I) II) What is the present value of 10 payments of 1500 riyals each, at a rate of 12%? A loan of 500,000 riyals, to be repaid at a rate of 12% in 5 equal annual payments. Calculate the value of the payments required.

Q: A person buys a piece of lot for 100,000 pesos down payment and 10 deferred semi-annual payments of…

A: Quantum and timing of cash flows emanating from an investment decision are known. The present worth…

Q: A loan was to be amortized by a 5 end-of-year payments forming an ascending arithmetic progression.…

A: Here, First Payment is P 10,000 Increase in Payment is P1,000 Interest Rate is 10% Time Period of…

Q: Assume that the trip will cost $26,600. What interest rate, compounded annually, must be earned to…

A: FV = PV * (1+r)nwhereFV = future value of amountPV = Present value of amountr = interest raten =…

Q: Two payments of $5,000 are to be received four and eight months from now. a. What is the combined…

A: Present value is the equivalent today of the future payments that are going to be received in the…

Q: Inc. as part o me company wh is worth 3.47%

A: Given the Present value of investment of two kinds one deposited for 1 year, and another for 7…

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $2,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

Q: 2. A P100,000 loan is to be amortized in 60 payments every 6 months. Find the semi- annual annuity…

A: Giventhe loan amount is P 100,000number of payments is 60Interest is 20% compounded semi annually

Q: Determine  the present value of a 50,000, receivable to be collected after three years at an…

A: We need to compute the present value of the given amounts.

Q: 4.  a.)  What is the future value of an annuity due with an annual payment of $1,500 for four years…

A: Future Value is that amount which includes the interest earned and investment value which is…

Q: How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the…

A: We have the following information: Annuity: $24,000 Rate of Interest: 5%

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: 1. What is the effective interest rate for a payment plan of 30 equal payments of $89.30 per month,…

A: Effective interest rate is the interest rate that is earned or paid after considering the…

Q: A loan is to be repaid by an increasing annuity. The first payment will be £100 and the payments…

A: Part 2:Explanation:i) Calculate the amount of the loan.The loan is to be repaid by an increasing…

Q: What is the present value of a perpetuity of 15,000 pesos payable every end of 3 months if money is…

A: Quarterly payment (P) = P 15,000 Interest rate = 8% Quarterly interest rate (r) = [1+(0.08/12)]3-1…

Q: Compute for the amount and the present value of an ordinary annuity of 12 annual payments of Php…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: 1.) To pay for your education, you’ve taken out RM25,000 in student loans. If you make monthly…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: What is the face value of a loan with twelve-equal payments of $12,000 each year if the first…

A: A loan is a financial arrangement in which one party, typically a bank or lender, provides money to…

Q: A person buys a piece of lot for P100,000 down payment and 10 deferred semiannual payments of P8,000…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Suppose ₱2500 is deposited at the end of each year for the next 5 years in an account paying 7.5%…

A: Annual deposit (P) = P 2500 Annual interest rate (r) = 7.5% Number of annual payments (n) = 5

Q: If the intrest rate is a 12%p.a. the amount to be invested today to earn an annuity of rs.1000 for 5…

A: Interest Rate = 12% Annuity = 1000 Time Period = 5 years END OF PERIOD ANNUITY Investment = ?

Q: What equal payments at the beginning of each year for 10 years will discharge a debt of 110,000…

A: Debt amount (PV) = 110,000 pesos Interest rate (r) = 8% Number of payments (n) = 10 Equal payment =…

Q: (a) Compute the present value of an annuity immediate that pays £50 per year for 10 years at an…

A: Present value refers to the current worth of the expected sum of the amount. It is computed by…

Q: a) Compute the present value of an annuity immediate that pays £100 at the end of each month for 5…

A: Annuity refers to a sum of fixed and periodic cash flows. To compute the present value of an annuity…

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: an organization has a loaned BD 820,000 to buy the needed machines. The loan holds an interest rate…

A: Annual payment: Fixed regular Payment made annually for loans for the entire cycle of the loan is…

Q: The loan of 200,000 PLN is repaid in equal annual instalments for 20 years. The total yearly payment…

A: The interest rate on loan as well as the second installment principal and interest proportion can be…

Q: sent value of a perpetuity with interest rate of 7.5% is $150,000. What is the annual cash flow amou

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: In five years, P 20,000 will be bedded to pay for a building renovation. In order to generate this…

A: Here we will have to find the future value of the annuity at the end of the 3rd year and then…

Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…

A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…

Q: 1) The buyer of a lot pays ₽10,000 every month for 10 years. If the money is 8% compounded annually,…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: 3. Ir the money is worth 5%% compounded annually. what single payment now is equivalent to 45…

A: The single payment now will be the present value of the series of cash flows beginning 5 years from…

Q: (3) A man has a loan of 500,000 for 10 years at 6.5% annually with annual payments. His payments are…

A: When a person takes a loan then in that case periodic payments usually have to be made.   The…

Q: Qnl. A series of payments of 700 Riyals is made at the end of each quarter in an account for 5…

A: When an individual or company is making series of payments for the particular period of time then,…

Q: Question 2. payments. If the interested rate is 10% compounded monthly, find the monthly payment re-…

A: Monthly payment is refer as the regualr amount of fund or payments at monthly time interval. It is…

Q: Given a principal amount of P500,000 and an interest rate of 5.08% per year, construct a loan…

A: Loan amortization schedule: It implies to a detailed table that shows the periodic loan payments…

Q: Find the periodic payment R required to amortize a loan of P dollars over t years with interest…

A: The periodic amount will be found using excel’s PMT function. It is the minimum amount that must be…

Q: You borrow an amount and agree to pay it off with one lump sum payment of $40,000 in 6 years at 10%.…

A: If the interest is compounded annually Then amount to be borrowed can be calculated using following…

Q: A loan of P100,000 must be repaid by a uniform amount every year for 10 years at 10% interest per…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Which of the following is the approximate internal rate of return for an investment that costs…

A: Concept used: PV factor will be used to know the internal rate of return of investment.

Q: How is the accumulated value 12,373.78 if yearly payments of 20,000 are made?

A: Solution:- When an equal amount of payment is made each period at the beginning of period, it is…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.