Solve the given problem. A. Mrs. Ledesma apply for a loan for the renovation of their house. She agreed to pay P10,000 quarterly for 5 years that will start at the end of 2 years. If interest rate is 6% converted quarterly, how much is her loan? a. The type of annuity illustrated in the problem is ______. b. The regular payment is _. c. The total number of payments is _. d. Period of deferral is . e. The interest rate per period is _. f. The present value of the loan is _. B. Your mother plans to buy you laptop for your online class. She got an offer from Abenson of monthly installment of 1,950 monthly for 1 year and a down payment of 5,500. The payment will start at the end of 3 months. How much is the cash price of the laptop if the interest rate is 3% compounded monthly. a. The type of annuity illustrated in the problem is __. b. The regular payment is _. c. The total number of payments is _. d. Period of deferral is . e. The interest rate per period is _. f. The present value of laptop is _. g. The down payment is _. h. The fair market value is ____. (SUB-PARTS ONLY)

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.19E

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Solve the given problem.
A. Mrs. Ledesma apply for a loan for the renovation of their house. She agreed to pay P10,000 quarterly for 5 years that will start at the end of 2 years. If interest rate is 6% converted quarterly, how much is her loan?
a. The type of annuity illustrated in the problem is ____________.
b. The regular payment is ___________.
c. The total number of payments is _________.
d. Period of deferral is ________.
e. The interest rate per period is ___________.
f. The present value of the loan is ___________.

B. Your mother plans to buy you laptop for your online class. She got an offer from Abenson of monthly installment of 1,950 monthly for 1 year and a down payment of 5,500. The payment will start at the end of 3 months. How much is the cash price of the laptop if the interest rate is 3% compounded monthly.
a. The type of annuity illustrated in the problem is ____________.
b. The regular payment is ___________.
c. The total number of payments is _________.
d. Period of deferral is ________.
e. The interest rate per period is ___________.
f. The present value of laptop is ___________.
g. The down payment is _____________.
h. The fair market value is ____________.

(SUB-PARTS ONLY)

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