Mr. Padilla agrees to pay P1,300.00 at the end of each month for 20 years, in purchasing a house. What is the present value of this agreement if money is worth 15% compounded monthly? O a P98,274.96 Ob P98,742.96 OCP98,724.96 Od P96,724.96
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- Graham buys a piece of lot for P 200,000 down payment and 10 deferred semi- annual payment of P 8,000 each starting from 3 years from now. What is the present value of the lot if the rate of interest is 12% compounded semi-annually? P 143,999 P 443,999 P 243,999 P 343,999at the payment. 5. Mr. dela rosa borrowed from his friend P 250,000.00 He promised to pay the amount plus its interest by an equal amount of money each year for 5 years. What must be his quarterly payment if they agreed on an interest of 15% compounded quarterly?A perpetuity of $1 each year, with the first payment due immediately, has a present value of $25 at an annual effective rate of i%. The owner exchanges it for another perpetuity with the first payment due immediately and subsequent payments due at two year intervals. What should the payment of the second perpetuity be, in order to keep the same interest rate, i%, and the same present value? A B с D E Less than $1.90 At least $1.90, but less than $1.94 At least $1.94, but less than $1.98 At least $1.98, but less than $2.02 $2.02 or more
- Mr. Aragon loans P200,000 from a bank with interest at 6% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 yrs. Find the annual payments. a.P55,413.37 b.P54,314.37 c.P54,413.37 d.P45,413.37A man wishes to have P10,000.00 when he retires 20 years from now. If he can expect to receive 4% annual interest, how much he set aside in each of 20 equal annual payment beginning on the first day of the month? O a. P352.90 O b. P382.90 O c. P322.90 O d. P328.90In return for payment of P5000 at the end of 4 years and P8500 at the end of 9 years, a man agrees to pay P1000 at once and P3000 at the end of 6 years and two equal payments at the end of 8 years and 10 years, respectively. Find how much each payment is if money is worth 18% compounded semi-annually.
- 6. Masuku agrees to pay R250 at the beginning of each year for 15 years. If money is worth 43% p.a. Find the value of the remaining payments just before he makes the sixth payment. A. R2 067.20 B. R2 067 C. D. E. R2 067.11 2 067.20 R2 067 IEvery three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which formula to compare with cash payment? A. Future value of IB. FV of AnnuityC. Present Value of ID.Mr. Rabutan borrowed P150,000. He agrees to pay the principal plus interest by paying an equal amount of money for 2 years. What should be his monthly payment if interest is 5% compounded annually? a. P8,895.45 b. P6,573.25 c. P5,786.25 d. P4,458.52
- Alexander Michael owes P25,000.00 due in 1 year and P75,000 due in 4 years. He agrees to pay P60,000.00 today and the balance in 2 years. How much must he pay at the end of two years if money is worth 5% compounded semi-annually?Mr. Reyes borrows P600,000 at 12% compounded annually, agreeing to repay the loan in 15 equal payments. What is the value of equal payment and the accumulated amount?Mae expects to receive $1,000 at the end of each of the next three years. She will deposit these payments into an account which pays 10%, compounded semi-annually. How much will be the future value of these payments, that is, the value at the end of the third year? a. $7,986.00 b. $3,318.01 c. $3,993.00 d. $665.50