three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually? What is the present value of the investment if the Rate of interests is 12 person compounded same annually? A.

Q: A buyer has a 30 year 7.5% loan for 90% of the appraised value on property that appraised for…

A: Time period of Loan is 30 years Interest rate is 7.5%  Appraised value of property is $140,000 Loan…

Q: What is the present worth of a 3 years annuity paying P300,000.00 at the end of each year, with…

A: Solution: Present value of annuity is the present value of annual amount to be paid/ received…

Q: A house and lot can be acquired at a down payment of P500,000 and a yearly payment of P100,000 at…

A: Solution: Cash price of property = Down payment + Present value of annual payments discounted at 14%…

Q: What is the future equivalent at EOY 8 of $5,000 annual payments made at the beginning of each year…

A: N = 8 years Annual Payment (PMT) = 5000 Beginning of year payments Rate (r) = 7%

Q: A man borrowed P12,000 and agreed to repay it with P4,650.70 interest. If the interest is 6%…

A: Borrowed amount (PV) = P12000 Interest amount = P4650.70 Future value (FV) = 12000+4650.70 =…

Q: A MAN PURCHASED ON MONTHLY INSTALLMENT A P100,000.00 WORTH OF LAND. THE INTEREST RATE IS 12% NOMINAL…

A: Land Cost = 100,000 Interest Rate = 12%/12 = 1% per month Time Period (N) = 20 years i.e. 240 months…

Q: What is the present worth of a PHP 1500 annuity starting at the end of the third year and continuing…

A:

Q: The present value of an annuity of “Y" pesos payable annually for 8 years, wit the first payment at…

A: We can use the concept of time value of money here. As per the concept of time value of money the…

Q: How much more is a perpetuity of $8,000 worth than an annuity of the same amount for 10 years?…

A: Present value refers to the method of capital budgeting used for making decisions for investors by…

Q: ompute the annuity of the money ompounded monthly at the rate o O 665 O 755 O 801

A: Future value of annuity includes the annuity amount deposited and compound interest accumulated over…

Q: If the current rate of interest is 10% and interest is compounded semiannually, what is the present…

A: Compound = Semiannually = 2Interest Rate = r = 10 / 2 = 5%Future Value = fv = $10,000Time = t = 7 *…

Q: Calculate the present value for the cost of RM 10,000 which will be spent for 20 years if the…

A: Present value = FV / (1+r)^n Where r = interest rate per period n = no of periods FV = Future value…

Q: What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has…

A: The objective of the question is to find out the annual payment that one must receive to earn a 6.5%…

Q: What is the present value of RM34,580 perpetuity per year discounted at 7%? Select one: a.…

A: In this problem we need to compute the present value of RM34,580 perpetuity per year discounted at…

Q: If money is worth 1.07%, determine the present value of perpetuity of P 4.489 pavable annually, with…

A: Inputs Interest Rate = 1.07% Perpetual Amount = 4489 Payments will start at end of 5 years

Q: If you invest $8,000 at the end of every year for nine years at an interest rate of 8%, the balance…

A: A present asset's future value, abbreviated as FV, is the value that an asset is expected to have at…

Q: Calculate the Future Value of 5,000 SAR made at the end of each year for 25 years, with an interest…

A: Future value of the amount is the amount that is being deposited and amount of interest accumulated…

Q: 11.A loan of R1.75 million was made to a farmer, bonded against fixed property at an interest rate…

A: Interest is the amount paid by the borrower of money to the lender of money. It is usually the % of…

Q: semi-annual payments of P 8,000 each, starting three years from now. What is the present value of…

A: Present Value of Annuity: It represents the present worth of the future stream of cash flows. It is…

Q: R150 000 is invested at a compound interest rate that is compounded quarterly. After 6 years the…

A: An annuity is a financial product or investment contract that provides a series of regular payments…

Q: how much have you accumulated after 20 years?

A: An annuity is the receipt or payment of a fixed amount over a fixed interval of time for a specified…

Q: A lot can be acquired at down payment of P200,000.00 and a yearly payment of P30,000.00 at the end…

A: Value of annuity is calculated using following equation Value of annuity = P×1-1(1+r)nr Where, P is…

Q: b. If you borrow R13,000 at 8% compounded annually with the repayment schedule below, what is the…

A: Loan amount = R 13000 First payment of amount A occurs in year 2 and last payment is worth (A+600)…

Q: What is the present value of RM30,256 perpetuity per year discounted at 7%? Select one: a.…

A: Perpetuity refers to a sequence of payment i.e. periodic payments that are made by an investor into…

Q: In buying a farm worth P 1,500,000 cash, the purchaser pays P 500,000 cash and agrees to pay the…

A: Payments are the modes of the cash outflow; therefore, the person who pays the amount has to make it…

Q: if you invest $1,000 today With a compound annual interest rate of 5 %. What is the total amount…

A: Future value of money refers to the value of money on a particular date in the future. In other…

Q: JPX's decides to value a property based on its expected net after-tax monthly cash flow of $7,400,…

A: Prepetuity In the financial system, perpetuity refers to a circumstance in which a stream of cash…

Q: Which comes closest to the future value of $875 to be received at the end of 7 years, if the amount…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: What amount should you invest today if you wish to receive Php 1647750, 24 years from now if your…

A: Interest on interest, or compound interest, is the adding of interest to the principal sum of a loan…

Q: suppose you decide to deposit $6400 into w 3 year cd wirh a 2.5 apy the value of the cd after a year…

A: Payment = p = $6400Interest Rate = r = 2.5%Time = t = 1

Q: A condominium is to be purchased by paying P35,000 monthly for 25 years. The first payment is due in…

A: Monthly payment (M) = P 35000 n = 25 years = 300 months r = 12% per annum = 1% per month First…

Q: Economics  An inventor expects to receive $75,000 per year from royalties on a 15 patent for…

A: Given: Royalties received for 15 patents = $75000 Tenure of royalty payment = 12 years Interest…

Q: Q8. A owes B two sums of money: $1000 plus interest at 7% compounded annually, which is due in five…

A: The concept of TVM states that money has an inbuilt capacity to earn interest because of which money…

Q: What would you pay for an investment that pays you $34000 at the beginning of each year for the next…

A: Given: Rate of investment (r) = 11% = 0.11 Annuity (A) = 34000 Time period = 10 years

Q: A person buys a piece of lot for P 100,197 down payment and 12 deferred semi-annual payments of P…

A: Down payment (DP) = 100,197 Interest rate = 0.186 Semi annual interest rate (r) = 0.186/2 = 0.093…

Q: a. Advance payments of $25,000 every six months for 5 years b. Payments of $9,000 quarterly for 4…

A: Present value is the concept of the time value of money. Which states future cash flow is less…

Q: Please answer only question B, because I sent already A in a separate question. Thank you! a) The…

A: In this we have to calculate the interest for period and find out the required period.

Q: QID 204. 8 years from now you will need $750,000 to renovate a rental property. At an interest rate…

A: Amount required in 8 years = $750,000Interest rate = 9% (Compounding semi-annually)Number of years =…

Q: 6. a. What do understand by 'amortization‘? b. Against a house, mortgage loan is obtained for Rs.…

A: a. Amortization is spreading the cost of intangible asset through the life of the intangible asset.…