Jane bought an audio system and agreed to pay for the purchase by making four equal annual installments of $800 beginning one year from today plus a lump-sum payment of $1,000 at the end of five years. The interest rate is 12%. What was the cost of the audio system? (Hint: What is the present value of the cash payments?)

Q: Jane bought a $3,000 audio system and agreed to pay for the purchase in 10 equal annual installments…

A: Calculate the interest rate implicit in the agreement.

Q: A couple secured a 4,000,000 php housing loan from a financing company that gives 12% interest…

A: Equal monthly installment (EMI) is a monthly amount paid towards the loan taken by the borrower.EMI…

Q: Mrs Right just purchased a new machine and wants to also set aside cash for future maintenance…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

Q: A housewife bought a brand new washing machine costing P12,000 if paid in cash. However, she can…

A: Present value of annuity due can be used to calculate the periodic payment.

Q: 10,000 bank loan in 10 equal payments at a 10% effective annual interest rate. Immediately after her…

A: the amount of each of the 12 payments. given: P10,000 bank loan in 10 equal payments 10% effective…

Q: Mrs. Maria Alading borrowed 20,000 pesos from her friend Ms. Petra Hausen to pay the tuition fee of…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: An engineer has received $10 000 from his employer for a patent disclosure. He has decided to invest…

A: Final value is computed in nominal terms as the compounded value of the initial investment. The…

Q: Jim made a down payment of 2500 dollars toward the purchase of a car. To pay the balance of the…

A: Given information: Down payment is $2,500 Nominal interest rate is 4% compounded monthly Payment of…

Q: Lupe made a down payment of $2000 toward the purchase of a new car. To pay the balance of the…

A: Loan borrowed: loan is $5,258.53

Q: Jungkook purchased a new car under these terms: 800,000 php downpayment and 17,500 php each month…

A: Cash price is the price that will include the downpayment plus the present value of the loan.

Q: A man purchases a lot worth 5M if paid in cash. On installment basis, he paid P800,000 down payment,…

A: Data given: Lot worth = P 5M = P 5000000 Down payment = P800,000 Loan amount = P 5000000 - P 800,000…

Q: Lily purchased a boat valued at $19 000 on an installment plan requiring equal monthly payment for…

A:

Q: n bought a lot worth ₱1,000,000 if paid in cash. On the installment basis, he paid a down payment of…

A: The loan payment are done based on the interest rate and period of the loan and present value of…

Q: Carl has purchased an annuity to be paid at the end of each month for 20 years at an effective…

A: Present Value of Annuity = 200,000 USD YEars = 20 Terms(n) = 20*12 = 240 Rate of Interest(r)  =4%/12…

Q: Roger Baker has accumulated $775,000 in his RRSP and is going to purchase a 20-year annuity from…

A: An Annuity is simply a fixed amount which will be received by Roger Baker at every month-end Present…

Q: he percentage rounded to two decimal places, of the total payments made the first two years that…

A: Amortization Schedule: It is a schedule consisting of the loan periodic payments, interest…

Q: While buying a new car, Thomas made a down payment of $1,000.00 and agreed to make month-end…

A: Present value of annuity is current value of the future annuity flow.

Q: M purchased a small lot in a subdivision, paying P200, 000 down and promising to pay P15, 000 every…

A: note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: Lupé made a down payment of $5000 toward the purchase of a new car. To pay the balance of the…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: A woman paid 20% down payment of P300,000 for a house and lot and agreed to pay the balance on…

A: given, price = p300,000 downpayment = 20% r=15% m=12 (monthly compounding) pmt = p 33,396.51

Q: Jane just inherited $30,000 from a rich uncle. She decides to invest the money for a period of 5 1)…

A: Present Value(PV) is current value of future amount which is computed by discounting amount with…

Q: Jane bought a $3,000 audio system and agreed to pay for the purchase in 10 equal annual installments…

A: Compute the amount of the annual installment. Amount to be borrowed is $3,000, Rate of interest is…

Q: The student who wins the Fancy Est Sunglasses Contest will receive a cash prize each year. The…

A: In this perpetuity value is to be find out. Perpetuity is basically a value which accounts for…

Q: our father paid $10,000 (CF at t = 0) for an investment that promises to pay $850 at the end of each…

