Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Loren decided to invest in insurance with an investment component. She needs to pay P75,000 annually in a span of 10 years only. As the

image text in transcribed
image text in transcribed
Loren decided to invest in insurance with an investment component. She needs to pay P75,000 annually in a span of 10 years only. As the stock market was still adjusting, the insurance company projected that the fund will grow conservatively at 8% p.a compounded quarterly. If she will invest P75,000 every year, what is the PV due or the net present value of the investment? 745,895750,000687,168810,000837,654 Bida Inc. borrowed P60,000. The company plans to set up a sinking fund that will pay back the loan at the end of 12 years. Assuming a rate of 8% compounded semiannually, the amount to be paid into the fund each period is: P1,536 P1,653 P1.453 P1,350 P5,163

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Aircraft Finance Strategies For Managing Capital Costs In A Turbulent Industry

Authors: Bijan Vasigh, Reza Taleghani, Darryl Jenkins

1st Edition

1604270713, 9781604270716

More Books

Students also viewed these Finance questions

Question

What is a residual plot?

Answered: 1 week ago

Question

OUTCOME 1 Explain the reasons for equity-related legislation.

Answered: 1 week ago