1. A woman arranges to repay a P10,000 bank loan in 10 equal payments at a 10% effective annual interest rate. Immediately after her third payment she borrows another P5000, also at 10%. When she borrows the P5,000, she talks the banker into letting her repay the remaining debt of the first loan and the entire amount of the second loan in 12 equal annual payments. The first of these 12 payments would be made 1 year after she receives the P5,000. Compute the amount of each of the 12 раyments.
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- Provide cash-flow diagram if applicable. The PH debt as of today amounts to 12 trillion. This balloons with an interest rate of 0.16% yearly. Suppose thegovernment requires every earning individual to pay the debt by 2030, how much each of us would need to paymonthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6%compounded daily, and we will start the payment by the end of 2022? The Philippines is estimated to have 110million people, with the work force of around 20%.2. The municipality of Trento has arranged to borrow P30 million in order to implement several publicprojects (flood control, drainage system, etc.). The interest rate will be 3% per year, payable at theend of each year. This P30 million debt will be retired by making principal payments of P5 million atthe end of each year. The SB Members is concerned that it will take too long to pay off this debt. Howmany years will it take to fully pay the P30 million debt and its associated interest payments? (5 pts)(Show the Cash flow diagram and your solutions).1a) Jane and John have found a house, which owing to a depressed real estate market costs only $201,500. They will put $22,000 down and finance the remainder with a 30-year mortgage loan of 4.65% compounded monthly. i. How much will their monthly loan payment be? ii. How much interest will they pay in the second payment? 1b.) They will also have the following expenses: property taxes of $2,100, homeowner's insurance of $1,625, and $290 mortgage insurance (in case on of them dies before the loan is repaid, a requirement from the bank). These annual amounts are paid in 12 installments and are added to the loan payment. What will their full monthly cost be? i.) If they can afford $1200 a month, can they afford the house?
- Consider price quotes and characteristics for two different bonds:Bond A Bond BCoupon Payment Annual AnnualMaturity 3 years 3 yearsCoupon Rate 10% 6%Yield to Maturity 10.65% 10.75%Price 98.40 88.34At the same time, you observe the spot rates for the next three years:Term Spot (Zero-Coupon) Rates1 year 5%2 years 8%3 years 11%Demonstrate whether the price for either of these bonds is consistent with the quotedspot rates. Under these conditions, recommend whether Bond A or Bond B appears tobe the better purchase.Let’s suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60 days. You sold the product in the US market at $400 in cash on Dec 15, 2018. The company's fiscal year ends on Dec 31. You paid to your German supplier on Feb 1, 2019. Below, please find the exchange rate information: Dec 1, 2018: 0.8 €/$.. Dec 31, 2018: 1.5 €/$. Feb 1, 2019: 0.6 €/$. What was net income for 2018 and 2019, respectively? Group of answer choices -$200, -$100 -$100, $200 $300, -$200 $200, -$300A series of four annual constant-dollar payments beginning with $10,000 at the end of the firstyear is growing at the rate of 8% per year. Assumethat the base year is the current year (n = 0). If themarket interest rate is 15% per year and the generalinflation rate ( f ) is 7% per year, find the presentworth of this series of payments, based on(a) Constant-dollar analysis(b) Actual-dollar analysis
- ▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)! Pls answer !bartleby = 3 max questions 1. If the proceeds of P 2000 will be paid w/ P2400 at the end of 10 months, find the discount rate. 2. At certain interest rate compounded quarterly, an amount worth P8000 will be P20000 after 5 yrs. How much would it be at the end of 10 years? 3. For a deposit of $1023 at 7.8 % interest compounded continuously over 4 years, find the interest earned?
- What is the current net single premium value of the 4-year periodic life annuity with increasing payments for a 30-year-old individual: 30 TL per month for the first year, 40 TL per month for the second year, 50 TL per month for the third year and 60 TL per month for the fourth year? please dont use excel. answer with detail.no discount ratebond valuation An investor has two nonds in her portfolio, bond C and bond Z. each bond maturres in 4 years has a face value of 1000, and has a yield to maturity of 9.6% bond C pays a 10% annual coupon, while bond Z is a zeo coupon bond . b- assuming that the yield to maturity of each bond remains at9.6% over the next 4 years, calculate the price of the bonds at each of the following years to maturity year 4,3,2,1,0 b- plot the time path of price for each bond1. A present obligation of $20,000 is to be repaid in equal uniform annual amounts, each of which includes repayment of the debt (principal) and interest on the debt, over a period of 5 years. If the interest per year is 10%, what is the amount of the annual repayment? 2. Suppose that the $20,000 above is to be paid at a rate of $4,000 per year plus the interest that is owed and based on the beginning of year unpaid principal. Compute the total amount of interest repaid in this situation and compare it with that of the problem above. Why are the 2 amounts different? Solve all questions compulsory....