A loan is being handed out in multiple increasing semi-annual releases. The first release is P50,000 and the last transfer to be P90,000 for 10 years. What is the present worth of the loan if money is worth 6%?

Q: money is worth 7.3%, compounded quarterly?

A: Present Value of future cash flow means the cash flows discounted at a given rate of return. FV*…

Q: A company will borrow a loan to finance a 10-year project that will require an initial installation…

A: Given Information: Initial installation cost - ₱2,500,000 After 2 years - ₱500,000 Regular annual…

Q: A $ 200 000 loan is made with 30 years maturity and monthly compounded. The loan is based on a…

A: The loan is an arrangement of the lending facility from the lender to the borrower. A lender…

Q: A firm is scheduled to receive payment of $68,000 in 2 years.  What is the present value of this…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: A sum of GH¢100 is to be paid at the end of each year for 20 years. The effective compound interest…

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

Q: A loan of $60,000 is due 10 years from today. The borrower wants to make annual payments at the end…

A: Firstly, calculating PMT with annual compounding:

Q: How much will Kingston Technologies have to pay each year in 7 equal payments, starting 2 years from…

A: No. of equal installments = 7 Loan amount = $900,000 Interest = 14% per annum Annuity calculation is…

Q: If the current rate of interest is 6% APR, what is the future value of an investment that pays…

A: Interest rate = 6% Payment every two years = AED 15,000 Future value period = 20 Years

Q: In a series of payments at the end of the period, the first payment is 240 TL and the second payment…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: A person buys a piece of lot for P110,000 down payment and 10 deferred semi-annual payments of P…

A: Present value of all payments is calculated by using discount rate factor and then multiplying the…

Q: How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth…

A: Loan amount = P1,400,500  Interest rate = 518% = 418% = 5.125% Time period = 20

Q: A loan of 750000 needs to be paid in annual installments by the end of every year. The interest rate…

A: The periodic payment of a loan or debt is known as installment. The installment includes principal…

Q: A loan of P30,000 is to be repaid monthly for 5 years that will start at the end of 4 years. If…

A: Present value of deferred annutiy Present value of deferred annuity refers to the annuity which…

Q: A sum of money invested now at 10 percent compounded semi-annually is to provide payments of $1500…

A: Let the money to be invested now = X Semiannual payment (A) = $1500 Number of payments (n) = 16 r =…

Q: a) Payment of $5,000 per year for 6 years will repay an original loan of $25,000? b) Thirty-six…

A: Future Value = Present value ( 1 + i )n

Q: How much will Kingston Technologies have to pay each year in 9 equal payments, starting 2 years from…

A: Here, Loan Amount is $900,000 Interest Rate is 13% Loan Start Date is two year from now Loan Period…

Q: How much will Kingston Technologies have to pay each year in 8 equal payments, starting 2 years from…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A consumer loan of P80,000 is obtained that is due 3 months from now. If interest rate is 8%…

A: The borrower is required to pay the lender the initial sum borrowed and the interest on the loan.…

Q: A certain amount of money after a decade is said to be worth Php 12,000.00. If the interest rate…

A: Future Value = 12,000 PHP 1 USD = 49 PHP Future Value in USD = 12,000 / 49 = 244.90 USD N = 10 years…

Q: A company wants to have $40,000 at the beginning of each 6-month period for the next 4.5 years. If…

A: The given problem is on Annuity due Annuity due is an annuity whose  payment is due immediately at…

Q: An investment offers $6,100 per year for 15 years, with the first payment occurring today. If the…

A: present value of annuity due formula: PVADUE=A×1-11+rnr×1+r where, A=annuity r=rate n=number of…

Q: A loan of 10,000 is to be repaid during 5 years with equal monthly payments of p. The interest rate…

A: In this we have to calculate present value of both option.

Q: A one million peso loan is to be paid annually at an interest rate of 8.00% pa compounded monthly.…

A: Loan amount (L) = P 1 million Interest rate = 8% compounded monthly. We need to find the annual rate…

Q: What lump sum of money must be deposited into a bank account at present time so that $1,500 per…

A: Semi annual withdrawal = $ 1500 Period = 10 Years Number of withdrawals = 10*2 = 20 First withdrawal…

Q: In a series of payments at the end of the period, the first payment is 200 TL, the second payment is…

A: The first payment is 200 TL. The payment decreased by 20 TL. The annual effective interest rate is…

Q: A business loan of 1,200,000 pesos is to be paid in full after 5 years. If the interest rate is 4%…

A: loan amount is 1,200,000 pesos Time period is 5 years Interest rate is 4% per annum   To Find:…

Q: stomer wishes to have an amount of R300 000 at the end of 10 years. The bank pays an interest rate…

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

Q: A loan for P 50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A loan is to be repaid quarterly for 5 years that will start at the end of 2 years. If interest rate…

A: The Loan amount will be equal to the present value of payments today. Effective quarterly interest…

Q: A piece of machinery can be bought for P10,000 cash or for P2,000 down and 20,000 at the end of 15…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: An investment promises to pay 3500 per year for the next 3 years and then 4000 per year for the…

A: Year Income 1 3500 2 3500 3 3500 4 4000 5 4000 Discount rate = 15%

Q: A loan of P50,000 is to be amortized by paying quarterly in 1 year. If money is worth 10% compounded…

A: Quarterly payment = Q Loan amount (L) = P 50000 r = 10% per annum = 2.5% per quarter n = 1 year = 4…

Q: A series of 10 annual payments of Php 200, 000.00 is equivalent to two equal payments, one at the…

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

Q: With a present value of $130,000, what is the size of the withdrawals that can be made at the end of…

A: Present value of an amount is $130,000. Using present value annuity formula, quarterly withdrawals…

Q: How many years will it take $145,000 to grow to $645,000 if it is invested in an account with a…

A: We use NPER function in excel to calculate time taken

Q: With a present value of $125,000, what is the size of the withdrawals that can be made at the end of…

A: Present value (PV) = $125,000 Period = 10 Years Quarterly periods (n) = 10*4 = 40 Interest rate =…

Q: . A loan of Php 40,000.00 with interest rate of 15% compounded biannually, is to be discharged by a…

A: Loan amount = Php 40000 Semi-annual rate R = 15%/2 = 7.5% Number of semi-annual period = 10 First 6…

Q: A person invests 100,000 TL in bank deposits with an annual nominal interest rate of 10%,…

A: According to the time value of money concept, money available today worth more than the same amount…

Q: A $60,000 loan with interest at 6% compounded quarterly is being paid off with monthly payments of…

A: The notion of the time value of money (TVM) states that an amount of money is worth more now than it…

Q: A loan of $8000 will be discharged by a cash payment of $3200 now; $1800 at the end of 4 years; $600…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: You borrow $150,000 with a 20-year term at a9.3% (APR) variable rate and the interest rate can…

A: A mortgage is a debt instrument, secured by the collateral of specified real estate property, that…

Q: Php100,000 is left in the bank for 20 years. At time 20, regular withdrawals annually will be done…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: Harper takes out a loan of $126,500,000, which is to be repaid by annual payme for 25 years. The…

A: A loan simply refers to the amount borrowed from a lender. The lender in such a scenario might be a…