It is desired to have P100,000 two years from now by depositing P20,000 now and 10 uniform monthly amounts, the first of which to be made one year from now. What would that monthly amount be if interest rate is 12% pa compounded monthly? a. P 6,921.21 b. P6,990.42 c. P 9,277.10 d. P7,060.33

It is desired to have P100,000 two years from now by depositing P20,000 now and 10 uniform monthly amounts, the first of which to be made one year from now. What would that monthly amount be if interest rate is 12% pa compounded monthly? a. P 6,921.21 b. P6,990.42 c. P 9,277.10 d. P7,060.33

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: I want to save $7,400 for a down payment on a car in 24 months. How much should I deposit tod at…

A: The person wants to have $7400 at the end of 24th month so the future value is $7400F=7400Time…

Q: To accumulate a fund of P 80,000 at the end of 10 years, a man will make equal annual deposits in…

A: Given: The future value is = P80,000 Time period = 10 years The interest rate is = 5% compounded…

Q: Find the present worth of a perpetuity of P 13,500 payable quarterly if money is worth 12%…

A: The term perpetuity means a number of equal payments of money for an indefinite period of time…

Q: 8. If Ramil invested P20,000.00 at a nominal rate of interest of 14% compounded quarterly. What is…

A: Given that, Ramil invested 20,000.00 Nominal interest rate = 14% or 0.14

Q: Please solve all three problem I will give you thumbs up. Problem 1 Mrs. Doe deposits $100…

A: Note: You have uploaded multiple questions at a time. Hence, we shall solve only first one for you.…

Q: A $100,000 mortgage at 6.9% compounded semiannually with a 25-year amortization requires monthly…

A: To find the correct option and explain the process let's go step-by-step through the problem:Step 1:…

Q: 14. Audrey buys a piece of lot for P160,000 down payment and 12 deferred semi-annual payments of…

A: The entrance and outflow of cash and cash equivalents are referred to as cash flow. The cash flow of…

Q: 7. How much is invested at the beginning of each year to accumulate a fund of P20,000.00 at 4%…

A: We are going to use Future worth to answer this question.

Q: 7. At a certain interest rate compounded semiannually, P5,000 will amount to P20,000 after 10 years.…

A: Interest rate: It is the money that is being added to the borrowed money. People borrow money on the…

Q: A man deposits P 1,000 at the end of each month for 3 years at a nominal rate of 12% compounded…

A: Given, Nominal rate of interest (r) = 12% compounded monthly For finding the effective interest…

Q: How much money will you at present time if you deposit P6,640 each for the next 8 years in a savings…

A: Given :Number of Periods/Years (n) = 8Nominal Rate of Interest (r(4)) =6%Regular Deposit(A) = $ 6640

Q: Consider the cash flow transactions with the changing interest rates specified as depicted in Figure…

A: Net Present Worth (NPW), also known as Net Present Value (NPV), is a financial metric used to…

Q: Determine the amount of installment if a man bought a machine costing P 25,000 payable in 10…

A: Installment cost can be calculated as follows: A=P1+rnnt25,000=P1+0.26210×225,000=P11.523P=2,169.57

Q: If the money is worth 11% compounded semi-annually, determine the single payment at the end of the…

Q: Determine the present amount and the accumulated amount of an annuity consisting of 6 payments of…

A: Answer in step 2

Q: 2. Jeth paid a 10% down payment of P269,000 for a house and lot, and agreed to pay the balance of…

A: Monthly Amount = r * Total amount ÷ [1 - (1 + r)-n]

Q: At a certain interest rate compounded quarterly, P1k will amount to P5k in 10 years. What is the…

A: The amount is compounded quarterly, so the rate of interest per quarter is r/4 and total number of…

Q: 41. A man inherited a regular down payment of P200,000 every end of 3 months for 10 years. However,…

A: Future worth in economics means the value of an investment or cash flow at a specific future point…

Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for 4 years…

A: The present worth of the cash flow series means computing the value when t = 0 at a specified rate…

Q: 65. A 10% effective rate of interest is equivalent to what percent if compounded continuously? 9.53%…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: What equal monthly payments will repay an original loan of $1,000 in sex months at a nominal rate of…

A: The rate of interest is divided into two forms: effective interest rate and nominal interest rate.…

Q: What equal monthly payments will repay an original loan of $1,000 in sex months at a nominal rate of…

A: Given information Original loan amount=$1000 Nominal interest rate=6% Time =6 month

Q: Value of PO Is exact $5082.94. please show the proper calculation for this

A: The present worth of a cashflow refers to its value at present in accordance with its value in the…

Q: If marry put $100,000 into an account that pays 4.5% annual interest, and she plan to withdraw…

A: here we calculate the time when account of Marry will empty by calculating the future value so the…

