How to get the final answers? need help. Engr. Odon is paying a loan five thousand pesos 10% quarterly for 3 years. Ifthe payment is to start after 6years. What is the value today and the valueafter 14years?ANSWER: F = P 719,313.8398 , P = P 3,458.8207%3D

The question is based on the concept of present value and future value calculation.

Engr. Odon is paying a loan five thousand pesos 10% quarterly for 3 years. It the payment is to start after 6years. What is the value today and the value after 14years? ANSWER: F = P 719,313.8398, P = P 3,458.8207

Engr. Odon is paying a loan five thousand pesos 10% quarterly for 3 years. It the payment is to start after 6years. What is the value today and the value after 14years? ANSWER: F = P 719,313.8398, P = P 3,458.8207

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Related questions

Q: In 9 years, Rollo Company will have to repay a $100,000 loan. Assume a 6% interest rate compounded…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: You are to pay a bill in Meralco every month for 5 years. The accumulated amount of the payment you…

A: A deferred annuity is an agreement with an insurance broker to pay the owner a monthly income or a…

Q: you borrow $2,700 at 8% simple interest per year for five years, how much will you have to repay at…

A: interest =p×r×t100where,r=rate of interestp=principal t=years

Q: What is the payment for a loan of $320000 with an interest rate of 8.13% compounded monthly for 6…

A: using financial calculator to solve the monthly payment

Q: Engr. Odon is paying a loan five thousand pesos 5% monthly for 3 years. If the payment is to start…

A: future value formula: future value =present value ×1+rn where r=rate of interest n=number of years…

Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments starting at the end 2…

A: Quarterly payment (P) = P 2000 Annual interest rate = 10% Quarterly interest rate (r) = 10%/4 =…

Q: A house and lot package is available at P27,000.00 mònthly payable in 20 years. The first payment is…

A: Present value of annuity is the stream of cash flows that are required to be invested today in order…

Q: A man borrowed Php 120,000 and promised to pay annually for 5 years The payment starts at “X pesos…

A: Borrowed amount (PV) = Php 120,000 Period (n) = 5 Years Interest rate (r) = 8% Growth rate (g) =…

Q: a firm borrows 5000 for 5 years at 16%. at the end of 5 years, it renews the loan for an amount due…

A: Data given: P=Loan amount = $ 5000 (Assumed $) r = 16% n= 5 years After 5 years: Loan is renewed…

Q: due at the end of 2 years and 9 mon 26. Find the semi-annual payment at the end of every six months,…

A: An annuity is a payment plan where future periodic payments are made in exchange for a lump sum…

Q: 2. What is the size of 8 equal annual payments to repay a loan of $1,000? The first payment is due…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: A man loan an amount of P 100,000_at a commercial bank at 10% compounded_annually. How much is his…

A: loans are to be paid by equal monthly payments and these payments carry the payment of interest and…

Q: You bought a house on loan worth Php 5,000,000, payable in 20 years starting the following year. For…

A: Loan Amount = Php 5,000,000 Total Time Period = 20 Years Interest rate = 10% compounded yearly

Q: How much interest is payable each year on a loan of P2,000 if the interest rate is 10% simple…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: Hamilton wants to accumulate ₺ 24.000 at the end of 4 years. It starts quarterly payments in a bank…

A: Amount at the end of 4 years = 24000 Total Terms(n) = 4*4 = 16 quarters Anbuak rate =6% Quarterly…

Q: Engr. Velasco decided to subscribe in a globe promo which must be paid one thousand pesos per month…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: Mr. Ramos is considering to pay his outstanding balance after 3 years of payment. The original…

A: PMT function: The PMT function is a type of financial function which helps to determine the total…

Q: Suppose you borrowed Php 30,000 on a student loan at a rate of 8% and must repay it in three (3)…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Engr. Odon is paying a loan five thousand pesos 4% quarterly for 3 years. If the payment is to start…

