A site is sold for 8, 000 down and 6 semiannual payments of 1,000, the first...
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A site is sold for 8, 000 down and 6 semiannual payments of 1,000, the first due at the end of 3 years. Find the cash value of the site if money is worth 12% compounded monthly. We would like to pay into a dream-holiday fund providing 3 annual payments of 2,500. If the fund earns interest at 8% compounded annually, what sum should we set aside today if the first payment is to be made 5 years from now? We sign a contract that calls for a downpayment of 1,000 and for payments of 300 at the end of each month for 5 years. Money is worth 12% compounded monthly. If we miss the first 5 payments, what must we pay at the time of the 6th payment to discharge our entire indebtedness? A fund of 9,000 is to be accumulated by semiannual payments of 250. If the fund earns interest at 10% compounded semiannually, what is the number of payments required and what is the amount of the final deposit? A site is sold for 8, 000 down and 6 semiannual payments of 1,000, the first due at the end of 3 years. Find the cash value of the site if money is worth 12% compounded monthly. We would like to pay into a dream-holiday fund providing 3 annual payments of 2,500. If the fund earns interest at 8% compounded annually, what sum should we set aside today if the first payment is to be made 5 years from now? We sign a contract that calls for a downpayment of 1,000 and for payments of 300 at the end of each month for 5 years. Money is worth 12% compounded monthly. If we miss the first 5 payments, what must we pay at the time of the 6th payment to discharge our entire indebtedness? A fund of 9,000 is to be accumulated by semiannual payments of 250. If the fund earns interest at 10% compounded semiannually, what is the number of payments required and what is the amount of the final deposit?
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Answer rating: 100% (QA)
To find the cash value of the site we need to calculate the present value of the payments and the down payment discounted at a monthly interest rate of 1 1212 First we need to calculate the present va... View the full answer
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
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