A man bought a condominium unit worth P3.9M a pay a down payment of P1.5M and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A man bought a condominium unit worth P3.9M a pay a down payment of P1.5M and agreed to pay the remaining balance as follows: P600,000 at the end of the 2nd year; P755,000 at the beginning of the 5th year; P850,000 at the end of the 6th year and an unknown payment at the end of the 10th year. Assume an 5% interest rate. QUESTION: What is the present worth of the second instalment payment? A man bought a condominium unit worth P3.9M a pay a down payment of P1.5M and agreed to pay the remaining balance as follows: P600,000 at the end of the 2nd year; P755,000 at the beginning of the 5th year; P850,000 at the end of the 6th year and an unknown payment at the end of the 10th year. Assume an 5% interest rate. QUESTION: What is the present worth of the second instalment payment?
Expert Answer:
Answer rating: 100% (QA)
To calculate the present worth of the second installment payment we need to discou... View the full answer
Related Book For
Accounting
ISBN: 978-0176509743
Volume 1, 2nd canadian Edition
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Posted Date:
Students also viewed these finance questions
-
The following selected transactions were taken from the records of Bingham Company for the year ended December 31, 2015: Mar. 13. Wrote off account of H. Ballard, $4,200. Apr. 19. Received $3,000 as...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following selected transactions were taken from the records of Niagara Company for the year ended December 31, 2015: Jan. 24. Wrote off account of J. Coleman, $3,000. Feb. 17. Received $1,500 as...
-
Suppose that the Medicare rate of hospital reimbursement is reduced. Explain why the costs may not be shifted to other patients in the short run.
-
The mathematics department, of a large university is designing a placement test, to be given to the incoming freshman classes. Members of the: department feel that the average grade for this test...
-
Repeat Exercise 6.7, but select each sample with replacement; that is, replace each slip of paper and reshuffle before the next one is drawn. Data From Exercise 6.7 6.7 Take 30 slips of paper and...
-
Line and staff positions are identified on the organization chart. What does the line position denote? A. Who is responsible to whom within the organization. B. Advisory relationships between...
-
Following is a statement of cash flows (indirect method) for Hartford, Inc., for the year ended December 31, 2011. Also shown is a partially completed comparative balance sheet as of December 31,...
-
24. If you look at someone's W-2 form and want to know the person's real salary, in which box do you look?
-
You work in the human resources department of your company helping new employees fill out the necessary paperwork to get their first paycheck. There are a number of decisions that employees must make...
-
The biological species concept defines a species as a group of populations whose members have the potential to interbreed in nature and produce viable, fertile offspring. This means that all members...
-
For each of the four groups (industrialized, newly industrialized, developing, underdeveloped), were you surprised by any of the issues included or by any issues not included? what changes would...
-
The author states because the technologies facilitate the vertical distribution of information and knowledge, there is more commonality of information and knowledge across organizational levels. What...
-
Compare the authors concept of SISP to that of information strategy from Smits et al.
-
What significance does the increasing rate and pace of advances in information and communications technologies have for organizations?
-
Consider your experience with electronic mail and compare this to the propositions. Does email increase participation? If yes, what are the results of such increased participation? Does email enable...
-
Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products. May 3 Allied made its first and only purchase of inventory for the period on May 3...
-
A routine activity such as pumping gasoline can be related to many of the concepts studied in this text. Suppose that premium unleaded costs $3.75 per gal. Work Exercises in order. Use the...
-
Lady Bug Express established a petty cash fund of $225 on August 1, 2015. On August 15, 2015, the petty cash fund was increased by $50. On August 31, 2015, the cash box contained $16 and receipts for...
-
Mini Truck Transports established a petty cash fund of $80 on March 1, 2015. On March 12, 2015, the company increased the petty cash fund by $40. On March 31, 2015, the cash box contained $11.14 and...
-
At the end of December, the first month of operations, the following selected data were taken from the financial statements of Beth Cato, a lawyer: Net income for December .............$125,750 Total...
-
Which of the following statements is true? a. Encrypting data is sufficient to protect confidentiality and privacy. b. Cookies are text files that only store information and cannot do anything. c. A...
-
Which of the following is designed to identify entry of a nonexistent customer account number? a. sequence check c. completeness check b. field check d. validity check
-
A batch total that is calculated by summing the part numbers sold in a batch of 50 sales invoices is called a a. financial total c. record count b. hash total d. part count
Study smarter with the SolutionInn App