Mr. santos just receives his retirement incentives amounting to... Mr. santos just receives his retirement incentives amounting to P1,000,000. He is planning to buy a small farm land so that he can have a simple life of planting fruit bearing trees and vegetables. However, there is an offer from his friend who wanted to borrow his money for a 10% interest per year for 5 years. What till be the risk trade- off to be faced by Mr. Alison in making a decision? Support your answer with an explanation

Q: Mike Williams, a well-known real estate appraiser, just paid $390,000 for an insurance policy that…

A: Perpetuity amount= $390,000 Cash Flow Amount= $14,600 per year Rate of return=?

Q: Annie Hays recently sold a condominium she had bought and lived in while she was a college student…

A: Requirement a: Determine the alternative that Person A must select.

Q: bob wants to retire in 10 years and then have enough money saved to withdraw $75,000 a year for 15…

A: The term "annuity" is a financial term that represents a series of cash flows for a specific period.…

Q: Becky Scholes has $150,000 to invest. She wants to be able to withdraw $12,500 every year forever…

A: Given details are: Present value of investment = $150000 Every year cashflow = $12500 From above…

Q: John was injured in an accident and the insurance company has offered him the choice of $37,000 per…

A: given data the insurance company has offered him $37000 per year for 15 years the present value of…

Q: y have just planned to put aside RM9,872.43 now for this purpose. (a) What is the interest rate per…

A: Given information : Future value 12000 Time period (years) 4 Amount set aside 9872.43 Farid…

Q: Jin decided to sell their farm and to deposit the fund in a bank. After computing the interest, they…

A: The provided information are: Withdrawal amount=P480000 for 8 years Starting at the end of 6 years…

Q: Tim purchased a bounce house one year ago for $6,500. During the year it generated $4,000 in cash…

A: Given details are : Purchase price of house = $6500 Cash flow during the year form the house = $4000…

Q: (spread sheet) supposed that your parents are willing to lend you $20,000 for part of the cost of…

A: The calculation is as follows:

Q: Several years ago John bought an endowment insurance policy that is about to mature. He has the…

A: given data   option 1 gives $20000 now  option 2 gives $40000 in 10 years  for option 2 we will…

Q: Sara owns a small business and plans on retiring in 5 years. Given his past experiences, she expects…

A: To find if it is a good investment, the calculation for the required return should be done first.…

Q: Sherry is a 25-year-old who just started working. At age 25 she received, she received $20 000 from…

A: Monthly Payment = $140 Interest Rate = 4.5% Time Period = 15 Years

Q: Experts say that the baby boom generation (born 1946-1960) cannot count on a company pension or…

A: Yearly Deposit = $3,000 Interest Rate = 12% compounded semiannually Time Period = 15 Years

Q: Jack and Jill decide each invest $5,000 in the same stock this year. However, Jack invests directly,…

A: Investment is done in various instruments to earn a return in order to have a higher amount in the…

Q: Jennifer has just finished high school and is deciding whether to start working or go to college.…

A:

Q: Michael wants to buy some new exercise equipment for his home gym for ​$123,000 financed at an…

A: The interest payable on the loan is determined at the start of the loan using this approach. The…

Q: b) that his monthly house and property tax payment should not exceed 35% of his disposable monthly…

A: As per our policy, we only answer one question when many different questions are provided. The first…

Q: Fatema wants to invest an amount of OMR.  2000 every year to go on vacations with her husband at the…

A: Annual Amount invested =OMR 2000 Years (n) = 5 Interest Rate(r1) = 7.85% = 0.0785 Interest rate(r2)…

Q: Barry has an annual salary of $85,000 and he plans on working He is concerned that should he die…

A: Present value of annuity Annuity is a series of equal payment at equal interval over a specified…

Q: Alex has been offered an engineering job with a large company that has offices in Makati and Laguna.…

A: Future worth refers to the value of a current asset at some future date based on the interest…

Q: You are a young urban professional in your late 20’s and want to save up for your wedding and other…

A: The question is based on the concept of interest calculation on investment based on Minimum Accepted…

Q: Kate deposits P5,000 to her bank account every year when she was in highschool for four years to…

A: Future worth is computed by multiplying the existing value with a given interest rate.

