A condominium unit is available at ₱29,000 monthly payable in 20 years. The first payment is due in 2 years exactly the time when the condominium will be turned in to the buyers. How much is the cash value if the interest rate is 10% convertible monthly? a. ₱2,486,181.92 b. ₱2,482,939.20 c. ₱2,463,290.86 d. ₱2,438,852.55

A condominium unit is available at ₱29,000 monthly payable in 20 years. The first payment is due in 2 years exactly the time when the condominium will be turned in to the buyers. How much is the cash value if the interest rate is 10% convertible monthly? a. ₱2,486,181.92 b. ₱2,482,939.20 c. ₱2,463,290.86 d. ₱2,438,852.55

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Similar questions

Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for 10 years of $50,000. The pump can be sold at the end of the period for $100,000. What is the present value of the investment in the pump at a 9% interest rate given that savings are realized at year end?
A house and lot package is available at P27,000.00 mònthly payable in 20 years. The first payment is due in 2 years exactly the time when the house unit will be turned in to the buyers. How much is the cash value if the interest rate is 7.5% convertible monthly?
a condominium unit is available at 29,000 monthly payable in 20 years. The first payment is due in 2 years exactly the time when the condominium will be turned in to the buyers. how much is the cash value if the interest rate is 10% convertible monthly?
1.A cash loan is to be reapid by paying 13,500 php quarterly for 3 years starting the ened of 4 years. If interest rate is 12%convertible quarterly , how much is the cash loan? 2. A car is to be purchased in minthly payments of 19,500 php for 5 years strating at the end of 3 months. How much is the cash value of the car if the interest rate used is 10% converted monthly?
1. Compute the difference in the future amount of P500 compounded annually at nominal rate of 5% and if it is compounded continuously for 5 years at the same rate? 2. Compute the effective annual interest rate which is equivalent to 5% nominal annual interest compounded continuously? 3. A construction firm wishes to give each 80 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded monthly, so that each employee will receive a P5,000.00 bonus? 4. A debt of P10,000.00 with 10% interest compounded semi-annually is to be amortized by semi-annual payments over the next 5 years. The first due is 6 months. Determine the semi-annual payments? 5. Mr. Ramirez borrowed P15,000.00 two years ago. The term of the loan is 10% interest for 10 years with uniform payments. He just made his second annual payment. How much principal does he still owe? 6. A service car whose cash price was P540,000.00 was bought with a down-payment of…
A condominium unit can be bought at a down payment of P150,000 and a monthly payment of P23,347 for 10 years starting at the end of 5th year from the data of purchase. If money is worth 3% compounded monthly, what is the cash price of the condominium unit? Solve and explain!
An engineer buys a piece of lot for P250,000 down payment and 10 deferred semi-annual payments of $20,000 each, starting 3 ½ years from now. What is the present value of the investment if the rate of interest is 10% compounded quarterly? A. 403,967.03 B. 372,891.34 C. 319,368.96 D. 364,483.09
A person buys a piece of property for P100,000 down payment and ten deferred semi-annual payments of P8,000each starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually? What is the corresponding value if ten deffered semi annual payments of 8,000 are made starting three years from now? A. 100,000 B. 43,999.08 C. 8,000
A house costing RM120,000 cash is purchased by making a down payment of RM40,000 and the balance is to be settled by making 120 monthly payments at 6% compounded monthly.(a) Find this monthly payment. (b) If the buyer intends to settle all of the loan by making a single payment immediately after seven years, find this single payment.
If P dollars is borrowed at a rate or r per year to be paid back in tyears, the monthly payment (n=12) is given by the formulaA =((r/n)P)/ (1 − (1 + r/n)−nt450, 000.00 is borrowed to buy a house. The annual interest rate is 7.04%. Whatis the monthly payment if the term of this transaction is 30 years.