A woman borrowed P3,000.00 to be paid after 1.5 years with interest at 12% compounded semiannually and P5,000.00 to be paid after 3 yrs. at 125 compounded monthly. What single payment must she pay after 3.5 years at an interest rate of 16% compounded quarterly to settle the two obligations?

A woman borrowed P3,000.00 to be paid after 1.5 years with interest at 12% compounded semiannually and P5,000.00 to be paid after 3 yrs. at 125 compounded monthly. What single payment must she pay after 3.5 years at an interest rate of 16% compounded quarterly to settle the two obligations?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Given the annual interest rate and the compounding period, find i, the interest rate per…

A: CAGR is compound annual growth rate or compound interest formula that calculates interest rate on…

Q: difference between the sums of annuity due and ordinary annuity for the following data: Periodic…

A: Given Information Periodic Payment after each three months = 14,000Payment interval = 3…

Q: How long will it take P5.00 to be four times its value if invested at rate of the 7% compounded…

A: * SOLUTION :-

Q: What will be the amount accumulated by each of the given present investments?(a) $6.000 in 12 years…

Q: Compute the present worth (P) for the cash flows with the different periodicinterest rates…

A: The given information: Second year payment = 1,000 First two year interest rate = 8% Forth year…

Q: A house and lot is worth P2,000,000.00. If purchased on installment, it requires 10% down payment…

A: House and lot cost = 2000000 Down payment = 10% of cost = 200000 Monthly installment = 42821.87…

Q: 14. Audrey buys a piece of lot for P160,000 down payment and 12 deferred semi-annual payments of…

A: The entrance and outflow of cash and cash equivalents are referred to as cash flow. The cash flow of…

Q: A house and lot can be acquired by a downpayment of P520,000 and a yearly payment of P100,500 at the…

A: Given down payment = 520000 P Yearly payment = 100,500 P Time = 10 years Interest rate = 8 %

Q: 1. What is the present worth of P500 deposited at the end of every 3 months for 6 years if the…

A: Given: Amount of deposit at the end of every 3 months=P 500 Number of years=6 Interest compounded…

Q: what is the future of P600 deposited at the end of every month for 4 years if the interest rate is…

A: *SOLUTION :-

Q: at what nominal rate compounded monthly quarterly will P24,000 accumulate to P30,000 in 4 years?

Q: Krystel paid P20,000 as a ten percent down payment for a condominium. She then agreed to pay the…

A: Given down payment = 20000 Therefore 90 % remaining amount = 20000 * 90 / 10 = 180000 Interest rate…

Q: What quarterly payment is required over 15 years to equate with a future amount P150,000? Assume…

A: Answer: Compound interest is a calculation of the principal amount also the interest accumulated in…

Q: Jason makes 20 semi-annual deposits of P15,000 each in a savings account paying 6% compounded…

A: Introduction: Compound interest (or accumulating interest) is the interest on credit or store…

Q: If P500,000 is deposited at a rate of 11.25% compounded monthly, determine the compounded interest…

A: Given information, Principal amount (P)= P500,000 Interest rate (r)= 11.25% Compounded period (m)=…

Q: A series of cash flows are established on an account as listed below: Payment of P375 at the end of…

A: A lender charges a borrower an interest rate that is a percentage of the principal (the amount…

Q: Find the total amount after the investment period in semi-annual payments of 1000 pesos if the first…

A: In economics, the present value refers to the current value of a future stream of cash flow. Future…

Q: Use Appendix C- End-of-period Compounding Interest Tables and formula (when necessary) to find the…

A: P = 10,000 N = 10 i = 6%

Q: Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of…

A: Annual payment = 120000 Total time period or number of payments = 6 Interest rate = 15%

Q: 1. What equal-annual-payment series is required in order to repay each given present amount? (a) Php…

A: The rate of interest that is actually generated on an investment or paid on a loan as a result of…

Q: . Akamane wishes his son to receive P700,000.00 twelve years from now. What amount should he invest…

