= y A | Y| e Edit FINANCIAL MANAGEMENT ASSIGNMENT 3 TIME VALUE OF MONEY INSTRUCTION: Analyze the following problems and provide what is being asked. Show your solution. 1-5 Problem 1: If you deposit Php10,000 in a bank account that pays 10% interest semi-annually, how much will be in your account after 5 years? 6-10. Problem 2: What is the present value of a security that will pay Php 15,000 in 20 years if securities of equal risk pay 8% annually? 11-15. Problem 3: Your parents will retire in 18 years. They currently have Php250,000, and they think they will need Php 1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? 16-25. Problem 5: What's the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this was an annuity due, what would its future value be? 26-35. Problem 6: An investor is negotiating his first REITS contract. His opportunity cost is 10%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: 1 2 3 4 Contract 1 $3,000,000 $3,000,000 $3,000,000 $3,000,000 Contract 2 $2,000,000 $3,000,000 $4,000,000 $5,000,000 Contract 3 $7,000,000 $1,000,000 $1,000,000 $1,000,000 As his adviser, which contract would you recommend that he accept? 36-40. Problem 7: You borrow $85,000; the annual loan payments are $8,273.59 for 30 years. What interest rate are you being charged? Do > Do D = Tools Mobile View Share