Mr. and Mrs. Marasigan bought a house and lot worth P675,000.00 at Villa San Mateo. They made an initial payment of P60,000.00 How much was the yearly amortization if they agreed to pay for 15 years? A. P40,000.00 B. P41,000.00 C. P45,000.00 D. P48,000.00

Mr. and Mrs. Marasigan bought a house and lot worth P675,000.00 at Villa San Mateo. They made an initial payment of P60,000.00 How much was the yearly amortization if they agreed to pay for 15 years? A. P40,000.00 B. P41,000.00 C. P45,000.00 D. P48,000.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Adrian pays ₱608497 cash and the balance in 17 quarterly payments of ₱24588 for a house and lot. If…

A: Cash payment (DP) = P608497 Quarterly payment (P) = P24588 Number of quarterly payments (n) = 17…

Q: Junly bought a lot in Conel as his investment. The owner sell it for P^(10),000 down payment plus…

A: Step 1 The interest that is accrued on both the initial principal and the interest that has already…

Q: (Loan amortization) Mr. Bill S. Preston, Esq. purchased a new house for $140,000. He paid $10,000…

A: Purchase Price = $140,000Down Payment = $10,000Time = t = 10Interest Rate = r = 7%

Q: ang borrowed $5200 from his friend to pay for remodeling work on his house. He repaid the loan 8…

A: Compound interest refers to the method of calculation of the interest earned on an investment where…

Q: 3. Gary and Sandra Duncan bought a property by making semi-annual payments of $4210.00 for 8.5…

A: Here, Semi-Annual Payments is $4,210 Payment Period is 8.5 years Interest Rate is 8.53% compounded…

Q: Dante purchase two perpetuities, X and Y, that have the exact same value to him today: - Perpetuity…

A: An annuity is a series of periodic payments made/received in exchange for a lump sum payment. It is…

Q: Anna bought a life insurance policy on her own life for a premium of P50,000 per annum for 10 years.…

A: Return on capital (ROC) is a ratio that can be used in ascertaining an organization's profitability…

Q: Ken received $25000 form an annuity he purchased eight years ago. He purchased the annuity, to be…

A: Form 1040 is used by an individual taxpayer, to file their taxes with the IRS.

Q: 15. Your sister bought a condominium unit for P9 300 000 through a condominium loan which she…

A: The total value of condominium is P 9,300,000 out of which 30% is paid with equity and the rest of…

Q: Tariq bought a commercial property valued at $71 000 for $26 000.00 down and a mortgage amortized…

A: Interest rate can be converted as follows, Annually compounding rate = 6% Annual factor = 1+6% =…

Q: Assume that a couple invests $4000 each year for 4 years in an investment that earns 8% compounded…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

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: Daniel and Jan agreed to pay $560,000 for a four-bedroom colonial home in Waltham, Massachusetts,…

A: 1. What is the principal (loan) = cost of home -down payment…

Q: Wally Bee purchased a new home for $500,000 with a $80,000 down payment. He financed the remainder…

A: Interest is generally calculated on unpaid loan amount. In this question person W paid a sum of…

Q: Russel purchased a brand new car. He paid a P250,000 down payment and P16,500 payable every 17th day…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: what is the cash value of his sister’s share of the business?

A: Deferred annuity refers to a contract payment wherein the account holder is promised to receive a…

Q: Jessica owes $75000 to be amortized with equal semi-annual payments over 3 years at j2 = 6%. What is…

A: Step 1 A fundamental concept in finance is the time value of money. A sum of money in your…

Q: Graham buys a piece of lot for P 200,000 down payment and 10 deferred semi- annual payment of P…

A: Down payment = P 200,000 Semi annual payment = P 8000 First payment period = 3 Years Number of…

Q: Maude Pasy $5000 a year into an annuity contract for 25 years. Maude is paying what?

A: Annuity contract is a contract which involves fixed amount of payment for a fixed period or for the…

Q: 2 Today James purchased a house and a car worth a combined present value of $390000. To purchase the…

A: In the given problem, Combined present value of house and car has been give as $390000. Combined…

Q: A man purchases a lot worth 5M if paid in cash. On installment basis, he paid P800,000 down payment,…

A: Data given: Lot worth = P 5M = P 5000000 Down payment = P800,000 Loan amount = P 5000000 - P 800,000…

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: how much will her daughter received after his death

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: John Doeber borrowed $125,000 to buy a house. His loan cost was 11% and he promised to repay the…

A: Step 1: Given data :Loan amount (P): $125,000Annual interest rate (r): 11%Amortization period (n):…

Q: Nancy Jackson just learned that she received an inheritance from her grandmother. The inheritance…

A: The question is related to Time Value of Money. The value of inheritance would be calculated using…

Q: The Engs just purchased a home in Port Moody for $1,200,000. They made a down payment of 30% and…

A: Solution- Ordinary annuity is the PMT which are made at the end of the period.

Q: COMPOUND INTEREST 1. Mr. Iman purchased an antique souvenir for P12,500. Ten years later, he sold…

A: Investment refers to the amount which is provided by the person who owns the money to another party…

Q: your sister bought a condominuim unit for 9,300,000 peso through a condominium loan which she avaied…

A: The monthly amortization is the payment that has to be paid or received at the end of every month.

