Question
Solve the following with complete solution and include cash flow diagram each questions: 1. A person buys a piece of lot for Php 121911 down
Solve the following with complete solution and include cash flow diagram each questions: 1. A person buys a piece of lot for Php 121911 down payment and 10 deferred semi-annual payments of P 5,000 each, starting 7 years from now. What is the present value of the investment if the rate of interest is 13% per year compounded quarterly? (Round off the interest rate to 5 decimal places) 2. Maintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each year for the first 6 years, followed by a $20,000 expenditure in the year 15 and a $30,000 expenditure in the year 31. If interest rate is at 10% compounded monthly. What is the equivalent present value of the entire maintenance cost of that bridge? (Round off the interest rate to 5 decimal places) 3. From Question 2, what is the equivalent uniform annual cost over the entire-50 year period? 4. What is the present equivalent of a uniform series of quarterly payments of $4,500 each for 4 years and a quarterly payments $2,000 of the next 6 years if the interest rate is 8% compounded bimonthly? (Round off the interest rate to 5 decimal places) 5. How much money should be deposited each year for 10 years starting 1 year from today, if you wish to withdraw $8378 each year for 9 years, beginning at the end of 16 years? Let i=12% per year. (Round off to 2 decimal places) 6. A recent government study reported that a college degree is worth an extra Php 35795 per quarter income compare to high school graduate. If the interest is 6 % per year compounded quarterly and you work for 39 years, what is the future compound amount of this extra income? (Round off the interest rate to 5 decimal places)
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