In return for payment of $5000 at the end of 4 years and #8500 at the end of 9 years, a man agrees to pay $1000 at once and $3000 at the end of 6 years and two equal payments at the end of 8 years and 10 years, respectively. Find how much each payment is if money is worth 18% compounded semi- annually.
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- Find the annual payment for the 6 years if a house cost P 400,000.00. Mr Killua will pay S90,000 cash, S60,000 at the end of 2 years and a sequence of 6 equal annual payments starting with the 1st at the end of 4 years to pay the house. Interest is 7% compounded annually.A friend who owns a perpetuity that promises to pay $1,000 at the end of each year, forever, comes to you and offers to sell you all of the payments to be received after the 25th year for a price of $1,001. At an interest rate of 10%, should you pay the $1,000 today to receive payment numbers 26 and onwards? What does this suggest to you about the value of perpetual payments?A person buys a piece of property for P100,000 down payment and ten deferred semi-annual payments of P8,000each starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually? What problem is all about? A. Perpetuity B. Annuity due C. Deffered