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Rita's designer bag is worth P 2 million. If inflation is at rate of 5%, what will be the cost of the bag in 2 years?
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- If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%A designer bag is worth P 2 million. If inflation is at rate of 5%, what will be the cost of the bag in 2 years?You buy a house for $250,000 and pay $50,000 down. What is the monthly payment if you finance the house for 25 years, and the rate is 5% monthly?
- Suppose you will need $20,000 in 3 years. How much must you invest per month in order to have $20,000 if money earns an annual rate 12% compounded monthly? How much of the $20,000 is interest?The buyer of a lot pays $50,000.00 cash and $10,000.00 every month for 10 years. If money is 8% compounded monthly, how much is the cash price of the lot?The annual income from an apartment house is $20,000. The annual expense is estimated to be $2000. If the apartment house can be sold for $100,000 at the end of 10 years, how much should you be willing to pay for it now, with a required return of 10%?
- An investment product offers a monthly rate of return of 5%. If Amy invests $1,000 today for this product, how long does it take for Amy's money to grow to $1,500?You decide to buy a house costing $6,000,000. You pay $1,000,000 down, and the remainder will be paid in monthly installments over 25 years at 3.9% compounded monthly. a) What is the monthly payment? b) What is the outstanding balance after making the 100 th payment? c) What is the equity after making the 100 th payment? d) How much of the 100 th payment will go to principal and how much to interest? e) How much interest will paid over the entire length of the loan?you want to have $10,000 in 5 years and can earn 3.2% annually. How much must you deposit today to achieve your goal?