Mr. Dela Cruz bought a piece of property for Php100,000 downpayment and 10 deferred semiannual payments of Php8,000 starting 3 years from now. If the interest rate is 12% compounded semiannually, what is the present worth of the property?
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Q: Mr. Dela Cruz bought a piece of property for P100,000 down payment and a 10 deferred semiannual…
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Mr. Dela Cruz bought a piece of property for
Php100,000 downpayment and 10 deferred semiannual
payments of Php8,000 starting 3 years from now. If
the interest rate is 12% compounded semiannually,
what is the present worth of the property?
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- 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. 33,700On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring payments of 10,000 at the beginning of each year. The machine cost 40,000 and has a useful life of 8 years with no residual value. Kerns implicit interest rate is 10%, and present value factors are as follows: Present value for an annuity due of 1 at 10% for 6 periods4.791 Present value for an annuity due of 1 at 10% for 8 periods5.868 Kern appropriately recorded the lease as a sales-type lease. At the inception of the lease, the Lease Receivable account balance should be: a. 60,000 b. 58,680 c. 48,000 d. 47,910Using 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.
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- Benjie purchased a house and lot. He paid P500,000 as a down payment and was required to pay P10,000 every end of six months for the next 15 years at the rate of 10% compounded semi annually. Determine the cash value of the house and lot.Ancog purchased a parcel of land somewhere in Brgy Tignapoloan. She paid P150,000 for the down payment and agreed to pay P20,000 every 3 months for the succeeding 10 years. Assuming that the seller’s interest is at 10% compounded quarterly. What was the cash price of the lot? If Engr. Ancog was not able to pay for the first 12 payments, what amount should she pay at the time the 13th is due to bring her payments updated? After paying for 8 payments, Engr. Ancog wants to pay the entire remaining amount by a single payment at the time when the 9th regular payment will be due. How much should she pay including her 9th payment? If Engr. Ancog failed to pay her first 10 payments, how much should she pay when the 11th payment is due to pay her entire debt?Mr. Mañalac invested P 100,000 to a certain business which earns P 10,000 every 2 months for 10 years and at the end of 10 years, he will receive his P 100,000 investment plus the earned interest. Compute for the simple rate on the investment per year.
