A man receive 125,000 php credit for his old car when buying a new model costing 875,000 php. What cash payment will be necessary so that the balance can be liquidated by payments of •15,000 php a month for 1 year with 8% interest •12,000 php a month for 2 years with 6% interest • 10,000 php a month for 4 years with 3% interest Note: Neglect the inflation. (Make a Cashflow diagram)
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- Solve the following problem with explanations 1. How much interest would your money earn if you deposited PHP 25, 000. 00 at a simple rate of 3% given the actual date from June 6, 2020 to March 25, 2021. 2. During this time of pandemic, many lending institutions offer a loan package to wage earners. Suppose loan company ABC offers you to borrow money amounting to PHP 50, 000 and payable in 4 years at a simple interest rate of 3% per annum, while loan company XYZ offers a 3% compounded annually. What loan company will you borrow money, then justify why you decide to choose to make loan with that particular loan company.1. Calculate the present value of each cashflow using a discount rate of 7%. Which do you prefer most? Show and explain all supporting calculations. a. Cashflow A: receive Php60 today and then receive Php60 in four years. b. Cashflow B: receive Php12 every year, forever, starting today. Cashflow C: pay Php50 every year for five years, with the first payment being next year, and then subsequently receive Php30 every year for 20 years. d. Cashflow D: receive Php9 every other year, forever, with the first payment being next C. year.s) You want to purchase a machine for your business and you are given 3 different payment schedules: Pay Php 1,500,000 in cash, upfront. 1. Pay equal amount of Php 395,000 for 5 years. iii. Immediate cash outlay of Php 195,750 and afterward Php 215,000 per year for 10 years Determine which schedule is least expensive and most expensive if the interest rate is 10.0%, compounded continuously. Answer must be justified by complete solution.
- In solving, indicate the Cash Flow Diagram and Solution A man bought a ford vintage car for Php 526630 on installment basis at the rate of 12% per year compounded annually on the unpaid balance. if he paid a down payment of Php 138146 in cash and proposes to pay the balance in 24 quarterly payments, what should this payment be? (Round off interest rate to five decimal places ) Note: use the reference formulas to solve thisDIRECTIONS: Solve the following problems neatly and legibly. Draw the necessary cash flow diagrams. Box your final answer. PROBLEM 2: A man receives a P 250,000.00 credit for his old car when buying a new model costing P 750, 000.00.4. What remaining initial cash payment is necessary if equal payments of P 15, 000.00 at the end of each month for 20 months is charged at the rate of 7%compounded monthly?5. If he decided to add another P 100,000.00 after crediting the price of his old car, what equal payments for 15 months is necessary in order for thebalance to be repaid at 6% compounded monthly?Can you tell me how did they get RM18785.79 as a future value by using a formula? Suppose we should use FVA formula right? ***I'm asking about the Uncle Murray questions that promised to give RM1000 a month for 18 months starting today and save it in a bank account that pays 6% compounded monthly.** Thank you for helping me :)
- A woman went to the Beneficial Loan Company and borrowed S10,000. She must pay S323.53 At the end of each month for the next 60 months. A. What is the Monthly Interest rate she is paying? What is the Nominal Interest rate? С. What is the Effective Interest rate? Make your cash flow diagram and solve. B.Company A is contemplating on borrowing $500,000 to start a business. Credit union 1 has offered to loan the company the money at an interest rate of 10% compounded monthly. Credit union 2 has offered the money with the stipulation that the company repays it by making monthly payments of $100,000 for 8 years. From which credit union should the company borrow the money? MANUAL CALCULATIONS AND CASH FLOW DIAGRAM!Billy roe visited his local bank to see how long it will take for $1,000 to amount to $1,900 at a simple interest rate of 12 1/2 percent. Provide Bill with the solution to this problem in years. PROVIDE THE FOLLOWING FOR EACH PROBLEM N= I= PV= PMT= FV= C/Y= P/Y =
- Solved the problem with explanations 1. During this time of pandemic, many lending institutions offer a loan package to wage earners. Suppose loan company ABC offers you to borrow money amounting to PHP 50, 000 and payable in 4 years at a simple interest rate of 3% per annum, while loan company XYZ offers a 3% compounded annually. What loan company will you borrow money, then justify why you decide to choose to make loan with that particular loan company2. You bought a house for $200,000. You also had to pay $13,460 in taxes and fees. Interest rate is 6%. The down payment was $15,000. The remaining balance is financed for 15 years. If you are only making yearly payments, how much will each payment be? Please do not use excel. draw cashflow diagram if possible.1. A car costs Php 1,400,000. Suppose a man gives a down payment of Php 400,000 for the car, and then he loaned the balance from a bank. The bank charges a 5% interest rate, compounded monthly, on the loan, which he will pay monthly for 10 years. a. How much will be his monthly amortization? b. How much will be the total interest on this loan?