A couple plans to start a business of their own in 6 years. They plan to have Php100,000 cash available at the time for this purpose. To raise the Php100,000, a fund has been started that earns interest at 8% compounded quarterly. What would the quarterly payments into this fund?

Q: A couple secured a 4,000,000 php housing loan from a financing company that gives 12% interest…

A: Equal monthly installment (EMI) is a monthly amount paid towards the loan taken by the borrower.EMI…

Q: A young man has decided to go into business at the age 40. He wishes to accumulate P 200,000.00 at…

A: Future Value = 200,000 Current Value invested = x Deposit will increase each year by 10% Rate = 9.6%…

Q: Edward made equal deposits at the beginning of every 3 months into an RRSP. At the end of 6 years,…

A: Effective annual rate = (1 + Monthly interest rate)^12 - 1 = (1 + 3.75%/12)^12 - 1 =0.03815129256…

Q: Parents have set up a sinking fund to have $180000 in 15 years for their child's education. How much…

A: Given information: Sinking fund (FV) = $180,000 Period (NPER) = 15 years Interest rate (rate) =5.2%…

Q: Suppose Mrs. Aquino would like to save Php 400 at the end of each month, for six months in a fund…

A: In the given question Php 400 will be deposited at the end of each month for 6 months. The amount…

Q: Mr. Jones will invests P 5,000 in a fund at the end of each 6 months to accumulate P 100,000 to buy…

A: Compounding of interest means, interest is received on principal as well as the earned interest…

Q: A woman expects to have $10,000 in 4 years to buy a pair of earrings. She plans to create a sinking…

A: A sinking fund is one that loses money for a specific reason. The concept of the time value of money…

Q: Tatsumi invested Php 10,000 now for the college education of his three-year old son. If the fund…

A: Amount invested today (A) = Php 10000 Age of son today = 3 years He needs to withdraw for 4 years (m…

Q: What is the amount of the payments that Tom Brokaw must make at the end of each of 8 years to…

A: Amount required = $70,000 Interest Rate(r) = 8% Years(n) = 8 Let Annual Payments = P

Q: . Your grandmother has established a trust fund that pays you $3,500 each year for 15 years. upon…

A: Given: CF=$3500t=15 yearsr=7% i.e 0.07

Q: Sandy, a manufacturing engineer, just received a year-end bonus of Php 31, 000.00 that will be…

A: Given Information: Present value of Savings = Php 31,000 Rate of interest = 8% per year Time = 20…

Q: Jane decides to make 5 end-of-year deposits of $10,000 into a fund starting one year from now. 6)…

A: Calculate the amount at the end of 5 years as below: Resultant Table: Hence, amount at the end of…

Q: Robert invested the profit of his business in an investment fund that was earning 3.25% compounded…

A: Interest rate = 3.25% Semi annual interest rate = [1+(0.0325/12)]6-1…

Q: 5. A man decided to sell his farm and to deposit the fund in a bank. After computing the interest,…

A: In this, we have to calculate the present value of annuity today.

Q: Mr. Bienvenido Bautista needs a fund of Php1,000,000 to renovate his house. To provide for this, he…

A: It can be calculated using =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Nper…

Q: Chris Spear invested $15,000 today in a fund that earns 8% compounded annually. To what amount will…

A: Future value = Investment amount x FVF(8%, 3years)                      = $15,000*1.25971…

Q: A business sets up a sinking fund so they will have a $49,000.00 to pay for a replacement piece of…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Mr. Bienvenido Bautista needs a fund of Php1,000,000 to renovate his house. To provide for this, he…

A: Future value required (FV) = Php1,000,000 Interest rate = 12% Monthly interest rate (r) = 12%/12 =…

Q: Paul and Donna Kelsch are planning a Mediterranean cruise in 6 years and will need $6,500 for the…

A: Sinking fund payment: Corporations and individuals should always save for their long-term…

Q: Jianne invested Php 50,000 in a friend's business with a definite annual interest rate of 4%. How…

A: Future value is the value of current asset or investment at a future date. Future value is…

Q: trust for her today which will provide 16 payments throughout the next four years as well as the…

A: *Answer:

Q: our father paid $10,000 (CF at t = 0) for an investment that promises to pay $850 at the end of each…

A: We have to essentially find the disocunt rate at which this investment has NPV of zero. Thus, we…

Q: Ted Houser wishes to accumulate a fund of $40,000 for the purchase of a house and lot. He plans to…

A: The computations as follows: While considering the table of future value of annuity, it can be…

Q: 1. Diego deposited Php 1,000,000 on a bank that earns 20 % compounded annually. Five years later, he…

A: Future value of the amount deposit today can be found using the formula : Future value = Present…

Q: determine the quarterly installment that should be deposited into the fund.