A: present value of annuity: pva=A×1-11+rmm×nrm where, A=annuity r=rate of interest m=frequency of…

Q: How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth…

A: Loan amount = P1,400,500 Interest rate = 518% = 418% = 5.125% Time period = 20

Q: You are to pay a bill in Meralco every month for 5 years. The accumulated amount of the payment you…

A: The loan and the mortgage are required to repay the amount with monthly installments. These monthly…

Q: A 5-years, $6000 loan is being amortized with monthly payments at j12 = 10%. Just after making the…

A: Loan is the value which is borrowed from the other sources like banks. Repayment of loan made in…

Q: ₱50,000.00 loan is payable in 3 years. To repay the loan, the debtor must pay an amount of every 6…

A: Loan amount (PV) = P 50,000 Period = 3 Years Number of semi annual payments (n) = 3*2 = 6 Annual…

Q: If P30,000.00 is deposited each year for 10 years, how much annuity can a person get annually from…

A: Amount deposited each year for 10 years is P30,000 Cost of monry is 14% Total number of withdrawals…

Q: A loan of P30,000 was made with a rate of 15% annually. How many years will he pay an amount of P…

A: Loan amount is P30,000 Rate"r" is 15% Annually Total Interest paid is P6,000 Future Value is…

Q: Ferris Bueller has borrowed from the Ferrari Bank at a rate of 7% and will repay the laon with…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: A house costs $142,000. It is to be paid off in exactly ten years, with monthly payments of…

A: Annual Percentage Rate(APR) is nothing but the rate of interest charged to borrower and it will be…

Q: Hamilton wants to accumulate ₺ 24.000 at the end of 4 years. It starts quarterly payments in a bank…

A: Amount at the end of 4 years = 24000 Years = 4 Terms(n) = 4 *4 = 16 quarterly deposits Rate (r) = 6%…

Q: A $30,000 loan with an interest rate of 9% compounded monthly was repaid, after a period of…

A: Here, Loan Amount is $30,000 Interest Rate is 9% Monthly Payments is $450 Time period of Monthly…

Q: Loans of $1600.00, $8300.00, and $12,100.00 are due now, in four years, and in seven years…

A: Loan due now = $ 1600 Loan due in 4 years = $ 8300 Loan due in 7 years = $ 12,100 Annual interest…

Q: Mr. J. Dela Cruz borrowed money from a bank and he receives P1,340.00 and promised to pay P1,500 at…

A: Note: The question provided are two separate ones. In the first one, I have calculated both the…

Q: Hazli borrows an education loan from Usaha Bank for RM24,000. The payments will be made in…

A: Loan amount (PV) = RM24,000 Interest rate (r) = 10% Number of annual payments (n) = 5

Q: Tim needs to borrow money today. He agrees to pay back the loan via 30 equal monthly installments of…

A: Monthly installment (M) = Php 10000 n = 30 months Interest rate = 16% compounded quarterly We need…

Q: To help finance the purchase of a house and lot, a couple borrows P350,000. The loan is to be repaid…

A: Given Information : Amount borrowed = P350,000 Number of years = 8 Annual interest rate = 15%

Q: Jack has borrowed $1,000,000 from MQ Bank for 10 years at an interest rate of j2=3.53%. He will make…

A: Given: Borrowed Amount = $1,000,000 Repayments at the start of the year : Year 1 = $83,000 Year 2 =…

Q: A piece of machinery can be bought for P10,000 cash or for P2,000 down and 20,000 at the end of 15…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: In what period of time could you pay back a loan of $2000 by making quartorly payments of $310 f…

A: Loan amount (L) = $2900 Quarterly payment (Q) = $310 Interest rate = 5.9% compounded monthly Let n =…

Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments starting at the end 2…

A: The amount borrowed can be calculated with the help of present value of annuity function. The…

Q: A house costs $142,000, It is to be paid off in exactly ten years, with monthly payments of…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: To pay off a loan of R7 000 due now and a loan of R2000 due in 14 months' time, Olorato agrees to…

A: 1st Loan Amount = R 7,000 2nd Loan Amount = R 2,000 Interest Rate = 16%

Q: A car is purchased for $6,738.81 with $2,000 down and a loan to be repaid at $100 a month for 4…

A: The balloon payment is the payment of the leftover principal amount.

