( Solve the following problems. Draw the cash flow diagram for each problem and use the interest rate with five decimal places. Box your final answer and upload the picture of your complete solution. ) 1. A woman is considering giving an endowment to a university in order to provide payments of P55,000, P85,000, respectively, at the end of the first, and second semiannual during a year. If the interest rate is 12% compounded quarterly, what is the capitalized equivalent that must be deposited now so that the semiannual payments can be repeated forever?

Q: 4. If a refrigerator is offered for sale at the amount of P 18,000.00 payable after 1 year. If you…

A: Given information, Future value: P 18,000.00 Interest rate: 8% Time period: 1 year To find:…

Q: 5. Suppose you won on a lotto and you decided to buy a condominium unit located in Davao City for…

A: The future worth formula is FV= PV(1+i)n , where the PV rises for each period into the future by a…

Q: Your financial adviser recommends buying a 10-year bond with a face value of $1,000 and an annual…

A: We have  Face value of the coupon bond FV =$1000 annual coupon payment (C) =$55 Year of maturity (n)…

Q: P 2530 is deposited in a bank at 7% interest. What is the value of the money after 25 years,…

A:

Q: Robert wins $5,000,000 at the lottery; however, he is not going to receive the full prize…

A: To find the present value of future cash inflows, we discount the values of future cash inflows with…

Q: How much do you need to save each year for 30 years in order to have $775,000, assuming you are…

A:

Q: A bank is negotiating a loan. The loan can either be paid off as a lump sum of $100,000 at the end…

A: The correct answer is given in the second step.

Q: In one instance, a financial institution loaned you $60,000 for two years at an APR of 5.75% for…

A: First instance: Given , Principal = $60000 APR = 5.75% Time period = 2 years Thus, simple interest =…

Q: How long will it take for an investment of $32,000 in a mutual fund to mature to at least $100,000…

A: Initial investment = $32,000Mature amount =$100,000Growing rate = 12% compounded semi…

Q: You won a prize in a contest! There are two choices: take the $500 prize today or wait one year and…

A:

Q: Find the accumulated future value of each continuous income stream at rate R(t), for the given time…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Today, you invest ₱100,000 into a fund that pays 25% interest compounded annually. Three years…

A: The realistic portrayal of each money related esteem with time is known as cash flow diagram. The…

Q: Suppose X Corp. issued one-year discount bonds with a face value of $5,000 and the bonds were sold…

A: Given : Issued bonds =$5000 Sold Bonds=$4800

Q: A businessman borrowed P300,000 and agrees to discharge his obligation by paying a series of 8 equal…

A: GIVEN   A businessman borrowed P300,000 and agrees to discharge his obligation by paying a series of…

Q: Your company implemented a forced savings plan, each employee is required to deposit P1,000 at the…

A: Given: Amount of deposit per month=P 1000 Number of years=5 Interest rate compounded monthly=6% To…

Q: 5. Sofia makes an investment by lending P24, 000 to Clara for 2 years at an interest rate of 11% per…

A: Given that, Present value (PV) = 24,000 Rate of interest (r) = 11% or 0.11 Number of years = 2 years…

Q: 2.0%? b) Given the selling price from part (a), what was your annual rate of return from owning this…

A: The annual rate of return is the percentage change in the value of an investment. For example: If…

Q: which of the following bonds should you buy when interests rates are expected to go up? a) 5 year ,…

A: There is a more prominent probability that interest rate will rise (and subsequently adversely…

Q: alue of the loan is $1,000 which is also the current market value as the loan’s current YTM is 10…

A: Given : Life of loan=5 years Annual Interest=10% of 1000=100 Face value=$1000 YTM=10%

Q: Find the annual payments to extinguish a debt of P 10,000 – payable in 5 years at  12%.

