PLM-CET decided to give incentives to each of its faculty members and personnel P25,000 at the end of the first employment year with a yearly increase of P2,500 for the first 9 years of employment. If there are 50 employees, what is the present worth of the incentives? Assume that the interest rate is 15% nominal compounded quarterly.

Q: Eric borrowed P3, 500, 000 at 8% for 10 years. The loan stipulated that the following payments have…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: In one month your costs on a project are $615,098 and you are applying for payment. You are marking…

A: To calculate the amount you expect to receive from the owner, you need to consider the project…

Q: The ABC Company has contracted to make the following payments: 500,000 immediately; 50,000 at the…

A: Year  Cash flow  PV 8% Present value  0 500,000 1.4693 734664 1 50,000 1.3604   68024.45 2…

Q: BRCC is evaluating an option for funding its working capital during the next year. The company plans…

A: in this we have to calculate the interest and add to that to get required value.

Q: Firm ZLC will be receiving payments of $10,000 per month for consulting services, with first payment…

A: Future value of annuity The future value of annuity refers to the total value of the investment at…

Q: A business valued at $100,000 is purchased for a down payment of 30% and payments of 3000 at the end…

A: Given The amount of business is $100,000 Rate of interest is 10% compounded monthly

Q: Boatler Used Cadillac Company requires $980,000 in financing over the next two years. The firm can…

A: Debt financing is one of the most common methods of raising capital. In debt financing, the company…

Q: A machine is bought with a loan which must be repaid in 20 equal half-yearly instalments of R6 500.…

A: Present value is commonly used in various financial calculations, such as determining the fair value…

Q: Your business requests a 3-month loan for 50,000. What will be the interest paid at the end of the…

A: The amount of interest paid is calculated as shown below.

Q: 0 down payment and 10 quarterly instaliments, the due at the end of the first year after purchase.…

A: The discounting formula is one plus discount rate divided by a number of year's whole raise to the…

Q: 3. A company sets up a quarterly award to recognize the hard work and dedication of one employee per…

A: PV of annuity=A(1+r)n-1r(1+r)n PV of growing annuity=CF1r-g1-1+g1+rn PV of perpetuity=Cash…

Q: Find the present and future equivalent values of the following series of payments: $1,500 at the end…

A: Compound = monthly = 12 Monthly payment = p = $1500 Time = t = 60 months Interest rate = r = 14 /…

Q: A job pays a salary of $27,000 the first year. During the next 22 years, the salary increases by 5%…

A: Salary=$27,000 Growth rate=5% Time period=23years Required: Life time salary=?

Q: a customer invests IDR 20 million in the money market and earns 12% compound interest How much money…

A: The addition of interest to the principal sum of a loan or deposit is known as compound interest. It…

Q: Suppose you have a student loan of $35,000 with an APR of 12​% for 30 years.   The required…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: One building was priced at $ 125,000 . If you advance $ 25,000 and every month after that If $ 1,000…

A:

Q: To finance the development of a new product, a company borrowed $29,000 at 7% compounded monthly. If…

A: Compound Interest The type of interest that helps build wealth quickly is called compounding.…

Q: You are working for a factory that leases its facility from another company. The lease will be up in…

A: The amount of $10,000 being placed per year is an annuity.   Annuity is a stream of periodic cash…

Q: A company has a $160,000 note due in 3 years. How much should be deposited at the end of each…

A: Solution:- When an equal amount is deposited at end of each period, it is called ordinary annuity.…

Q: Please answer with details on how to do it. Thank you.  A company borrows $ 100,000 today at 6 %…

A: Annuities seem to be interest-bearing financial products that offer a steady steady flow of income…

Q: A building is priced at $250,000. If a down payment of $25,000 is made and a payment of $5000 every…

A: The time value of money (TVM) is a financial concept that recognizes the idea that a sum of money…

Q: Your company agreed to pay a maintenance contractor $ 3.677 as the first payment at the end of the…

A: Annuity refers to series of equalized payments that are either made start or end of definite period…

Q: TA Corp. has a consulting contract with a firm that states that he will receive annual payments of…

A: We need to use present value of annuity due(payment due at beginning of year) formula for…

Q: A company sells each waterbottle for $ 10, the company tax rate is 25%. In order to increasing the…

A: This question is related to the finance in which company wants to increase their profit by providing…

Q: A bank offers an investment account that has an annual interst rate of 9.9%, compounded quarterly.…

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

Q: A bicycle shop is for sale with a price of $110,000, with "seller financing," at a 6.0% nominal…

A: In the given case, the monthly payments are to be found which can be determined by using following…

Q: A $500,000 corporate loan is supposed to be repaid over 10 years in the amount of $15,227.80 at the…

A: The question explains that loan refinancing at the cheaper interest rate will reduce the regular…

Q: The company sells products to a customer for $60,000 and will receive $15,000 at the end of the…

A: Time value of money is the concept that states that the value of money have more worth than the same…

Q: (a) How many payments are needed to repay the debt? (b) What is the size of the final payment?

A: First we need to determine the equivalent interest rate as the compounding rate and period are…

Q: Rene's Fuel and Oil company is planning to expand in 9 year time. To prepare for this expansion,…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: How long will it take an RESP to grow to $200,000, if the plan owner contributes $250 at the end of…

A: The payment flow which continues for a definite time period and terminates after lapse of time…

Q: consider a student loan of 17,500 at a fixed apr of 12% for 25 years. what is the monthly payment

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: A business received a for year $2,000,000 loan at an interest rate of 7% per year. The principal is…

A: NPV means PV of amount which is receive or pay in future. NPV can be find by using discounting rate…

Q: A loan of 15,000 is repaid by annual payments of principal starting one year after the loan is made,…

A: Present value is a financial concept that represents the current worth of a future sum of money or…

Q: RD Inc. projects the following quarterly expenses over a 2-year period of time beginning 3 years and…

A: N = Number of quarterly expense periods = 8 Time period after which quarterly expense starts = 3…

Q: A client is given a loan of principal amount of R50,000 which accrues interest of 10% per annum,…

A: A loan is a financial arrangement in which the borrower get a lump sum amount and paid it in future…

Q: A company offers the following bonus package to its employees. What is the Net Presen Value of the…

A: Upfront cost$70,000Amount paid in each year$12,500Additional payment paid in 5th year$15,000Discount…

Q: SunBlush Technologies takes out a $16,000 loan that charges 5.25% interest compounded semi-annually…

A: Loan and its repayments: A loan taken out can be repaid in equal periodic instalments over the loan…

Q: An air conditioner is for sale at P20,000 in cash or on terms, P1,650 each month for the next 18…

A: Given,  The sale price is P20,000. Payment is P1650 for each month is 6% compounded monthly Number…

Q: You take out a loan for $L at i12 = 19.8 % and repay $6113 at the end of each month for as long as…

A: Loan is the amount that has been borrowed by the borrower on which interest & principal payments…

Q: Emily Fashion Shop owes P24,000 due in 1 year with interest at 18% compounded monthly, and P35.000…

A: Present value of P24,000 due in 1 year @ 18% compounded monthly would be:

Q: Fishing Designs has arranged to borrow $20,000 today at 10% interest. The loan is to be repaid with…

A: Present discounted value (PDV) is the value of a future cash flow or series of cash flows in today's…

Q: Callis Construction LLC is planning to expand its site planning division 4 years from now. In order…

A: The present value of a cash flow is the current worth of a cash flow series at a certain rate of…