Determine the value of X that would give the following infinite cash flow series a present worth of $1,600, using a 12% interest rate. The repeating pattern is shaded 1 2 6 7 8. 10 ---- 00 Net cash flow, $ 2,000 2,000 2,000 2,000 ---- 00
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- 10. A present obligation of P 20,000 is to be paid by 5 equal end of the year payments of which includes the principal and the interest of the debt. If money is worth 12%compounded continuously, what is the amount of each repayment?What uniform annual payment for 12 years is equivalent to receiving all of the following:$ 3,000 at the end of each year for 12 years20,000 today4,000 at the end of 6 years800 at the end of each year forever10,000 at the end of 15 yearsUse an 8% interest rate.Suppose you are considering working at a local coffee shop 5nights a week. You expect to save $125 a month from the jobafter meeting all your expenses. To be eligible for the job youmust undergo a week’s work training at the coffee shop.Assume the training costs you $100.Suppose you plan to workthe next 9 months there and you can borrow and lend moneyat an annual rate of 6% compounded monthly.What is the net present value of this work to you?
- Please answer using GUFSA method and please also use the formulas attached. 2. Gus purchased a laptop, and he would like to know the present value of his monthly payment of P3,000 when interest is 9% compounded monthly. How much is the present value of his payments at the end of 6 months? 3. Renato paid P200,000 as down payment for a car. The remaining amount is to be settled by paying P16,200 at the end of each month for 5 years. If interest is 10.5% compounded monthly what is the cash price of his car? 4. In order to save for her high school graduation, Mariglenn decided to save P200 at the end of each month. If the bank pays 0.250% compounded monthly how much will her money be at the end of 6 years? 5. The buyer of a car pays P169,000 cash and P12,000 every month for 5 years. If money is 10% Compounded monthly how much is the cash price of the car? 6. Fernan borrows money to buy a motorcycle. He will repay the loan by making monthly payments of P1,500 for 24 months at an…Erwin expects to receive 20,000 dollars in 10 years. If interest is computed at 6% compounded continuously, how much should he invest?11,000 10,000 12,000Suppose you deposited $200 at the end of every year for seven years in an account that earned 6% annual effevtive interest. At the end of seven years, how much would the account be worth?
- 1- How much can you afford to spend now on an Alarm Fire system if it will save you $21,300 per year for the next 5 years? Use an interest rate of 10% per year. 2. You need to buy a car in two years from now, the car dealer made you an offering, if you buy the car now, he would give you 40% a discount rate. You know that the car price will be SR 142,000 if you delay the purchasing decision two years. what is the present worth of the savings? if you refuse the offering. Assume the interest rate is 10% per year. 3. The amount of money that Energy Company can spend now for improving productivity instead of spending $30,000 three years from now at an interest rate of 12% per year is closest to: (a) $15,700 (b) $17,800 (c) $19,300 (d) $21,3505. A man wishes his son to receive P200,000 ten years from now, What amount should he invest if it will earn interest of 10% compounded annually during the first 5 years and 12% compounded quarterly during the next 5 years?You have won a lottery that pays you $100,000.00 at the end of this year, $110,000.00 at the end of the second, $120,000.00 the end of the third and so on for thirty years. A friend has offered you $1,200,000.00 today in exchange for all the income you will receive from the lottery win over the next 30 years. If you can get 8% interest on your savings is this a good deal?
- 3. You are planning to get a home loan which will pay the cost for your home purchase of 6,000,000 today. You have option A with a de ferred payment optionfrom the developer which will let you start paying 2 years from now over a 15 year period with an interest of 4% compoundedmonthly. How much are you going to have to pay in monthly payments for this plan?4. At an annual effective interest rate of i, i > 0, both of the following annuities have a present value of Y: (a) a 10-year annuity-immediate with annual payments of 55. (b) a 15-year annuity-immediate with annual payments that pays 30 per year for the first 5 years, per year for the second 5 years, and 90 per year for the final 5 years. 60 Calculate Y. Solution:7. What is the future worth of $2,000 at the end of each month for 10 years at 10% compounded monthly?