Answered: Nasser purchased a photocopier machine…

Nasser purchased a photocopier machine for 12,500 RO with a down payment of 5000 RO. His rate of interest is 9% for 25 years. His monthly payment is

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 64IIP

See similar textbooks

Related questions

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: Elin purchased a used car for $15,000. She wrote a check for $3000 as a down payment for the car and…

A: Equated monthly installment or EMI is referred to as the amount that are paid in monthly basis…

Q: Muaz will need $130,000 in 4 years to buy a piece of property. He plans to save money by making…

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: Alex invested a certain amount to a business and promised to pay him back with 2.47 times his…

Q: Morris paid £500 a month for 20 years to pay off the mortgage on his Glasgow house. If his down…

A: given information interest paid monthly = £500 time period = 20 years = 240 months down payment =…

Q: Jake paid 100,000 pesos as down payment for a farm. The remaining amount is to be settled by paying…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: Shiraz deposited $500 at the end of each year for 18 years in a savings account. If the account paid…

A: Using the Future value function in excel

Q: Javion Minerva owes P25,000 due in 1 year and P75,000 due in 4 years. He agrees to pay P50,000 today…

A: Effective interest rate refers to the rate which is calculated by computing the effect of…

Q: Stephanie purchased an annuity that will provide her with payments of $1,500 every month for 4…

A: monthly rate of interest = (1 + 4.25%/2)1/6 - 1 = 0.3511%

Q: Carlos buys a house for 1,200,000 pesos. He makes a 20% down payment and the balance he takes a loan…

A: Solution: amount of loan = 1,200,000 * 80% = 960,000 Nos of monthly periods =15*12 = 180 Monthly…

Q: your sister bought a condominuim unit for 9,300,000 peso through a condominium loan which she avaied…

A: The monthly amortization is the payment that has to be paid or received at the end of every month.

Q: Being cautious with money, Cyril has contributed $1,700 at the start of every month into an RRSP,…

A: value of investment in 10 years from now can be calculated using following function in excel. FV…

Q: Darien invests $10,000 in an account that pays 3.2% interest per year, compounded semi-annually.…

A: The amount of money can be calculated as future value of the principal amount.

Q: how much interest will mico pay

A: PV = A[ (1-(1/(1+r)^n)/ r] Where PV = present value, A = Annuity amount. r = interest rate. n =…

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: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…

A: A loan is a debt amount borrowed by a person at an interest rate. A borrower of a loan is required…

Q: Peter is saving $5,000 monthly deposit into an account that pays 7% compounded monthly. What would…

A: Monthly deposit (P) = $ 5000 Interest rate = 7% Monthly interest rate (r) = 7%/12 =…

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: Morris paid £500 a month for 20 years to pay off the mortgage on his Glasgow house. If his down…

A: Given:

Q: An Engineer bought a house and lot for which he paid a 10% down-payment, worth 200,000 Pesos; and…

A: Given, The down payment is 200,000 pesos, which is 10% of cost of house. Interest rate is 15%…

Q: John contributes $5,000 per month into an account. How much will he have in the account after 25…

A: In the given question we require to calculate the future value of account after 25 years is john…

Q: Andy invested a certain amount of money which he saves in account that earns 4% per year, compounded…

A: Present value of annuity payments of $3500 for 10 years at 4% is calculated as below:

Q: Ali deposits BD 2,500 in a savings account that pays interest at the rate of 5.5% per year,…

A: Amount is the sum of the initial principal amount and interest accumulated on it during the time…

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: Khairul secured a bank loan of RM 180,000 to help the purchase of a house. The mortgage is to be…

Q: For 12 years, at the beginning of every month, Elsa deposits $200 into a savings account. Once the…

A: The cumulative value of an investment is the entire amount it now possesses, including the money…

Q: Joshua borrows 35,000 pesos from a cooperative to buy a laptop. He will repay the loan in equal…

A: Borrowing refers to the act of taking money from another party with known intention to repay that…

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: Mr. Nailor invests $19,000 in a money market account at his local bank. He receives annual interest…

A: In this question we need to calculate the holding period return for Mr. Nailor. First we need to…

Q: Wasim invests $220,000 in an annuity that earns 8.50% interest compounded quarterly. It makes…

A: An annuity is referred to lump-sum payment made by you in return for regular disbursements,…

Q: Justin P buys an Audi for $60,000 to be repaid in equal monthly payments over a 7 year period at 9%…

