Atsushi Murasakibara owes a debt to a lending company of P30,000.00 due in 1 year and another P75,000.00 in 4 years. He agrees to pay P 60,000.00 today and the balance in 2 years. How much must he pay at the end of two years if money is worth 6.5% compounded semi-annually
Q: Mr. Cruz agreed to settle a debt by making 12 quarterly payments of P 450 each. If he failed to make…
A: Quarterly payment (Q) = P 450 n = 12 payments r = 8% per annum = 2% per quarter Let X = Debt amount
Q: Alexander Michael owes P25,000.00 due in 1 year and P75,000 due in 4 years. He agrees to pay…
A: Amount owed in one year = 25,000 Amount owed in four years = 75,000 Amount paid today = 60,000…
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A: Given:
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A: Annuity: It is the payment plan where one can get a regular amount of money after making the lump…
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A: The concept of present value states that a sum of money is worth today more than the same sum of…
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A: Loan Amortization table :- An amortization plan (in some cases called an amortization table) is a…
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A: Loan amount (PV) = 300,000 pesos Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4% First…
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A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…
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A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…
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A: Loan to be repaid on maturity = C* ( 1+i)n Where C is the amount of loan borrowed i is the periodic…
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A: Data given: Mariel owes P30,000 in 5 months and P14000 is due in 11 months. New tenure = 9…
Q: John took a personal loan of $100,000 from the bank at a nominal interest rate of 6% per year…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Mr. Reyes borrows P600,000 at 12% compounded annually agreeing to repay the loan in 15 equal annual…
A: When the interest is computed on the principal amount as well as on the amount accumulated in the…
Q: Javion Minerva owes P25,000 due in 1 year and P75,000 due in 4 years. He agrees to pay P50,000 today…
A: Effective interest rate refers to the rate which is calculated by computing the effect of…
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A: Compounded monthly: It means interest is charged & added to the principal amount after every…
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A: The given problem can be solved using PMT formula in excel. PMT formula computes payment /…
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A: Loan 1 value = Php 4000 Interest rate = 10% per annum = 5% semiannually Duration = 1.5 years = 3…
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A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…
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A: Get the annuity first using P = 600000,i =12%= 0.12 , n = 15 P= A*(1-(1+i)^-n)/i…
Q: Fred owes $12000 due in two years and $8,000 due in twelve years. Fred is allowed to pay off both…
A: We have to consider present value and future value of both.
Q: Nur's father bought a car for RM104,000. He paid an advance of RM24,000 and the balance will be paid…
A:
Q: G borrows P47,400 with interest at 18% compounded quarterly. How much should he pay to the creditor…
A: Use the Excel FV function with the following inputs to determine the value of investment. RATE =…
Q: Mr. Rafiq owes Mr. Ahmed Rs. 7000 to be due in 5 years and Rs. 15,000 to be due in 7 ½ years. How…
A: Total amount Mr. Rafiq pay at the end of 6 years =Worth of $7,000 in year 6 + Worth of $15000 in…
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A: Loan amount (PV) = P 187,400 Interest rate = 5% First payment period (t) = 10 years Number of annual…
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A: Given information: Investment : Php 1000 Rate of interest : 10% Annual withdrawal : Php 150 Time…
Q: A businessman borrowed P300,000 with interest at the rate of 6% compounded semi-annually. He "…
A: Loan amount = P 300,000 Annual interest rate = 6% Semi annual rate (R) = 6%/2 = 3% First payment…
Q: Kate owes P120 000 due in 4 years plus the accumulated interest from today at 13% compounded…
A: Loan amount today (L) = P 120000 Loan amount is due in 4 years. r = 13% per annum = 3.25% per…
Q: Daiki Aomine owes a debt to a lending company of P50,000.00 due in 2 year and another P55,000.00 in…
A:
Q: Johnson takes a loan of RM600,000 from a bank. The bank charges an interest rate of 6.6%per annum…
A: Loan amount = RM 600,000 Annual interest rate = 6.6% Interest rate per month (R) = 6.6%/12 = 0.55%…
Q: A man borrowed P400,000 from a lending institution which will be paid after 10 years at an interest…
A: Compounding is a process where the investor or trader pays interest on interest. In this, the…
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A: The question is based on the concept of Financial Management.
Q: Hugo loaned P200,000 from a local bank to be paid back uniformly in five years. How much will he pay…
A: The given problem can be solved using PMT function in excel. PMT function computes installment…
Q: A man owes Php 15,000 with interest at 8% payable semi-annually. Equal payments at the beginning of…
A: Firstly we shall calculate the Semiannual payment using Excel's =PMT formula Then we shall prepare…
Q: 1. Mr. Reyes borrows P600,000 at 12% compounded annually agreeing to repay the loan in 15 equal…
A: Loan amount (PV) = P 600,000 Interest rate (r) = 12% Number of annual payments (n) = 15
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A: We need to use compound interest formula to calculate amount payable at the end of year 5.The…
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A: As per time value of money concept, a sum of amount invested today will have more value in the…
Q: Kate owes P120 000 due in 4 years plus the accumulated interest from today at 13% compounded…
A: Present value of amount payable after 4 years = P 120,000 Installment after 2 years = P 30,000…
Q: Mr. Reyes borrowed from the bank an amount of P326,000 today to be paid after 5 years. This was done…
A: Banks charge the interest on the loan which they provide to the borrower Given in the question…
Q: How much money did he borrow if the interest is 8% compounded quarterly ?
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Q: man deposits P500 in a credit union at the end of each year for 5 years. The credit union pays 5%…
A: Time value of money: The time value of money is the idea that the value of money received today will…
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A: Note: It is a case where the number of questions asked is more than one and the question 5 is…
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A: The value of equal withdrawal depend on the future value of the present deposits made.
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A: First we need to calculate size of quarterly payment of loan amount. PMT =PV*i1-1(1+i)n where PV…
Q: Jenny has borrowed P 30000 in 1 year and P 80000 due in 5 years. She must pay P 50000 today and the…
A: Interest rate = 6% compounded semiannually Let the amount borrowed in year n = Bn and the amount…
Q: Bench loaned P10000 in a bank to be paid after 3 years with an interest of 10% compounded semi-…
A: First loan (L1) = P 10000 n = 3 years = 6 semiannual periods r = 10% per annum = 5% semiannually…
Q: ohn deposits Ghs|250 at the of each month for 5 years account that credits interests at a nominal…
A: Annuity means where regular payment is made at the end of regular period and full amount with…
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- Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
- 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. 33,700Marathon 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
- Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. $500 D. nothing, since this is a noncurrent note payableUsing the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
- Compound Interest Issues You are given the following situations: 1. Thomas Petty owes a debt of 7,000 from the purchase of a boat. The debt bears 12% interest payable annually. Thomas will pay the debt and interest in 5 annual installments beginning in 1 year. Calculate the equal annual installments that will pay off the debt and interest at 12% on the unpaid balance. 2. On January 1, 2019, John Cothran offers to buy Ruth Houses used tractor and equipment for 4,000 payable in 12 equal semiannual installments which are to include payment of 10% interest on the unpaid balance and payment of a portion of the principal with the first installment to be made on January 1, 2019. Calculate the amount of each of these installments. 3. Nadine Love invests in a 60,000 annuity at 12% compounded annually on March 1, 2019. The first of 15 receipts from the annuity is payable to Love on March 1, 2029, 10 years after the annuity is purchased and on the date Love expects to retire. Calculate the amount of each of the 15 equal annual receipts. Required: Using the appropriate tables, solve each of the preceding situations.You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
