Solve the following problems. Show your solutions on a separate sheet of paper. 1. Your father is contemplating on joining the school cooperative and agrees to contribute monthly an amount of P4 000 for 6 months starting June 2019. According to the cooperative officials, his contribution shall earn 4% compounded monthly. Should your father join the school cooperative? 2. Your mother is being offered a variable life insurance (a permanent life insurance with an investment option) which requires her to pay an annual premium of P39 790 for 5 years. Assuming this fund allocation will earn 16% interest compounded quarterly, how much earnings would your mother get if she pursues this investment plan?

Solve the following problems. Show your solutions on a separate sheet of paper. 1. Your father is contemplating on joining the school cooperative and agrees to contribute monthly an amount of P4 000 for 6 months starting June 2019. According to the cooperative officials, his contribution shall earn 4% compounded monthly. Should your father join the school cooperative? 2. Your mother is being offered a variable life insurance (a permanent life insurance with an investment option) which requires her to pay an annual premium of P39 790 for 5 years. Assuming this fund allocation will earn 16% interest compounded quarterly, how much earnings would your mother get if she pursues this investment plan?

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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Jenny and Leo plan to purchase a new house and the couple is able to obtain a 25-year 3.6% (per annum, compounded monthly) amortised loan but they must put down 20% deposit. The loan requires end-of-month repayments of $2,500 where the first payment is due a month after the loan is taken. Assuming that the couple has enough savings for the down payment, what is the cost of the house that they want to purchase? a. 494,068.50 b. 2,470,342.49 c. 750,000 Od. 617,585.62
Parents agree to invest $600 (at 12%, compounded semiannually) for their son on the December 31 or June 30 following each semester that he makes the dean's list during his 4 years in college. If he makes the dean's list in each of the 8 semesters, how much money will his parents have to give him when he graduates? (a) State whether the problem relates to an ordinary annuity or an annuity due. ordinary annuity annuity due (b) Solve the problem. (Round your answer to the nearest cent.)$ _____
- Once answered correctly will UPVOTE!!
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PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS2.Alejandra Marrufo wants to know how much she should deposit today, so that in 10 years she will have the amount (VF) of 77,150.00, which she needs to make a pension payment for her domestic worker, a) if the account pays 8.125% interest compoundable semiannually; b) if the account pays 9.65% compoundable monthl
Sandy's parents would like to have an annuity pay her $600 at the beginning of every month from September 1, 2012, to April 1, 2017, to help with her university tuition and living expenses. On May 1, 2017, they would like to give her a graduation gift of $6,000. If the annuity can earn 6.15% compounded monthly, how much money must be in the account on September 1, 2012?
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Lily signed a personal loan for $7,500 with Joanne, her aunt, to pay her MBA tuition fees during the first year of her study. In the agreement, Lily promised to pay Joanne the principal plus 3.8% interest on this loan to compensate Joanne against the expected inflation on overall groceries and other costs Joanne has to cover per year based on the average rate of inflation observed in Canada since 1960 to 2021. Lily will start to make the first payment upon her graduation. a) Calculate the amount of annual interest for this loan. b) Calculate the amount of interest Lily saves if she pays back the loan six months upon graduating her MBA.
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