Question

A loan of P500,000 was signed by Liza who promised to pay it at the beginning...

A loan of P500,000 was signed by Liza who promised to pay it at the beginning of each month for 5 years. If money is worth 12% compounded monthly, what will be the total sum paid by Liza?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Proper solution is provided.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Barry has bought a new car and requires a loan of 12000 to pay for it....
Barry has bought a new car and requires a loan of 12000 to pay for it. The car dealer offers Barry two alternatives on the loan: a) Monthly payments for 3 years, starting one month after purchase with an annual interest rate of 12% compounded monthly, or b) Monthly payments for 4 years, also staring one month after purchase, with annual interest rate 15%, compounded monthly. Find Barry's monthly payment and the total amount paid over the course of the...
A commercial bldg. can be acquired at a down payment of P500,000 and a yearly payment...
A commercial bldg. can be acquired at a down payment of P500,000 and a yearly payment of P100,000 at the end of each year for a period of 10 years, starting at the end of 5 years from the date of purchase. If money is worth 12% compounded yearly. What is the cash price of the commercial bldg.? CASH FLOW DIAGRAM is needed.
a) Kathy promised to pay her sister Suzie $4000 in six years in return for dental...
a) Kathy promised to pay her sister Suzie $4000 in six years in return for dental services to be performed immediately. Suzie prefers Kathy pay in installments, so Kathy agrees to make equal, monthly payments over the next six years. If Kathy’s opportunity cost is three percent, how much must Kathy pay each month? b) If Kathy makes her payments at the beginning of each month, how much must Kathy pay? a. $50.77 b. $50.65 I just need help for...
1. A man has a loan of 50,000 in a bank that gives 12% simple interest....
1. A man has a loan of 50,000 in a bank that gives 12% simple interest. How much is the interest if he plans to pay after 5 years? 2. A man can save 10,000 per month for 2years, If the bank offers 5% compounded monthly, what is n? 3. A man has a loan of 50,000 in a bank that gives an interest rate of 12% compounded quarterly? If he plans to pay after 6months, how much is the...
Don Draper has signed a contract that will pay him 70000 at the beginning of each...
Don Draper has signed a contract that will pay him 70000 at the beginning of each year for the next 5 ​years, plus an additional 130000 at the end of year . If 8 percent is the appropriate discount​ rate, what is the present value of this​ contract?
1, How many years will it take to pay off a car loan of $25,703 at...
1, How many years will it take to pay off a car loan of $25,703 at an annual rate of 12.38% compounded monthly if you make monthly payment of $614? Please round your answer to the second decimal. e.g. 1.11 2. You are saving money to travel around the globe. You've taken your first job and you plan to save $434 each month into the bank account that pays 7.37% compounded monthly for the next three years for your grad...
Suppose a company is buying a piece of equipment for $ 140,000 and requires a loan...
Suppose a company is buying a piece of equipment for $ 140,000 and requires a loan to pay for it. The following options are given: a. Monthly payments for 3 years starting one month after the purchase, with an annual rate of 2.4% compounded monthly. b. Monthly payments for 3 years starting 6 months after the purchase, with an annual interest rate of 3.6% compounded monthly. c. Monthly payments for 3 years starting one month after the purchase with nominal...
Number of years= 20 Number of months=240 Annual Percentage Rate=8.00% Monthly interest rate=0.67% Loan amount=$441,747 Fixed...
Number of years= 20 Number of months=240 Annual Percentage Rate=8.00% Monthly interest rate=0.67% Loan amount=$441,747 Fixed monthly repayment amount=$ 3,694.95 1. The borrower actually had to pay $250 more each month due to hidden fees and charges. Calculate the implied nominal interest rate compounded monthly, the borrower is actually charged on the loan taking into account these charges 2. Total amount of interest paid in the 3rd year? 3. The total principle paid in the 4th year? 4. The amount...
Yani has $12,000 for investment purposes. His bank has offered the following three choices: Choice 1....
Yani has $12,000 for investment purposes. His bank has offered the following three choices: Choice 1. A special savings certificate that will pay $70 each month for 5 years and a lump sum payment at the end of 5 years of $13,000 Choice 2. Buy a share of a racehorse for $12,000 that will be worth $17,500 in 5 years Choice 3. Put the money in a savings account that will have an interest rate of 12% per year compounded...
An investment will pay $32,000 per year forever beginning 10 years from today. If the relevant...
An investment will pay $32,000 per year forever beginning 10 years from today. If the relevant rate is 8% compounded monthly, the investment is worth $______ today.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT