Emily Fashion Shop owes P24,000 due in 1 year with interest at 18% compounded monthly, and P35.000 due in 6 years with interest at 20% compounded quarterly. If money is worth 22% effective, what single payment in 4 years will settle these obligations?

Emily Fashion Shop owes P24,000 due in 1 year with interest at 18% compounded monthly, and P35.000 due in 6 years with interest at 20% compounded quarterly. If money is worth 22% effective, what single payment in 4 years will settle these obligations?

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

See similar textbooks

Related questions

Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…

A: Answer: Calculation of the future value: Step 1: Calculation of the future value of 5900 pesos:…

Q: A payment of $750 is due in 2 years, and $5,100 is due in 4 years. What single payment made today…

A: The concept of TVM refers to the interest-earning capacity of money because of which the money…

Q: Senyor Pigafetta borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with…

A: Loan amount (p) = P300,000.00 Monthly interest rate (r) = 0.01 (i.e. 0.12 / 12) Number of payments…

Q: A house costs 136000. It is to be paid off in exactly ten years with monthly payments of 1678.94.…

A: Cost of the house = 136000Monthly payment (PMT) = 1678.94Number of years = 10 Number of periods =…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The size of the payment can be computed by using the PMT formula of excel. The values require for…

Q: A house costs $141,000. It is to be paid off in exactly ten years, with monthly payments of…

A: An amount of annual percentage which is charged from borrowers of the loan and paid to the…

Q: monthly payment amount be

A: An annuity is the regular payment of an amount at an equal interval. It is a payment of a fixed…

Q: uliana is taking out an $8,700, 3-year loan with an APR of 2.31%. What will be the monthly payment…

A: In this question we need to calculate the monthly payment for the loan .

Q: at period of time could you pay back a loan of $3000 by making monthly payments of $110 if interest…

A: Loans are paid by the equal amount of monthly payments these payments carry the payment of principal…

Q: An apartment unit in a rural area that sells for P1,800,000 can be purchased under terms requiring…

A: Price of apartment (PV) = P1,800,000 Number of monthly payments (n) = 200 Interest rate = 12%…

Q: If you buy a stereo set for $600 and agree to pay for it in 18 equal installments at 1% interest per…

A: In the given question we need to compute the amount of monthly payments on a loan of $600

Q: you are paying of a purchase made with a down payment of 50000 usd. you will pay the rest of 245000…

A: the interest rate is 0%.Explanation:To solve this problem, we need to find the interest rate that…

Q: You deposit $64000 into an account which pays 5% compounded monthly. You wish to make semiannual…

A: Amount that can be withdrawn from account depends on the period of withdrawal and interest rate of…

Q: A debt can be repaid with payments of $7186 today, $15143 in 2 years and $17812 in 5 years. What…

A: Present Value (PV) refers to the current value of a future sum of money or cash flow, based on a…

Q: A house costs $144,000. It is to be paid off in exactly ten years, with monthly payments of…

A: The Annual Percentage Rate(APR) of the loan can be calculated using the RATE function in Excel.

Q: A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of…

Q: Laurier Inc. has borrowed $ 65000 from its bank. The annual interest rate on the loan is 4%…

A: Solution Given Amount borrowed $65000 Interest rate 4% Compounding Annually…

Q: Don Magellan borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with 4…

A: Here, To Find: Equal monthly payments =?

Q: 5. A man takes out a loan of P150, 000 from a credit cooperative, which charges interest at the rate…

A: Simple interest: Simple interest is the amount of interest that is determined for a principal amount…

Q: John borrows $50,000 at an annual effective rate of 6% and will make payments 3. at the end of each…

A: The balance after the 10th loan payment can be ascertained by computing the future value at the end…

Q: Ferris Bueller has borrowed from the Ferrari Bank at a rate of 7% and will repay the laon with…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: what is your monthly payment? How much interest will you pay?

A: A contract between two parties where one agrees to make a fixed sum of money to the other person at…

Q: A house costs $142,000. It is to be paid off in exactly ten years, with monthly payments of…

A: Annual Percentage Rate(APR) is nothing but the rate of interest charged to borrower and it will be…

Q: If you deposit RM15,000 in an account earning 20% with semi annually compounding, how much would you…

A: Compounding is a way to find the FV of a deposited amount by considering the appropriate rate for…

Q: A house that sells for P900,000 can be purchased under terms requiring 100 monthly payments. Assume…

A: Given that;Present value is P900,000Number of periods is 100

Q: Don Magellan borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with 4…

A: Loans are any type pf financial credit facility in which a sum of money is lent by one party to…

Q: You borrow $8,000 at an annual rate of 21%. If you repay the debt in three months, what do you owe?

