Your grandparents have decided to sell their real estate property in Valenzuela City and they are planning to purchase a condominium unit in Pasig City. They posted an online advertisement for this. A week after two offers came Offer 1:7500.000 down payment plus P1,500,000 lump-sum payment 10 years from now Offer 2: P500,000 down payment plus P12,500 per month for 10 years. Which among the two offers should your grandparents choose if the payment will have an interest of 12% compounded monthly? Find the fair market value of the two offers.

Q: 3. Give your answers to parts (a) to (e) to the nearest dollar. On Jake's 16th birthday his parents…

A: The future value of cash flow depends on the actual amount to be received and the interest rate of…

Q: Car loan Planning to give his son a car as a gift when he graduates from college 2 years from now,…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own…

A: To solve this question, we will use the concept of time value of money.The basic requirement is to…

Q: NEED QUESTIONS 4, 5, 6 AND 7, PLEASE. Susan and Joe would like you to help them adress spme of their…

A: 4. First, we will find the principal paid till April 1, 2020 The MSRP is $40,000 and the Down…

Q: Find the amount of an annuity that consists of 20 quarterly payments of $700 each into an account…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Harry and Lisa Perry have agreed to pay for their granddaughter's college education and need to know…

A: Given information:  Annual interest rate is 4% Annuity payment is $25,000 Number of years is 5

Q: Required information [The following information applies to the question displayed below.] Mary Kate,…

A: The future value is computed by multiplying the annuity amount by the future value annuity factor…

Q: A student needs P4000 per year for 4 years to attend college. Her fathe invested P5000 in a 7%…

A: The present value is the cumulative value of all cash flows discounted while keeping in mind a…

Q: Your grandmother will be gifting you $150 at the end of each month for four years while you attend…

A: Monthly gift amount = $150Year = 4Discount rate = 3.7%To find: The worth of these payments on the…

Q: Can Olivia and Anthony Afford This Home Using the Monthly Income Loan Criterion? Next week, your…

A: Here,  Monthly Income is $125,000 Current (pre mortgage) installment loan, credit card, and car loan…

Q: Mr. Lau is updating his estate plan for himself and his family. He would like to provide an income…

A: Life insurance provides financial coverage provided by insurance companies after the death of…

Q: Maryannis planning a wedding anniversary gift of a trip to Hawaiifor her husband at the end of…

A: Given:

Q: elle Momba wants to visit her family in Zimbabwe in 2022, which is 7 years from now. She knows that…

A: Future value required=$7200Period=7yearsInterest rate=6%Semi annual periods=n=14Semi annual…

Q: Your grandmother will be gifting you $190 at the end of each month for four years while you attend…

A: In the Market, some factors are present such as inflation, market rates, and investment…

Q: Compute the value for each of the following independent situations. Note: Use Excel or a financial…

A: Present value is the current value of a sum of money to be received or paid in the future,…

Q: You believe that you can set aside $1,200 each year for the next four years, starting immediately,…

A: Given : Interest rate = 4% compounded annually Year Payment 1 1200 2 1200 3 1200 4…

Q: Cathy wishes her daughter Aleah receive Php 100,000 ten years from now. What amount should she…

A: In this problem, first we have find present value at the end of 2 years taking time as 8 years and…

Q: Your grandmother will be gifting you $130 at the end of each month for four years while you attend…

A: Value of the monthly amount of $130 is calculated as the present value of annuity using following…

Q: When you graduate from college, your mother plans to give you a gift of $40,000 to start you on your…

A: Present value of lum sum = Amount receivable in future * PV $1 (r, n) Present value of annual…

Q: one wants to know the amount of money she will be receiving after 6 months pinion if she will be…

A: The future value of money includes the amount deposited and interest being accumulated over the…

Q: A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn…

A: We need to calculate the persent value of annuity  by using this formula.    PV of annuity =CF*…

Q: How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement…

A: Retirement planning is the act of setting financial goals and making strategic decisions to ensure a…

Q: The Chan family would like to establish a bursary at Camosun College. The bursary pay $2,000 to a…

A: This payment is a perpetuity, meaning that this payment will occurs indefinitely. In a perpetuity,…

Q: A couple thinking about retirement decide to put aside $12,500 each year in a savings plan that…

A: The questions require the determination of the future value of an annuity and the future value of a…

Q: You just accepted an offer from XYZ Petrochemical Company in Louisiana. As a sign up bonus, the XYZ…

A: According to bartleby guidelines,  if multiple questions are asked,  then 1st question needs to be…

Q: tion, you plan to work for Dynamo Corporation for 12 years and then start your own business. You…

A: In compounding of interest there is interest on interest including interest on deposit amount due to…

Q: 3. Give your answers to parts (a) to (e) to the nearest dollar. On Jake's 16th birthday his parents…

A: Investment means utilise your funds to generate income/profit for the coming years. Interest…

Q: You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and…

A: Since, in this question fixed amount is invested each year. So, it is the question of annuity.…

Q: Tina Parker, a single mother, is 20 years old. She has called on you for an insurance consultation.…

A: Expenses- Expenses refers to the reduction in the value of owner's equity and opposite of revenue.…

Q: Carol wants to Invest money in a 6% CD that compounds semiannualy Caral would like the account to…

A: We need to use Future value table to solve this problem. PV =FV/FV factor Where PV =present value…

Q: our grandparents just gave you $40,000 for your 21st birthday. You want to set aside some of that…

A: The objective of the question is to determine how much of the $40,000 must be set aside to meet the…

Q: Jack wins a lottery. He now wants to put a fixed amount into a savings account paying   j1= 4% to…

A: Here in this case, first, we will compute the PV of annual payment from the 10th year onwards. Then…

Q: Your parents hope to sell their large home and net $380,000 and then retire to a nice Florida…

A: Future value (FV) refers to the amount of money or the value of current assets at the future date…

Q: Ms. Pan Aram has set the goal of accumulating Php 4,000,000 for her son's college fund, which will…

A: Here, Future value of deposited amount = Php 4,000,000 Number of years = 18 years Interest rate = 8%…

Q: You are doing a special project for the boss and he is going to give you a $5,000 bonus when it is…

A: When you put money in bank accounts than money growth with time due to compounding of interest and…

Q: My cousin , Hershey , is newlywed public school teacher who plans for the education of her future…

A: Annuities assume that money is put into the account on a regular schedule and money is left in the…

Q: In nine years, when he is discharged from the Air Force, Steve wants to buy a $17,000 power boat.…

A: Present value is the value of future value discounted using a discount rate for the given period at…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.