PROBLEM SITUATION:A man bought a condominium unit worth ₱3.9M a pay a down payment of ₱1.5M and agreed to pay the remaining balance as follows: ₱600,000 at the end of the 2nd year; ₱755,000 at the beginning of the 5th year; ₱850,000 at the end of the 6th year and an unknown payment at the end of the 10th year. Assume an 5% interest rate.QUESTION:What is the present worth of the second instalment payment? ₱563,392.62 ₱652,197.39 ₱621,140.37 ₱591,562.26

Time value of money (TVM) is used to measure the value of money at different point of time in the…

Answered: What is the present worth of the second…

Business

Finance

What is the present worth of the second instalment payment? ₱563,392.62 ₱652,197.39 ₱621,140.37 ₱591,562.26

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Similar questions

Suppose you take out a $117,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 5%. To keep things simple, we will assume you make payments on the loan annually at the end of each year. a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction of your initial loan payment is interest? d. What fraction of your initial loan payment is amortization? e. What is the total of the loan amount paid off after 10 years (halfway through the life of the loan)? f. If the inflation rate is 3%, what is the real value of the first (year-end) payment? g. If the inflation rate is 3%, what is the real value of the last (year-end) payment? h. Now assume the inflation rate is 6% and the real interest rate on the loan is unchanged. What must be the new nominal interest rate? i-1. Recompute the amortization table. i-2. What is the real value of the first (year-end) payment in this high-inflation scenario? j. What is the real value of the last…
Use a bankers year: 360 days To complete the sale of a house, the you accept a 240-day note for $9,000 at 7% simple interest. (Both interest and principal are repaid at the end of the 240 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $9,108 after 80 days. What annual simple interest rate will the third party receive for the investment? Express your answer as a percentage.
1. A man decided to buy a brand new car. The car's cash price is P 2M. There is an option for installment but he needs to make a down payment of 50% of the cash price, then P 300K at the end of first year, P 200K at the end of second year, P 100K at the end of third year, P250K at the end of fourth year and a last payment at the end of sixth year. If the interest is 16%, how much does he need for the last payment?
Please provide answer to part b of the question. Please answer by using formula, not excel.
A man plans to take a vacation in 4 years. He wants to buy a certificate of deposit for $1200 that he will cash in for the trip. What is the minimum annual interest rate he must obtain on the certificate if he needs at least $1700 for the trip? Assume that the interest on the loan is computed using simple interest The rate he must obtain is ___%
You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 29 comma 403 at the end of this year, $ 58 comma 806 at the end of next year, and $ 88 comma 209 at the end of the year after that (three years from today). The interest rate is 10.5 % per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?
You want to buy a $200000 home. You plan to pay $20000 as a down payment, and take out a 20 year loan at 5.25% interest for the rest. a) What is the amount of the payment? $ b) If the bank charges 1.5 points on the loan, what is the amount charged for points? $ c) If the bank charges 1.5 points on the loan, what is the true interest rate? $ Question Help: D Video Submit Question
Suppose you are buying your first home for $210,000, and you have $15,000 for your down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? Select the correct answer. a. $1,231.53 b. $1,233.53 c. $1,232.53 d. $1,234.53 e. $1,230.53
A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for the next 10 years. The nominal annual interest rate is quoted as 12%. (Assume the first instalment is going to be paid 1 month after s/he borrows.) a. Find the amount borrowed by this person. b. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.
A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for the next 10 years. The nominal annual interest rate is quoted as 12%. (Assume the first instalment is going to be paid 1 month after s/he borrows.) a. Find the amount borrowed by this person. o. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.
Suppose a.home owner has an existing mortgage loan with these terms: remaining balance of Sh. 50,000, interest rate of 8% and remaining term of 10 years (monthly payments). The loan can be replaced by a loan at an interest rate of 6% at a cost of 8% of the outstanding loan amount Should the home owner refinance? What difference would it make if the home owner expecis to be in the home for only five more years?.
Suppose that, to purchase a car, you are obtaining a personal loan from your uncle in the amount of S65,000 (now) to be repaid in five years. it your uncle could earn 6% interest (oompounded annually) on his money invested in various sources, what minimum lump-sum payment five years trom now would make your uncle happy economically? OA S78648 OB S134, 168 OC s06,985 Oo S92, 241