A: Borrowed amount = 10000 Time = 5 years interest rate = 12 %

Q: 6. How long in years will a certain sum of money to triple its amount when deposited at a rate of…

A: As multiple questions are asked, only the first one will be answered.  Given the compound annual…

Q: What are the annual payments necessary to pay a $100,000, 12-year loan if the loan rate is 8 %

A: The loan rate is defined as the rate of interest at which the loan is paid to the bank. It means the…

Q: Given the situation , choose the correct formula to solve the problem: A personal account earmarked…

A: When a series of payments(P) are received by an individual at equal/regular time intervals, he is…

Q: Suppose you make an annual contribution of $5,000 to your savings account at the end of each year…

A: Future value can be calculated as follows: Future…

Q: In early 2019, the Powerball lottery was advertised as having a payoff of $750,000,000. The winner…

A: Present value (PV) is the current value of a future amount of cash or stream of incomes given a…

Q: A man wishes to have P2,000,000 20 years from now. If the interest rate is at 8% compounded…

A: Present value of future worth at the end of year 10 = 2000000 / (1 + 8%)^10 years = 926386.98 $ Now,…

Q: How much money would you have to deposit for 5 consecutive years starting one year from now if you…

A: Present Value of an Annuity Investing in a future income stream, such as an annuity, gives you the…

Q: You are planning to take out a 5 hundred thousand dollar fixed-rate mortgage with a 30- year term…

A:

Q: You receive a loan from a bank on March 12, 2013 and you are required to pay P586,875 on August 16,…

A: Answer to the question is:

Q: Let j be the compound interest rate for the t-year period from time s to time s + t, and let dj be…

A: As per the guidelines, I am suppose to solve 1 question at a time. Thank you.

Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…

A: $150 for one month Therefore for one year-150*12=1800 6% of 1800=108 Therefore 1800+108=1908

Q: Solve the following problems. Draw the cash flow diagram for each problem and use the interest rate…

A: Let year 10 be the focal year. Withdrawal in year 11 (W11) = $10,000 W12 = $10,000 X (1+0.01) =…

Q: Lucy Lampkin wants to purchase a bond with a face value of $7,000 and a bond rate of 7.5 percent per…

A: Face value is a financial term used to describe the nominal or dollar value of a security, as stated…

Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…

A: $150 per month. Therefore for one year 150*12=$1800.

Q: How many years will it take to triple your investment of $5,000 if it has an interest rate of 10%…

A: Information given to us is:- Investment = $5000 Interest rate = 10% compounded annually We have to…

Q: 5. Find the accumulated amount of P 1000 after 5 years when deposited in a bank at a rate of 16%…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: The following table shows the streams of income produced by several different assets. In each case,…

A: Returns refer to the sum or percentage of sum that investors or depositors of a certain sum of money…

Q: QUESTION 6 What is the net present value of receiving $250 in 5 years from now if the interest rate…

A: Present value is the current worth of a future sum of money given a specified rate of return.

Q: 1. Suppose you win a small lottery and you are given the following options: You can receive (1) an…

A: Given:Immediate Payment=$5,000Rate of Interest=6%Number of years=2years

Q: The sugar bank gives a home loan at an annual interest of 15%. Loan amount is one hundred thousand…

A: Given  The annual interest = 15%. Principle amount = 100000  Time = 6 years.

Q: A company has issued a 20 year bonds, with a face value of $50,000 interest at 8% is paid quarterly.…

A: here we find the purchase price  of the bond by following method as

Q: You invested $24031 for 13 years at 4.89% per annum. How much more would you receive at the end of…

A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…

Q: Suppose that you are considering subscribing to “ABC” magazine. The magazine is advertising a…

A: For the comparison of both the given plan we have to draw a cash-flow diagram and after than…

Q: )A man wishes to have P40,000 in a certain fund at the end of 8 years. How much should he invest in…

A: Solution: Given Data Future value (FV)= P40,000 Interest rate(i)= 6%compounded continuously Time…

Q: 9.76 percent and the face value is $1,000

A:

Q: You wish to retire in 14 years, at which time you want to have accumulated enough money to receive…

A: Given the annual amount after retirement = $17000 Time after retirement = 19 years  Interest rate =…

Q: A man borrowed P75,000+15 on September 18, 1898, and promised to pay on May 17, 1904, at a simple…

A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…

Q: you were offered either a simple interest note or a simple discount note with the following terms:…

A: Hey champ, Welcome to this platform. Here you will get the answer with better quality in minimum…