Activity: Same given from Day 1. Your grandparents have decided Labason, Zamboanga del Norte and they land in Titay, Zamboanga Sibugay. They A week after, two offers came. Offer 1: P500,000 down payments payment 10 years from Offer 2: P500,000 down payments 10 years. Which among the two offers sh payments will have an interest of 12% co value of the two offers.
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- Your grandparents have decided to sell their real estate property in Valenzuela City and they are planning to purchase a condominium unit in Pasig City. They posted an online advertisement for this. A week after two offers came Offer 1:7500.000 down payment plus P1,500,000 lump-sum payment 10 years from now Offer 2: P500,000 down payment plus P12,500 per month for 10 years. Which among the two offers should your grandparents choose if the payment will have an interest of 12% compounded monthly? Find the fair market value of the two offers.Jessica’s parents have decided to sell their ancestral house and they are planning to purchase a condominium unit. They posted an advertisement on the Internet. A week after, two offers came. Offer 1: Php 1,000,000 down payment plus Php 3,000,000 lump-sum payment 5 years from now. Offer 2: Php 1,000,000 down payment plus Php 50,000 per month for 5 years. Which among the two offers will be more advantageous for your parents if the payment will have an interest of 125 compounded monthly? Find the fair market value of the two offers.A business is considering purchasing a piece of new equipment for $200,000. The equipment will generate the following revenues: Year 1: $50,000 Year 2: $50,000 Year 3: $50,000 Year 4: $60,000 The machine can be sold at the end of the year four for $25,000. Assume a discount of 8%. Based on your above calculations, should they purchase the new piece of equipment? Why? 2. Carl and Melissa have monthly income of $6000. They want to buy a house for $200,000 and make a down payment of $40,000. The monthly payment on a 15-year mortgage will be $2,000 and a 30- year mortgage, the monthly payment will be $1,350. Which of the following would you recommend? Why? A. 15 year option B. 30 year option C. They cannot afford to buy a house at this point
- Based on the cases provided. calculate the income received: i) Mrs. S owns a freehold property in Jurong East, Singapore. She receives an income of dollar 24,000 every year for 9 years from her rented property. Market rental is anticipated to increase to dollar 12,500 per month in the 10th year. Calculate the market value when the required rate of return is 7% per annum. 2. ii) Mrs. Kobe owns 2 acres of freehold commercial land in New Jersey. She leased the land to Mr. Chris at a dollar of 120,000 per acre/per annum for a period of 15 years. Mr. Chris then sub-leased the land to Mr. Shang Chi for a period of 10 years with a rate of payment at dollar 50,000 per acre/per annum. The rate of return for the same properties is 7% per annum and sinking fund at 3%. Estimate the income gathered from this investment to Mrs. Kobe and Mr. Chris. 3. iii) XXX landlord needs a dollar of 250,000 to refurbish a condominium in five years' time. He will save money from rental income (paid monthly…Ms. Landis is the president of Modern Manufacturing. Her company has developed a new 3D printer for use in the construction industry. She has received three offers to purchase this 3D printer technology, as follows: a payment of $500,000 now, followed by annual payments of $120,000 at the end of years 6 through 15. a payment of $900,000 today a series of semiannual payments of $80,000 spread over the next 10 years. The first payment will be received today and the remaining payments will come at the beginning of each semiannual period. Using a required rate of return of 12% per year, calculate the present value of each of the three offers. Based on your answers to part A, which of the three offers should be accepted? That is, which has the largest present value? If the required rate of return were increased to 15% per year, would that change the decision about which offer to accept? Which offer should be accepted at the higher required rate of return?SUBJECT: ENGINEERING ECONOMICS Please show the complete solution. The final answer is already provided. Thomas deposited 300,000Php now, so that his 3 year old daughter will receive 6 equal amounts of money yearly, starting on her 18th birthday. If money earns 20% compounded annually. How much the girl received yearly? Answer: A = P1,158,244.98
- An investor buys a land for PhP 1M and constructs a three-door apartment for studentsworth PhP 5M. He estimates that the annual receipts from the apartment to be PhP 1.2Mand annual expenses to cover taxes, insurance, and maintenance of the apartment to bePhP 100,000. He also estimates that the land can be sold for PhP 3M at the end of 10years. If his money is now earning 8% interest before taxes, will this property earn enoughfor the investment to be justified? Use IRR methoSolve the following: 2. In purchasing of house, a man makes P720,000 down payment and agrees to pay P1,200,000 5 years later. Find the cash value of the house if money is worth 14% compounded semi-annually. 3. How much must a corporation deposit in a bank which credits interest at 12% compounded monthly to come up in 8 years with P2,500,000 needed for its expansion program? 4. On the birth of a child, a father wished to invest in a trust fund which gives 12% compounded quarterly. How much must he invest if he wants to accumulate P650,000 by the time the child reaches his 21st birthday? 5. To provide for a purchase of a car worth P950,000 as a gift to his mother 5 years from now. How much should Benjamin invest today at 18% compounded quarterly? 6. Mrs. Dela Cruz invested P70,000 at 12% compounded quarterly for 5 years and another P70,000 at 18% compounded semi-annually for the same length of time. Find the total amount of the two investments. 7. Four friends deposited…[College: Project Cost-Benefit Analysis Course, Economic Questions] - Can someone please explain the steps on how to complete these problems? Thank you in advance A person dies and leaves an estate of $1,000,000, which is invested and earns 6% per year. Three children, aged 7, 10, and 14, survive the person. At age 18, each child will receive an equal amount from the estate. What is the amount? A piece of property can be bought for $10,000 cash now, or for $4,000 cash now plus $7,000 cash at the end of 6 years. If money is worth 8% per year, which option is better?
- You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.22% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $54,000. Round each answer to the nearest dollar.) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? $______ (b)What is the outstanding balance (in dollars) on your loan after making 4 years of payments? $______ (c)How much equity (in dollars) do you have in the garden after 4 years? $_____ Please answer all subparts. I will really upvotePLEASE ANSWER THE QUESTIONS BELOW AND BE SURE TO SHOW THE FORMULAS AND THE WORK. THANIK YOU :) 1) Janet purchased a new house for $120,000, obviously not in New York. She paid $35,000 down and agreed to pay the rest over the next 25 years in 25 equal end-of-year payments, plus 9% compound interest on the unpaid balance. What will these equal payments be?Answer the Situation below correctly show your complete solution.I already provided the answer I just need the SOLUTION.( Annuities ) Situation: My cousin , Hershey , is newlywed public school teacher who plans for the education of her future children. Initially , at the beginning of each month , 10 000.00 Php was deposited for 8 years in a bank in Orani. At the end of the month , the investment collects 9 % of annual interest and is compounded monthly. After the last deposit , how much is in the account ? Answer: After the last deposit, Hershey's account has 1 398 561.64 Php.