A businessman borrowed P300,000 with interest at the rate of 6% compounded semi-annually. He " agrees to discharge his obligation by paying a series of 8 equal semi-annual payments, the first being due at the end of 5.5 years. Find the semi-annual payment.

A businessman borrowed P300,000 with interest at the rate of 6% compounded semi-annually. He " agrees to discharge his obligation by paying a series of 8 equal semi-annual payments, the first being due at the end of 5.5 years. Find the semi-annual payment.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 25E

See similar textbooks

Related questions

Q: Mr mdlalose starts his own business and takes out a loan of R450 000 He repays the loan in four…

A: Given information Loan amount = R450,000 Time Period = 4 years Interest rate =10% p.a compounded…

Q: Mr. Sabalbaro borrows P600, 000 at 12% compounded annually, agreeing to repay the loan in 15 equal…

A: Annuity: It is the payment plan where one can get a regular amount of money after making the lump…

Q: A man paid a 10% down payment of 200,000 for a house and lot and agreed to pay the balance on…

A: Cost of house = 200,000 Down payment ratio = 10% Loan amount (PV) = Cost*(1-Down payment ratio)…

Q: 1. A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first…

A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

Q: A man owes ₱100,000 with interest at 6% payable semi-annually. What equal payments at the beginning…

A: Periodic payments are equal to the amount paid by the borrower at an equal interval that consists of…

Q: Andy borrowed P20,000 with interest at 4% compounded quarterly. He agreed to pay P1,500 at the end…

A: Given: Loan =P20,000 Interest rate = 4% compounded quarterly So, quarterly rate = 0.04/4 =1%…

Q: Sam Robinson borrowed $10,000 from a friend and promised to pay the loan in 10 equal annual…

Q: A man agrees to make equal payments at the beginning of each 3 months for 10 years to discharge a…

A: Quarterly rate of return (r) = 0.02 (i.e. 0.08 / 2) Principal debt (P0) = P8,000.00 Quarterly period…

Q: 3. Kidoh paid a 12% down payment of P250,000 for a house and lot, and agreed to pay the balance of…

A: Equated monthly instalment is related to payments, and is used to make payments for repaying an…

Q: Mr. Reyes borrows P600,000 at 12% compounded annually agreeing to repay the loan in 15 equal annual…

A: When the interest is computed on the principal amount as well as on the amount accumulated in the…

Q: Michael owes $30,000 bearing interest at 8% c.a. for 3 years due in 3 months. This debt is commuted…

A: Compounded monthly: It means interest is charged & added to the principal amount after every…

Q: Gilbert got a loan of P100,000 from a local lending agency at 13% compounded annually. Their…

A: Here, Loan Amount is P100,000 Interest Rate is 13% Time Period is 5 years Each successive payment is…

Q: A businessman borrowed P220,000 with interest at the rate of 4.2% compounded semi-annually. He…

A: The future value of money is the amount of money that will be worth at some point in the future if…

Q: A person borrowed a certain amount at a simple interest of 3% annually and agreed with the creditor…

A: The question is based on the concept of Financial Management.

Q: An individual borrows $4,500 from the bank to be repaid in three equal annual installments, with the…

A: Using PMT function in excel

Q: How much of the original principal is still unpaid after he has made the 8th payment?

A: Get the annuity first using P = 600000,i =12%= 0.12 , n = 15 P= A*(1-(1+i)^-n)/i…

Q: A man borrowed $300,000 from a finance company that charges interest at 16% compounded…

A: Amount borrowed is $300,000. Interest rate 16%. Term of loan payment 12.

Q: The Block Concrete Company borrowed $20,000 at 8% interest, compounded semiannually, to be paid off…

A: Refinancing refers to the process of revising and replacing the terms of an existing credit…

Q: Matt borrowed $23,000 at 5.5% compounded semi-annually. If the loan is to be repaid in equal…

A: Loan is contract between lender and borrower where lender provide funds to borrower that is repaid…

Q: Koenma borrows 500,000 at 15% compounded annually, and he agree to pay the loan in 18 equal annual…

A: Loan Amount P5,00,000 Loan period 18 Interest Rate 15% Present value of an ordinary annuity…

Q: A man loans P187,400 from a bank with 5% compounded annually. He agrees to pay his obligations by…

A: Loan amount (PV) = P 187,400 Interest rate = 5% First payment period (t) = 10 years Number of annual…

Q: A man paid 10% down payment of P200,000 for a house and lot and agreed to pay the 90% balance on…

A: We need to use the following formula to calculate monthly payment PMT =PV*i1-1(1+i)n where…

Q: A man owes Php 12,000 today and agrees to discharge the debt by equal payments at the beginning of…

A: The amount which is deposited or paid at the beginning of each period is called as annuity due. The…

Q: man borrowed PhP 300,000 and agreed to pay his bligation by paying 8 equal annual payment of PhP…

A: Loans are paid by the annual payments that carry the payment of interest and payment of principal…

Q: Gloria borrows P100,000 from a lending institution which changes an interest rate of 16% compounded…

A: Formula for finding Annual Payment =[Interest rate*Borrowed Amount]/[{1-((1+Interest rate)^(-Number…

Q: The Flemings secured a bank loan of $328,000 to help finance the purchase of a house. The bank…

A: Ordinary annuities are the PMTs which are made at the end of the period.