A: Introduction: Sinking fund can be defined as a type of fund which is created for repaying the debt.…

Q: Ms. Pan Aram has set the goal of accumulating Php 4,000,000 for her son's college fund, which will…

A: Here, Future value of deposited amount = Php 4,000,000 Number of years = 18 years Interest rate = 8%…

Q: Abel wants to determine the amount of money he would obtain from the interest of PHP 2,000 at 16%…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Kyle borrowed P100,000 to be paid in 10 years, and established a sinking fund to provide for the…

A: The time value of money plays an important role in the determination of the present worth and future…

Q: A business sets up a sinking fund so they will have a $46,000.00 to pay for a replacement piece of…

A: A Sinking fund refers to a fund that is kept aside or borrowed for the purpose of paying off a debt…

Q: Kate Eden received a graduation present of $2,000 that she is planning on investing in a mutual fund…

A: Excel Spreadsheet:

Q: A family wants to have a $130,000 college fund for their children at the end of 17 years. What…

A: Information Provided: Future value amount = $130,000 Interest rate = 7.10% compounded quarterly…

Q: Jeffery Johnson is saving $1,450,000 per year in a savings account that is paying annual compound…

A: The value of equal payments or a single payment at any specific date which falls in future is called…

Q: Mr. Moreno started to deposit Php. 5,500 quarterly in a fund that pays 2.5% compounded monthly. How…

A: Multiple questions asked, so we can solve only first one or question asked as per requirement under…

Q: A young man has decided to go into business at age 40. He wishes to accumulate P200,000.00 at that…

A: Given: Future Value = P200,000 Current Value invested = x Deposit will increase each year by 10%…

Q: You need Php 80,000 per year for four years to go to college. Your father invested Php 100,000 in a…

A: Investment = Php 100,000 Interest rate = 7% Annual fees = Php 80,000 Number of payments = 4 Future…

Q: Mr. Canlapan deposited his money from selling his old vehicle. The fund would allow him to withdraw…

A: Determine the value of the fund deposited after a year using the Excel PV function with the…

Q: After graduation, you plan to work for Asia Corporation for 12 years and then start your own…

A:

Q: ma'am minda started to deposit P2,000 quarterly in a func that pays 5.5% compounded quarterly. How…

A: Quarterly Deposit = 2000 Interest rate = 5.5℅/4 = 1.375℅ per quarter N = 24 quarters

Q: Assel is scouting a DLSR camera to cover her parents' silver wedding anniversary. She found one at…

A: The regular payments to be made for the loan taken can be calculated using the PMT function in…

Q: Marie's current salary as a Systems Engineer is $100,000 per year. She's planning to place 18% of…

A: The future value of an investment is calculated by multiplying the invested amount by 1+r factor for…

Q: Peter and Amy Chambers have saved $4,500.  They are accumulating funds for a down payment on a…

A: If investment gives Simple Interest: Amount after 5 years = Principal + Interest for 5 years = 4500…

Q: Ms. Lee is thinking about her retirement fund and she still have another 15 years to reach her…

A: Time to retirement = N = 15 years Deposit each year = 4800 Return = 6%

Q: Mrs. Reyes decided to save money for her grandchild. She deposit Php 300 each month into an account…

A: Annuity: It refers to the present and future value of recurring payments at a particular point of…

Q: A person sets up a sinking fund in order to have P100,000 after 10 years for his children’s college…

A: Future Value Required = 100,000 Time Period = 10 years or 20 semi annual periods Interest Rate =…

Q: A 1,000,000-trust fund was set up and to be used by an 8-year old nephew when he goes to college. In…

A:

Q: A young couple wants to have a college fund that will pay $40,000 at the end of each half-year for 8…

A: Time value of money refers that, a sum of money today has more value than the same amount received…

Q: Mr. Moreno started to deposit Php. 5,500 quarterly in a fund that pays 2.5% compounded monthly. How…

A: Note: We are providing the solution of question no.1 as specified in the first line of the question.…

Q: A family want to have a $241,000.00 higher education fund for their children at the end of 22 years.…

A: The calculation is:

Q: Jeffrey invested the profit of his business in an investment fund that was earning 3.50% compounded…

A: FV = 0 N = 7*2 PMT = 5000 rate = (1 + 3.50%/12)^6 - 1 = 1.7628% use PV function in Excel