Q: terest only) on their new home? How much will they be able to invest in their retirement accounts…

A: A retirement account a strategy for putting money away to be spent after retirement pension account,…

Q: You have just inherited $100,000 as a lump-sum amount from your distant aunt. After depositing the…

A: In order to find the number of years taken to withdraw the amount one can use excel and in excel…

Q: Ronald has an investment opportunity that promises to pay him $55,000 in three years. He could eam a…

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: 1. To save for their new child's college education, a couple places $28,400 in an account. What…

A: Present value of a future amount With periodic compounded interest rate (i), period (n) and future…

Q: how much did Juan have

A: Introduction: A specific kind of retirement savings account is a 401(k) plan. It is a tax-deferred…

Q: She arranged to receive $45,000 the first year. Because of inflation each year she will get $580…

A: A regular payment received by retired people is called pension. Inflation is the increase in general…

Q: Jana, now 23 years old, is a grade school teacher in Batangas City. She has been invited by her high…

A: A deposit or payment of equal amount of money at equal intervals of time is called annuity.…

Q: Gabrielle just won $2.5 million in the state lottery. She is given the option of receiving a total…

A: To determine which option Gabrielle should take from a strict economic point of view, we need to…

Q: For college graduation, Jose's dad gives him $15,000 toward a car. Jose thinks it through: With 10K…

A: Investment amount (P) = $15000 Amount required = $35000 r = 12% n = 8 years

Q: At 10% per year interest, how much does he have to invest each year (starting in year 1) to reach…

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity due…

Q: It is Jerry's 14th birthday and his parents plan to invest some money so that they will have $17 000…

A: Amount required at 18th birthday = $17000 Quarterly interest rate (r) = 0.0215 (i.e. 0.086 / 4)…

Q: Adrian, a single man who wants to buy a house in five years, read an artide that recommended a down…

A: The amount borrowed will be equal to the present value of all the future payment made at the given…

Q: Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000…

A: The future value function can be used for determining the future value of a present sum, or the…

Q: RT is about to loan his granddaughter Cynthia $20,000 for 1 year. RT’s TVOM, based upon his current…

A: a) No, These negotiations will not consummate successfully, as if RT's TVOM is 12% on his…

Q: The Turners have 10 years to save a lump-sum amount for their child’s college education. Today a…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: Lucky Luis has just won $20,000 and wants to invest it for 12 years. There are three plans available…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: o save Php 2 750 at the end of every 6 months, which is the amount paid into her retirement plan by…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: Rodel decided to sell their farm and to deposit the fund in a bank. After computing the interest,…

A: Given:Withdrawl amount=P480000 for 8 yearsStarting at the end of 6 years (It is the time of his…

Q: Suppose that your parents are willing to lend you $20,000 for part of the cost of your college…

A: Calculation of interest rates as follows:

Q: Mr. Mangano is considering taking early retirement, having saved $400,000. Mr. Mangano wishes to…

A: In the given question we require to calculate the for how many years the savings will last from…

Q: Mr. Emre has reached his sixtieth birthday and is ready to retire. Mr. Emre has no formal education…

A: note : Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Two people plan to invest $50,000. Matt is going to invest it in one lump sum and leave it in the…

A: Future value of investment is the compounded value of all the cash flows in the tenure of the…

Q: The Rodriquez family is determined to purchase a $250,000 home without incurring any debt. The…

A: The number of year would be calculated by taking the formula Future value of Annuity = A [((1+r)n-1)…

Q: You've decided to leave a scholarship to Calu's business program in the amount of $3,000 annually.…

A:

Q: Sami just purchased a new sports car and wants to set aside cash for future maintenance expenses.…

A: No Expenses in first 5 years Annual Maintenance Cost per year in Year 6 -10 = 2000 Interest Rate =…