D. A man deposits P50, 000 in a bank account at 6% compounded monthly for 5 years. If the inflationrate of 6.5% per year continues for this period, will this effectively protect the purchasing power of theoriginal principal?CO2 9. What is the effective rate?d. none of the aboveCO3 10. Compute for the required value of F to check if the given inflation rate continues for this period, willa. 78%a.36%C. 4%this effectively protect the purchasing power of the original principal?c. 49,225a. 78,00a.49,000d. none of the above

Future value- Future value is the estimated value of an asset in the future, taking into account a…

D. A man deposits P50, 000 in a bank account at 6% compounded monthly for 5 years. If the inflation rate of 6.5% per year continues for this period, will this effectively protect the purchasing power of the original principal? CO2 9. What is the effective rate? a. 78% a.36% c. 4% d. none of the above CO3 10. Compute for the required value of F to check if the given inflation rate continues for this period, will this effectively protect the purchasing power of the original principal? a.49,000 c. 49,225 a. 78,00 d. none of the above

D. A man deposits P50, 000 in a bank account at 6% compounded monthly for 5 years. If the inflation rate of 6.5% per year continues for this period, will this effectively protect the purchasing power of the original principal? CO2 9. What is the effective rate? a. 78% a.36% c. 4% d. none of the above CO3 10. Compute for the required value of F to check if the given inflation rate continues for this period, will this effectively protect the purchasing power of the original principal? a.49,000 c. 49,225 a. 78,00 d. none of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

8. It is desired to have P100,000 two years from now by depositing P20,000 now and 10 uniform monthly amounts, the first of which to be made one year from now. What would that monthly amount be if interest rate is 12% pa compounded monthly? Select the correct response.: O P6,990.42 O P 9,277.10 O . P7,060.33 O P 6,921.21
Please answer quickly and correctly
Valuing Delayed Annuities Suppose that you will receive annual payments of $18,650 for a period of 26 years. The first payment will be made 7 years from now. If the interest rate is 10.50%, what is the value of the annuity in year 6, what is the current value of this stream of cash flows? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of the Security in Year 6 Value of the Security today LA LA
Which of the following 4 loans has the lowest interest rate risk to the lenders? Loan 1 Loan 2 Loan 3 Loan 4 Initial Interest rate 5.00% 3.75% 4.50% 4.00% Loan Maturity (in 30 30 30 30 years) Margin above the n/a 3% 3% 3% index every Adjustment interval n/a every year every year year 1% per 3% per Interest rate cap n/a None year year Loan 1 Loan 2 Loan 3 Loan 4 O Cannot determine
8. A particular investment promises to make year-end annual payments in perpetuity. The first four annual payments will be $5. After that, future annual payments will grow at 5% per year forever. What is the present value of this investment if the discount rate is 10%? a. $98.68 b. $87.57 c. $76.46 d. $65.35 e. $54.24
2. Muhammad invest $12,000 in a GIC paying 2.25% effective annual interest. Muhammad computes his real (inflation adjusted) rate of return rreal = 0.491%. What is the effective annual inflation rate i?
A loan of $5000 is taken out today. It is due with interest at j4 = 8% in 2 years. Instead, the borrower negotiates with the lender to pay $2500 in 1 year and $X in 3 years. If the lender can reinvest any payment at j₂ = 5%, what is the value of X? $3395.34 B. $2493.59 $3038.93 $3581.68
[3] Directions: Identify if the problem involves simple interest or compound interest. Then, solve the problem. Show complete solution. How much money would you need to deposit today at 9% annual interest compounded monthly to have P12,000 in the account after 6 years?
V1
6f