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Perpetuity
5. If money is worth 8% compounded quarterly, compute the present value of the perpetuity of Php1,000 payable quarterly.
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- At a certain interest rate compound quarterly, P 1,000 will amount to P 4,500 in 15 years. What is the amount at the end of 10 years ? answer F= Php 2,724.64A recent government study reported that a college degree is worth an extra Php 35680 per quarter income compare to high school graduate. If the interest is 6 % per year compounded quarterly and you work for 36 years, what is the future compound amount of this extra income? Round your answer to 2 decimal places. draw the cash flowMina wishes her friend, Yuri, to receive Php 1,000,000.00 twenty years from now. What amount should she invest now, if it will earn interest at 12% compounded annually during the first five years and 10% compounded monthly for the remaining years?
- An investment of P8,500 is made at the end of each year with an interest of 3.5% compounded annually. Determine the equal-payment-series compound-amount factor after 6 years.A man agrees to make equal payments at the beginning of each 3 months for 10 years to discharge a debt of P8,000.00 due now. If money is worth 8% compounded quarterly, find the quarterly payments.What is the value of an investment of Php 3,500 after 2 years if it earns 1.5% compounded quarterly?
- You borrowed money today to be paid in 8 equal payments at the end of 8 quarters. If the interest rate is 18% compounded quarterly, how much is initially borrowed if the quarterly payment is 3,500 Php?Your sister needs money and comes to you with a deal. She asks you to pay $2,000 at the end the first year, then increasing by $500 every year til the 20th year. Then, for the next 20 years, she will pay you back twice the amount you paid for each of your annual payments, starting the next year right after you pay your last payment. Thus, you receive $4,000 at the end of year 21 and $5,000 at the end of next year and so on. Your sister claims it is beneficial for you to accept this deal since you are getting back twice the amount you let her borrow. Draw the Cash Flow Diagram What is the interest rate that makes you just indifferent between accepting or rejecting her deal? Assume your 1) your TVOM is 5%, 2) you decided to lend the amount asked by your sister. How many times of your original payment should you ask her for (Currently she's giving you back double the amount you paid) if you want to earn $25,000 profit now? First calculate the present worth of the given cash flow at time…A father is saving money 5 years before his son will be going to college. Upon opening he deposited 7,000Pesos to an account that has 4% interest compounded annually. After a year he deposited 11,000Pesos, then on the second and third year he puts 13,000Pesos and 4,000Pesos respectively. If after 5 years they withdrew the account how much would they receive? * 40,335 Pesos 34,333 Pesos 30,333 Pesos 45,345 Pesos