Mr. Barela’s monthly amortization is ₱3,500.00, payable at the end of each month. His house and lot will be fully paid for after 20 years. If the amount of house and lot is 5% compounded monthly, how much is its maturity value?

Q: ohn will have to wait three years to receive an inheritance. After the three years, he will receive…

A: given, semi annual payment for deferment period = 3 years Interest conversion period per year =2…

Q: Vusa has invested $420000 in an annuity that pays interest at the rate of 3.6% per annum,…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

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: An investor has purchased an investment which offers him 30 annual payments of dollar 1,200 per…

A: To find the present value of the investment, we will first define where the payments are made. We…

Q: Ms. Aay is considering to deposit $500 every six months, and would receive interest at an annual…

A: Semi annual deposit (P) = $ 500 Annual interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%…

Q: Aidan deposits $1000 at the end of each quarter in an account that pays 5.25% per year, compounded…

A: Solution: An equal amount invested every period is called annuity. So, future value of annuity = PMT…

Q: In return for a loan, Mr. Domingo promises to pay P15,000 at the end of each 3 months for two years.…

A: Amount repaid quarterly is P15,000 Time period is two years Interest rate s 10% converted quarterly…

Q: An architect is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A: When the payment is received at the beginning of a period it is called as annuity due. In the given…

Q: Mark bought a house worth 50,000,000 pesos and is going to pay it monthly for the next 20 years. If…

A: Variable in the question:Loan amount=50,000,000 pesosN=20 yearsnper=20 years *12=240Rate=18%…

Q: John takes out a 5 year loan for $10000 at 8% interest compounded monthly. Calculate his monthly…

A: The annuity is an amount that is paid back to the loan amount which consists of interest payments…

Q: Jake paid 100,000 pesos as down payment for a farm. The remaining amount is to be settled by paying…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: Expense Report Year-to-Date Blue Spruce Company budgeted selling expenses of $24, 600 in January,…

A: The company performs the variance analysis by comparing the cost or revenue through actual…

Q: Lee wants to receive $18,000 each year for the next 20 years. Assume a 4% rate compounded annually.…

A: Annual receipt (C) = $18,000 Interest rate (r) = 0.04 Period (n) = 20 Years Amount need to invest…

Q: A son will receive 3000 pesos at the beginning of each 3 months for 4 years. What is the sum of this…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: A man paid 10% down payment of P200,000 for a house and lot and agreed to pay the balance on monthly…

A: Given: Particulars Amount Down payment            200,000 Down payment rate 10% Monthly…

Q: Lily purchased a boat valued at $19 000 on an installment plan requiring equal monthly payment for…

A:

Q: Sam needs a new roof for her house. She can pay cash, or pay by installments. Payments would be…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

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: randon Rockwell owes P200,000.00 with interest at 5% payable semi-annually. What equal payments at…

A: Solution Given Amount due 200000 Interest rate 5% Compounding Semi annual…

Q: An insurance settlement of $2.5 million must replace Trixie Eden's income for the next 25 years.…

A: We use PMT function to calculate monthly income

Q: Nihal is borrowing Rs. 50,000 to buy ABC assets. If he pays equal installments for 25…

A: An asset can be purchased by outright cash payments or in installments. The installment amount…

Q: Ms. Aay is considering to deposit $600 every six months, and would receive interest at an annual…

A: In the given question, semi-annual deposits of $ 600 are made for next 5 years, wherein first…

Q: Jones can deposit $5,000 at the end of each six-month period for the next 12 years and earn interest…

A: Future value of annuity is the future value of the same cash flows that takes place at the end of…

Q: A laptop was purchased worth Php 90000. This is through an installment of 2 year and there is also…

A: Time value of money is used in the calculation of the monthly instalment to be paid, the future…

Q: Joella invested RM5,000 in an interest-bearing promissory note earning an 8% annual rate of interest…

A: Following is the answer to the question

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: an employee obtain a loan of 10000 at the rate of 6% compounded annually in order to repair his…

A: Amortized loan refers to a loan where the principal amount of the loan is paid over the life of the…

Q: To buy a house, John takes out a fixed-rate amortizing mortgage of $270,000 for 20 years, with an…

A: Loan amount (PV) = $ 270,000 Annual interest rate = 9% Monthly interest rate (R) = 9%/12 = 0.75%…

Q: A woman paid 20% down payment of P300,000 for a house and lot and agreed to pay the balance on…

A: given, price = p300,000 downpayment = 20% r=15% m=12 (monthly compounding) pmt = p 33,396.51

Q: a certain loan was arranged such that Dino will pay ₱5,500 every month for the first 7 months; no…

A: Present value, usually referred to as discounted value, seems to be a financial computation that…

Q: if mr. rankie bought a piece of property for 100000 pesos down payment and 10 deferred semi-annually…

A: Time value of money is applied for calculation of the present value of an asset. All cash flows are…

Q: A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months…

A: Annual payments he will receive = $95000 Time period = 18 years  Interest rate = 8% Compounding =…

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: Abel wants to determine the amount of money he would obtain from the interest of PHP 2,000 at 16%…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: How much would Doug save in interest if he amortized his mortgage over 15 years, rather than 25…

A: An amortized loan is a type of loan that is repaid in regular fixed installments over a specified…

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…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.