A: The calculation of initial amount has 3 phase . In first phase we have to calculate the amount after…

Q: Aurora wants to give her daughter Mara a financial gift on the latter’s college graduation two years…

Q: Maria loaned an amount of P100,000.00 payable in 15 equal quarterly installments. The first payment…

A: The inflow or outflow of cash into or out of a firm is referred to as cash flow. It indicates that…

Q: Find i (the rate per period) and n (the number of periods) for the following loan at the given…

A: Rate per period is known as periodic rate, it is calculated by dividing annual interest rate divided…

Q: Find the present value of deferred annuity of P 900 every 3 months for 5 years that is deferred 3…

A: Given Information A = 900i = 10% compounded Quarterly = 10/4 = 2.5% or 0.025n = 5*4 = 20 Deferred…

Q: Determine the present value of a perpetuity of 10,000 pesos payable semi-annually if the money is…

A: Semi-Annual Amount = 10,000 number of payment in a year = 2 compounding period = 4 r = 8%

Q: Find the present value of an annuity due of P1,200.00 paid every 6 months for 5 years at 7%…

Q: 37. Calculate the payment (P) 10 years from now that is equivalent to a payment of P2000 five years…

A: Given payment in 5 years from now = 2000 P Interest rate = 12 % compounded quarterly Quarterly rate…

Q: An engineer is paying P3,000.00 a month into a mutual fund that averages 7.75% compounded monthly.…

A: Given Monthly investment = 3000 Return rate = 7.75 % compounded monthly Monthly rate = 0.6458 %…

Q: deposits 95,000 pesos every year end in an investment which pays a nominal annual rate of 7.65%…

A: Amount invested each year = 95000 Time = 13 years Interest rate = 7.65 % compounded continuously

Q: An investment of P8,500 is made at the end of each year with an interest of 3.5% compounded…

A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…

Q: An equipment can be bought on installment basis with 24 monthly payments of P3,440, each payable at…

A: Payment = 3440 Interest rate = 12 % annual rate = 1 % monthly rate Time = 1 year or 24 months

Q: A businessman wants to have Php 1,000,000 seven years from now. What amount should he invest now if…

A: A=P1+R100T Where A is amount, P is Principal, R is rate of interest, T is time period.

Q: How much money will be required four years from today to repay a P100,000 loan that is made today…

A: Given Loan amount =100,000

Q: Calculate the effective annual interest rate for each of the following cases: (a) 12% per year…

A: The effective annual rate of interest is the genuine/real return for an investment account or any…

Q: Perpetuity 5. If money is worth 8% compounded

Q: Q2. Deposits are to be made to an account as indicated in the table below which bears interest at…

A: Given the interest rate = 10% Time = 6 years

Q: You borrowed money today to be paid in 8 equal payments at the end of 8 quarters. If the interest…

A: In the financial world, "principal" is a term that can mean various things. When referring to a loan…

Q: . An annual deposit of P 1,270 is placed on the fund at the end of each year for 6 years. If the…

A: An annual report could be a company document that's distributed to shareholders and details the…

Q: 20. Each year a single payment of P1766 is deposited in an account that earns 6% compounded…

Q: If money is worth 8% compounded quarterly, calculate the present worth of the following: (a) An…

A: a. Time = 50 years Interest rate = 8 % compounded quarterly Quarterly rate = 8 / 4 = 2 % Therefore…

Q: You received a credit card application from Sun Bank offering an introductory rate of 3% per year…

Q: What is the equal-payment series for 10 years that is equivalent to a payment starting with Php…

A: Amount of the Present Worth of the Equal-Payment Series This investment strategy aims to calculate…

Q: What is the equal payment series for 10 years that is equivalent to a payment series of P12,000 at…

A: The present value (PV) of the future cash flow can be calculated by the following formula: i=8%…

Q: the nominal rate is 16.5% per year compounded quarterly, what is the equivalent effective rate of…

Q: A farmer bought a tractor costing P25,000 payable in ten semi-annual payments, each instalment…

A: The value of each instalment (IN) can be calculated by using the following formula.

