1. A mother wants to insure the education of his son. On the 7th birthday of the son, he investin a fund the amount of P 200,000.00 earning at 6.5% interest rate compounded monthly;on the 10th birthday another P 200,000.00 at an interest rate of 7.3% compounded monthly:on the 15th birthday another sum of money at 8% compounded monthly. If on the 18thbirthday the son have a total withdrawable amount of P1.3M, how much is the 3rdinvestment?2. An engineer invest P3M in concrete making. In return, he receives P235,000.00 per year for5 years. Compute for the rate of return on investment and the return on investment.3. Two proposals are being considered for building a power plant.Proposal A: The construction ofa new plant costing 10M today.Proposal B: Construction of a smaller plant now for 6.8M and the expansion costing 5M after5 yearsIf money is worth 7.5% compounded quarterly, which proposal is better.

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1. A mother wants to insure the education of his son. On the 7th birthday of the son, he invest in a fund the amount of P 200,000.00 earning at 6.5% interest rate compounded monthly; on the 10th birthday another P 200,000.00 at an interest rate of 7.3% compounded monthly: on the 15th birthday another sum of money at 8% compounded monthly. If on the 18th birthday the son have a total withdrawable amount of P1.3M, how much is the 3rd investment?

1. A mother wants to insure the education of his son. On the 7th birthday of the son, he invest in a fund the amount of P 200,000.00 earning at 6.5% interest rate compounded monthly; on the 10th birthday another P 200,000.00 at an interest rate of 7.3% compounded monthly: on the 15th birthday another sum of money at 8% compounded monthly. If on the 18th birthday the son have a total withdrawable amount of P1.3M, how much is the 3rd investment?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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