Do not forget to draw cash flow diagram with complete label. blem. No rounding in between the solution. Final answer round Find the annual payments to extinguish a debt of P 10,000 payable in 5 years at 10%.
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- a) Find the Future Value of an annuity for$1000 paid at the end of each year for 3 years assuming interest is compounded annually at 7%? b) Julie Miller will receive the set of cash flows below. What is the Present Value at a discount rate of 10%. Year one 500, year two 500, year three 300, year four 300 and year five 150. c) Perpetuity has no time limit. The present value of $100 perpetuity discounted at 15% is?j.A house and lot can be acquired by a down payment ofP500,000 and a yearly payment of P100,000 at the end ofeach year for a period of 10 years, starting at the end of 5years from the date of purchase. If money is worth 14%compounded annually, what is the cash price of theproperty? include a non-excel cash flowA(n) 16-year bond has a coupon of 6% and is priced to yield 13%. Calculate the price per $1,000 par value using semi-annual compounding. If an investor purchases this bond two months before a scheduled coupon payment, how much accrued interest must be paid to the seller? The price of the bond, PV, is $nothing. (Round to the nearest cent.)
- At what interest rate payable quarterly will payments of Php 500 at the beginning of each 3 months for 7 years discharge a debt of Php 12,500 due immediately. (ans: 3.44%) Deferred Annuity or PerpetuityA bank is in the processing of rescheduling a $10 million loan paying 14% interest. If liquidated, it expects to receive $8.4 million. The rescheduling terms are as follows: Amount $10,000,000 in year 0 New maturity in years 5 Interest rate 8% Principal payments in millions $5,000,000 each in years 4 and 5 Upfront-fee 1.00% Cost of capital after rescheduling 14.00% Should the bank reschedule the loan? A Yes, reschedule the loan because the NPV is greater than liquidation value B No, do not reschedule the loan because the liquidation value is lower than the NPV C Reschedule the loan only if the cost of capital after rescheduling is 12% D Reschedule the loan only if the cost of capital after rescheduling is 15%6. A bank charges an interest rate of 7%. An engineer wants to loan an amount ofFhp 1,000,000 to start his construction business from January 06, 2022 to December 30,2022. Determine the difference of future worth of ordinary simple interest and exact simpleinterest.
- If your credit card calculates interest based on17.85% APR, compounded monthly:(a) What are your monthly interest rate and annualeffective interest rate?(b) If your current outstanding balance is $2,500 andyou skip payments for two months, what wouldbe the total balance two months from now?PLEASE HELP ME ANSWER ASAP 5. Tonyo saves PHP 1,000 per month and increases by PHP 20 per month with the first deposit being made today, January 20, 2023. (Hint: Take 12/20/22 as time 0 so it will be an annuity immediate) His savings earn 3% effective per month. He planned to continue these deposits for 5 years. a. What is the accumulated value of his savings at the end of 5 years? b. How much is this savings account worth today if payments were to made forever under this pattern c.a man bought a property and he paid php 100000 cas and agreed to pay php 20000 at the end of each 6 months for 5years. He failed to pay the first 5 payments. at the end of 3 years. he is required to pay by the seller the entire debt consisting of his accumulated and future liabilities. otherwise the farm would be foreclossed by the seller. a) what is the present worth? b) what must he pay if money is worth 12% compounded semi-annually?
- In the CF diagram shown below, compute the Future amount F at the end of 6 yrs if i = 6% compounded annualy.You are paying into a mutual fund that earns7% compound interest. If you are making an annualcontribution of $14,000, how much will be in thefunds in 25 years?Tom's retirement account in a company currently totals $ 416,384. What perpetual income can Tom and his heirs receive pee year if he retires now and the moneu is invested in an annuity earning 6% interest? A. $20,980 B. $24,980 C. $22,980 D. $26,980