Use 4 decimal places in between process and 2 decimal for the final answer. Show the cash flow diagram. 1. An amount of 100,000 was borrowed and was to be repaid in 10 instalments at the end of every quarter thereafter with each payment more than $1,000 more than the preceding, if interest is 12% compounded semi-annually,(a) determine the amount of the first payment and (b) the total amount paid by the borrower. DRAW THE CASH FLOW DIAGRAM. 2. A young man has decided to go into the business at the age of 25, he deposits a certain amount and will increase the deposit by 50,000 each year until the age of 40 to reach 5M on that age. If the fund can be invested at 15% compounded annually, how much should his initial investment be? DRAW THE CASH FLOW DIAGRAM. 3. An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a 5-year period with annual payments such that the third payment is P2,000 greater than the first two. The fourth payment is 1,000 greater than the third payment and the fifth paynment is 1,000 greater than the fourth payment. Determine the size of the first payment. DRAW THE CASH FLOW DIAGRAM.

Use 4 decimal places in between process and 2 decimal for the final answer. Show the cash flow diagram. 1. An amount of 100,000 was borrowed and was to be repaid in 10 instalments at the end of every quarter thereafter with each payment more than $1,000 more than the preceding, if interest is 12% compounded semi-annually,(a) determine the amount of the first payment and (b) the total amount paid by the borrower. DRAW THE CASH FLOW DIAGRAM. 2. A young man has decided to go into the business at the age of 25, he deposits a certain amount and will increase the deposit by 50,000 each year until the age of 40 to reach 5M on that age. If the fund can be invested at 15% compounded annually, how much should his initial investment be? DRAW THE CASH FLOW DIAGRAM. 3. An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a 5-year period with annual payments such that the third payment is P2,000 greater than the first two. The fourth payment is 1,000 greater than the third payment and the fifth paynment is 1,000 greater than the fourth payment. Determine the size of the first payment. DRAW THE CASH FLOW DIAGRAM.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 11E

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