Read the following scenario, Answer the question below.M. Sotto won PHP10.million in the lottery. He was very excited to collect his winningsand had several plans for his PHP10 million. He would buy his dream house, car, anda lot more. However, he was very disappointed when the officers from PCSO said thathe will not get his PHP10 million pesos upfront. He, however, has the following options:•Get 8.1 million upfront•Receive 1 million every year for 10 years•Receive 1.8 million every year for 5 yearsThe current government bonds have a yield of 5% per annum. Which is the bestoption?Answer: Option 1 =Option 2 = PV =%3DOption 3 = PV =%3D

Present Value Factor=1(1+rate)term

Answered: Read the following scenario, Answer the…

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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(Related to Checkpoint 5.5) (Solving for n) Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $330,000 Rolls-Royce Phantom. Jack currently has $51,270 that he may invest. He has found a mutual fund with an expected annual return of 4.5 percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation. The number of years it will take for Jack to win Jill's hand in marriage is 19 years. (Round to one decimal place.)
(Related to Checkpoint 5.5) (Solving for n) Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $330,000 Rolls-Royce Phantom. Jack currently has $19,770 that he may invest. He has found a mutual fund with an expected annual return of 6.5 percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation. The number of years it will take for Jack to win Jill's hand in marriage is C years. (Round to one decimal place.)
Deb and Rusty have just gotten married and wish to buy a home. They both work in Boston and have a combined income of $90,000. They found a modest starter house which they are buying for $350,000. 1. They plan to use their $40,000 is savings to cover the closing costs the bank will charge them, which are 1% of the amount they borrow from the bank. The rest of the savings will be used as a down payment. Determine the largest amount they can use for a down payment and still pay the closing costs. 2. Using the amount Deb and Rusty have to borrow from part 1, open Excel and create a 20-year amortization schedule, giving monthly payments for the amount they borrowed at a 4.5% annual interest rate. You must use the pmt function in Excel to compute the monthly payment. Title this worksheet Amortization. For your answer to this question write “See Excel Workbook”. 3. Use the amortization schedule to compute the total amount of interest they will pay to the bank over the 20 years. 4. Create a…
Carlo and Elise loves to play lottery. They just won Php10,000 in the GongDi WangBu lottery. They decide to spend Php3,000 now and put the remaining Php 7,000 in an investment earning 8 percent compounded annually. If they use the money in that investment for a vacation in five years, approximately how much will they have available to spend on that vacation?
Please Show me the calculations!! A real estate investor is considering the purchase of an apartment building that currently provides income of $30,000 and is expected to grow in income by 3% for the next 4 years. You would receive income from today, year 0, through year 4. At the end of year 4, they expect to sell the property for $800,000. The investor has a discount rateof 6%. How much should an investor be willing to pay for this property?
T Chin starts a business. Before he actually starts to sell anything he buys fixtures at $2000, a motor vehicle for $5000 and stock of goods for $3500. Although he paid in full for the fixtures and the motor vehicle , he still owes $1400 for some of the goods . J. Preston had lent chin $3000. Chin , after the above, has $2800 in the business bank sand 1000 cash in hand.. You are required to calculate his capital and prepare a balance sheet for Chin as at June 30 2008.
Recently, a suburban Chicago couple won Powerball, a multistate lottery game. The game had rolled over for several weeks, so a huge jackpot was at stake. Ticket buyers had the choice between a single lump sum of $104 million or a total of $198 million paid out over 25 years (or $7.92 million per year and the payment is made immediately) should they win the game. The winning couple opted for the lump sum. At what interest rate will these two payment options be equivalent?
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Vincent has chosen to buy a new car with a cost of $14 000, inclusive of HST. He has saved $5000 for a down payment. How much must be financed? Enter a numeric value only, rounded to 2 decimals places. An answer of $100 should be entered as 100.00.
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