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- A man borrowed 120 000 PHP and promised to pay anually for 5 years. The payment starts at X pesos. The man intends to increase his payment by 5 000 PHP at the end of each successive year. If the interest rate is 8% compounded annually, how much will the first payment be? If the man decides to pay anually with 8 equal payments with the first payment to be made after 4 years, what will be the amunt of the annual payment? Construct the cash flow diagram for both cases. Show full solution: Engineering EconomicsSolve all A 40-year-old Ministry of Finance officer is planning to save money for retirement. He intends to deposit 5% of his salary. 1. In the present year, he deposited 600,000 baht from his salary, and after this he intends to deposit another 50,000 baht a year every year from year 1 to year 10. At the end of 10 years, how much will he have in the account with the interest rate of 6% per year? 2. If he changes his mind to start saving at the age of 45, how much will he have to deposit with the same amount per year in order to get the equal equivalent amount as the amount received from the first form of deposit?Suppose you purchased a corporate bond with a 10-year maturity. a $1,000par value, a 10% coupon rate, and semiannual interest payments. What all this means that you receive $50 interest payment at the end of each six-month period for 10 years (20 times). Then, when the bond matures, you will receive the principal amount (the face value) in a lump sum. Three years after the bonds were purchased, the going rate of interest (coupon rate) on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (3 years after the purchase)?
- A small gold mine yielded an equipment of Php. 500,00.00 during its first year of operation. Php 460,000.00 on its second year, and amount decreasing by Php. 40,000.00 every year, what is its equivalent annual yield if interest rate is 10%? Pls include the cash flow diagramsuppose that $2700 is set aside each year and invested in a savings account that pays 8% interest per year, componded continously, part b: in part a,suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25. The annuity will extend from teh EOY 26 to EOY 33, what is the value of this annuity if teh interest rate and componding frquency in part a do not changeFive years ago , you paid P 40,000.00 for a residential lot. Today you sold it at P 70,000.00. What is your annual rate of appreciation. Clue: unknow is, i= interest
- 3. A debt of "x" pesos with interest rate of 7pesos compunded annually will be retired at the end of 10 years through the accumulation of the sinking fund invested at 6% compounded semi-annually. The deposit in the sinking fund every end 6 months is P21,962.68. What is the value of "x". Present the cashflow diagram.A wealthy business Mr. Tan wants to start a permanent fund for supporting research directedtoward sustainability. The donor Mr. Henry plans to give equal amounts of money for each of thenext 5 years plus one now, so that P100,000 per year can be withdrawn each year forever. Beginning inyear 6. If the fund earns interest at a rate of 8% per year. How much money must be donated eachtime? What would be the formula and the cashflow diagram?11. An amount of P 250,000 is now deposited into a savings account that earns 12%compounded continuously for the school requirements of a civil engineering student on the succeeding 5 years from now. If the every year the student will withdrawP 51,651 from this account, how many years would the deposit lasts? 12. A company wishes to have P 350,000 in 9 years from now for building renovation. The company estimated that during this period, they can only afford to depositP 30,000 to an account to prepare for this future renovation. At what interest ratecompounded continuously should the company deposit to achieve this goal?13. You have just learned that ZYK corporation offers an investment opportunity that costs P 5,000 every month and will amount to P 220,582 after 3 years. Compute thecompound amount factor. 14. What is the nominal value of the interest compounded continuously for a period of 3years if the value of the uniform series present worth factor is 2.038? 15. Compute the…
- Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,000 is set aside each year and invested in a savings account that pays 10% interest per year, compounded continuously. Solve, a. Determine the accumulated savings in this account at the end of 30 years. In Part (a), suppose that an annuity will be with drawn from savings that have been accumulated at the EOY 30. The annuity will extend from the EOY 31 to the EOY 40. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change?1. If you borrow money from your friend with simple interest of 12%. Find the present worth of 20,000 which is due at the end of nine months? 2. A Loan of 10,000 is made for a period of (m) months at simple interest of 20%. If the future amount is due at the end of the load period is 4,166. Determine the (m) ? 3. The investmest made by John proved most remunerative. His 1,000,000 savings doubled at 2% per 6 months after (n) years. Determine the (n) ? 4. An investors holds a time payment purchase contact on some machine tools. The contact calls for the payments of 6,800 at the end of each month a 5 years period. The 1st payment is due in one month. He offers to sell you the contact for 330,680 cash today. If you otherwise can make 1% per month on your money, would you accept or reject the investors office?Spivey just won the Powerball lottery! The $20,000,000 jackpot will be paid in 20 annual installments of $1,000,000 each, with the first payment to be paid immediately. Spivey’s opportunity cost of capital (interest rate) is 6% per year. What is the present equivalent of Spivey’s lottery winnings at the time of the first payment?