Q: Daiki Aomine owes a debt to a lending company of P50,000.00 due in 2 year and another P55,000.00 in…

Q: Mr. Reyes borrows P600 000 at 12% compounded annually, agreeing to pay the loan in 15 equal annual…

A: The information given is Loan amount = 600,000 Interest rate = 12% compounded annually N=15…

Q: a businessman borrowed 260000 pesos with interest at the rate of 5.5% compounded semi-annually. he…

A: The question is based on the concept of Financial Management.

Q: Ali took a loan of 180000 to buy an apartment the bank offered the loan with an apr of 16 compounded…

A: Amount of Annuity "A" is 31,280 Total number of annual payments are 30 Loan amount is 180,000…

Q: Mr. Lamb borrowed $6775 at 8.75 % compounded monthly. He agreed to repay the loan in equal monthly…

A: Here, Loan Amount = $6775 Interest rate = 8.75% Term of loan = 5 years No. of compounding periods =…

Q: An employee obtained a loan of P486,555 at the rate of 20.774% compounded bimonthly to build a…

A: Loan amount is P486,555 Interest rate is 20.774% Compounded bimonthly To Find: Nominal rate…

Q: On December 31, Son-Nan Chen borrowed $100,000, agreeing to repay this sum in 20 equal annual…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: You are about to borrow $8,000 from a bank at an interest rate of 8% compounded annually. You are…

A: The money which is taken as a loan from the bank or from any financial institution is known as…

Q: Mr Reyes borrows P600000 at 12% compounded annually agreeing to repay the loan in 15 equal annual…

A: There are 15 annual payments and the 10th is already paid so the loan outstanding will be the…

Q: Angelo borrowed 58000 from his credit union. He agreed to repay the loan by making equal monthly…

A: using excel pv function

Q: 1. Mr. Reyes borrows P600,000 at 12% compounded annually agreeing to repay the loan in 15 equal…

A: Loan amount (PV) = P 600,000 Interest rate (r) = 12% Number of annual payments (n) = 15

Q: A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first…

A: The time value of money becomes an important factor for capital budgeting decisions. It is an idea…

Q: he Flemings secured a bank loan of $320,000 to help finance the purchase of a house. The bank…

A: This question is asking for a monthly payment of a loan of $ 320,000 at 2% per year repayment in 25…

Q: Cassie paid P68 000 to a money lending company after one and a half years to fulfill er loan that…

A: We need to use RATE function in excel to calculate rate of interest Formula is…

Q: Mr. Reyes borrows P600, 000 at 12% compound the loan in 15 equal annual payments. How muc unpaid…

A: Loans are paid by the periodic payments that are paid equally annually and they carry payment of…

Q: A business man has an obligation to pay $ 8,000 four years from now, and another obligation to pay $…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: 3) You are loaned 810,000 at an effective annual interest rate of i = 7% and agree to pay this back…

A: The loan refers to the amount that a borrower takes from the lender at a fixed rate of interest for…

Q: 3. Aljon loans P417,800 from a bank with interest at 15% compounded annually, he agrees to pay his…

A: In the above question we are given loan from bank=417800 Interest rate =15% number of years =10 We…

Q: An investor had a bank loan to help him in his business. The deal with the bank states that the loan…

A: The value which denotes the present value of some future payments or future value is known as…

Q: I borrow a 500,000 at 15% compounded annually, and he agree to pay the loan in 18 equal annual…

A: Loan amount (PV) = 500,000 Interest rate (r) = 15% Number of annual payments (n) = 18

Q: Mr. Rabutan borrowed P150,000. He agrees to pay the principal plus interest by paying an equal…

A: The payment of equal amounts at equal intervals for a definite period at a specific interest rate is…

Q: Marissa converted an RRSP balance of $125,000 into an RRIF that will pay he $1,850 at the end of…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first…

A: Loan amount (L) = P 30000 Total payments (n) = 10 r = 12% per annum = 6% semiannually Let semiannual…

Q: A man owes Php 10,000 with interest at 8% payable semi-annually. Payments are at the beginning of…

A: Loan amount (P) = Php. 10,000 Annual interest rate = 8% Semi annual interest rate (R) = 8%/2 = 4%…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of 5,000 at the end of each of the next 5 years. Assume a prevailing interest rate of 15%. The present value of an ordinary annuity of 1 at 15% for 5 periods is 3.35. The future amount of an ordinary annuity of 1 at 15% for 5 periods is 6.74. The present value of 1 at 15% for 5 periods is 0.5. How much should Electro record as the cost of the machine? a. 12,500 b. 16,750 c. 25,000 d. 33,700
Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. $500 D. nothing, since this is a noncurrent note payable
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.
Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.