please help me Solve the following problems: ( Draw the cash-flow diagram if necessary in eachproblem )5) A young student wishes to go on a trip around Asia ten years from now. Toprepare for such travel, he deposited now an amount of P 1,000 on anaccount on a bank that pays 8% compounded monthly. Then, he wishes tocontinue his deposits every end-of a month for ten years with increasingamounts. If his monthly deposits increases by 10% starting from the first tothe last deposit,a) what amount would this student expects be on his account before the saidtravel, assuming no withdrawals take place?b) if after seven years of monthly deposits, the student wishes to withdrewall of his money on his account, how much would it be?6) A house and lot was offered for sale for P 10 million if paid in cash.However, an instalment basis is an option wherein the buyer needs to pay P2.5 million as down payment and remaining balance be paid after within afive-year period. Payments are of the following condition: an equal-end of aquarter payments of P 600, 000 for a period of two years, then an end of amonthly payments for a period of three years in which monthly paymentsdecreases by P 1000 until the last monthly payment. Money is 12%effective.a) What was the amount of the first monthly payment?b) What was the amount of the 20th monthly payment?c) Find the sum of all the payments.d) If remaining balance be paid by an equal-end of a semi-annual paymentsinstead of the above condition, how much would it then be?7) A certain property was offered in an instalment basis with no down paymentfor six years. However, the buyer needs to pay immediately a beginning of amonthly payment for a period of two years starting at an amount of P 4, 500and succeeding monthly payments increases by P 800 until the last monthlypayment. After such, payments become an end of a quarterly paymentsstarting at an amount of P 25, 000 for the remaining period in whichquarterly payments decreases by 6% every quarter thereof until the lastquarterly payment. Money is 14% effective. a) What was the cash price ofthe said property?b) What equivalent uniform end of a semi-annual amounts would thepayments be instead of the said condition above?c) Find the sum of all the payments being made.d) If after three years of payments, the buyer wishes to pay a single amountin order to settle all of his remaining obligations, how much would it be?

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Solve the following problems: (Draw the cash-flow diagram if necessary in each problem ) 5) A young student wishes to go on a trip around Asia ten years from now. To prepare for such travel, he deposited now an amount of P 1,000 on an account on a bank that pays 8% compounded monthly. Then, he wishes to continue his deposits every end-of a month for ten years with increasing amounts. If his monthly deposits increases by 10% starting from the first to the last deposit, a) what amount would this student expects be on his account before the said travel, assuming no withdrawals take place? b) if after seven years of monthly deposits, the student wishes to withdrew all of his money on his account, how much would it be?

Solve the following problems: (Draw the cash-flow diagram if necessary in each problem ) 5) A young student wishes to go on a trip around Asia ten years from now. To prepare for such travel, he deposited now an amount of P 1,000 on an account on a bank that pays 8% compounded monthly. Then, he wishes to continue his deposits every end-of a month for ten years with increasing amounts. If his monthly deposits increases by 10% starting from the first to the last deposit, a) what amount would this student expects be on his account before the said travel, assuming no withdrawals take place? b) if after seven years of monthly deposits, the student wishes to withdrew all of his money on his account, how much would it be?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 = $3000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 = $4000 per year for the following 3 years. How would the cash flow diagram appear if i = 9% per year?
Answer and draw neatly the necessary cash flow diagrams, and box your final answers. A student plans to deposit P1,500 in a bank now and another P3,000 for the next two years. If he plans to withdraw P5,000 three years after his deposit for the purpose of buying shoes. What will be the amount of money left in the bank one year after his withdrawal? Effective rate is 10%.
DIRECTIONS: Solve the following problems neatly and legibly. Draw the necessary cash flow diagrams. Box your final answer. PROBLEM 2: A man receives a P 250,000.00 credit for his old car when buying a new model costing P 750, 000.00.4. What remaining initial cash payment is necessary if equal payments of P 15, 000.00 at the end of each month for 20 months is charged at the rate of 7%compounded monthly?5. If he decided to add another P 100,000.00 after crediting the price of his old car, what equal payments for 15 months is necessary in order for thebalance to be repaid at 6% compounded monthly?
Answer and draw neatly the necessary cash flow diagrams, and box your final answers. A man purchases a lot worth 1,000,000 if paid in cash. On installment basis, he paid P200,000 down payment, P300,000 at the end of the year, P400,000 at the end of the fourth year and the last payment at the end of the 5th year. If money is worth 16%, what is the worth of the last payment?
Mr. Holzman estimates that the maintenance cost of a new car will be 3,750 the first year, and will increase by 2,500 each subsequent year. He plans to keep the car for 6 years. He wants to know how much money to deposit in a bank account at the time he purchases the car, in order to coverthese maintenance costs. His bank pays 5.5% per year, compounded annually, on savings deposits. Draw cash flow diagram.
(Please draw cashflow diagram) A businessman needs P50,000 for his operations. One financial institution is willing to lend him the money for one year at 12.5% discount rate. Another lender is charging 14%, with principal and interest payable at the end of one year. A third financier is willing to lend him P50,000 payable in 12 equal monthly installments of P4,600. Which offer is the best for him? Validate your answer.
A father wants to set up a bank account that will pay his daughter $12,000 at the end-of-quarter (EOQ) 4 and $24,000 at EOQ 8. He will fund this account by making quarterly payments of $A from the present (time zero) through EOQ 7. If the quarterly percentage rate is 2%, what is the value $A that must be deposited into the account? Please include equations used and cashflow diagram
e. Suppose that a person deposits $2500 in a savings account atthe end of each year for the next 15 years. If the bank pays8% per year per year, compounded daily, how much moneywill the person have by the end of the 15th year? include a non-excel cash flow