Having purchased a good in 25 equal monthly installments of R$950, the customer proposed replacing it in 18 annual installments. What will be the value of this new installment, if the interest rate considered is 5.6% per month. The value of the new installment will be R

Q: The buyer of a certain machine is given 2 options to pay it: 1st option is paying it P405,551 down…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

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: What is the present value of an $800 perpetuity if the interest rate is 8%? If interest rates…

A: Present value of perpetual cash flows is computed by following formula:-PV = wherePV = Present value…

Q: n item is 10000, payable in 10 days but if paid in 30 days there will be a P30 discount. Find the…

A: Simple interest = Principal * rate* time (n).

Q: A project has the following costs: 1. Land owned by the company with a market value of $1,000,000 2.…

A: Land owned by the company with a market value of $1,000,000 shall be included in the capital…

Q: You are buying a house for $150,000.00 with a downpayment of $30,000.00. The loan will be paid back…

A: Mortgage loans make home buying quite easy because paid by equal fixed monthly payments that are…

Q: If a low cost house and lot worth 87,000 were offered at 10% down payment and 500 per month for 25…

A: Cost of house = 87,000 Down payment = 10% Payment per month = 500 Time Period = 25 Years

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: the discount rate is 7.6%, what would you be willing to pay for receiving a payment of $700 eve

A: Value of any annuity is the present value of cash flow from the annuity based on time and interest…

Q: How much was initially invested if the value of the investment is at P200,000 after 3 and a half…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with monthly…

A: The amortization schedule outlines how each payment is allocated between interest and principal, and…

Q: The price of T.V set is worth 20,000.00 that needs to be paid in 20 installment of 1000.00 each. If…

A: The installments method will require to borrower to pay the amount borrowed over the period of time.…

Q: What will be the present value, if $5,400 is discounted back 4 years at an interest rate of 3%…

A: In the given question we require to calculate the Present value using following details: Amount =…

Q: A customer would like to buy a brand-new house and lot payable monthly for 29 years. o What is the…

A: Answer: Calculation of the present value of the property: Formula, we will use here, Present value…

Q: In one year you will receive 1800. In two yeara you will receive 1, 900. The discount rate is 4%.…

A: PV = FV / (1 + r)nWhere:PV is the present valueFV is the future valuer is the discount rate (here,…

Q: Assuming you have seen a car displayed in a mall with installment price of P500,000 with no…

A: In the given question we need to compute the cash price of the car.

Q: The price of T.V set is worth 20,000.00 that needs to be paid in 20 installments of 1000.00 each. If…

A: Following is the answer to the question

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: will receive $1000 two years from today, and at the end of each subsequent year, you will receive an…

A: In perpetuity there are payments forever and there is no break of the payments in perpetuity.

Q: You want to buy a new energy vehicles for ¥715,00 on a 5-year mortgage with annual payment at 7%…

A: In equal annual principal payment method, the loan is repaid in equal principle instalments.…

Q: will we owe more or less than $200,000 (half the original loan amount)?

A: Loan Amount: It represents the credit taken by the borrower from the lender. The borrower makes…

Q: You were buying a House for $190,000 with a down payment of $57,000. The loan will be paid back over…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: a) How many payments of 200 are made? b) What is the amount of the final payment?

A: Under Compound Interest Method, interest rate is applied at the accumulated opening balance of the…

Q: Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12%…

A: Monthly payment is the portion of the loan amount along with the interest that is paid every month.…

Q: Your business had to borrow 584, 069.18 to cover some urgent experises. The loan carries an annual…

A: Loan amortization is the systematic process of gradually reducing the outstanding balance on a loan…

Q: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Monthly payment is the portion of the loan amount along with the interest that is paid every month.…

Q: What is the present value of $149,000 discounted back 10 years if the appropriate internet rate is…

A: As given in question , we need to calculate $149,000 Present value discounted back 10 yrs @ 6%…

Q: Periodic payment is $1940, payment interval is 1 year, term is 5 years, interest rate is 4%, and…

A: Future value refers to the compounded value of the future expected cash flows. compounding is done…

Q: A. find the monthly payment of an ordinary if the present value is P18,500 with an interest rate of…

A: A) Present value of annuity = P 18500 Interest rate = 10% quarterly compounded n = 6 years = 72…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.