Reymond agrees to make equal payments at the end of each year for 10 years to pay all interest and principal in purchasing farmland worth P1,225,000 cash. If money is worth 10% compounded annually, find the annual payment.

Reymond agrees to make equal payments at the end of each year for 10 years to pay all interest and principal in purchasing farmland worth P1,225,000 cash. If money is worth 10% compounded annually, find the annual payment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

adam made an investment of $33,000. The investment pays 7.75% p.a. compounded quarterly. He will be receiving equal monthly payments at the beginning of the month, into perpetuity. The first payment the investment makes to Adam will begin in exactly three years from today. What is the monthly payment Adam will be receiving?
Craig purchased a house for $450,000, putting down 20%. He has agreed to pay the remaining balance over the next 30 years in 30 equal end-of-year payments, plus 5% compound interest on the unpaid balance. What will the equal payments be?
For the last 15 years Joseph has deposited $4500 at the end of every six months into an account paying 6.5% compounded semi-annually.He now converts the accumulated amount into a retirement income fund which will ear interest at 5.25% compounded monthly. Joseph plans to receive equal payments at the end of every six months from this fund for the next 10 year. Determine the size of each payment.
Karl borrows P200,000 and agrees to pay the principal and interest by making equal payments at the end of every 6 months for 4 years. Find his semi annual payments if the lender charges 12% compounded semi annually.
Mrs. Parker bought a computer set for $32,000 to be paid in equal payments at the end of every 3 months for 1 year. If the interest is 8% compounded quarterly, construct the amortization schedule.
3. Deferred Annuity and Annuity Due To pay for a farm, Berti has to make equal payments of P135,900.00 at the beginning of each six months for eight years. Find the cash price for the farm, if money is worth 11% compounded semi-annually.
Mrs. Lim's purchase contract for a house and lot specifies that she will pay $500,000 cash and $45,000 at the end of each month for 10 years at the interest rate of 17% converted monthly. What is the cash value of the house and lot? Round off answer to the nearest peso.
Carol is depositing $1500 into an account earning 3%compounded semiannually. How much money will be in the account after 25 years?
Max has financial obligations of $1000 due in 3.5 years and $2000 due in 5.5 years to Bel. He wishes to settle the obligations sooner with a single payment one year from now. If money is worth 2.7% compounded semiannually, what amount should Bel be willing to accept?
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?
Mario has agreed to purchase his partner’s share in the business by making payments of $1200 every three months. The agreed transfer value is $17 850, and interest is 9.5% compounded annually. If the first payment is due at the date of the agreement, what is the size of the final payment?
Charlie has $8,000 to invest for a period of 5 years. The following three alternatives are available to him: • Account 1 pays 4.00% for year 1, 5.00% for year 2, 8.00% for year 3, 9.00% for year 4, and 10.00% for year 5, all with annual compounding. • Account 2 pays 10.00% for year 1, 9.00% for year 2, 8.00% for year 3, 5.00% for year 4, and 4.00% for year 5, all with annual compounding. • Account 3 pays interest at the rate of 7.17490% per year for all 5 years. Based on the available balance at the end of year 5, which alternative is Charlie's best choice? No alternative is better than the others Year 5 Balance, Alternative 1: $ 126 Year 5 Balance, Alternative 2: $ 126 Year 5 Balance, Alternative 3: $ 126 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±5.