1. How long will it take to accumulate P5,000 to P7,000 if interest rate is 6% compounded quarterly?
2. How much should be deposited now by Mr. A in an investment paying an annual rate of 16% compounded semi-annually to realize P300,000 in five years?
3. Mrs. Nora Delos Reyes opens a savings account at Rural Bank. The Bank offers 16% interest per annum as long as no withdrawals are made. As soon as a withdrawal takes place, this rate will automatically drop to 10% per annum starting from the date of withdrawal. Mrs. A initially deposits P50,000. The account remains untouched for four years. At the beginning of the fifth year, she withdraws P5,000. Neither deposits nor withdrawals are made for the next four years. How much money does she have eight years after her initial deposit?
4. Carl agrees to make equal payments at the end of each year for 10 years to pay all interest and principal in purchasing a land worth P1,250,000 cash. If money is worth 8% compounded annually, find the annual payment.
5. What equal deposits should be placed by Jane in a credit cooperative at the end of each year for 12 years in order to have P1,000,000 in the cooperative at the end of 12 years, if the money accumulates at 5%?
6. Sam wants to buy a new farm equipment costing P300,000 making a downpayment of P50,000. The remainder is to be paid at the end of each month for four years at 20% compounded monthly. Find the amount needed for monthly payments.
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