Edwill just purchased a new home costing R1 107 900,00 by paying R120000,00 cash on the purchase date, and agreeing to make payments at the end of each of the following eight years for the remainder owed, the first payment is due one year after the purchase date. The interest rate is 7,4% per annum, compounded yearly This is illustrated by the following time line. ears 07, per annm, componded anmaly Considering the amortisation schedule, the percentage, rounded to two decimal places, of the total payments made the first two years that will go toward repayment of Interest, is

Edwill just purchased a new home costing R1 107 900,00 by paying R120000,00 cash on the purchase date, and agreeing to make payments at the end of each of the following eight years for the remainder owed, the first payment is due one year after the purchase date. The interest rate is 7,4% per annum, compounded yearly This is illustrated by the following time line. ears 07, per annm, componded anmaly Considering the amortisation schedule, the percentage, rounded to two decimal places, of the total payments made the first two years that will go toward repayment of Interest, is

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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Lauren deposited $10,000 today. He plans to withdraw $1100 every year. For how long can she withdraw from the account starting 1 year from now if interest is 89% compounded annually? State your answor in years and months (trom 0 to 11 months) This is an example of OA Compound Interest Problem (PMT-0) OB. Payout Annuity Problem (FV0) OC. Savings Annuity Problem (PV= 0) The TVM variable being solved is OA PMY OB. n Use your TVM solver to answer the following questions (a) It will take years to depelete the account Round UP to the nearest whole period (b) She can make withdrawals for year(s) and month(s) Answers should be whole numbers with months is between 0 and 11 CHES O.C. FV OD. PV
A family has taken out a mortgage of £450,000 to purchase a house on 1.1.2022. The mortgage is repaid in monthly instalments at the beginning of each month over 20 years.(a) Determine the monthly payment amount assuming an effective interest rate of 1.6% per annum.(b) After having made 5 years of payments the family takes out a new mortgage with an effective interest rate of 6% per annum for the remaining 15 years. Payments are made monthly in arrears. Determine the new monthly payment amount.(c) If the family would have originally agreed to make monthly instalments of £2,000 paid at the beginning of each month starting on 1.1.2022, when would they have paid off the loan? Assume an effective interest rate of 1.6% per annum throughout.
1.A person buys a piece of lot P300,000 downpayment and 8 deferred quarterly payments of P8,000 each, starting 3 years from now . What is the present value of the investment if the rate is 12% compounded quarterly? 2. Mr Dela Cruz is left with an inheritance from his father. He has an option to receive P2.5 M at the end of 10 years, however he wishes to receive the money at the end of each year for 6 years. If interest rate is 8% how much would he receive every year?
Solve the following problems on compound interest 1. James invested P150,000.00 at 2.5% interest compounded semi - annually. Find the maturit value if he invests for (a) 4 years? (b) 8 years? (c) How much is the additional interest earned due to the longer time?
Mark has an amortization and he is required to do semi-annual payments for 15 years. If the present value is 10,000,000 pesos and the interest rate is 17% interest rate compounded semi-annually, how much is the outstanding balance after the 8th payment? 9,128,071.23 pesos remaining 7,878,981.87 pesos remaining 9,234,561.98 pesos remaining 7,453,441.05 pesos remaining
A family takes a S275,000 20 year mortage at 3.50% annually compounded monthly. a. Compute their monthly payments. b. Immediately after the 121 payment, this family receives a $55,000 from an inheritance. They decide to put this entire amount against the amount they owe. Given that the bank expects them to maintain the same monthly payments as in 4a, compute the length of time (months) it will take to pay the laon off.
Can you show complete solutions for the first three questions?
Show solutiom
Lucky took out a $289,000 25-year mortgage at an APR of 4.85%.a. What is the monthly payment?b. What will be his total interest charges after 25 years?
A man purchases a lot worth 5M if paid in cash. On installment basis, he paid P800000 down payment, P900000 at the end of the year, P1650000 at the end of the third year and the last payment at the end of the 6th. If money was worth 16%, what is the worth of the last payment? a. P 1,121,804.11 b. P 1,221,789.23 c. P 1,329,790.42 d. P 1,451,809.21
In buying a car worth P 1,500,000 cash, the purchaser pays P 500,000 cash and agrees to pay the balance including interest at 6.3 % compounded semi - annually, by a sequence of 8 equal semiannual payments of P 178,118.98, the first due at the end of x years. Find x. a. 4 b. 7 c. 3 d. 8
Mr. Rabutan borrowed P150,000. He agrees to pay the principal plus interest by paying an equal amount of money for 2 years. What should be his monthly payment if interest is 5% compounded annually? a. P8,895.45 b. P6,573.25 c. P5,786.25 d. P4,458.52

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