An amount of P100,00 is borrowed at 16% pa compounded quarterly. A partial payment of P40,000 is made after one year, P20,000 on the 18th month and the balance on the 2nd year. Solve for the remaining amount to be paid on the 2nd year. Show your cash flow diagram. O P68,431 O P100,881 O P125,880 O P147,298

An amount of P100,00 is borrowed at 16% pa compounded quarterly. A partial payment of P40,000 is made after one year, P20,000 on the 18th month and the balance on the 2nd year. Solve for the remaining amount to be paid on the 2nd year. Show your cash flow diagram. O P68,431 O P100,881 O P125,880 O P147,298

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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Draw the necessary cash flow diagrams. Prob#1: Determine the present worth of an annual payment of P 4500.00 : If made at the beginning of the year for 12 years at 8% compounded annually. If made at the end of each month for 5 years at 4% compounded monthly. If 15 payments start at the end of year 4 at 6% compounded annually.
If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from the bank for 8 years starting 1 year after the 9th deposit is made. Cost of money is 14% compounded quarterly. Please give me complete/detailed solutions and givens. also, show cash flows diagram (inflow and outflow). ----the picture below is an example of cash flow diagram.
Find the P and F values of a certain transaction that has an interest of 12% per year and rate of 10% per payment. Draw the cash flow diagram. 1st year-8th year (respectively): P0, P1000, P1100, P1210, P1331, P1464.10, no payment for 7th year
Need answers ASAP... If P100 is deposited in a savings account that pays 6% annual interest, what amount has accumulated by the end of the eighth year? How much of this is interest and how much is principal? Draw the cash flow diagram.
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What single payment at the beginning of year 2 is equivalent to an equal annual series of payments of $8000 beginning at the end of year 3 and ending at the end of year 8? Use i = 10 % compounded annually. (using cash flow diagram is recommended)
What perpetual amount will you receive annually starting next year if you were able to deposit 130,000.00 five years ago at 10.5% interest compounded annually? Calculate it manually and show complete solution with formula used. Provide cash flow diagram. Write it in a paper please. ANS. P 22,487.65
A machine has the following cash flows for the last two years of service. The MARR is 10% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Calculate the EUAC of the machine if kept in service over the remaining two years O A. $49,600 O B. $24,929 O C. $37,500 O D. $27,500 O E. $22,100 (b) Calculate the marginal cost of the machine for year 2. OA. $37,500 O B. $22,100 OC. $24,929 O D. $27,500 O E. $49,600 Year 0 1 2 Market Value $45,000 31,000 24,000 (・・・ O&M Costs $9,000 12,000
1. For each of the following cases, calculate the future value of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compounded annually at the rate specified over the given period. Case Single Cash Flows ($) Interest Rate (%) Deposit Period (years) A $100 3.5% 30 B $5,000 10% 25 C $12,500 12% 7 D $23,200 14% 10
If K40, 000 is deposited at the end of each half year in an account that earns 6.2% compounded semiannually, how long will it be before the account contains k1, 200, 000? b. When you establish a sinking fund, which interest rate is better? Explain.i. (a) 10% (b) 6% ii. (a) 12% compounded monthly (b) 12% compounded annuallyc. If k2500 is deposited at the end of each quarter in an account that earns 5% compounded quarterly, after how many quarters will the account contain k80, 000?d. A lottery prize worth k 2,400,000 is awarded in payments of k 20,000 at the beginning of each month for 20 years. Suppose money is worth 7.8%, compounded monthly. What is the real value of the prize?e. A couple who borrow K90, 000 for 30 years at 7.2%, compounded monthly, must make monthly payments of K610.91. (a) Find their unpaid balance after 1 year.(b) During that first year, how much interest do they pay?f. The first term of a GP represents the number of tins of beans sold in Food Lovers the week before…
A fund is created by making equal monthly deposits of P4,000 at 9% converted monthly for half a year. Find the following: 1. the sum after half a year2. periodic depositChoices a. 0.75b. 0.0075c. 6d. 1/2e. P24, 454.53f. P16, 180.90g. P4,000.00
Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12 payments are made into the account, how much would be accumulated in his fund by the end of the 12th year? The first payment occurs at time zero (now). Draw a cash flow diagram too.

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