Q: You havefound the house of your dreams. The selling price is Php. 175,000.00 with an interest rate…

A: monthly rate of interest = 5.5%/12 a. n = 30*12, FV = 0, rate = 5.5%/12, PV = 175,000 use PMT…

Q: An engineer buys a piece of lot for P250,000 down payment and 10 deferred semi-annual payments of…

A: Annual interest rate = 10% Quarterly interest rate = 10%/4 = 2.5% Down payment = P 250,000 Semi…

Q: The Clarks are arranging a $90,000 mortgage loan from their bank. The mortgage is to be amortized by…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: If I plan to avail of a loan today and I will pay it P7,938 every end of the month for 6 years…

A: Equivalent annual rate = (1 + 11.09/4)4 - 1 = 11.56% Monthly rate (rate)= 1.1156^1/12 - 1 =…

Q: A loan of $8000 will be discharged by a cash payment of $3200 now; $1800 at the end of 4 years; $600…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of…

A: Following details are given in the question: Cost of House (Present Value) = $148000 Monthly payment…

Q: Roberto borrows $7000. The loan is to be repaid in 10 yr at 11% interest compounded annually. How…

A: Present value of a future cashflow(F) can be defined as the current amount that should be invested…

Q: What is the compound amount when $6400 is deposited in an account earning an interest rate of 6%,…

A: Because you have posted multiple questions, we will answer the first question only, For the…

Q: A student will receive P3,000 at the beginning of each 3 months for 4 years. What is the sum of this…

A: Future of Annuity Due = Annuity * [ { ( 1 + Quarterly rate )Number of quarters - 1 } / Quarterly…

Question

How to get the final answers? need help.

Engr. Odon is paying a loan five thousand pesos 10% quarterly for 3 years. If
the payment is to start after 6years. What is the value today and the value
after 14years?
ANSWER: F = P 719,313.8398 , P = P 3,458.8207
%3D

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Suppose that you borrow$ 12000 at interest rate of 5% per year. If you must be repaid the loan in equal end of year payments over the next 4 years, how much must you repay at the end of each year? O a. $3672 Ob. $3384 Oc. $2672 O d. $2384
A loan is to be repaid by $1500 in one year and $2250 in four years. The borrower has asked to repay $1000 in 1.5 years and a final payment in three years. If money can earn 6% compounded quarterly, what is the size of the final payment? Select one: O a. 2735.18 O b. 2705.50 O C. 2725.50 O d. 2755.85 O e. 2715.50
Engr. Odon is paying a loan five thousand pesos 4% quarterly for 3 years. If the payment is to start after 6years. What is the value today?
Engr. Ron is paying a loan five thousand pesos 1% quarterly for 3 years. If the payment is to start after 6years. What is the value today?
If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4 years. The amount of the annual payment is: Select one: а. $1169.85 b. $1400 c. $1313.9 d. $1240
K For how long will Logan have to make payments of $322 at the end of every year to repay a loan of $2470 if interest is 9% per annum compounded monthly? State your answer in years and months (from 0 to 11 months) He will have to make payments for year(s) and month(s) CHED-
3. Senyor Pigafetta borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with 4 equal monthly amounts, the first payment to start 1 month from today. How much is the value of each equal monthly payment? Construct an amortization schedule. Use interest rate at 12 % compounded monthly.

3. Don Magellan borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with 4 equal monthly amounts, the first payment to start 1 month from today. How much is the value of each equal monthly payment? Construct an amortization schedule. Use interest rate at 12% compounded semi-annually.