1. Suppose Glenn invested P10,000 for 5 years with simple annual interest of 10%. What is...
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1. Suppose Glenn invested P10,000 for 5 years with simple annual interest of 10%. What is the future value of this investment? 2. Deposit the principal amount of PI0,000 into a savings account that pays interest at the rate of s%. What is the amount in the account after I year if the account is: a. compounded annually b. compounded semi-annually e. compounded quarteriy d. compounded monthly e. Which is advantageous to the investor? 3. A four-year ordinary annuity has a present value of PI0,000. If the interest rate is 5% per annum, how much is the amount of the annuity payment? 4. Find the present value of a deferred annuity of P4.800 every six months for 7 years, if the first payment is made in 4 years, and the money is worth 5.5% compounded semi-annually. S. A loan is 6 Semi-annual payments of P4,500 are to be made to pay for a loan at 5.5% compounded semi-annualy. Find the value of the loan. 1. Suppose Glenn invested P10,000 for 5 years with simple annual interest of 10%. What is the future value of this investment? 2. Deposit the principal amount of PI0,000 into a savings account that pays interest at the rate of s%. What is the amount in the account after I year if the account is: a. compounded annually b. compounded semi-annually e. compounded quarteriy d. compounded monthly e. Which is advantageous to the investor? 3. A four-year ordinary annuity has a present value of PI0,000. If the interest rate is 5% per annum, how much is the amount of the annuity payment? 4. Find the present value of a deferred annuity of P4.800 every six months for 7 years, if the first payment is made in 4 years, and the money is worth 5.5% compounded semi-annually. S. A loan is 6 Semi-annual payments of P4,500 are to be made to pay for a loan at 5.5% compounded semi-annualy. Find the value of the loan.
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Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
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