Mr. Eden borrows from the bank P600,000 at 12% pa, agreeing to pay the loan in 15 equal quarterly payments. What should the payments be if the first payment is to be made six months from now? a. P51,767.74 b. P P54,920.40 c. P53,320.78 d. P56,568.01

Mr. Eden borrows from the bank P600,000 at 12% pa, agreeing to pay the loan in 15 equal quarterly payments. What should the payments be if the first payment is to be made six months from now? a. P51,767.74 b. P P54,920.40 c. P53,320.78 d. P56,568.01

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 2STP

See similar textbooks

Related questions

Q: Jason owes $42000 due at the end of 3 years with interest at j4 = 2.5%. In order to payoff the loan…

A: In this financial scenario, Jason has a loan obligation of $42,000 due at the end of 3 years with an…

Q: Carlo paid P 13,500 after two years to fully pay his loan that costs P 10,000. What is the interest…

A: Loan to be repaid on maturity = C* ( 1+i)n Where C is the amount of loan borrowed i is the periodic…

Q: Mr. Reyes borrows 600000 at 12% compounded annually agreeing to repay the loan in 15 equal annual…

A: Formulas:

Q: A businessman wants to borrow P1,000,000 from a bank that charges a rate of interest of 12%…

A: The given problem can be solved using PMT formula in excel. PMT formula computes payment /…

Q: Assume that time today is Dec. 13, 2022. Determine what is being asked in each problem. 1. Coco…

A: Amortization schedule refers to the amount including the principal and interest payments made for…

Q: Jake is paying P2.500 every 3 months for the amount he borrowed at an interest rate of 8% compounded…

A: Quarterly payment (Q) = P 2500 r = 8% per annum = 2% quarterly n = 2 years 6 months = 10 quarters

Q: Suat opens a deposit account in a bank by depositing 10,000 TL. In addition, he will deposit 6,000…

A: Initial Deposit = 10,000 Deposit after one year = 6000 Deposit after two years = 4000 Value in…

Q: You receive a car loan of $22,000 and must pay off the loan in 60 monthly installments. If your…

A: The periodic payment for a loan can be found using the PMT Function in excel. PMT = (RATE, NPER, PV,…

Q: Jerome borrowed 5200 at 8 1/2% for six years compounded semi annually. What is the future value of…

A: Future value is the value of an investment or cash flow at a future point in time, based on the…

Q: You plan to borrow $40,100 at a 6.9% annual interest rate. The terms require you to amortize the…

A: A loan refers to a contract between a borrower and a lender where money is forwarded by the lender…

Q: Regine borrows $5000, to be repaid in 36 equal monthly installments. The interest rate is 10% per…

A: We need to use loan amortization formula given below PMT =PV1-1ei*nei -1 Where i=periodic interest…

Question

100%

b. P P54,920.40

c. P53,320.78

d. P56,568.01

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Inputs

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
A man borrows S195,500 from a bank with interest at 7% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 yearh. Find the annual payments. S60,203 b. S60,354 4. $60,487 d. S60,589 e. $60,758
Mr. Aragon loans P200,000 from a bank with interest at 6% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 yrs. Find the annual payments. a.P55,413.37 b.P54,314.37 c.P54,413.37 d.P45,413.37
53. Ms. Ling purchases an automobile using a loan. The amount borrowed is €44,000 and the terms of the loan call for the loan to be repaid over seven years using equal monthly payments with an annual nominal interest rate of 12% and monthly compounding. The monthly payment is closest to: A. €776.72. B. €803.43. C. €923.13
In Se De n259,00 Question 6 Mzomuhle takes out a personal loan of R439 200.00 to help finance the building of his holiday house. The terms of his loan specify equal three-monthly repayments over five years, with 13,2% interest per annum, compounded quarterly. The first payment is made three months after the loan was taken out. This is represented by the following time line: 1 18 19 20 quarters 1 2. 3 12 54 55 56 57 58 59 60 months P = R439 200,00 @ 13,2% per annum, compounded quarterly First find the size of the three-monthly payments. Then considering the amortisation schedule, find the total interest charged over the first year of repayments. [1] R12871,85 R54 766,00 [3] R66618,00 (4) R167 720,00 3
Suppose that you borrow$ 12000 at interest rate of 5% per year. If you must be repaid the loan in equal end of year payments over the next 4 years, how much must you repay at the end of each year? O a. $3672 Ob. $3384 Oc. $2672 O d. $2384
Jake is paying P2,500 every 3 months for the amount he borrowed at an interest rate of 8% compounded quarterly. How much did he borrow if he agreed that the loan will be paid in 2 years and 6 months? a. P24,652.45 b. P25,890.50 c. P22,456.46 d. P23,897.36
1. A man was offered a landbank certificate with a face value of P 100,000 which is bearing an interest rate of 8% per year payable semiannually and due in 6 years. If he wants to earn 6% semiannually, how much must he pay the certificate? Ans. P 90614.92
Mrs Angngad acquired a loan of P50000 from a credit union that charges interest of 16% compounded quarterly. She promised to settle her obligation by making quarterly payments for 3 years. Find her quarterly payment. A) Р5427.60 в) Р5400.61 c) P5327.61 D P5328.61
Grace borrowed P150,000 payable in 2 years. To repay the loan, she must pay an amount every month with an interest rate of 6% compounded monthly. How much should he pay every month? P6,468.09 P6,648.90 P6,648.09 P6,684.09
Emily receives R1 500,00 from the bank now that charge 10,5% simple discount per annum. She has to pay back the bank as amount of R1 893,75 in a few months' time. The number of months after which Emily pays back the loan, rounded to one decimal place, is O a. 23,8. O b. 2,5. C. 2,0. O d. 30,0.
You lend a friend $800 and they agree to make quarterly payments for 1 year. You charge your friend 8.52% compounded quarterly. What is the size of the payments? a $120.76 b 210.76 c $220.76 d $212.76 e $ 200.76