Liam was offered by AMS bank and TML bank with the following conditions: AMS BANK offers him Php 88000 at the end of 2 years plus Php 20000 at the end of 4 years while TML bank offers Php 24000 at the end of each semi-annual for the next 4 years. Assume that the money is worth 5.9% compounded annually. What is the fair market value of each offer? Round off your answers in 2 decimal places. AMS Bank's offer Php 88000 at the end of 2 years Php 20000 at the end of 4 years Next TML Bank's offer Php 24000 semi annually for the next 4 years The present value of 88000 for 2 years from now is: Php The present value of 20000 for 4 years from now is: Php Fair Market Value (FMV) of AMS Bank Php Fair Market Value (FMV) of TML offer Php

Liam was offered by AMS bank and TML bank with the following conditions: AMS BANK offers him Php 88000 at the end of 2 years plus Php 20000 at the end of 4 years while TML bank offers Php 24000 at the end of each semi-annual for the next 4 years. Assume that the money is worth 5.9% compounded annually. What is the fair market value of each offer? Round off your answers in 2 decimal places. AMS Bank's offer Php 88000 at the end of 2 years Php 20000 at the end of 4 years Next TML Bank's offer Php 24000 semi annually for the next 4 years The present value of 88000 for 2 years from now is: Php The present value of 20000 for 4 years from now is: Php Fair Market Value (FMV) of AMS Bank Php Fair Market Value (FMV) of TML offer Php

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

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Jose borrows P5000 from a lending company for 5 years at 15%. At the end of the 5ft year, he renews the loan for the amount due and another P10,000 more for 3 years at 12%. What is the lump sum due? (You are expected to draw the Cash Flow Diagram in the solution). Follow this solution format: Given: Required: Solution:
The Nguyens are thinking of buying a home for $121,000. A potential lender advertises an 80%, thirty-year simple interest amortized loan at 8 and 1/4% interest, with an APR of 9.23%. Use the APR to approximate the fees included in the finance charge. (Round your answer to the nearest cent.)
Your uncle offers you a choice of $106,000 in 10 years or $43,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 9 percent, what is the present value of the $106,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value a-2. Which offer should you choose? $106,000 after 10 years O $43,000 today
Tom just won a lottery. he plans to create a money market certificate in a bank to prepare a down payment for a house $400,000. The down payment is 20% of the house price, and the current five-year APY is 3.25%. How much should you put in the money market certificate account to accumulate the down payment? Group of answer choices $340,886.41 $93,872.91 $469,334.56 $68,117.28
May I please receive assistance regarding this question
A local bank advertises the following deal: "Pay us $100 at the end of each year for 10 years and then we will pay you (or your beneficiaries) $100 at the end of each year forever." a. Calculate the present value of your payments to the bank if the interest rate is 6%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the present value of a $100 perpetuity deferred for 10 years if the interest rate is 6%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Lola's Furniture is offering a "houseful of furniture" for $9,999. Furthermore, if you make a down payment of $999 you can wait for 1½ years to pay the $9,000 balance. If Lola's Furniture immediately sells the $9,000 receivable contract to the Barzini Finance Group at a discount rate of 18% compounded quarterly, how much money will Lola's actually receive for the "houseful of furniture"?
Mr. Limpiado received two offers on a lot that he wants to sell. First Offer: Php 20,000 down payment anda Php 800,000 lump sum payment 6 years from now. Second Offer: Php 25,000 down payment plus Php 30.000 every quarter for 6 years. Both money earns at 6.5% compounded annually. What is the fair market value of the 2nd offer if the focal date is at the start of the term? A. Php 619, 897.79 B. Php 610, 945.79 C. Php 583, 499.79 O D. Php 574, 598.79
Jacob wishes to borrow $80,000 from his bank, J.P. Morgan, in order to expand his business. J. P. Morgan agrees to lend him the money over a 5-year term at an APR of 8% and will accept either annual, quarterly, or monthly payments with no change in the quoted APR. Calculate the periodic payment under each alternative and compare the total amount paid each year under each option. Which period should Jacob choose and why? Show your calculations using a formula.

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