A businessman borrowed P300,000 and agrees to discharge his obligation by paying a series of 8 equal payments of P 57,434.78 the first being due at the end of 5 ½ years.
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27. A businessman borrowed P300,000 and agrees to discharge his obligation by paying a series of 8 equal payments of P 57,434.78 the first being due at the end of 5 ½ years. Find the rate of interest he is paying if it is compounded semi-annually.
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- What uniform annual payment for 30 years is equivalent to spending $10,000 immediately, $10,000 at the end of 10 years, $10,000 at the end of 20 years, and $2,000 a year for 30 years? Assume an interest rate of 8%.9. A P 15,000 bond which will mature in 10 years and with a bond rate of 15% payable annually is to be redeemed at par at the end of this period. If it is sold now for P 1,390, determine the yield at this price.4. Joyce buys a television set from a merchant who asks P 18,750 at the end of 60 days (cash in 60 days). Joyce wishes to pay immediately and the merchant offers to compute the cash price on the assumption that money is worth 8% simple interest. What is the cash price today?
- A bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. What is the bond's price? Assume annual compounding. Round your answer to two decimal places.Suppose a man purchases a luxury car with an initial down payment of $20,000 and then makes quarterly payments: $2000 at the each of each quarter for six years and $3500 at the end of each quarter for eight more years. Given an interest rate of 6% compounded quarterly, find the present value of the payments and the list price of the luxury car.You receive a loan from a bank on March 12, 2013 and you are required to pay P586,875 on August 16, 2024 to fully exhaust your obligation. If the simple interest rate offered from the bank is 10.355%how much money did you received from the bank? Use ordinary simple interest calculation.
- 7. What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $29263 is made at the end of year 11, and subsequent withdrawals increase at the rate of 10% per year over the previous year's, if the interest rate is 10%, compounded annually? Draw the cash flow diagram and use interest rate with five decimal places.Cory Manciagli is planning to retire in 20 years. Money can be deposited at 6% compounded quarterly. What quarterly deposit must be made at the end of each quarter until Cory retires so that he can make a withdrawal of $40,000 semiannually over the first 10 years of his retirement? Assume that his first withdrawal occurs at the end of six months after his retirement. (Hint: Apply concept of economic equivalence at the end of 20 years).Consider the cash flow series given in the accompanying table. What value of C makes the deposit series equivalent to the withdrawal series at an interest rate of 6% compounded annually?(Ans. $459.88)
- 4. If a refrigerator is offered for sale at the amount of P 18,000.00 payable after 1 year. If you wish to pay immediately, what is the present value of the refrigerator if the seller offers to compute the cash price on the assumption that the money is worth 8% in the simple interest?Suppose Sally’s current salary is $62,000 per year, and she is planning to retire 25 years from now. She anticipates that her annual salary will increase by $1,800 each year. in the first year she will earn $62, 000 in the second year $63, 800 in the third year $65, 600 and so forth.) At the end of each of the next 25 years, she plans to deposit 10% of her salary from that year into a retirement fund that earns 6% interest compounded daily. How much money will be in her account at the time of her retirement?9. A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is to accumulate P2300653 in the account by the time he retires from work in 20 years. A local bank is willing to open a retirement account that pays 10% interest compounded semiannually, throughout the 20 years. He wishes to start with a deposit at the end of the end of 1st semiannual and increase the deposit by 5% per semiannual thereafter. What should be the size of his first semiannual deposit? Draw the cash flow diagram and use interest rate with five decimal places. DONT USE EXCEL. USE MANUAL SOLVING