Q: Q2. Maria loaned an amount of 100,000Php payable in 15 equal quarterly instalments. The first…

A: Compounding basically refers to an asset's ability that can generate returns that are then…

Q: You have a student loan with a 10% APR, compounded monthly, and a $27,000 balance. You plan to pay…

A: Nominal interest rate =10%. per year compounded monthly.Loan balance (P) =$27,000Total number of…

Q: n an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8% compounded…

A: a.) CAPITAL RECOVERY FACTOR When compounded quarterly the interest rate is divided by 4 and the…

Q: . Akamane wishes his son to receive P700,000.00 twelve years from now. What amount should he invest…

A: The calculation of initial amount has 3 phase . In first phase we have to calculate the amount after…

Q: On the day his son was born, a father deposited to a trust company a sufficient amount of money so…

A: A lender charges a borrower an interest rate that is a percentage of the principal (the amount…

Q: The average price of a new home is $260,000. If new home prices are increasing at a rate of 5% per…

A: If a value 'P' is increasing at the of 'r' then its value after 'n' years is calculated as follows:…

Q: 4. Find the nominal rate of 22% compounded every 3 months

A: Nominal rate of interest is one kind of interest in which the interest rate is calculated without…

Q: Given the situation , choose the correct formula to solve the problem: What present value amounts to…

A: The formula for present value(PV) is given below: PV=FV×11+RN FV: future-value R: interest rate N:…

Q: How much money would you have to deposit for 5 consecutive years starting one year from now if you…

A: Present Value of an Annuity Investing in a future income stream, such as an annuity, gives you the…

Q: 1 (1+r)" 3. Present Value: P = FV- or P = F(1+i) -n a) Find the present value of P8,000 due in four…

A: Since you have posted multiple subparts, as per the guidelines we can solve only the first 2 parts…

Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for 8 years…

A: This cash flow contains two uniform series, one is $4500 paid quarterly for the first 8 years and…

Q: What is the difference between the present worth of annuity due and ordinary annuity having the…

A: In ordinary annuity payments (regular) are done at the end of each interval. On the other hand, in…

Q: how FULL SOLUTION & use the given data properly ! *using Ordinary Annuity Formulas A service car…

A: Cost of Car = 540,000 down payment = 162,000 monthly payment = 10874.29 n = 5 years

Q: If $11,500 per quarter is invested in an account that earns a nominal annual interest rate of 9%…

A: Compounding refers to the process of generating interest on an investment over a usual period of…

Q: 5. Find the equivalent present worth of a series of annual payments if the first payment equals $500…

A: This is an example of uniform gradient series cash flow. The uniform gradient series starts from 4th…

Q: A person needs $17,700 immediately as a down payment on a new home. Suppose that she can borrow this…

A: The practice of earning income on an investment over a typical amount of time is known as…

Q: Five annual deposits of P2,300 were made at the beginning of each year in an account that pays 7%…

A: Given: Annual payment (PMT) = P2,300 Time (n) = 5 years Interest rate (i) = 7% compounding…

Question

b. P6,990.42

c. P 9,277.10

d. P7,060.33

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

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

29. If money is worth 5% compounded semi-annually, find the, present value of a sequence of 12 semi-annual payments at P 500 each, the first of which is due at the end of 4 ½ years.
Show the formula and solution neatly. Due and Perpetuity What is the current value of a P 200.00 annuity be made at the beginning of each year, for 3 years if the prevailing rate of interest is 7% compounded annually?
3. Consider, a discrete compounding scheme of a nominal interest rate of 12%. This scheme issues payments of 1000 SAR (each) on a semi-annual basis and is compounded on a quarterly basis, determine the FUTURE WORTH of the total payments, after THREE YEARS.
2. Find the quarterly payment for 21 quarters to discharge an obligation of P120,000 if money is worth 4% compounded 2 quarterly and the first payment is due at the end of 3 years and 9 months.
3) In 12 years from now, you want your investment to be able to be worth $200,000. To the nearest dollar, how much must you invest now in an account that will earn 7% compounded annually?
Tess wanted to have P100,000 on her bank account at the end of 8 years. She plans to deposit an amount at the beginning of each month at an interest rate of 3.5% compounded quarterly.a. What is her monthly deposits?b. What is the present worth of these deposits? *Please show your correct answer and solution to this problem. ASAP! Thanks!*
The maintenance cost of a new equipment is projected to start at the end of the 2nd year at an amount of P 8,000. At the succeeding years, the maintenance cost will increase by a uniform amount, amounting to P 10,000 at the end of the 6th year. Find the present amount needed to be deposited now at 8% interest to take care of all the maintenance costs of the equipment. Select one: a. P 41,286 b. P 33,628 c. P 42,245 d. P 32,989
12. How long will it take $ 50 to be four times its value if invested at the rate of 7% compounded semi-annually.