Q: A lot can be acquired at down payment of P200,000.00 and a yearly payment of P30,000.00 at the end…

A: Value of annuity is calculated using following equation Value of annuity = P×1-1(1+r)nr Where, P is…

Q: 8. Ken acquired his sister's share of their business by agreeing to make payments of $4000 at the…

A: Deferred annuity refers to a contract payment wherein the account holder is promised to receive a…

Q: Your uncle Harry Potter started allotting ₱60000 at the end of each year for 25 years. One year…

A: Amount deposited every year is P60,000 Time period is 25 years Interest rate is 5% To Find: Amount…

Q: A person sells some property She will be paid a lump sum of $80.000 in 4 years. Until then, the…

A: 1. Note: In the given question it is assumed that given interest is per annum interest rate.…

Q: Culver requires $230000 in four years to purchase a new home. What amount must be invested today in…

A: Present value is the concept that states an amount of money today is worth more than that same…

Q: 5. Jay and Kei just acquired a new Honda Civic for 1,215,000 under the dealership's purchase…

A: Financing refers to raising funds by an organization or individual. But in personal finance, it…

Q: Q2Jenny's adjusted gross income (AGI) is $120,000 a year and she owns a real estate property that…

A: Step 1 - Total Gross Income Calculation AGI: $120,000 Rental Income: $10,000 Total Gross Income =…

Q: 1. Your sister bought a condominium unit for P9 300 through a condominium loan which she availed of…

A: price of condominium = P9300 downpayment = 30% financed amount = p9300 x (1-30%) = P9300 X 70% =…

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: cash and agreed to pay P 10.00 at the end of The purchaser of a tractor paid each 6 months for 10…

A: Solution: PMT = P 3000 N = 10*2 = 20 Rate = 8% / 2 = 4% Calculate the PV = PV(4%,20,-3000)…

Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

100%

Mr. and Mrs. Marasigan bought a house and lot worth P675,000.00 at Villa San Mateo. They made an initial payment of P60,000.00 How much was the yearly amortization if they agreed to pay for 15 years?
A. P40,000.00
B. P41,000.00
C. P45,000.00
D. P48,000.00

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

if mr. rankie bought a piece of property for 100000 pesos down payment and 10 deferred semi-annually payments of 8000 pesos starting 3 years from now. If the interest rate is 12 percent compounded semiannually, what is the present worth of the property?solution
A man purchases a lot worth 5M if paid in cash. On installment basis, he paid P800,000 down payment, P900,000 at the end of the year, P1,650,000 at the end of the third year and the last payment at the end of the 5th year. If money is worth 16%, what is the worth of the last payment?
O You just received a $5,000 gift from your grandmother which you have decided to save and then gift to your own grandchildren 50 years from now. How much additional money will you gift if you earn 6.5 percent interest rather than 6 percent interest over the next 50 years? (Assume annual compounding.) O $39,318.09 O $38,211.16 O $24,432.62 O None of these answers are correct O $39,464.79
4.
Adrian pays ₱618312 cash and the balance in 22 quarterly payments of ₱27442 for a house and lot. If money is worth 2% converted quarterly, what is the cash value of the house and lot?
Mrs. Tina bought properties that will amount to P 223,200 in two years and P 450,000 in six years. She agrees to pay P 340,00 today and the balance in two and a half years. How much must she pay at the end of two and a half years if (a) money is worth 7% compounded continuously and (b) money is worth 8.5% compounded bimonthly. eng econ
1 Ann and Sue sell their recreation property. They make $245,000 on the sale and deposit it immediately into a retirement fund. The fund earns 2.45%, compounded monthly, for the entire time. Exactly ten years after the sale, Ann retires. They now want to start supplementing their income with payments from the retirement fund. They want the payments to start one month after Ann retires. They want these payments to last for 5 years. How much can they withdraw per month from the retirement fund? (ANNUITY)
Mike wants to donate S5, 000, 000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of 5.37% p.a. compounded half-yearly (j2 = 5.37% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (a) What is the amount of the annual scholarship (rounded to two decimal places) ? Question 9 Answer a. 313037.32 b 306010.79 с. 153267.24 d. 310649.70
Mr. Trafalgar Law purchased a house and lot worth P4,000,000. He paid a down payment of P1,500,000. He plans to amortize the loan of P2,500,000 by paying semi-annually for 5 years. The interest rate is 12% compounded semi-annually. (Round-off your FINAL answers to two decimal places) How much is the monthly payment?
1.A person buys a piece of lot P300,000 downpayment and 8 deferred quarterly payments of P8,000 each, starting 3 years from now . What is the present value of the investment if the rate is 12% compounded quarterly? 2. Mr Dela Cruz is left with an inheritance from his father. He has an option to receive P2.5 M at the end of 10 years, however he wishes to receive the money at the end of each year for 6 years. If interest rate is 8% how much would he receive every year?
Vv. Mary will receive $12,000 per year for the next 10 years as royalty for her work on a finance book. What is the present value of her royalty income if the opportunity cost is 12 percent? Assume that payments come at the end of each year. O $235,855 O $75,939 O $210,585 O $67,803
A student bought a rental property for $40 000.00 down and monthly payments of $1000.00 for 5 years. What is the equivalent cash price if money is worth 5.75% compounded semi-annually? 85647.32 O95288.35 O 105284.25 O 92122.41 4