5. The buyer of a lot pays P50, 000 cash and P10, 000 every month foor 10 years. If топey is 8% comтроиnded is 8% compounded monthly , How much is the cash value of the lot?

Q: A piece of property is purchased 10 000 pesos and yields a 1 000 pesos yearly profit. If the…

A: Solution Given Purchase cost 10000 pesos Interest rate 6% per annum Annual profit…

Q: If you borrow $3,600 to buy a car at 12% per year compounded monthly, to be repaid over the next…

A: Answer Borrowing amount = $3,600 Interest rate = 12% per year  Interest rate monthly = 1%  Time…

Q: A DIVORCE SETTLEMENT OF $40.000 IS PAID IN 40 MONTHILY PAYMENTS OF S1000 EACH, WHAT IS THE PRESENT…

A: Present Value of annuity =  P * {1-[1/(1+r)^n]/r} Where, P = Periodic payment  i.e. 1000 r =rate of…

Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…

A: To calculate the present value we will use the below formula   Present value = FV/[1+(r/m)]n*m Where…

Q: A house and lot package is available at P27,000.00 mònthly payable in 20 years. The first payment is…

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Q: How much would be needed today to provide an annual amount of $50000 each year for 20 years, at 9%…

A: Using excel PV function

Q: How much you have in 3 1/2 years if you invests P8,000 at 6.6 percent interest compounded monthly?

A: We need to calculate the future value of the investment with the following inputs: Present Value =…

Q: Citra expects to receive RM50,000 in 2 years. Her opportunity cost is 10% compounded monthly. What…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What amount 1.5 years from now is equivalent to $ 7000 due in 8 years, if money can earn 6.2%…

A: Time period=1.5 years Future Value (FV) = $7000 Interest rate (r)= 6.2% compounded semiannually…

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

A: Here, Value of House is $6,000,000 Down Payment is $1,000,000 Therefore, Loan Amount (PV) is:…

Q: d amount of the payment you paid is P 78,75 per year. The first payment is done after 4 yea bu…

A: in this we have to calculate the present value of payment and future value also.

Q: A condominium unit can be bought at a down payment of P150,000 and a monthly payment of P 23,347 for…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: you paid is P 78,758 at a rate of 5% per year. The first payment is done after 4 years. How much are…

A: Let us assume the monthly payment = A Accumulated amount = P 77,061 Interest rate = 4% per year

Q: If you deposit RM25,000 in an account earning 16% with quarterly compounding, how much would you…

A: Amount of Deposit = RM 25,000 Interest Rate = 16% per annum Quartery interest Rate(r) = 16%/4 = 4%…

Q: A PIECE OF MACHINERY CAN BE  BOUGHT FOR P10,000.00 CASH OR FOR P2,000.00 DOWN AND PAYMENTS OF P750…

A: This question is based on the concept of internal rate of return, where the interest rate is hidden…

Q: If you deposit RM35,000 in an account earning 18% with monthly compounding, how much would you have…

A: Using the future value function

Q: 2. Find the cash value of a sala set that can be bought for 2,500 down payment and 288 a month for…

A: The given problem can be solved using PV function in excel. PV function computes current value for…

Q: 60,000, increasing linearly at the rate of P5000 a year. If the money is worth 10%, determine his…

A: Annual equivalent salary is equivalent annual salary considering the all increased salaries…

Q: 1) The buyer of a lot pays ₽10,000 every month for 10 years. If the money is 8% compounded annually,…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

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A: Total Worth = 4,300,000 Down Payment = 40% of Total Worth = 40%*4,300,000 = 1,720,000 Loan Amount =…

Q: 5. If P50,000.00 is deposited each year for 10 years, how much annuity can a person get annually…

A: Annuity means a finite number of payments which are the same in size and made in equal intervals of…

Q: Engr. Como decided to buy a townhouse amounting to 5N IT pald today. He is been told that he is to…

A: The time period or the number of years (NPER) refers to the time it would require for the investment…

Q: Ali, today's price is 10 000 TL. a product that has been sold 000 TL is paid to the bank at each…

A: In this we have to calculate we have to calculate future values to get value of X.

Q: A house and lot is for sale at a monthly payment of P30,000 for 25 years at an interest rate of 3%…

A: Monthly payment (A) = P 30000 Duration (n) = 25 years = 300 months Interest rate (r) = 3% per annum…

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

A: Future Value of Annuity: If a certain rate of return, or discount rate, is assumed, the future value…

Q: A piece of property is purchased 10 000 pesos and yields a 1 000 pesos yearly profit. If the…

A: Purchase price (P) = 10000 pesos Annual profit (A) = 1000 pesos n = 5 years r = 6% Let the selling…

Q: a) How much should you invest at 12% interest today if you want to receive TK. 10,000 at the cnd of…

A: Hi, there, Thanks for posting the question. As per our Q&A honor code, we must answer the first…

Q: 1. The Lexington Property Development Company has a RM10,000 note receivable from a customer due in…

A: Present value is the value of an investment in today’s time. It helps to make decisions better.

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

Q: C.) If you borrow cash from your neighbor at 12% simple interest, determine the present worth of…

A: Present value is the current value of a future sum of money given at a specified rate of return.…

Q: is yer of a lot pays P 50,000.00 cash and P 10,000.00 every month for 10 years. If money s 0%…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: A house costs $142,000, It is to be paid off in exactly ten years, with monthly payments of…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: You are offered payments of P1500.00 att he end of each quarter for 6 years. You feel that the cost…

A: The present value of future and periodic cash flows is the value of these cash flows at the present…

Q: 1. What is the present worth of a P1000 annuity starting at the end of the third year and continuing…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

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: nd l

A: Present Value of annuity due formula will be used to calculate the value of house and lot as the…

Q: Engr. Odon is paying a loan five thousand pesos 10% quarterly for 3 years. It the payment is to…

A: The question is based on the concept of present value and future value calculation.

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A: Annual interest rate = 10% Quarterly interest rate = 10%/4 = 2.5% Down payment = P 250,000 Semi…

Q: 2. The buyer of a lot pays P10,000 every month for 10 years. If money is 8% compounded annually, how…

A: Use the Excel FV function with the following inputs to determine the cash value of the lot. RATE =…

Q: You are scheduled to receive $100,000 in three years. r is 8% What is the present value ?

A: Present value is the present worth of any sum of a money to be received in the future at a specified…

Q: The buyer of a lot pays $50,000.00 cash and $10,000.00 every month for 10 years. If money is 8%…

A: Given:

Q: 2. If you wish to accumulate R200,000 in 7 years' time by depositing R1,850 per month in an account…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: In how many months will P10,000 earn a compound interest of P2,000 if money is worth 12% compounded…

A: To calculate the number of months we will use the below formula   CI = [P*(1+r)n]-P Where CI -…

Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments. If the interest rate…

A: The amount borrowed can be computed using the Present Value of Annuity formula.

Q: A low cost house and lot is worth P 500,000.00 in cash. If purchased thru instaliment basis, 10%…

A: The amount of money borrowed is a mortgage and the borrowed money repaid over the period of time…

Q: how much annuity can a person get annually from a bank every year for 8 years starting 1 year after…

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: Which among the following is the present value of Php 40, 000 due in 6 years if money is worth 10%…

A: present value=future value1+rn r=rate of interest n=number of years

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.