Question 4 (2 points)Scheduled payments of $2,000 due today and $4,000 due in nine months are to be replaced by two payments-$3,000 due in fifteen months and a second payment of undetermined size due in twenty-four months. Whatmust the second payment be for the two streams to be economically equivalent? Assume that money can earn1.75% compounded quarterly.aOOD$3,179.80$4,119.80$3,199.80d$3,319.80e$3,119.80L000

Step 1: Calculate the present value of the original payment stream.Present value of $2,000 due today…

Answered: Question 4 (2 points) Scheduled…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 10 A Php300,000 loan is to be amortized by paying equal amount every 6 months for a period of 10 years. Lending firm charges an interest rate of 10% compounded semi- annually. How much will the semi-annual payment be? Php14,048.18 Php7,500 Php15,000 Php24,072.78 P
13Assume you plan to borrow $400,000 from your bank to buy a home. The bank offers: • a 5-year fixed rate of 6.05%, compounded monthly. • a 3-year fixed rate of 5.75%, compounded monthly. If you choose to repay the borrowing in equal installments monthly over a 20 years, what would be the difference between your monthly payments at the two different APRs? a. $89.32 b. $68.94 c. $26.98 d. $154.58 14You expect that the interest rate will decrease in the near future, therefore you eventually choose the 3-year fixed rate. Then, what will be your mortgage balance after 3 years? a. $321,598.59 b. $452,321.21 c. $365,056.12 d. $379,325.89 15Three years passed, it's time to renew your mortgage. Upon your renewal, your bank is now offering a new 3-year fixed rate of 4.5%, what would be your monthly repayment amount after renewal? a. 2825.32 b. 2598.54 c. 1965.21 d. 2563.60
The manufacturing costs of Calico Industries for three months of the year are provided below: Total Cost Production (units) Аpril $116,100 281,600 May 90,500 164,900 June 108,300 242,000 Using the high-low method, the variable cost per unit and the total fixed costs are Oa. $2.20 per unit and $5,415 Ob. $0.40 per unit and $27,074 Oc. $3.96 per unit and $5,415 Od. $0.22 per unit and $54,148
4 payment of $8000 due 15 months ago and $6000 due in six months are to be replaced by a payment of $4000 today, a second payment in nine months, and a third payment, there times as large as the second, in 11/2 years. What should the last two payments be if money is worth 4% compounded quarterly?

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