Solve for activity no.8 month for 5 years with the same interest rate. Which fair market value between these5 years at 9% compounded annually. The other investment scheme is P12,000 perKat received two offers for investment. The first one is P 150,000 every year for(10)(12)even pd quarterly deposit Rsalution.aringnded+Sa2) == (1 + (1)interval.(12)0.05.(12)(1+12121+ (12)12= (1.05)1/12sits(12)= (1.05)/12 - 112(12)= 1.004074 - 112(12)= j = 0.00407412Find the monthly stipend R of an ordinary annuity using the equivalent rate i =0.004074.R = P/ [ED"= 1,000,00/[1-(1+0.004074)-12010.004074[0.3860776643= 1,000,00/ 0.004074= 1,000,000/ 94.766240624= 10,552.28Answer: R= P 10,552.28Activity 8: Give Me the Periodic Payments of the followingGeneral Annuities.1. Monthly payment of the future value of P 50,000 for 1 year with an interestrate of 10% compounded quarterly.2. Quarterly payment of an accumulated amount of P 80,000 for 2 years withinterest rate of 8% compounded annually.S. Semi-annual payment of the loan P 800,000 for 5 years with an interest rateof 9% compounded annually.5.offers is preferable?Solution:value.

1) Future value of annuity = P 50000 Number of payments (n) = 12 Interest rate = 10% quarterly…

Activity 8: Give Me the Periodic Payments of the following General Annuities. 1. Monthly payment of the future value of P 50,000 for 1 year with an interest rate of 10% compounded quarterly. 2. Quarterly payment of an accumulated amount of P 80,000 for 2 years with interest rate of 8% compounded annually. Semi-annual payment of the loan P 800,000 for 5 years with an interest rate of 9% compounded annually.

Activity 8: Give Me the Periodic Payments of the following General Annuities. 1. Monthly payment of the future value of P 50,000 for 1 year with an interest rate of 10% compounded quarterly. 2. Quarterly payment of an accumulated amount of P 80,000 for 2 years with interest rate of 8% compounded annually. Semi-annual payment of the loan P 800,000 for 5 years with an interest rate of 9% compounded annually.

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 18E

See similar textbooks

Similar questions

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?
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
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
A debt of $10,000 is to be repaid by equal Monthly payments at the end of every month for 1 year. Interest is 6% compounded Semi-Annually. What is the size of the payment? Question options: $810.94 $851.72 $860.33 $856.10
If K40, 000 is deposited at the end of each half year in an account that earns 6.2% compounded semiannually, how long will it be before the account contains k1, 200, 000? b. When you establish a sinking fund, which interest rate is better? Explain.i. (a) 10% (b) 6% ii. (a) 12% compounded monthly (b) 12% compounded annuallyc. If k2500 is deposited at the end of each quarter in an account that earns 5% compounded quarterly, after how many quarters will the account contain k80, 000?d. A lottery prize worth k 2,400,000 is awarded in payments of k 20,000 at the beginning of each month for 20 years. Suppose money is worth 7.8%, compounded monthly. What is the real value of the prize?e. A couple who borrow K90, 000 for 30 years at 7.2%, compounded monthly, must make monthly payments of K610.91. (a) Find their unpaid balance after 1 year.(b) During that first year, how much interest do they pay?f. The first term of a GP represents the number of tins of beans sold in Food Lovers the week before…
A debt of $10,000 is to be repaid by equal Monthly payments at the end of every month for 1 year. Interest is 6% compounded Semi-Annually. What is the size of the payment? Question options: $810.94 $851.72 $860.33 $856.10 Solve on the white paper. Or typed not in excel works.
Suppose you deposit $2,000 at the end of eachquarter for ten years at an interest rate of 9% compounded monthly. What equal end-of-year depositover the ten years would accumulate the same amountat the end of the ten years under the same interestcompounding? To answer the question, which of thefollowing is correct?(a) A = $2,000(F/A, 2.267%, 4)(b) A = $2,000(F/A, 9%12 , 40) * (A/F, 9%, 10)(c) A = [$2,000(F/A, 2.25%, 40)] * (A/F, 9%, 10)(d) None of the above