Pls answer ty SOLVE THE FOLLOWING PROBLEMS CLEARLY AND NEATLY. DRAW THECORRECT CASH FLOW DIAGRAM.1. Equal end-of-year payments of P2,638 each are being made on a P10,000 loan at 10%effective interest per year.a. How many payments are required to repay the entire loan?b. Immediately after the second payment, what lump-sum amount would completely payoff theloan?2. A contract has been signed to lease a building at P360,000 per year with an annual increaseof P3,000 for 10 years. Payments are to be made at the end of each year, starting oneyear from now. The prevailing interest rate is 7%. What lump-sum paid today would beequivalent to the ten-year lease payment plan?3. (a) How long will it take money to triple itself if invested at 8% annual simple interest?At 8% compounded annually?(b) An annuity of P1,200 is required over 10 years to obtain a future amount of P16,000.What is the effective interest rate?4. A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments,the first payment to be made 6 months after the loan finalization. After the 6th paymentwas made the debtor was in a position to settle the entire debt balance by a singlepayment on that date. If the interest on the loan is 12% compounded semi-annually, whatwill be the amount of the single-payment?5. Suppose a geometric gradient begins with $1,000 at the end of year one and decreases by20% per year after the first year. Determine P, A, and F. The interest rate is 25% peryear. N= 4years.

The solutions for the first four questions are provided. Please post the remaining questions…

1. Equal end-of-year payments of P2,638 each are being made on a P10,000 loan at 10% effective interest per year. a. How many payments are required to repay the entire loan? b. Immediately after the second payment, what lump-sum amount would completely pay off the loan? 2. A contract has been signed to lease a building at P360,000 per year with an annual increase of P3,000 for 10 years. Payments are to be made at the end of each year, starting one year from now. The prevailing interest rate is 7%. What lump-sum paid today would be equivalent to the ten-year lease payment plan?

1. Equal end-of-year payments of P2,638 each are being made on a P10,000 loan at 10% effective interest per year. a. How many payments are required to repay the entire loan? b. Immediately after the second payment, what lump-sum amount would completely pay off the loan? 2. A contract has been signed to lease a building at P360,000 per year with an annual increase of P3,000 for 10 years. Payments are to be made at the end of each year, starting one year from now. The prevailing interest rate is 7%. What lump-sum paid today would be equivalent to the ten-year lease payment plan?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 9E: Each of the following scenarios is independent. All cash flows are after-tax cash flows. Required:...

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