Angelo wants to renovate his house in 3 years. He estimates the cost to be P300,000....
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Angelo wants to renovate his house in 3 years. He estimates the cost to be P300,000. How much must Angelo invest now at 8% interest compounded quarterly, in order to have P300,000, 3 years from now. 2. Arnold and Azura want to save P500,000 in 5 % years to renovate their rest house. If the Bank of Amber is paying 8% interest compounded quarterly, how much must they deposit now in order to have the money for the project? 3. Find the present value of P85,000, if the interest rate is 6% compounded quarterly, for 10 years. 4. Ashley and Aileen want to accumulate P300,000, 17 years from now, as a college fund for their baby daughter, Aria. Use the present value formula to calculate how much they must invest now, at an interest rate of 8% compounded semiannually, in order to have P300,000 in 17 years. 5. Anne is planning a vacation in Europe in 4 years, after graduation. She estimates that she will need P350,000 for the trip. (a) If her bank is offering 4-year certificates of deposit with 8% interest compounded quarterly, how much must Anne invest now in order to have the money for the trip? (b) How much compound interest will be earned on the investment? Angelo wants to renovate his house in 3 years. He estimates the cost to be P300,000. How much must Angelo invest now at 8% interest compounded quarterly, in order to have P300,000, 3 years from now. 2. Arnold and Azura want to save P500,000 in 5 % years to renovate their rest house. If the Bank of Amber is paying 8% interest compounded quarterly, how much must they deposit now in order to have the money for the project? 3. Find the present value of P85,000, if the interest rate is 6% compounded quarterly, for 10 years. 4. Ashley and Aileen want to accumulate P300,000, 17 years from now, as a college fund for their baby daughter, Aria. Use the present value formula to calculate how much they must invest now, at an interest rate of 8% compounded semiannually, in order to have P300,000 in 17 years. 5. Anne is planning a vacation in Europe in 4 years, after graduation. She estimates that she will need P350,000 for the trip. (a) If her bank is offering 4-year certificates of deposit with 8% interest compounded quarterly, how much must Anne invest now in order to have the money for the trip? (b) How much compound interest will be earned on the investment?
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Question 1 Angelos Renovation Fund Given Future value FV P300000 Quarterly interest rate 2 002 Number of compounding periods 12 Time 3 years Calculati... View the full answer
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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