LEGE FOURDAthe aths. Company B oftfers P25, 000 at the end of each quarter for the nextHoars, Assume the money is worth 8% compounded annually.Na end of 3 years pius P300, 000 at the end of 5 years by paying every 6A Offers P150 000 atINTERVENTIONACTIVITY 4: Solve the following problems and show your solutions.1. A refrigerator is for sale at P17, 999 in cash or on terms, P1 600 eachmonth for the next 12 months. Money is 9% compounded monthly. Which islower, the cash price or the present value of the installment terms?1902EAM13(062) 2251 406blanciacollege@yah oo.BLANCIA

Interest Rate- Interest rates are the fees charged to the borrower for borrowing assets from…

Answered: INTERVENTION ACTIVITY 4: Solve the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Siyles Assume twwo banks have different offers to take a lone. Where the amount will be compound monthly. How much money you must pay on 10 years. Bank A Bank B Loan 75,000 5.25% 25,000 Interest Rate 5% 1. Calculate the monthly compounded amount for Bank A and B algebraically. 2. Calculate the monthly compounded amount for Bank A and B using MS excel 3.Decide which bank you will select and why. 4. find the annual rate of interest, compounded quartile will money double in 4 years?
Please teach me how to solve this problem
show step by step solution not excel do manual solving
Show Solution. Topic: Simple Annuity Due 2. A LCD projector is bought for P2,500 a month for 24 months. If interest charged at 18% compounded monthly, what is the cash price of the unit?
Levels of costs Baldacci Inc. has a casting machine that is used for three of the company’s products. Each machine setup costs $40,890, and the machine was set up in June for six different production runs. The following information shows the units of output from each of the setups. Setup # Product #453 Product #529 Product #663 1 45,600 2 1,680 3 30,400 4 27,900 5 60 6 35,600 a. If total machine setup cost is allocated to all units of product,1. What is the setup cost per unit?Note: Round unit cost to two decimal places (i.e. round $4.355 to $4.36).$Answer 2. Indicate the total setup costs for each of the company's three products in the following table, using the rounded unit cost from part (1).Note: Round your final answer to the nearest whole dollar. Product #453 Answer Product #529 Answer Product #663 Answer Total Answer b. If machine setup cost is allocated to each type of product made, 1. Indicate the…
3. Time Value of Money Assume that ten years from now, you will need $10,000 and that your bank compounds interest at a 4 percent annual rate. A. How much do you need to deposit today in order to have a balance of $10,000 in 10 years? Explain and show your work. B. Suppose instead that you want to make equal payments in years 1 through 9 to accumulate $10,000 in year 10, how large must each of the 9 payments be? Explain. C. If your (very reliable) uncle were to offer to make the payments found in part (B) for you or to give you $7,000 one year from now, which would you choose? Explain. (Even if you could not solve for the answer in part B, please explain what criterion you would use to make the choice.)4. Capital Asset Pricing Model 4. Capital Asset Pricing Model In parts (A), (B), and (C) below assume that the risk-free interest rate is 3 percent and the market risk premium is 7 percent. A. Dorothy Inc. is considering a project that will generate after-tax annual cash flows of…
Q2. Suppose you borrowed $ 15 000 at 8% monthly interest to repay it in monthly installments over 4 years. At the end of the first year (after 12 payments), you want to negotiate with the bank to pay off the remainder of the loan as in the following plan: The next payment will be made in the sixth month of the 2nd year in the amount G and will continue to increase linearly in the amount G every 3 months. Then what is G?
Activity 2: Problem Solving Solve the following problems completely: 1. Gabby is paying P 1,000 monthly for the payment of his loan for 2 years now. At the moment, he still has 6 remaining payments. How much is the outstanding now if i12 = 0.06? 2. A consumer loan has a scheduled payment of P 2,000 every quarter for 3 years. If money is worth 9% compounded quarterly, how much of the 5 payment goes to pay the interest?. 3. Mr. Bainto has a loan that is to be amortized by paying monthly payments of P 3,200 for 1 year. After paying for 6 months, he decided to pay off the loan. How much of the 6 payment goes to pay the principal if money is worth 12% compounded monthly? amounting to
K The annual interest rate on a credit card is 13.99%. If the minimum payment of $20 is made each month, how many months will it take to pay off an unpaid balance of $946.17? Assume that no new purchases are made with the credit card.
1. The two alternatives offered for the smartphone you will purchase are as follows.1. Payment plan: 6 months with 366.5₺ payment at the end of each month2. Payment plan: 12 months with a payment of 191.43₺ at the end of each montha) What is the monthly interest rate applied by the firm in the installment sales campaign?b) How many ₺ should be paid if the product is purchased in advance?
Problem #1: For Problems 1 and 2, you can use any Excel technique explored in the last two labs. Problem #1: You have taken a loan of $277,000 CAD. The nominal annual rate of interest compounded monthly on this loan is 7.89%. You can afford to pay monthly $ 2367.66 CAD. How many months it will take you to repay the loan? Your answer will be an integer value that includes the last monthly payment, which will be smaller than the rest.
Problem 2 (1p): You want to have $4,000 at the end of the next 5 years, how much do you need to deposit today in an account that earns 8% compounded quarterly?

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INTERVENTION ACTIVITY 4: Solve the following problems and show your solutions. 1. A refrigerator is for sale at P17, 999 in cash or on terms, P1 600 each month for the next 12 months. Money is 9% compounded monthly. Which is lower, the cash price or the present value of the installment terms?