1. A man inherited a regular endowment of P100,000 every end of 3 months for 10 years. However, he may choose to get a single lump sum payment at the end of 4 years. How much is this lump sum if the cost of money is 14% compounded monthly?

Q: Your father paid $10,000 (cf occurs at t=0) for an investment that promises to pay $850 at the end…

A: Expected rate of return can be described as the total profit or loss on a particular investment over…

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this…

A: The endowment amount worth after 10 years can be calculated with the help of Future value of Annuity…

Q: Steve Madison needs $250,000 in 10 years. How much must he invest at the end of each year, at 5%…

A: Annuity amount = Futur value of annuity amount / {[(1+r)^n-1] /r}

Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…

A: In this we have to calculate monthly interest rate and than calculate future value FACTOR and get…

Q: ! Required information Assume that 25 years ago your dad invested $360,000, plus $30,000 in years 2…

A:

Q: John has $3200 monthly in extra discretionary funds that he would like to invest in his future…

A: Given Information Annuity amount = $3200 Made equal amount annuity by dividing into 2 parts Interest…

Q: Takao inherited regular endowment of P100,000 every end of 3 months for 10 years. However, he may…

A: Given: Particulars Amount Inherited amount(PMT)             100,000 Interest rate 14% Years…

Q: Mr. Jones will invests P 5,000 in a fund at the end of each 6 months to accumulate P 100,000 to buy…

A: Compounding of interest means, interest is received on principal as well as the earned interest…

Q: Assume that a couple invests $4000 each year for 4 years in an investment that earns 8% compounded…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: 2. Joan contributes $4000, AT THE BEGINNING of each quarter, for 10 years to an account that earns…

A: Here, Quarterly Contribution is $4,000 Time Duration for Contribution is 10 years Interest Rate is…

Q: If money is worth 9.73% annually, what annual payment is required to raise ₱ 15,434 after 4 years?

A: It can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv], [type]) Rate The…

Q: You want to invest a lump sum at 5% interest so as to have $100,000 in 20 years. If you find an…

A: The Present Value of a lump sum: The Present Value of a lump sum can be computed with the formula:

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this…

A: Regular endowment (D) = P 100,000 Period = 10 Years Number of quarterly payments (n) = 10*4 = 40…

Q: John Atomic is retiring at the end of next year. He would like to ensure that his heirs receive…

A: Present value of perpetuity = Annual cash flow/Rate of return

Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: A man inherited a regular down payment of P200,000 every end of 3 months for 10 years. However, he…

A: We will apply the concept of time value of money here. As per the concept of time value of money the…

Q: Roger Baker has accumulated $775,000 in his RRSP and is going to purchase a 20-year annuity from…

A: An Annuity is simply a fixed amount which will be received by Roger Baker at every month-end Present…

Q: A property worth $21.5M is purchased with a $5M down payment. The balance is to be paid monthly in…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A man wishes his son to receive $250,000 ten years from now. What amount should he invest if it will…

A: Given: FV = $250,000   To calculate: Present Value   Let's understand the interest rates:…

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this…

A: Annuity = 100,000 Quarterly Annuity N = 40 quarters (10 years) Interest Rate = 14%/4 = 3.5% per…

Q: An old man buys a piece of lot for 150,000 down payment and 12 deferred semi-annual payments of 8500…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: An individual has $1,000 to invest. He wants to accumulate $3,670 and can earn 8% annual interest on…

A: In this question we need to compute the number of years required to accumulate $3670. Other details…

Q: The buyer of a lot pays P10,000 every month for 10 years. If money is 8% compounded annually, how…

A: Convert 8% compounded annually to its equivalent interest rate for monthly interval. Here, 'R'…

Q: A man inherited regular endowment of P103,000 every end of 2 months for 10 years. However, he may…

A: There are 6 bi-monthly period in a year N = 6*10, FV = 0, PMT = 103,000, rate = 14%/6 use PV…

Q: Required information Assume that 25 years ago your dad invested $260.000. plus $35,000 in years 2…

A: Let the deposits in year n be Dn. D1 = $260000 D2 to D5 = $35000 D6 to D25 = $43000 r = 15%

Q: You won $100 000 in a lottery and you want to set some of that sum aside for 10 years. After 10…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: how many years

A: The $50000  fund is a lump sum amount today. The $6000 withdrawl per year is ordinary annuity. To…

Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…

A: Monthly endowment (M) = P 10000 Interest rate = 14% compounded semiannually Let's find the effective…

Q: What amount should you invest quarterly for 30 years in a fund that earns 8% compounded quarterly,…

A: Time period = 30 years  Interest rate = 8% Future Value = P5,000,000

Q: Answer the question and draw a cashflow diagram. A man inherited a regular endowment of P10,000…

A: Given: Amount = P10000 Years = 10 Interest rate = 14%

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this…

A: Quarterly payment (P) = P 100,000 Period = 10 Years Number of quarterly payment (n)  = 10*4 = 40…

Q: 1)A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this…

A: The endowment worth can be computed using the Future Value of Annuity formula.

Q: Mr COVID is 25 years old and is planning to accumulate 10 million pesos on the day of his retirement…

A: Accumulation at retirement = 10,000,000 N = Number of withdrawals = 29 years and 6 months i.e. 354…

Q: Andrea borrowed P75,000 at 13% compounded annually which she will repay in five years. If each…

A: The successive payment is the periodic payment made towards the acquisition of an asset or security…

Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: An inheritance of $120,000 is invested in a fund that earns 7.7% compounded semiannually. If this…

A: Annuity is referred as the instalment paid at the regular interval for a particular period. Ordinary…

Q: 2. A man plans a 20year plan fund for his daughter, he wants her to receive 700,000 per year for…

A: The calculation is:

Q: A man invested 100,000 every end of the year for 10 years, then waited for another 10years for his…

A: Annual investment (P) = 100,000 Interest rate (r) = 8% Number of annual investments (n) = 10 Number…

Q: Bud invested $114,000 in an investment that promises to pay 5% compounded annually. How much will…

A: Lets understand the basics. For calculating the invesment worth after 21 years, we need to use below…

Q: A Businessman wants to have P100,000 3 years from now. What amount should he invest now if it will…

A: Present Value is the current value of the future sum of money at the specific rate of return.

Q: Brianca plans to save $5,000, $1,000, and $42,000 a year over the next three years, respectively.…

A: Time value It tells that value received today has more value than that of receiving the same amount…

Q: 1.A person buys a piece of lot P300,000 downpayment and 8 deferred quarterly payments of P8,000…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: fyou invest $10,000 on the last day of each year for ten years at 8% how much money will you have in…

A: In the given question we require to calculate the future value from following details: Investment at…

Q: A family takes a $275,000 20 year mortage at 3.50% annually compounded monthly. a. Compute their…

A: We need to use excel to solve this problem. The formula and calculation is shown below

Q: ed $200,000 and invested it at 6% per year. How much could you withdraw at the end of each of the…

A: The given problem can be solved using PMT function in excel. PMT function computes savings/…

Q: Steffi Derr expects to invest $10,000 annually that will earn 8%. How many annual investments must…

A: Future value: It can be defined as the value of an investment or any asset at a specified future…

Q: Jenny Sherrer has $29,000 to invest and believes that she will earn 8% compounded semiannually. Find…

A: FV  =  PV (1 + r)t where,  FV  =  Future ValuePV  =  Present Valuer  =  Rate of Interestt  =  Years…

Q: Mrs. Nash will contribute $200 to her RRSP at the end of each month for 15 years. How much more…

A: The extra amount that she will have due to increased saving is calculated as difference in amount…