A: In this question we require to calculate the amount we owe if we borrow $8000 and repay it in 3…

Q: What monthly payments must you make to pay off the $50,000 loan at 8.4% compounded monthly over 3…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: To pay off a loan of R7 000 due now and a loan of R 2 000 due in 14 months' time, Mrs Skosana agrees…

A: ### Given:- Loan 1: R7,000 due now.- Loan 2: R2,000 due in 14 months.- Interest rate: 16% per year,…

Q: A house costs $139,000. It is to be paid off in exactly ten years, with monthly payments of…

A: House cost = $139,000Monthly payment = $1,599.62Number of years = 10 years

Q: P2,000 loan was originally made at 8% simple interest for 4 years. At the end of this period, the…

A: Under simple interest , interest is calculates on principal amount of loan. Formula of interest is…

Q: Someone buys a car for 12,000$ and puts 25% down. They then get a simple interest amortized loan for…

A: APR: Annual percentage rate includes fees and additional costs related to the loan processing. It is…

Q: Senyor Pigafetta borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with…

A: M = Mortgage amount P300,000.00 i = Monthly interest rate 0.01 (i.e. 0.12 / 12) t = Number of…

Q: SunBlush Technologies takes out a $16,000 loan that charges 5.25% interest compounded semi-annually…

A: Loan and its repayments: A loan taken out can be repaid in equal periodic instalments over the loan…

Q: You borrow $260,000.00 that charges you 6.1% interest, compounded monthly. You will make payments…

A: Monthly Payment (PMT) = P * r * [ (1 +r)n /({1 + r}n -1)] Where P = Principal amount borrowed…

Q: A house costs $147,000. It is to be paid off in exactly ten years, with monthly payments of…

A: Given information: Cost of house is $147,000 Monthly payment is $1,783.52 Number of years is 10

Question

Emily Fashion Shop owes P24,000 due in 1 year with interest at
18% compounded monthly, and P35.000 due in 6 years with interest
at 20% compounded quarterly. If money is worth 22% effective,
what single payment in 4 years will settle these obligations?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

SM corp has loaned you P1,000. The interest rate you must is 20% compounded monthly. The loan will be repaid by making 24 equal monthly payments. What is the amount of each monthly payment?
For how long will Markus have to make payments of $116 at the end of every month to repay a loan of $3340 if intere is 4% per annum compounded semi-annually? State your answer in years and months (from 0 to 11 months). He will have to make payments for year(s) and month(s).
What monthly payment is required to pay off a $40,000 loan in seven years if the interest rate is 6.5% compounded quarterly?
Suppose we borrow $400,000 for a new home being paid over 30 years in equal monthly installments at a rate of 3.24% APR compounded monthly. After 15 years (half the life of the loan), will we owe more or less than $200,000 (half the original loan amount)?
SJS Software needs to accumulate P650,000 in 2 years to meet future needs. What regular payment would they need to make at the end of each month, at 2% interest compounded monthly?
How many months will it take you to pay off a loan of $11,000 at 3% APR compounded monthly if you make monthly payments of $925? Your Answer:
A house costs $142,000, It is to be paid off in exactly ten years, with monthly payments of $1,779.64. What is the APR of this loan? A. 6.75% O B. 8.75% C. 7.75% O D. 9.75%
What is the monthly payment to repay a 10 year loan of $200,000 at a nominal rate of 15% per year if the interest is compounded quarterly? Assume interperiod compounding.
Nancy takes out a $500,000 loan for 25 years at 4% monthly. a) What is the monthly payment?b) What is the final payment? TVM FORMULA
A borrower had a loan of $7600 at 6.4% compounded semiannually, with 14 semiannual payments. Suppose the borrower paid off the loan after 2 years. Calculate the amount needed to pay off the loan. The amount needed to pay off this loan after 2 years is (Round to the nearest cent as needed.)
A scheduled payment of $5,500 due in one year is to be replaced with two payments: the first due in 8 months and the second due in 17 months. Calculate the size of the two payments if the second payment is to be twice as large as the first payment, and money can earn 9% compounded monthly. First payment: $0.00 Second payment: Round your answers to the nearest cent $0.00
A sailboat costs $27,448. You pay 25% down and amortize the rest with equal monthly payments over a 8-year period. If you must pay 7.2% compounded monthly, what is your monthly payment? How much interest will you pay? Monthly payments: $ (Round to two decimal places.) Interest: $ (Round to two decimal places.) www

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS