A plot of land is sold in installments in 24 equal monthly installments of R$4000 immediately in arrears, plus 4 additional installments due in 7, 14, 21 and 28 months, each of R$9000. Determine the cash price of the land if the interest rate on the loan is 4% per month. The spot value of the land is R$ ?

A plot of land is sold in installments in 24 equal monthly installments of R$4000 immediately in arrears, plus 4 additional installments due in 7, 14, 21 and 28 months, each of R$9000. Determine the cash price of the land if the interest rate on the loan is 4% per month. The spot value of the land is R$ ?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 9P

See similar textbooks

Similar questions

A house and lot are to be purchased by paying P15,500.00 monthly payable in 25 years. The first payment is due in 1 year. How much is the cash price of the house and lot if the interest rate is 12% converted monthly?
Suppose you wish to borrow Php 20,000,000 to buy a parcel of real estate. The lender is willing to lend the money at 10% per annum. Amortize the payments monthly over 10 years. AF: 0.0132150737,
A P700,000 plot of land can be purchased for P200,000 down and P60,000 per year for 12 years. What is the annual interest rate being charge?
You havefound the house of your dreams. The selling price is Php. 175,000.00 with an interest rate of 5.5%ocompounded monthly. Determine the monthly house payment if the loan is for: a) 30 years b) 15 years
You get a twenty-year amortized loan of Php100,000 with a 5% annual interest rate. What are the annual payments? a. Php 8,718 B. Php37,689 C. Php 4,762 d.Php 8,024
I) II) What is the present value of 10 payments of 1500 riyals each, at a rate of 12%? A loan of 500,000 riyals, to be repaid at a rate of 12% in 5 equal annual payments. Calculate the value of the payments required.
A loan for P 50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money?
1. A loan of Php 40,000.00 with interest rate of 15% compounded biannually, is to be discharged by a series of 10 payments twice a year. The first payment to be made 6 months after the loan is finalized. The first 6 payments are worth Php 6000.00 each, while the remaining will be equal in amounts such that the final payment will liquidate the loan. What is the amount of the remaining payments? 2. Using the same information above, but the payment is uniform and the number of period is extended by half, how much would each payment be?
2. Monthly payments of P800 each are used to settle a loan for 8 months at 8% compounded monthly. Find the present value of the loan and construct an amortization table. 3. A sala set costs P6,800 cash. A buyer pays P2,500 down-payment and the balance will be paid by equal monthly installment payments for 8 months with interest rate of 6% compounded monthly. Find: a. the monthly payments: b. construct an amortization schedule.
Set up an amortization schedule for a Rs 100,000 loan to be repaid in equalinstallments at the end of each of the next 5 years. The interest rate is 10%compounded annually. b. What percentage of the payment represents interest and what percentage represent principal for each of the 5 years? Why do these percentages change over time?
A person buys a piece of lot for P 100,000 down payment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?
If I will loan a house and lot worth P6.3M cash and with a little discussion and transaction with the sales person we agreed on 10% down payment and the monthly amortization will be computed in this term for the 25 year payment scheme, 8.5% compounded monthly. What is the amount of the monthly amortization I must pay in pesos? What is the future worth of my loan? How much interest has been accumulated after 25 years?