2. Gigi buys a car for P250,000 down payment and 36 deferred semi- annual payments of P25,000 each starting one year from now. What is the present value of the investment if the rate of interest is 10% compounded monthly? Construct an Amortization Schedule.

Q: Mr. Barela's monthly amortization is P3,500.00, payable at the end of each month. His house and lot…

A: GIVEN   Mr. Barela's monthly amortization is P3,500.00, payable at the end of each month. His…

Q: An investor has purchased an investment which offers him 30 annual payments of dollar 1,200 per…

A: To find the present value of the investment, we will first define where the payments are made. We…

Q: Neal plans to buy a car worth $42,000 today. He is required to pay 15  percent as a down payment and…

A: Using Excel PMT function

Q: ries of 6 year-end payments of $400,000. If Simes has a cost of capital of 9%, which form of payment…

A: Present value of money today of the future payments should be more than cash amount today to justify…

Q: Jarby invested P 250000 at an interest rate of 12% compounded annually. What will be the final…

A: Interest rate (r) = 12% Inflation rate (i) = 9% Let the real interest rate = x n = 10 years Amount…

Q: You decide to buy a house costing $6,000,000.  You pay $1,000,000 down, and the remainder will be…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: A new engineer wants to save up P1,000,000. He will contribute P5,000 annually to an investment…

A: Introduction:- The devotion of an asset to achieve a gain in value through time is referred to as an…

Q: If you put $2,500 in a savings account at the end of each year for 10 years and then allow the…

A: Yearly payment(PMT) is $2,500 Time period(initial) = 10 years Rate 12% per annum Futute value of…

Q: Mr. Paul makes an initial investment of P6,000 for a period of 3 years. Find the value of the…

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

Q: Mr. Barela's monthly amortization is P3,500 payable at the end of each month. His house and lot will…

A: Maturity value is defined as an amount payable to the investor at the end of the holding period of…

Q: An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you…

A: Time value of money is a concept that deals with calculating the actual worth of money at present…

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: What would be r in this problem? A P100,000 loan is to be paid monthly for 2 years with an interest…

A: Interest rate = 10% per annum semiannually compounded Compounding frequency = 2 Let the monthly…

Q: If you need P350,000 for a down payment on a house in 3 years, how much money must you invest today…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: If I will loan a house and lot worth P6.3M cash and with a little discussion and transaction with…

A: In this question the monthly payment needs to be calculated and the future worth of the overall…

Q: The Sandersons are planning to refinance their home. The outstanding principal on their original…

A: Outstanding principal (P) = $110000 n = 240 months Initial interest rate = r = 5% per annum =…

Q: Fatma purchased land for OMR 10,000 If you expect a 12% annual rate of return on your investment…

A: Using excel FV function

Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…

A: Information Provided: Yearly annual income = $15,000 Interest rate = 4%   NOTE: As per our…

Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…

A: Information Provided: Annual income = $15,000 Interest rate = 4%   NOTE: As per our policy, we…

Q: The Sandersons are planning to refinance their home. The outstanding principal on their original…

A: First, we need to find the current instalment which is given by  Loan amount = PV of all instalments…

Q: Suppose that you have good credit and can get a 30-year mortage for $100,000 at 5%. What is your…

A: A mortgage is a loan made usually for a property in which the collateral is the property itself.

Q: What is the present value of an investment that promises to pay you $ 1, 000 in five years if you…

A: Here, The present value is PV. The future value is FV. The maturity is n. The interest rate is r.

Q: What is the maximum amount you should pay today for an investment that pays a single future cash…

A: Future cash flow (FV) = $25000 Interest rate = 2% Semi annual interest rate (r) = 2%/2 = 1% Period =…

Q: An investment promises to pay you $80 per year for twenty years and, in addition, at the end of the…

A: The problem is to find the price that will be willing to be paid today for cashflows to be generated…

Q: If you invest a lump-sum amount of P25,000 at an interest rate of 12%, compounded annually, how much…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: A house costs P500,000 cash. A purchaser will pay P100,000 cash, P50,000 at the end of 2 years and a…

A: Let us first prepare the cashflow diagram    As we can see in this diagram, we saved 500000 rupees…

Q: How much should be deposited now by Mr. Cesar Mariano in an investment paying an annual rate of 14%…

A: Compound interest is given by following formula:   A = P × (1 + r)n   Under this, interest is earned…

Q: You were buying a House for $190,000 with a down payment of $57,000. The loan will be paid back over…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A $3,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual…

A: Solution:- When a loan is taken, the borrower has to repay the debt either in equal installments or…

Q: A real estate investor feels that the cash flow from a property will enable her to pay a lender…

A: This is the problem of the time value of money wherein the interest rate is mentioned and gets…

Q: an investment offers 3850 per year for 15 years, with the first payment occurring one year from now.…

A: Here, Annuity Amount is 3850 Interest Rate is 6%

Q: You decide to buy a house costing $400,000. You pay $100,000 down, and the remainder will be paid in…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: If a down payment of P600,000 is made on a house and P80,000 a year for the next 12 years is…

A: Down payment (DP) = P600,000 Annual payment (P) = P80,000 Number of annual  payments (n) = 12…

Q: Barbara wants to accumulate $10000 by the end of 10 years. She starts making quarterly deposits in…

A: Annuity refers to series of equalized payments that are either made start or end of definite…

Q: How much should be deposited now by Tom Cruise in an investment paying an annual rate of 16%…

A: Answer: Calculation of the amount that should be deposited now by Tom Cruise to realize $300,000 in…

Q: X-person has committed to a payment that needs to pay BD 80,000 every year at the end of each next…

A: Future value of investment includes the amount being deposited and interest being accumulated over…

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: For my newly purchased car, I have to pay five year-end installments of P250,000 each year for the…

A: Year end installment = P 250,000 Second year maintenance cost = P 10,000 Annual increase in…

Q: If money is worth 5% compounded quarterly , find the future worth of a sequence of 12 semi annual…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: Mr. Dickenson Comperstaugh bought an old model Ferrari car for 1,000,000.00 pesos down payment and…

A: semi annual rate = 12%/2 = 6% N = 10, FV =0, PMT = 150,000, rate = 6% use PV function in Excel with…

Q: Cromwell is acquiring some land for $1,200,000 in exchange for semiannual payments of $75,000 at an…

A: Given: Land value (PV)= $1,200,000 Payments(PMT) = $75,000 Interest rate (I/Y) = 6.35%

Q: An engineer wants to have P100,000 at the end of three years. How much would the engineer have to…

A: Present  value is calculated by discounting the future value with the rate of interest.   Present…

Q: Harper takes out a loan of $126,500,000, which is to be repaid by annual payme for 25 years. The…

A: A loan simply refers to the amount borrowed from a lender. The lender in such a scenario might be a…

Q: Suppose I have the choice of investing $25000 in two different accounts:   Acct 1:  4.5%…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: Barbara wants to accumulate $25000 by the end of 4 years. She starts making quarterly deposits in…

A: We need to use this equation for quarterly payment(PMT) and future value(FV) of annuity PMT…

Q: Wildhorse Co. is considering investing in an annuity contract that will return $28,140 annually at…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.