Answer the following probiems. 1. Rose Anne wants to buy a house and she was offered by the following options. Which is the best option for her? Option 1: P200 000 down payment and 10 annual payments of P120 000 each, the first due after 5 years at 6% effective. Option 2: P200 000 down payment and 20 semiannual payments of P50 000 each at 8% compounded semiannually. Option 3: Cash of P1 000 000 in 5 years and money is worth 4% compounded quarterly.

Answer the following probiems. 1. Rose Anne wants to buy a house and she was offered by the following options. Which is the best option for her? Option 1: P200 000 down payment and 10 annual payments of P120 000 each, the first due after 5 years at 6% effective. Option 2: P200 000 down payment and 20 semiannual payments of P50 000 each at 8% compounded semiannually. Option 3: Cash of P1 000 000 in 5 years and money is worth 4% compounded quarterly.

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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Answer each of the following. 1. Lisha Yvette is going to purchase a home theather system with a purchase price of P118,000.00. She has P24,000.00 to pay as a down payment. She is going to finance the home theatre system monthly for 2 years at an 8% interest rate. What is the Amount Financed? a. b. What is the monthly payment amount?
Use the following information for the next 2 questions Roger buys a house costing $300,000. He puts 20% down and borrows the balance negotiating a 2-year ARM . The initial teaser rate is 3%. What is the required monthly payment in year1? Amortization is done on a 30 year basis. This is a non-carryover ARM. O $1,011.85 $1,264 O $1,590 O $1,272 O $1,342 QUESTION 38 If after two years the mortgage rate changes to 5%, what must be Roger's monthly payment for ye 3? O $1,011 $1,264 O $1,590 $1,272 O $1,342
1. A man decided to buy a brand new car. The car's cash price is P 2M. There is an option for installment but he needs to make a down payment of 50% of the cash price, then P 300K at the end of first year, P 200K at the end of second year, P 100K at the end of third year, P250K at the end of fourth year and a last payment at the end of sixth year. If the interest is 16%, how much does he need for the last payment?
Solve the given problem. A. Mrs. Ledesma apply for a loan for the renovation of their house. She agreed to pay P10,000 quarterly for 5 years that will start at the end of 2 years. If interest rate is 6% converted quarterly, how much is her loan? a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________. d. Period of deferral is ________. e. The interest rate per period is ___________. f. The present value of the loan is ___________. B. Your mother plans to buy you laptop for your online class. She got an offer from Abenson of monthly installment of 1,950 monthly for 1 year and a down payment of 5,500. The payment will start at the end of 3 months. How much is the cash price of the laptop if the interest rate is 3% compounded monthly. a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________. d. Period…
4. Laura would like to have $10 000 in 10 years to use as a down payment for a house. She is considering two investment options: Investment A: 5 % annual interest, compounded quarterly. Investment B: 4.7% annual interest, compounded monthly. a) Compare the principal needed for each option. b) Which investment is better? Explain your reasoning.
Problem 2. Dianne is planning to buy a house and lot. The required down payment is P300,000. Her balance will be paid at P 15,200 every month for 20 years. If money is 10% compounded monthly, how much is the cash value of the house and lot? Problem 3. In a monthly payment of P 1,000 for 9 years that will start 9 months from now, find the period of deferral.
Required: a to d. Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $55,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? e. What is the savings in interest cost between 3.50% and 5%? f. If Harriet uses 30 years instead of 25 for both 5% and 3.50%, what is the difference in interest? Complete this question by entering your answers in the tabs below. Required A to Required E Required F D Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $55,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? Note: Do not round intermediate calculations. Round your answers to the nearest cent. Monthly payment Total cost of interest a. 25 Years, 5% b. 25 Years, 4.5% c. 25 Years, 4% d. 25 Years, 3.5%
Question Solve the given problem. A. Mrs. Ledesma apply for a loan for the renovation of their house. She agreed to pay P10,000 quarterly for 5 years that will start at the end of 2 years. If interest rate is 6% converted quarterly, how much is her loan? a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________. d. Period of deferral is ________. e. The interest rate per period is ___________. f. The present value of the loan is ___________. B. Your mother plans to buy you laptop for your online class. She got an offer from Abenson of monthly installment of 1,950 monthly for 1 year and a down payment of 5,500. The payment will start at the end of 3 months. How much is the cash price of the laptop if the interest rate is 3% compounded monthly. a. The type of annuity illustrated in the problem is ____________. b. The regular payment is ___________. c. The total number of payments is _________.…
Assume that Aliza has a winning lottery ticket and she are the given the option of accepting the value of P1,000,000 paying interest three years from now or taking the present value of the P1,000,000 now. The sponsor of the prize is using a 6% interest and discount rate. a. If she choose to receive the present value of the prize now, how much will she receive? b. If she choose to receive the value 3 years from now, how much will she receive? c. Which of the options will give her higher amount?
← You need a loan of $150,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 20-year fixed rate at 6% with closing costs of $2900 and no points. Choice 2: 20-year fixed rate at 5.5% with closing costs of $2900 and 4 points. What is the monthly payment for choice 1? A (Do not round until the final answer. Then round to the nearest cent as needed.)
Suppose that, to purchase a car, you are obtaining a personal loan from your uncle in the amount of S65,000 (now) to be repaid in five years. it your uncle could earn 6% interest (oompounded annually) on his money invested in various sources, what minimum lump-sum payment five years trom now would make your uncle happy economically? OA S78648 OB S134, 168 OC s06,985 Oo S92, 241
Vincent was receiving rental payments of $3,000 at the beginning of every month from the tenants of her commercial property. What would be the value of her property in the market if she wants to sell it, assuming a market capitalization rate of 5.25% compounded annually? Round to the nearest cent -> SAVE PROGRESS SUE ENG CMS fq fio f11 AA ansert 6 8 6. 1/4 1/2 3/4

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