High-profile movie star Rob Downer Sr, originally was contracted to receive four separate payments for his upcoming film: $1 million in 3 months, $2 million in 6 months, $4 million in a year should Rob receive his payment? and $8 million in two years. However, he was able to renegotiate terms of his contract and is now taking a single payment of $13.5 million. At a rate of 6% p.a. compounded monthly, when should rob recive his payment
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- 6. Boilermaker Design, Inc. (BD) has an employment contract with its newly hired CEO. The contract requires a lump sum payment of $5 million be paid to the CEO upon the successful completion of her first three years of service. BD wants to set aside an equal amount of money at the end of each year to cover this anticipated payment and will earn 8% on the funds. How much must BD set aside each year for this purpose?A man purchased a secondhand truck with a cash price of P350, 000 for his hollow block business. He was able to negotiate with the seller to allow him to pay only a down payment of 20 percent and the balance payable in equal 48 end of the month installment at 1.5 percent per month interest rate. On the day he paid the 20th installment, he decided to pay the remaining balance. How much is the remaining balance?A BUILDING CONTRACTOR GIVES A $14,000 PROMISSORY NOTE TO A PLUMBER WHO HAS LOANED HIM $14000. tNHE NITE IS DUE IN 9 MONTHS WITH INTEREST AT 9%. SIX MONTHS AFTER THE NOTE IS SIGNED, THE PLUMBER SELLS IT TO A BANK. IF THE BANK GETS A 10% RETUEN ON ITS INVESTMENT, HOW MUCH WILL THE PLUMBER RECIEVE??
- Monty Inc. loans money to John Kruk Corporation in the amount of $688,000. Monty accepts an 8% note due in 7 years with interest payable semiannually. After 2 years (and receipt of interest for 2 years), Monty needs money and therefore sells the note to Chicago National Bank, which demands interest on the note of 10% compounded semiannually. What is the amount Monty will receive on the sale of the note? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Amount received on sale of note $ 637872You purchased a second-hand car worth ₱ 420,000 if paid in cash. You were able to negotiate with a financing agency to allow you to pay only with a down payment amounting to 20% of the cash price and the balance payable in equal monthly payments for four years at 1.5% per month. Immediately after your 20th installment, you decided to pay the remainder of the loan in a lump sum. How much is this payment?Ben borrowed PHP 1,300,000 from a finance company that charges interest at 16% compounded semi-annually. He promised to pay off the loan in 18 semi-annual payments. The first payment is to be made at the end of 2 years. Find his semi-annual payment. PHP 191,701.09 PHP 132,817.77 PHP 101,281.16 O PHP 174,738.08 None of the above
- a contractor brought a luxury service car worth 4.5 million pesos. the paying scheme is as follows. down payment of 10% and balance is payable within the four (4) year period. annual interest rate is 14%. paying continuously uniform payment (monthly) for 2 years and a hald (2 1/2 years) this contractor decided to pay the balance in lump sum. how much this balance wasNick Suzuki, 23, newly named captain of the Montreal Canadiens, recently signed an 8-year, $63 million contract ($7,875,000 per year for 8 years, with equal installments paid at the end of each month). If Nick spends only $20,000 per month over the life of his contract, investing the rest into an investment paying 5% compounded quarterly, how much will he have available to spend every month if he retires at the end of his contract and lives to age 80? (Assume he continues to earn 5% compounded quarterly on his funds).Dominic Torreto borrows $300,000 from a lending company in his hometown at 12% interest compounded monthly. To fulfill his obligation to repay the loan, Dominic agreed to start paying the six (6) equal monthly payments starting next month. If Dominic failed to pay the 2nd and 3rd monthly amortization, how much shall be the required single payment on the fifth month to fully pay his outstanding obligation? Supposed that he will still not be able to pay the single total payment on the Fifth month as stated in question 1 above, and assuming further that both parties agree that the outstanding obligations shall instead be paid in 7 equal monthly installments, at 15% compounded monthly, starting on the 9th month, what will the value of such monthly installment be?
- Ruby Bakeshop obtains a loan of P500,000, with interest at 8% compounded quarterly, for the construction of a new branch in Angeles City. The owner will repay the loan by payments made quarterly for 2 1/2 years. Create an amortization schedule to answer the following questions: 1. How much principal repayment paid in the 9th payment period? 2. How much is the present outstanding balance on the 7th payment period? 3. How much is the total interest? 4. How much is the interest paid in the 5th payment? 5. Find the quarterly payment.John Fare purchased $12,000 worth of equipment by making a $2000 down payment and promising to pay the remainder of the cost in semiannual payments over the next 5 years. The interest rate on the debt is 8%, compounded semiannually. Find the following. (Round your answers to the nearest cent.) (a) the size of each paymentVanessa was supposed to make a payment of $3,500 in 2 years and another payment for $1,800 in 5 years to Loon Company as part of a payment plan. Instead, he is trying to reach an agreement with the company where he would pay an upfront amount now, and an amount of $1,600 in 4 years. Assume that money is worth 8.40% compounded quarterly. a. Calculate the equivalent value of the $3,500 payment and the $1,800 payment today. Round to the nearest cent b. Calculate the upfront amount that he should pay under the alternative payment agreement so that the payments are equivalent. Round to the nearest cent.