05)/12 - 1
12
(12)
= 1.004074 - 1
12
(12)
= j = 0.004074
12
Find the monthly stipend R of an ordinary annuity using the equivalent rate i =
0.004074.
R = P/ [ED"
= 1,000,00/
[1-(1+0.004074)-1201
0.004074
[0.3860776643
= 1,000,00/ 0.004074
= 1,000,000/ 94.766240624
= 10,552.28
Answer: R= P 10,552.28
Activity 8: Give Me the Periodic Payments of the following
General Annuities.
1. Monthly payment of the future value of P 50,000 for 1 year with an interest
rate of 10% compounded quarterly.
2. Quarterly payment of an accumulated amount of P 80,000 for 2 years with
interest rate of 8% compounded annually.
S. Semi-annual payment of the loan P 800,000 for 5 years with an interest rate
of 9% compounded annually.
5.
offers is preferable?
Solution:
value.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education