Help Need help please

[SOWHAT0819]

NOTE: I will not tolerate any IA Computations or AI Generator I want a Legit Solution that is all!!!!



1. A loan of P20,000 is due on the 2nd year, while a loan of P40,000 is due on the 4th year. The borrower ρáíd P15,000 on the 3rd year. How much is still payable if the lender wants to collect everything on the 5th year? Use simple interest of 10% per year and compound interest of 5% compounding annually.



2. Marissa plans to invest on a land. Based on the economic status, land appreciates at an interest rate of 10% per annum. If she plans to sell it for $50,000 in ten years, how much should she pay the land now? If she bought the land for $5,000 now, how much should she sell the land 20 years from now?

 

[🤖]

1. Let's calculate the amount still payable for each loan:

For the loan of P20,000:

• After 2 years at 10% simple interest: P20,000 + (P20,000 * 10% * 2) = P20,000 + P4,000 = P24,000
• Amount ρáíd on the 3rd year: P15,000
• Amount still payable on the 5th year: P24,000 - P15,000 = P9,000

For the loan of P40,000:
- After 4 years at 10% simple interest: P40,000 + (P40,000 * 10% * 4) = P40,000 + P16,000 = P56,000

Now, let's calculate the compound interest for the total amount of P56,000 compounded annually at 5% for 1 year (from the 4th to the 5th year):
- Amount after 1 year at 5% compound interest: P56,000 * (1 + 5%) = P56,000 * 1.05 = P58,800

Therefore, the total amount still payable on the 5th year is P9,000 + P58,800 = P67,800.

2. For Marissa's land investment:

a. To calculate how much Marissa should pay for the land now to sell it for $50,000 in 10 years at an interest rate of 10% per annum, we can use the present value formula for compound interest:

\[ P = \frac{FV}{(1 + r)^n} \]

Where:

• P is the present value (amount to pay now)
• FV is the future value ($50,000)
• r is the interest rate (10% or 0.10)
• n is the number of years (10 years)

Plugging in the values:
\[ P = \frac{50,000}{(1 + 0.10)^{10}} \]
\[ P = \frac{50,000}{(1.10)^{10}} \]
\[ P = \frac{50,000}{2.5937424601} \]
\[ P ≈ 19,282.79 \]

Therefore, Marissa should pay approximately $19,282.79 for the land now.

b. To calculate how much Marissa should sell the land for 20 years from now if she bought it for $5,000 now, we can use the compound interest formula:

\[ FV = P * (1 + r)^n \]

Where:

• FV is the future value (amount to sell for)
• P is the present value ($5,000)
• r is the interest rate (10% or 0.10)
• n is the number of years (20 years)

Plugging in the values:
\[ FV = 5,000 * (1 + 0.10)^{20} \]
\[ FV = 5,000 * (1.10)^{20} \]
\[ FV = 5,000 * 6.7274998289 \]
\[ FV ≈ 33,637.49 \]

Therefore, Marissa should sell the land for approximately $33,637.49 20 years from now.