An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a 5-year period with annual payments such that the third payment is P2,000 greater than the first two. The fourth payment is 1,000 greater than the third payment and the fifth payment is 1,000 greater than the fourth payment. Determine the size of the first payment. DRAW THE CASH FLOW DIAGRAM.
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- 5. An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a 5-year period with annual payments such that the third payment is P2,000 greater than the first two. The fourth payment is 1,000 greater than the third payment and the fifth payment is 1,000 greater than the fourth payment. Determine the size of the first payment, DRAW THE CASH FLOW DIAGRAM.Draw the necessary cash flow diagrams. Prob#1: Determine the present worth of an annual payment of P 4500.00 : If made at the beginning of the year for 12 years at 8% compounded annually. If made at the end of each month for 5 years at 4% compounded monthly. If 15 payments start at the end of year 4 at 6% compounded annually.(Please draw cashflow diagram) P45,000 is deposited in a savings account that pays 5% interest compounded semi-annually. Equal annual withdrawals are to be made from the account, beginning one year from now and continuing forever. Compute the maximum amount of the equal annual withdrawal.
- an organization has a loaned BD 820,000 to buy the needed machines. The loan holds an interest rate of 5% per year and is to be returned in equal payments over the next seven years. calculate the amount of the annual installment. solve the problem showing cash flow, and final answer using a suitable formula.Suppose that P 4500 is deposited each year into a bank account that pays 8% interest compounded quarterly. How much would be accumulated in his fund by the end of the 4th year? The first payment occurs at time zero (now). Please draw a cash flow diagram. Thank youA person deposits $100 per month into a savings account for 2 years. If $75 is withdrawn in months 5, 7 and 8 (in addition to the deposits), construct the cash flow diagram to determine how much will be in the account after 2 years ati= 8% per year, compounded quarterly. Assume there is no interperiod interest.
- 3. An amount of 100,000 was borrowed and was to be repaid in 10 instalments at the end of every quarter thereafter with each payment more than $1,000 more than the preceding, if interest is 12% compounded semi-annually.(a) determine the amount of the first payment and (b) the total amount paid by the borrower. DRAW THE CASH FLOW DIAGRAM.Consider each of the following deposit cash flow series. What will the final balance be (future equivalent value) after the final deposit? Assume the account earns 9% interest compounded annually *Use excel*Attach a complete solution. Draw the cash flow diagram.Suppose that P 4500 is deposited each year into a bank account that pays 8% interest compounded quarterly. How much would be accumulated in his fund by the end of the 4th year? The first payment occurs at time zero (now).
- A company takes a loan of $ 1,200,000 to a bank amortizable in 4 with an interest of 15% per year under the following conditions; The years and company will amortize the debt in constant values in all periods, with a three-year grace period. Determine the benefits that the company must pay for its debt. Build the cash flow diagram.Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8% compounded annually. In other words, how much do you have to deposit now (with the second deposit in the amount of $1,000 at the end of the first year) so that you will be able to withdraw $600 at the end of the second year through the fourth year , and $ 800 at the end of the fifth year , where the bank pays you 8% annual interest on your balance ?A debt of ₱75,000 was paid for as follows: ₱15,000 at the end of 18 months, ₱25000 at the end of 24 months, ₱30,000 at the end of 36 months, and a final payment of M at the end of 48 months. The rate of interest was 2% compounded semi-annually.a. Pick a focal date and draw a detailed cash-flow diagram. It is recommended to draw it as big as the width of a letter-sized (whole sheet) paper. b. Declare the focal date.c. Write the equation of value (a) using the symbolic factors, and (b) as a mathematical form (expression).