1, Suppose that you have PhP 10,000 cash today and invest it at an interest rate of 10% compounded quarterly. How many years will it take you to become a millionaire? 2. What is the semi-annual effective rate of an interest given at 18% compounded bi- monthly? 3. In how much time will the simple interest on PhP 3,500 at the rate of 9% per year be the same as simple interest on PhP 4,000 at 10.5% per year for 4 years?
1, Suppose that you have PhP 10,000 cash today and invest it at an interest rate of 10% compounded quarterly. How many years will it take you to become a millionaire? 2. What is the semi-annual effective rate of an interest given at 18% compounded bi- monthly? 3. In how much time will the simple interest on PhP 3,500 at the rate of 9% per year be the same as simple interest on PhP 4,000 at 10.5% per year for 4 years?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:1, Suppose that you have PhP 10,000 cash
today and invest it at an interest rate of 10%
compounded quarterly. How many years will
it take you to become a millionaire?
2. What is the semi-annual effective rate of an
interest given at 18% compounded bi-
monthly?
3. In how much time will the simple interest
on PhP 3,500 at the rate of 9% per year be
the same as simple interest on PhP 4,000 at
10.5% per year for 4 years?
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