A: We have to essentially find the disocunt rate at which this investment has NPV of zero. Thus, we…

Q: Ted Houser wishes to accumulate a fund of $40,000 for the purchase of a house and lot. He plans to…

A: The computations as follows: While considering the table of future value of annuity, it can be…

Q: Bridgit has purchased a new home at auction for $655,000. To be able to pay for the house, she takes…

A:

Q: A man purchases a lot worth 5M if paid in cash. On installment basis, he paid P800,000 down payment,…

A: Cost = P5,000,000 Down payment = P800,000 Payment at year end = P900,000 Payment at third year end =…

Q: Renata converted the payment of her ₱50,000 debt to five (5) equal payments at the end of each year.…

A: The time value of money concepts involves two major methods such as present value and future value…

Q: Mrs. Parker bought a computer set for $32,000 to be paid in equal payments at the end of every 3…

A: Computer price (PV) = $ 32000 Interest rate = 8% Quarterly interest rate (r) = 8%/4 = 2% Period = 1…

Q: Ms.Sue was selling a house for a cash price of 5 million pesos but agreed to have it paid on monthly…

A: House cash price (CP) = $ 5,000,000 Period = 5 Years Total number of monthly payments (m) = 5*12 =…

Q: Ancog purchased a parcel of land somewhere in Brgy Tignapoloan. She paid P150,000 for the down…

A:

Q: A real estate investor feels that the cash flow from a property will enable her to pay a lender…

A: This is the problem of the time value of money wherein the interest rate is mentioned and gets…

Q: her new house. She can repay the loan in either of the two ways described below. (a) Five equal…

A: Inputs Borrowing Amount or Loan Amount = 5000

Q: Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 6% compounded…

A: it is given that Loan amount - $ 1,000,000 Interest – 6% Payment frequency – 12 – monthly Time – 30…

Q: Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 6% compounded…

A: Here, Fully Amortizing FRM = $1,000,000 Annual interest rate = 6% compounded monthly Refinancing…

Q: Hank made payments of ​$205 per month at the end of each month for 30 years to purchase a piece of…

A: Annuity means a series of finite number of payments which are the same in size and made in equal…

Q: Today, Julie borrowed $5000 to purchase furniture for her new house. She can repay the loan in…

A: Borrowing Amount or Loan Amount = 5000

Q: For my newly purchased car, I have to pay five year-end installments of P250,000 each year for the…

A: Year end installment = P 250,000 Second year maintenance cost = P 10,000 Annual increase in…

Q: Nala Inc. purchased a plot of land on which a $60,000 payment will be due each year for the next…

A: Given that, Cash outflow each year = $60,000  Number of years = 5 years Total cash outflow = $60,000…

Q: Gilbert got a loan of P100,000 from a local lending agency at 13% compounded annually. Their…

A: We can solve this in excel using the "goal seek" function. First of all make a loan amortization…

Q: Hank made payments of $106 per month at the end of each month for 30 years to purchase a piece of…

A: Here, Monthly payment = $106 per month Total number of years = 30 years Selling price of property =…

Q: Mr. Dickenson Comperstaugh bought an old model Ferrari car for 1,000,000.00 pesos down payment and…

A: semi annual rate = 12%/2 = 6% N = 10, FV =0, PMT = 150,000, rate = 6% use PV function in Excel with…

Q: A chemical engineer wants to deposit an amount now such that she can withdraw an equal annual amount…

A: Cash flow diagram:

Q: Jane bought a $3,000 audio system and agreed to pay for the purchase by making nine equal annual…

A:

Q: Jane bought an audio system and agreed to pay for the purchase by making five equal…

A: The cost of the audio system is the present value of the cash payments. The present value of the…

Q: Maricar bought a split type inverter aircon which costs P33,500 in an installment basis . How much…

A: It can be calculated using rate formula in excel. =RATE (nper, pmt, pv, [fv], [type], [guess])…

Q: Polly purchased a car. She paid ₱250,000 as down payment, and ₱15,000 payable at the beginning of…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: Janet decided to pay a lump sum payment of $51000 so she will be able to make 6 years of quarterly…

A: Payment is the transfer, in appropriate amounts, of money, goods or services in return for goods and…

Q: Nasser purchased a photocopier machine for 12,500 RO with a down payment of 5000 RO. His rate of…

A: Using excel PMT function