Mr. Reyes borrows P600,000 at 12% compounded annually, agreeing to repay the loan in 15 equal payments. What is the value of equal payment and the accumulated amount?
Q: Two mutually exclusive investment projects are under consideration. It is assumed that the cash flow...
A: Present worth of a project is the present value of all cash inflows and outflows of a project. A com...
Q: WHAT ARE THE IMPORTANCE OF FINANCIAL STATEMENTS?
A: Financial Statements are the Statements which records the activities of the business and depicts the...
Q: A Php 13,601 was loaned at an interest rate of 0.061. 6 annual payments has to be settled, the fir...
A: As per the given information, we have to calculate the interest for two years and then calculate the...
Q: 4) The interest rate on conventional 1-year Treasury bonds is 7% and the interest rate on 1-year TIP...
A:
Q: LEIS company is planning to borrow P10.5M for a company expansion and is not sure what the interest ...
A: Annual worth is the equivalent uniform annual payment of the calculated present worth which can be c...
Q: Moerdyk Company stock has a beta of 1.40, the risk free rate is 4.30%, and the market premium is 5.5...
A: Beta = 1.40 Risk free rate = 4.30% Market premium = 5.50%
Q: The Mowbot plant must replace an existing HVAC unit (doing nothing is not an option). You are evalua...
A: We will first calculate the annual worth of 3 units to decide which unit to recommend.
Q: On December 31, 2015, Martin Corp invested in Marlin’s 5-year, $200,000 bond with a 5% interest rate...
A: Market interest rate is the yield to maturity of the bond. It is the rate which the invetsors will g...
Q: On 31st March 2016 you saw the following information about bonds. Name of Security Face Value ...
A:
Q: 00 par value bond that has an 8% coupon rate, pays a semi-annual coupon, matures 2 years from today,...
A: Macaulay duration is weighted average duration of bond considering the cash flow from bond. It is us...
Q: Tiger-Farms has an operating-expense ratio of 75%, a depreciation expense ratio of 8%, and an intere...
A: Operating income is defined as revenue less any operating expenses, whereas net income is defined as...
Q: Why aren't more resources committed to proper financial system prudential oversight to curb excessiv...
A: Risk management is the most crucial tool to run a business smoothly, effectively and efficiently. Th...
Q: An individual makes five annual deposits of Php 2,000 in a savings account that pays interest at a r...
A: Given: Number of annual deposits "n"= 5 Amount of annual deposits "PMT"= 2000 Rate per year during t...
Q: 9. RR Records Inc. acquired all of DD Studios’ voting shares on January 1, 20x1, for P280,000. RR’s ...
A: 9. balance of Inventory to be reported in the consolidated balance sheet immediately after the acqui...
Q: Common stock value-Variable growth Newman manufacturing is considering a cash purchase of the stock ...
A: The stock price which is the maximum price to be paid for share consists of dividends and terminal v...
Q: Owner carmina invested P100,000 to start his laundry business. In 2017, the business earned P50,000 ...
A: Shareholders/ Owner’s equity The shareholders are the owners of the company and the shareholders rec...
Q: The most recent dividend paid by Dangote cement Zambia shares is K4 per share. The company has adopt...
A: The dividend growth approach is a method of calculating the current price of equity. Under this appr...
Q: o. What is the yield to maturity of each bond? (Do not round intermediete calculations. Enter your a...
A: Maturity period = 10 years Face value = $100 The bond coupon is 3% then the price is 89% The The bon...
Q: On September 1, 2021, Middleton Corp. lends cash and accepts a $1,000 note receivable that offers 18...
A: The 6 months note issued on September 1, 2021. The interest will be earned for 4 months in 2021 (Sep...
Q: Your grandfather put some money in an account for you on the day you were born. You are now 18 years...
A: Amount in the account at the age of 18 = $8059 r = 12%
Q: Suppose you are getting a loan from a bank to purchase a feed business. The interest rate on the loa...
A: APR(Annual percentage rate) refers to annual cost paid by the borrower for the loan taken which incl...
Q: Question 2: In the following cash flow, how much should be deposited at the beginning of year 1 so t...
A: Calculate the present value (PV) of the cash flow in Year 1 (PV 1) by using the EXCEL PV function as...
Q: Determine the exact simple interest on P500,000 invested for the period from January 15,1996 to Octo...
A: The simple interest is the method of calculating interest on investments without considering the tim...
Q: Discuss FIVE (5) duties of an agent towards his principal.
A: Agents act on behalf of principals and hence agents have certain duties towards their principal.
Q: Consider the following cash flow cash flow year 0 -1000 TL 2 +300 TL 3 +300 TL 4 +300 TL 5 +300 TL C...
A: Internal Rate of Return is the rate at which NPV of the Investment is zero. It is compared with MARR...
Q: 5% 51 1% 2% 3% 4% 6% 7% 8% 9% 10% 3 4 61 80 10 A A 1. Suppose that there is a single $100 cash flow ...
A: Equivalent uniform series is which will give the future value at given interest rate the required fu...
Q: What do you think the consequences might be in financial markets if individuals consumed more of the...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: he firm purchases a ship to rent out. Only equity capital is used, no debt. The terms of the renta...
A: Foreign exchange risk: All projects undertaken in foreign countries have a component of forex risks....
Q: Commercial paper is usually sold at a discount. Fan Corporation has just sold an issue of 90-day com...
A: When the benefits of compounding over time are taken into account, an effective annual interest rate...
Q: Assume that a corporate bond has a par value of P1,000 and 8 years until it matures. This bond also ...
A:
Q: Use the savings plan formula to answer the following question. A friend has an IRA with an APR of 6....
A:
Q: How much money, Ap, should you invest at the present in such a bond if you would like to receive per...
