Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Topic is Deferred Annuity. I need solution, please help me! Thanks ! For items number 3 to 4. A farmer decided to sell his land

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Topic is Deferred Annuity. I need solution, please help me! Thanks!

For items number 3 to 4. A farmer decided to sell his land and to deposit the fund in a bank. Alter computing the interest, he learned that he may withdraw P 390,500,00 yearly for 10 years starting at the end of 6 years when it is time for him to retire How much is the fund deposited if the interest rate is 5% converted annually? 3. What is the number of artificial payments? c. 6 a. 4 d. 10 b. 5 4. What is the present value of the annuity for withdrawal? c. P 2,362,595.82 d. P 4,215, 120.15 a. P 2.005,197.75 b. P 2,344,592.24 5. Gladys borrows P 400,000.00 at an interest rate of 4% per year compounded semi-annually. She agreed to settle her loan by making 12 semi-annual payments at the end of each six months. If the first payment is made at the end of 2 years, compute the periodic payment. a. P 80,756.35 c. P 40,138.96 b. P 76,348.25 d. P 32,258.88 7. Melwin availed a loan from the bank that gave him an option to pay 120,000.00 monthly for 2 years. The first payment is due after 4 months the interest rate is 10% converted monthly, find the periods in deerra? C, 3 a. 1 b.2 d. 12 12. A car is to be purchased in monthly payments of P 17,000.00 for 4 years starting at the end of 4 months. How much is the cash value of the car if the interest rate used is 12% converted monthly? a. P 626,571.56 c. P 816,000.00 b. P 657,915. 02 d. P 913,920.05 13. A group of employees decided to invest a portion of their 13th-month pay. After 3 months from today, they want to withdraw from this fund P5,000.00 monthly for 12 months to fund their travel tour that they decide to do every month. How much is the total deposit now if the interest rate is 5% converted monthly? a. P 52,544.17 c. P 68,245.12 18 d. P 88,201.05 b. P 57,922.41 14. Meghan purchased a laptop for the online class of her kids through the credit cooperative for their company. The cooperative provides an option for a deferred payment. Meghan decided to pay after 4 months of purchase. Her monthly payment is computed as P3,500.00 payable in 12 months. How much is the cash value of the laptop if the interest rate is 8% convertible monthly? a. P 45,360.00 c. P 39,441.14 b. P 42,000.00 d. P 36,225.15

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

More Books

Students also viewed these Finance questions

Question

4. Propose approaches to reduce hand offs and to simplify processes

Answered: 1 week ago

Question

Explain the factors affecting dividend policy in detail.

Answered: 1 week ago

Question

Explain walter's model of dividend policy.

Answered: 1 week ago