Q: You obtained a Joan of $25,000 to finance your home improvement project.Based on monthly compounding…

A: The given information are as follows. Loan = $25,000 Interest = $1,200 Then the average percentage…

Q: If cash flows are received on a semi-annual basis; what is the effective semiannual interest rate if…

A: Given information, Interest rate (r): 8.8% Compounding period (m): 12 (monthly) Cashflow…

Q: How much money would you have to deposit for 5 years consecutive years starting one year from now if…

A: We have given the following cash flow

Question

100%

A woman borrowed P3,000.00 to be paid after 1.5 years with interest at 12%
compounded semiannually and P5,000.00 to be paid after 3 yrs. at 125 compounded
monthly. What single payment must she pay after 3.5 years at an interest rate of 16%
compounded quarterly to settle the two obligations?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Given

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

You borrowed money today to be paid in 8 equal payments at the end of 8 quarters. If the interest rate is 18% compounded quarterly, how much is initially borrowed if the quarterly payment is 3,500 Php?
You received a credit card application from Sun Bank offering an introductory rate of 3% per year compounded monthly for the first six months, increasing thereafter to 18% compounded monthly. This offer is good as long as you transfer your current debt from your existing card. Assuming that you will transfer $5,000 balance, you will continue to make $150 monthly payment(without making any subsequent purchases), what would be the credit card balance at the end of the first year?
A present loan of P12,000 is to repaid by equal payments every 6 months over the next 8 years. If the interest rate is 7% compounded continuously, what is the amount of each payment?
Find the total amount after the investment period in semi-annual payments of 1000 pesos if the first payment is due at the end of 3 years and money is worth 6% interest compounded semi-annually? (Future Value of Simple Ordinary Annuity) P4,668.41 P6,468.41 P4,668.40 P6,468.40
Mina wishes her friend, Yuri, to receive Php 1,000,000.00 twenty years from now. What amount should she invest now, if it will earn interest at 12% compounded annually during the first five years and 10% compounded monthly for the remaining years?
The nominal interest rate is 14% compounded semiannually. What amount will need to be deposited every six months to be able to have enough money to pay three annuity payments of $10,000 for three years beginning at the end of year seven? The deposits begin now and continue every six months until six deposits have been made.
a debt of $6000 due in four years and $7000 due in five years is to be repaid by a single payment of $5500 now and two equal payments that are due each consecutive year from now. If the interest rate is 16% compounded annually, how much are each of the equal payments
a. How much money you can invest now, so that you can make five equal withdrawals of $500, starting three years from now, at an interest rate of 8%. (P/A, 8%, 5) = 3.9927 and (P/F, 8%, 2) = 0.8573 b. What effective interest rate per year is equivalent to a nominal rate of 10% per year compounded semiannually and continuously?
What is the accumulate value of a payment of P12,500.00 at the end of each year for 9 years with interest at 5% compounded annually?
Find the present value of an annuity due of P1,200.00 paid every 6 months for 5 years at 7% compounded semi-annually.
Jimmy Carpenter, a self-employed individual, is opening a retirement account at a bank. His goal is to accumulate $1,000,000 in the account by the time he retires from work in 20 years ‘time. A local bank is willing to open a retirement account that pays 8% interest compounded annually throughout the 20 years. Jimmy expects that his annual income will increase 6% yearly during his working career. He wishes to start with a deposit at the end of year 1 and increase the deposit at a rate of 6% each year thereafter. a. What should be the size of his first deposit The first deposit will occur at the end of year 1, and subsequent deposits will be made at the end of each year. The last deposit will be made at the end of year 20.b. What is the value of A if the bank decides to decrease the interest rate to 6% compounded annually.
If the sum of P12,000.00 is deposited in an account earning interest at the rate of 9% compounded quarterly, what will it become at the end of 8 years?