A: given, principal (p) = $60,000 r=9% m=12 n=7

Q: Marcus bought a luxury car worth P2,000,000. He then decides to pay in a 6 year long installment…

A: Financing the purchase of certain high-priced products is a common practice of purchasers.…

Q: Polly purchased a car. She paid ₱150,000 as down payment and pays ₱5,500 at the end of each month…

A: Down payment (D) = ₱ 150000 Monthly installment (M) = ₱ 5500 n = 48 months r = 7.8% per annum =…

Q: Marek is collecting simple interest on a $1,000 CD with an annual rate of 2.40%. What was his…

A: Simple interest is interest computed on principal amount and not on interest earned during the…

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: Emma bought a $360,000.00 house, paying 10% down, and financing the rest at 2% interest for 20…

A: Price of house = $ 360,000 Dow payment =10% Loan amount (PV) = 360,000*(1-0.10)…

Q: M purchased a small lot in a subdivision, paying ₱200,000 down and promising to pay ₱15,000 every 3…

A: Periodic Payment = ₱15,000 every quarter Time Period = 10 Years Interest Rate = 12% compounded…

Q: Farouk bought an electric appliance through an instalment plan which he paid RM200 down payment. He…

A: Down payment (DP) = RM 200 Monthly payment (P) = RM 120 Annual interest rate = 5% Monthly interest…

Q: Benjie purchased a house and lot. He paid P500,000 as a down payment and was required to pay P10,000…

A: The present value is the present worth of the payment that will be paid or received in the future.

Q: Ali deposits BD 2,500 in a savings account that pays interest at the rate of 5.5% per year,…

A: Given information : Deposits 2500 Interest rate 5.50% Time period (years) 14 The given…

Q: Lea buys a sala set. She pays P2, 500 down payment and pays P1, 200 per month for 2 years. If…

A: Cash equivalent of Sala set = Down Payment + Monthly installments

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: how much will he pay after 5 years

A: Future value: It is the future worth of the current sum of money or current annuity payments. Future…

Q: Henry purchased farm machinery and would pay P150,000 at the end of every 6 months for 5 years with…

A: Semi annual payment = P 150,000 Period = 5 Years Number of semi annual payments = 5*2 = 10 Annual…

Question

Nasser purchased a photocopier machine for 12,500 RO with a down payment of 5000 RO. His rate of interest is 9% for 25 years. His monthly payment is

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

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. 33,700
Gilbert got a loan of P100,000 from a local lending agency at 13% compounded annually. Their agreement is that he will repay the said loan in five years. If each successive payment is P5,000 less than the previous payment, how much will be his first and last payment?
Engineer Patawaran purchased a lot and agreed to pay Php 33,000.00 a month for two years. If money is worth 9% compounded monthly, what single payment at the end of 2 years would be equivalent to his total monthly payments
Jungkook purchased a new car under these terms: 800,000 php downpayment and 17,500 php each month for 5 years. If the interest is 12% compounded monthly, what is the cash price of the car?
Sanvij has bought a house in Chilliwack for $20,000. He makes a 5% down payment and will be making quarterly payments of $388. 63 to Scotia Bank for 15 years. What nominal rate of interest compounded semiannually was applied to the purchase?
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.
Carlos buys a house for 1,200,000 pesos. He makes a 20% down payment and the balance he takes a loan for 15 years that charges an annual interest rate of 4% compounded monthly. Determine the monthly payment.
Victoria buys a property for $2,500,000 by paying $500,000 down payment and the rest on a 15-year credit with a 12% annual capitalizable interest rate each month. How much of the 55th payment is used to cover interest?
Skylar bought a $270,000.00 house, paying 10% down, and financing the rest at 3% interest for 15 years. A. What is the monthly payment? Skylar has a payment of a month $________. B. How much interest will be paid over the life of the loan? Skylar will pay $_______ in interest over the life of the loan.
Tomas purchased a new heating and air-conditioning system for his home and financed $9,100 at an annual interest rate of 2.2% compounded monthly for 3 years. How much interest (in dollars) will Tomasz pay over the term of the loan? (Round your answer to the nearest cent.)
To vacation with his family, Mr. Velasco obtains a loan of $60,000 to be paid in 7 monthly installments with an annual interest rate of 13% compounded by months. Prepare the amortization table.
While buying a new car, Mitchell made a down payment of $1,000 and agreed to make month-end payments of $240 for the next 4 years and 9 months. He was charged an interest rate of 1% compounded semi-annually for the entire term. a. What was the purchase price of the car? b. What was the total amount of interest paid over the term?