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No.5. Please use the formula on the 2nd pic. STEP BY STEP SOLUTION PLEASE, I CANNOT UNDERSTAND EXCEL

No.5. Please use the formula on the 2nd pic. STEP BY STEP SOLUTION PLEASE, I CANNOT UNDERSTAND EXCEL

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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No.5. Please use the formula on the 2nd pic. STEP BY STEP SOLUTION PLEASE, I CANNOT UNDERSTAND EXCEL

1. Mr. Moreno started to deposit Php. 5,500 quarterly in a fund that pays 2.5% compounded monthly. How much will be in the fund after 6 years? 2. The buyer of a lot pays Php. 50,000 cash and Php. 14,500 every month for 10 years. If money is 8% compounded annually, how much is the cash value of the lot? 3. How much should be invested in a fund each year paying 3% compounded semi-annually to accumulate Php. 150,000 in 6 years? 4. A high school student would like to save Php. 60,000 for his graduation. How much should he deposit in a savings account every 3 months for 6 years if interest rate is a 0.25% compounded monthly? 5. A television (TV) set is for sale at Php. 13,499 in cash or on installment terms, Php. 2,599 each month for the next 6 months at 8.9% compounded quarterly. If you were the buyer, what would you prefer, cash or installment?
Transcribed Image Text:1. Mr. Moreno started to deposit Php. 5,500 quarterly in a fund that pays 2.5% compounded monthly. How much will be in the fund after 6 years? 2. The buyer of a lot pays Php. 50,000 cash and Php. 14,500 every month for 10 years. If money is 8% compounded annually, how much is the cash value of the lot? 3. How much should be invested in a fund each year paying 3% compounded semi-annually to accumulate Php. 150,000 in 6 years? 4. A high school student would like to save Php. 60,000 for his graduation. How much should he deposit in a savings account every 3 months for 6 years if interest rate is a 0.25% compounded monthly? 5. A television (TV) set is for sale at Php. 13,499 in cash or on installment terms, Php. 2,599 each month for the next 6 months at 8.9% compounded quarterly. If you were the buyer, what would you prefer, cash or installment?
Ordinary Simple Annuity (1+) -1 FV = PMT MISSING FUTURE VALUE PMT = FV MISSING PMT mt 1+ WHEN FUTURE VALUE IS GIVEN -mt 1-(1+ PV = PMT MISSING PRESSENT VALUE PMT = PV MISSING PMT „G+1)-1 WHEN PRESENT VALUE IS GIVEN -me Ordinary General Annuity m, 1 + m, i = m - 1 CONVERTION OF 1," TO i Deferred Annuity -(k+mt) 1-(1+) 1-(1+5)* PV = PMT PMT /- PRESENT VALUE OF DEFERRED ANNUITY 2(1 + +)* - (1 + #) -(k+mt) PMT*m PV = i PRESENT VALUE OF DEFERRED ANNUITY
Transcribed Image Text:Ordinary Simple Annuity (1+) -1 FV = PMT MISSING FUTURE VALUE PMT = FV MISSING PMT mt 1+ WHEN FUTURE VALUE IS GIVEN -mt 1-(1+ PV = PMT MISSING PRESSENT VALUE PMT = PV MISSING PMT „G+1)-1 WHEN PRESENT VALUE IS GIVEN -me Ordinary General Annuity m, 1 + m, i = m - 1 CONVERTION OF 1," TO i Deferred Annuity -(k+mt) 1-(1+) 1-(1+5)* PV = PMT PMT /- PRESENT VALUE OF DEFERRED ANNUITY 2(1 + +)* - (1 + #) -(k+mt) PMT*m PV = i PRESENT VALUE OF DEFERRED ANNUITY
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