Additional ActivitiesSolve the following:1. Josiah, a fisherman, won a local lottery game. After reserving a portionof his winning for his family's immediate expenses, he is left with P150,000.00. He decided to put this in an account providing 3% interestcompounded monthly. He also plans to let the money grow for 5 years,and then make equal monthly withdrawals for another 5 years until themoney is the account is deleted. How much should be his monthlywithdrawals?2. A house and lot are to be purchased by paying P 15,500.00 monthlypayable in 25 years. The first payment is due in 1 year. Hpw much isthe cash price of the house and lot if the interest rate is 12% convertedmonthly?3. Kim's savings may allow her to withdraw P 50,000.00 semi-annually for5 years starting at the end of 5 years. How much her savings, if theinterest rate is 8%, converted semi-annually?4. Rodel decided to sell their farm and to deposit the fund in a bank. Aftercomputing the interest, they learned that they may withdrawP 480,000.00 yearly for 8 years starting at the end of 6 years when it istime for him to retire. How much is the fund deposited if the interestrate is 5% converted annually?

1. Josiah, a fisherman, won a local lottery game. After reserving a portion of his winning for his family's immediate expenses, he is left with P 150,000.00. He decided to put this in an account providing 3% interest compounded monthly. He also plans to let the money grow for 5 years, and then make equal monthly withdrawals for another 5 years until the money is the account is deleted. How much should be his monthly withdrawals?

1. Josiah, a fisherman, won a local lottery game. After reserving a portion of his winning for his family's immediate expenses, he is left with P 150,000.00. He decided to put this in an account providing 3% interest compounded monthly. He also plans to let the money grow for 5 years, and then make equal monthly withdrawals for another 5 years until the money is the account is deleted. How much should be his monthly withdrawals?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 8FPE

See similar textbooks

Similar questions

Solve the following: 1. Josiah, a fisherman, won a local lottery game. After reserving a portion of his winning for his family's immediate expenses, he is left with P 150,000.00. He decided to put this in an account providing 3% interest compounded monthly. He also plans to let the money grow for 5 years, and then make equal monthly withdrawals for another 5 years until the money is the account is deleted. How much should be his monthly withdrawals?
1. Josiah, a fisherman, won a local lottery game. After renerving a portion of his winning for his family's immediate expenses, he is left with E 150,000.00. He decided to put this in an account providing 3% interest compounded monthly. He also plans to let the money grow for 5 years, and then make equal monthly withdrawals for another 5 years until the money is the account is deleted. How much should be his monthly withdrawals?
Josiah, a fisherman, won a local lottery game. After reserving a portionof his winning for his family’s immediate expenses, he is left with ₱150,000.00. He decided to put this in an account providing 3% interestcompounded monthly. He also plans to let the money grow for 5 years,and then make equal monthly withdrawals for another 5 years until themoney is the account is deleted. How much should be his monthlywithdrawals?
Slick Sam has a special relationship with his banker. The nature of the relationship is as follows: • The bank owes Sam $100 per year forever. The 1st payment is due in 1 year. • The bank will borrow or lend money to Sam at a constant effective rate of i per year. Today, Sam calculated the present value of the payments that are due to him as X. Sam can receive his first 16 payments at the end of year 16 in a lump sum. If he does that, then the total value of the lump sum and future payments at the end of the sixteenth year is X + 2,000. Calculate X. A B с D E 3,330 3,350 3,400 3,450 3,500
Leslie Mosallam, who recently sold her Porsche, placed $10,000 in a savings account paying annual com- pound interest of 6 percent. a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 1, 5, and 15 years. b. Suppose Leslie moves her money into an account that pays 8 percent or one that pays 10 percent. Rework part a using 8 percent and 10 percent. c. What conclusions can you draw about the relationship among interest rates, time, and future sums from the calculations you just did? use EXCEL to work this out and show the formula!
2. Jeffrey purchased a new car. He wishes to set aside enough money in a bank account to pay maintenance on the car for the first 5 years. It has been estimated that the maintenance cost is as follows: Yegr Maintenance Cost 1 P6720 8400 3 10,080 4 11,760 13,440 Assume the maintenance costs occur at the end of each year and that the bank pays 5% interest. How much should Jeffrey deposit in the bank now?
Ronald Gonzales, who recently sold his Bicycle, placed P10,000 in a savings account paying annual compound interest of 6 percent. a. Calculate the amount of money that will have accrued if he leaves the money in the bank for 1, 5, and 15 years. b. b. If he moves his money into an account that pays 8 percent or one that pays 10 percent, rework part (a) using these new interest rates. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you have done above?
Scott wants to accumulate $2,500 over a period of 7 years so that a cash payment can be made for roof maintenance on his summer cottage. To have this amount when it is needed, he will make annual deposits at theend of each year into a savings account that earns 8% annual interest per year. How much must each annual deposit be? a. $244 b. $259 c. $280 d. $357.
4. Rodel decided to sell their farm and to deposit the fund in a bank. After computing the interest, they learned that they may withdraw P480,000.00 arly for 8 years starting at the end of 6 years when it is time for him to retire. How much is the fund deposited if the interest rate is 5% converted annually?
Juan decided to start saving for college. He deposited $500 into an account that earns 4% simple annual interest. At the end of each year, he will add $250 to this account. How much will he have in his account after the end of three years? a $550 b $770 c $1,050.80 d $1,342.83
I. A house owner decided to renovate his property in 7 years where he will be paying 50,000 for the renovation. To prepare for this amount, he set four equal annual payments now. No further payments are made after 4 years. If money is worth 12% per annum, what annual payment is necessary? Show Cash Flow Diagram II. As a member, Mr. Dela Cruz will deposit P300 with a savings and loan organization at the beginning of each 3 months for 12 years. If the organization pays interest at the rate of 1.4.% per 3 months. Find the sum to his credit just after the last deposit. Show Cash Flow Diagram
A young couple buying their first home borrow $80,000 for 30 years at 7.6%, compounded monthly, and make payments of $564.86. After 2 years, they are able to make a one-time payment of $2,000 along with their 24th payment. (a) Find the unpaid balance immediately after they pay the extra $2,000 and their 24th payment. (Round your answer to the nearest cent.)$ (b) How many regular payments of $564.86 will amortize the unpaid balance from part (a)? Give the answer to one decimal point. payments(c) How much will the remaining debt be after the number of full payment periods in part (b) is made? (Round your answer to the nearest cent.)$ How much extra must be included with the last full payment to pay off the debt? (Round your answer to the nearest cent.)$ (d) How much will the couple pay over the life of the loan by paying the extra $2,000? (Round your answer to the nearest cent.)$ (e) How much will the couple save over the life of the loan by paying the extra $2,000? (Use your answer from…