M purchased a small lot in a subdivision, paying ₱200,000 down and promising to pay ₱15,000 every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly. (a) After making 8 payments, M wished to discharge his remaining indebtedness by a single payment at the time when the 9th regular payment was due, what must he pay in addition to the regular payment then due? (b) If M missed the first 10 payments, what must he pay when the 11th payment is due to discharge his entire indebtedness? (c) Cashflow Diagram

Q: Donald buys a machine from Biden Manufacturer and signs a contract that calls for a down payment of…

A: First, we need to determine the equivalent annual interest rate as the payments are made monthly,…

Q: a. Kim pays ₱2,000 every two months to settle his obligation for two years at 8% compounded…

A: a. The present value can be calculated using the PV Function.  b. The monthly payment can be…

Q: Your father purchased a townhouse with a cash price of 1.5M. He was able to negotiate with the…

A: We need to use present value of annuity formula given below to calculate monthly payment amount…

Q: Mr. Trafalgar Law purchased a house and lot worth P4,000,000. He paid a down payment of P1,500,000.…

A: The method of lowering the book value of a loan or intangible asset over a predetermined period of…

Q: Mr. Shariq owes Mr. Farooq Rs. 7000 dues in 5 years and Rs. 15,000 in 7 ½ years. How should Mr.…

A: Future value of 7000 dues in 5 years at time 6 Future value = Present Value * (1+r)^n Where,  r =…

Q: What is the value of this obligation two years before it is due to a man to whom money is worth…

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

Q: Lee purchased a laptop and promised to pay P2500 every month for 2 years, beginning on the date of…

A: Purchase of Assets on Loan Monthly payment Need to calculate prepayment price to close the liability

Q: Irene’s Home credit was approved. She will be borrowing ₱55,000 but abiding by the rules she will…

A: Amortization of Loan Amount: An amortized loan is one in which the borrower is required to make…

Q: Chelsea was supposed to pay Jacob $4,800, 6 months ago, and $1,500, 5 months from now. If she wants…

A: Present value is a financial concept that reflects the current worth of a sum of money to be…

Q: Mr. Anton received two offers for the old equipment he is selling. Mr. Brando will pay P6,500 in…

A: Payment by Mr Brando P 6,500 Down payment by Mr Castilla P 1,000 Monthly payments by Mr.…

Q: b. Calculate the upfront amount that she should pay under the alternative payment agreement so that…

A: Equivalent value today is present value of both payments based on time and interest rate off money…

Q: PhP200,000 as downpayment for a farm. The remaining amount is to be settled by paying PhP16,200 at…

A: Interest - The fee paid for the right to borrow money is called interest. In contrast to how the…

Q: Mr. Lee purchased a small condominium. He paid P350,000 as down payment and agreed to pay P35,000…

A: Excel formula:- Note:- Interest is included in the 6th payment.

Q: Jaspreet orignally agreed to make two payments: one of $3,600 due in fourteen months and another…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: M purchased a small lot in a subdivision, paying P200,000 down and promising to pay P15.000 every 3…

A: r = 12%/4 = 3% t = 10 years*4 = 40 Quarterly payments = P15,000 Loan value = 1-1+r-tr×Quarterly…

Q: years ses to pay Ph How much is the payment on the fourth year if money is worth 16% compounded…

A: In this we need to calculate the present value of all and than calculate the required amount.

Q: The purchaser of a car paid $10,000 cash and agreed to pay $3000 at the end of 6 months for 10…

A: Calculate the future value of the annuities (PMT) that are not paid till the end of 3rd Year.…

Q: Rally bought a brand new car for P 600,000. He pays a down payment of P 150,000, balance to be…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: Mr. Rafiq owes Mr. Ahmed Rs. 7000 to be due in 5 years and Rs. 15,000 to be due in 7 ½ years. How…

A: Total amount Mr. Rafiq pay at the end of 6 years =Worth of $7,000 in year 6 + Worth of $15000 in…

Q: Dave owes $40,000, due with accumulated interest at the rate (.06, m = 4) at the end of 5 years and…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Mrs. Jenny bought an upper-class lot costing 1.23 Million $. The car agency asked for a downpayment…

A: Cost of upeer class lot is 1.23 million $ Downpayment is $320,200 Payment after one year is $624,400…

Q: Vanessa was supposed to make a payment of $3,500 in 2 years and another payment for $1,800 in 5…

A: Equivalent value today is the present value of both payments based on time and interest rate of…

Q: 3. Mr. Ramirez borrowed P150,000 to be amortized in 2 years by monthly equal payments. If Mr.…

A: Amount Borrowed = P150,000 Years = 2 Terms (n) = 2*12 = 24 rate of interest (r)=12%/12 = 1% per…

Q: Ancog purchased a parcel of land somewhere in Brgy Tignapoloan. She paid P150,000 for the down…

A:

Q: wishes to discharge a loan of ₱ 50,000 borrowed from JB by means of periodic payments of ₱5,000. JB…

A: Loans are paid by equal periodic fixed payments that carry the payment for interest and payment for…

Q: Greg owes two debt payments – a payment of $5763 that was due in 10 months ago and a payment of…

A:

Q: costs P500,400 cash. A purchaser will pay P100,000 cash, P50,000 at the end of 2 years and a…

A: In this we need to find out the present value of each and find the annual installment.

Q: Max has financial obligations of $1000 due in 3.5 years and $2000 due in 5.5 years to Bel. He wishes…

A: The question can be solved as follows:

Q: Franklin owes the following amounts to the same person: $16,000 due today, $11,500 due in 1¼ years,…

A: > Here the present value of multiple payments will give the amount owned,> Present value of a…

Q: Rob borrowed $5,800 from Richard and signed a contract agreeing to pay it back 10 months later with…

A: In this we have to calculate the interest on both contracts and than get the final price.