Mark buys a concrete mixer at P150,000 in cash. It can also be acquired by installment to be paid in 6 years. Interest rate is 6%, what is the amount of each payment if all payment is made at the beginning of each year?

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: What would you pay for an annuity of $2,000 paid every six months for 12 years if you could invest…

A: Details given in the question are : Annuity payment every six months (PMT) = $2000 Time period (n) =…

Q: Nina buys a piece of lot for P30,000 down payment and 8 deferred semi-annual payments of P 5,000…

A: Annuity: A contract between you and another party known as an annuity obligates the borrower to pay…

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: Find the present value of an annui P6,000 a year for 8 years that is def or 2 years, if the money is…

A: Deferred annuity means that it will start later that means so will be having slightly less value…

Q: A house and lot is to be purchased by paying 35,000 pesos monthly for 25 years. The first payment is…

A: The question is related to Cash price of the house and lot if interest rate is 12% converted…

Q: Suppose you currently have $20,000 and plan to purchase a 8-year certificate of deposit (CD) that…

A: Using the Future value and NPER function in excel

Q: How much money must be deposited today in order to withdraw P500  monthly for 5 years if interest…

A: Present value is the estimation of the current value of future cash value which is likely to be…

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: Peter will deposit R100 in the 1st year into a savings account. Beginning 2nd year his  deposit will…

A: A financial product or investment known as perpetuity guarantees an endless stream of consistent…

Q: Anna deposits at the beginning of every month of P1,500 into an annuity for 6 years. If she wishes…

A: In this we need to calculate present value factor monthly to get the interest rate.

Q: Benjamin borrows $50,000 from a lending institution for building a house. The lending institution…

A: The question is based on the concept of amortization of mortgage loans. A mortgage loan is paid back…

Q: You deposit $10000 into a CD with 5% interest compounded monthly. The CD will last 10 years. When…

A: The objective of the question is to find the amount that will be accumulated in a Certificate of…

Q: Engr. Odon is paying a loan five thousand pesos 4% quarterly for 3 years. If the payment is to start…

A: present value of annuity: pva=A×1-11+rmm×nrm where, A=annuity r=rate of interest m=frequency of…

Q: Roger Baker has accumulated $775,000 in his RRSP and is going to purchase a 20-year annuity from…

A: An Annuity is simply a fixed amount which will be received by Roger Baker at every month-end Present…

Q: YOU WIN $500,000 do you want to be paid out all at once or do you want to receive annual end of year…

A: Calculation of Present Value of Annuity Stream:The present value of annuity stream is…

Q: What will be your annual payment if you take nowa loan of $164,000 with annual equal repayments over…

A: Loan amount = $164,000 Loan period = 11 years Interest rate = 0.08 (i.e. 8%) Amount of annual…

Q: Maria has leased an auto for 3 years at $200/month. If the money is worth 5%/year compounded…

A: To find the present value of this lease, we need to use the formula for the present value of an…

Q: 2. Gigi buys a car for P250,000 down payment and 36 deferred semi- annual payments of P25,000 each…

A: Present value of investment = down payment + loan amount. Loan amount = present value of all loan…

Q: A bank offers a 10% interest to be compounded annually. How much should a teacher deposits if he…

A: Kindly refer the image attached below for solution.

Q: 22) An investment pays you $5,000 at the end of each of the next five years. Your plan is to invest…

A: The amount after 5 years can be computed using the future value formula.

Q: Find the annual payment for the 6 years if a house cost P 400,000.00. Mr Killua will pay S90,000…

A: Installment is the amount of equal periodic payment a borrower has to make to lender in order to pay…

Q: payments with the first payment being made at the end of this year. If the payments are to grow by…

A: This is present value of growing of annuity problem can be solved using formula.Loan…

Q: Avishek is saving up to buy a boat. He will make deposits of $787.50 at the end of every two weeks.…

A: The annuity payments that are made at the beginning of the year are called annuity due and the…

Q: A certain sum of money will be deposited in a savings account that pays interest at the rate of 6%…

A: The following information given in the question: Rate of interest : 6% compounded annually (I)…

Q: You owe your parents $23,000 (in present day dollars) and want to repay them in equal amounts the…

A: Present value factor of 8.9% compounded monthly for 4 years will be = 1/(1+8.9%/12)12 x4..=…

Q: In return for payment of P5000 at the end of 4 years and P8500 at the end of 9 years, a man agrees…

A: Earlier Cash flow: Payment of P5000 at the end of 4th year Payment of P8500 at the end of 9th year…

Q: A man intends to buy a machine via loan. He does so by depositing a down payment followed by…

A: In this we need to find present value of both and from that we can get initial deposit.

Q: You are paid £2,500 annually for 6 years, with the first payment due in one year and the last…

A: Present value = Annuity * PVA of 1

Q: A person buys a piece of property for P100,000 down payment and ten deferred semi-annual payments of…

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

Q: William got a second loan for 78,000 dlls to be payable in 5 years with interest rate of 7.5 percent…

A: Loan amount (PV) = 78000 Period = 5 Years Number of monthly payments (N) = 5*12 = 60 Annual interest…

Q: Engr. Ron is paying a loan five thousand pesos 1% quarterly for 3 years. If the payment is to start…

A: Investors benefit from understanding the present value of their investments because it allows them…

Q: A man pays 1.5% interest on his loan four times a year. Find the effective annual interest rate. 5.…

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

Q: what amount will accumulate if we deposit 8500 at the beginning of each year for the next 10 years…

A: Solution Given Deposit at the beginning of each year 8500 Number of period 10 years…

Q: If Ms Chan is thinking of putting RM10,000 into the saving accounts at the end of each year for 10…

A: Annual deposits (PMT) are $10,000. The rate of interest (Rate) is 8%. The maturity (Nper) is 10…

Q: Karim is planning to buy a new storage unit, which needs him to take a loan of 150000$ over a period…

A: Variables in the question:Loan = $150000N=6 yearsn=6 years *12 =72For the first 3 years (i.e., 36…

Q: What's the present value of a 4-year ordinary annuity of Php2,250 per year plus an additional…

A: Data given: Annuity=$2250 Additional at the end of Year 4=$3000 n=4 Interest rate=5% Required:…

Q: a. Find the present value of a deferred annuity of P30000 every three months for 3 years that is…

A: Present Value(PV) refers to value of sum at current date which would be received or paid in future…

Q: Mr. Bee will deposit $1,000 every year, earning interest rate of 7% compounded annually, the first…

A: Compound interest is the additional payment on a loan or deposit that is computed using both the…

Q: If P30,000 is deposited each year for 9 years. How much annuity can a person get annually from the…

A: An annuity refers to a fixed amount or stream of payments or deposits made. Therefore, it helps in…