1. What rate of interest compounded annually must be received if an investment of Php5,400 made...

  

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1. What rate of interest compounded annually must be received if an investment of Php5,400 made now will result in a receipt of Php7,200 5 years hence? 2. What amount will be accumulated by Php4,100 in 10 years at 6% compounded annually? 3. What effective annual interest rate corresponds to the following situations? nominal interest rate of 10% compounded semi-annually nominal interest rate of 6% compounded monthly nominal interest rate of 8% compounded quarterly 4. How much should Engr. Cruz deposit now, if after 10 years, this will amount to Php100,000. Interest rate is 12% compounded semiannually. a. rate. b. C. 5. If Php1,000 becomes Php5,734 after 15 years when invested at an unknown rate of interest compounded semi-annually, determine the unknown nominal rate and corresponding effective 1. Acosta Holdings borrowed Php9,000 from Smith Corporation on January 1, 1998 and Php12,000 on January 1, 2000. Acosta Holdings made a partial payment of Php7,000 on January 1, 2001. It was agreed that the balance of the loan would be amortized by two payments, one on January 1, 2002 and one on January 1, 2003, the second being 50% larger than the first. If the interest rate is 12%, what is the amount of each payment? 2. A contract has been signed to lease a restaurant at Php20,000 per year with annual increase of Php1,500 for 8 years. Payments are to be made at the end of each year, starting one year from now. The prevailing rate is 7%. What lump sum paid today would be equivalent to the 8 year lease program? 3. Mr. Cruz buys a second hand car worth Php150,000 if paid in cash. On installment basis, he pays Php50,000 downpayment, Php30,000 at the end of one year, Php40,000 at the end of two years and a final payment at the end of four years. Find the final payment if interest is 14%. 1. What rate of interest compounded annually must be received if an investment of Php5,400 made now will result in a receipt of Php7,200 5 years hence? 2. What amount will be accumulated by Php4,100 in 10 years at 6% compounded annually? 3. What effective annual interest rate corresponds to the following situations? nominal interest rate of 10% compounded semi-annually nominal interest rate of 6% compounded monthly nominal interest rate of 8% compounded quarterly 4. How much should Engr. Cruz deposit now, if after 10 years, this will amount to Php100,000. Interest rate is 12% compounded semiannually. a. rate. b. C. 5. If Php1,000 becomes Php5,734 after 15 years when invested at an unknown rate of interest compounded semi-annually, determine the unknown nominal rate and corresponding effective 1. Acosta Holdings borrowed Php9,000 from Smith Corporation on January 1, 1998 and Php12,000 on January 1, 2000. Acosta Holdings made a partial payment of Php7,000 on January 1, 2001. It was agreed that the balance of the loan would be amortized by two payments, one on January 1, 2002 and one on January 1, 2003, the second being 50% larger than the first. If the interest rate is 12%, what is the amount of each payment? 2. A contract has been signed to lease a restaurant at Php20,000 per year with annual increase of Php1,500 for 8 years. Payments are to be made at the end of each year, starting one year from now. The prevailing rate is 7%. What lump sum paid today would be equivalent to the 8 year lease program? 3. Mr. Cruz buys a second hand car worth Php150,000 if paid in cash. On installment basis, he pays Php50,000 downpayment, Php30,000 at the end of one year, Php40,000 at the end of two years and a final payment at the end of four years. Find the final payment if interest is 14%.

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