(b) Suppose that you took out PTPTN loans totalling RM24000 with interest of 1% per year. You have an online payment plan which deducts savings from your bank account at a rate of RM100 per month. (Hint: Assume that the rate is evaluated based on the current balance of the loan.) (1) Write the initial value problem for the situation above. State all variables and the quantities they represent.

(b) Suppose that you took out PTPTN loans totalling RM24000 with interest of 1% per year. You have an online payment plan which deducts savings from your bank account at a rate of RM100 per month. (Hint: Assume that the rate is evaluated based on the current balance of the loan.) (1) Write the initial value problem for the situation above. State all variables and the quantities they represent.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

See similar textbooks

Similar questions

Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Your firm is considering two one-year loan options for a $506,000 loan. The first carries fees of 2.4% of the loan amount and charges interest of 3.6% of the loan amount. The other carries fees of 1.8% of the loan amount and charges interest of 4.7% of the loan amount. a. What is the net amount of funds from each loan? b. Based on the net amount of funds, what is the true interest rate of each loan?
Visa Inc. asked your company for a 5-year loan of $50,000. The repayment of the loan will be as follows: Visa Inc. will pay $5,000 at the end of Year 1, $10,000 at the end of Year 2, and $15,000 at the end of Year 3, and fixed unspecified cash flow (assume X) at the end of each of the following years (Year 4 and Year 5). Assuming 8% as an appropriate rate of return on low risk but an illiquid 5-year loan. Find out the cash flow that this investment must provide at the end of each of the final 2 years (year 4 and year 5), that is, find out the X?
Your firm is considering a one-year loan for $522,000. The fees are 2% of the loan amount and the interest rate is 4.3%. First, compute the net amount of funds from the loan. Based on this net amount, what is the true interest rate of the loan? Group of answer choices
What is the effective interest rate charged to a loan of P5,000 paid after 5 years amounting to P7,250? What is the nominal rate if it is compounded semi-annually? upload your solution with signature sifan ?
The XYZ Co. needs an estimate of the present value of its future revenues to get a bank loan. Management expects XYZ Co, to post revenues of $250m in 4 years, $300m in 5 years, $360m in 6 years and $400m in 7 years. If the appropriate discount rate is 4% per year, what is the present value of XYZ Co.’s revenues?
You want to invest $18,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 6% that is compounded semiannually. What is the effective rate of return that you will earn from this investment?
You plan to use the 150,000 TL fund, which was idle for a year, in a time deposit account. The annual interest rate offers you receive from traditional and digital banks are as follows. Accordingly, calculate which option will give you the highest rate of return.
What is the present worth of a future payment of $19,000 in year 7 if the interest rate is 10% per year using (a) the tabulated factor values in your book, (b) TVM functions on a financial calculator, and (c) built-in functions on a spreadsheet?
Suppose you recently bought a house for R1 650 000 and secured a home loan from the bank, with an interest rate of 9% per annum (compounded monthly) for a 20-year (240-month) term. You are obligated to make equal monthly payments, and your first payment is due in one month’s time. However, after reviewing the bank’s repayment calculation, you realize that you can afford to pay R1 000 more each month. How many months less will it take you to repay the home loan if you consistently make an additional monthly payment of R1 000. You may assume that the interest rate will remain fixed over the term of the home loan. a) 203.24 months b) 0.24 months c) 36.76 months d) 60.10 months e) None of the above
What should be the simple discount rate if a loan amount of P500,000 with a loan term of 3 years will have a net loan proceeds of P480,000?