A: A series of unending equal cash flow is called perpetuity. The present value of perpetuity can be de...
Q: How much must be deposited today into the following account in order to have a $135,000 college fund...
A: Present value = Future value/(1 + r)n Future value = 135,000 Quarterly interest rate (r) = 3.16%/4...
Q: Calculate dividend per share.
A: Dividend is a form of distributing profits of a company to its shareholders. Almost all the companie...
Q: deposits per deposit was Php 20,000 and each deposit thereafter was 2,000 les the preceding one. Det...
A: We need to find the future value of all deposits at the end of the 6th year as the sixt deposit will...
Q: LEIS company is planning to borrow P10.5M for a company expansion and is not sure what the interest ...
A: The annual worth of a project can be calculated as follows: Annual Worth =NPV×Rate1-11+ratetime ...
Q: management consulting firm has four types of professionals on on its staff: Managing consultants, s...
A: Average Average of a number of values is the sum of the multiplication of values and the correspondi...
Q: Tacomas population in 2000 was about 200 thousand, and has been growing by about 8% each year. If th...
A: FV = PV * (1 + r)^nWhere FV = Future ValuePV = Present Value = 200,000r = rate of grow = 8%n = numbe...
Q: that you paid $11 million for rights to develop land with oil under the ground. It costs $5 million ...
A: Value of option is difference between the value today and value after one year. In this we have to d...
Q: What is the duration of a 5-year par value zero coupon bond yielding 10 percent annually?
A: A type of bond that does not provide periodic coupon payment to its holder during its holding period...
Q: What is the par yield on the gov bond you’re following? How has it changed since you’ve been followi...
A: Bond Valuation is a method or a procedure or a technique for the valuation of bond which helps in th...
Q: Classify each of the following in terms of their effect on interest rates (increase or decrease): I....
A: Interest rates Interest rate is referred to as the amount a lender charges to a borrower and is a pe...
Q: Calculate the future value of an Annuity immediate of Amount $522 paid Annually for 4 year at the ra...
A: An annuity is a plan which gives out fixed payments for a set period of time in exchange for a lump ...
Q: Suppose you are a speculator from France. You observe the following 1-year interest rates, spot exch...
A: Theoretical forward rate = 0.6563 Actual forward rate =0.6731 Theoretical forward rate < actual f...
Q: 25. Consider a cash flow and interest profile as shown below: year 1 2 3 CF at EOY (SR) -10,000 6,50...
A: Equivalent annual worth refers to measuring the worth of Investments by determining the equal paymen...
Q: You must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine...
A: Investment appraisal is part of financial management of a company which deals with evaluating an inv...
Q: Assess the following statements: I. Default risk is the risk that a security issuer will default on ...
A: The risk that a lender assumes in the event that a borrower is unable to make the required payments ...
Q: Calculate the 2017 total tax for Gordon Geist, a single taxpayer without dependents and no itemized ...
A: Data given: Active income = $44000 Short term capital gain = $3500 Book royalty = $8400 Required...
Q: Two processes can be used for producing a new engine. Process A will have a first cost of P750,000, ...
A: Future worth analysis is a method in which it is required to calculate the equivalent cost of the p...
Q: At what rate converted annually will make Php 3,253 accumulate to Php 3,982 in 4 years? Please ans...
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified...
Mr. Reyes borrows P600,000 at 12% compounded annually, agreeing to repay
the loan in 15 equal payments. What is the value of equal payment and the
accumulated amount?
Step by step
Solved in 2 steps
- Mr. Reyes borrows 600000 at 12% compounded annually agreeing to repay the loan in 15 equal annual payments. How much is the remaining balance after he paid the 8th payment?Mr. Reyes borrows P600, 000 at 12% compounded annually, agreeing to repay the loan in 15 equal annual payments. How much of the original principal is still unpaid after he has made the 8th payment?Include cashflow if possibleMr. Sabalbaro borrows P600, 000 at 12% compounded annually, agreeing to repay the loan in 15 equal annual payments. How much of the original principal is still unpaid after he has made the 8th payment?
- Every three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which formula to compare with cash payment? A. Future value of IB. FV of AnnuityC. Present Value of ID.Pedro borrows P300,000.00 from lender ABC today at 12% compounded monthly. To fulfill his obligation to repay the loan, Pedro agreed to start paying the six (6) equal monthly payments starting next month. The question is: What will be the amount of his monthly amortization?Mr. Reyes borrows P600 000 at 12% compounded annually, agreeing to pay the loan in 15 equal annual payments. How much of the original principal is still unpaid after he has made the 8th payment? Include the Cash Flow Diagram.
- Liam loaned an amount of 15,581 and he will pay it with an amount of 25,501 after 9 years. What is the agreed interest rate between Liam and the bank compounded annually in percent?Mr. Reyes borrows P600 000 at 12% compounded annually, agreeing to pay the loan in 15 equal annual payments. How much of the original principal is still unpaid after he has made the 8th payment?Freddy agreed to make quarterly payments of $781.25 for 4 years on a loan of $10,000. What simple interest rate is he paying?
- Nihal is borrowing Rs. 50,000 to buy ABC assets. If he pays equal installments for 25 years and 4% interest on the outstanding balance, what is the amount of installment? What shall be the amount of installment if quarterly payments are required to be made?Mr. Reyes borrows P600,000 at 12% compounded annually agreeing to repay the loan in 15 equal annual payments. How much of the original principal is still unpaid after he has made the 8th payment?Mr. Rabutan borrowed P150,000. He agrees to pay the principal plus interest by paying an equal amount of money for 2 years. What should be his monthly payment if interest is 5% compounded annually? a. P8,895.45 b. P6,573.25 c. P5,786.25 d. P4,458.52