1. Jessica buys a television set from a merchant who asks P14,000.00 atthe end of 80 days. She wishes to pay the merchant immediately and themoney assumed 10% of simple interest. What is the cash price today?Draw the cash flow diagram.2.How long does it takes a principal of P25,000 at a simple interest rateof 5% per year to become P30,000? Draw the cash flow diagram.3. Determine the ordinary and exact simple interest on $5,000 for theperiod from January 15 to June 20,2015 if the rate of simple interest is14%4. 13. What payment X 10 years from now is equivalent to a payment ofP500,000 7 years from now, if interest rate is 12% compoundedsemi-annually?5. A factory operator bought a diesel generator set for P10,000 andagreed to pay the dealer uniform sum at the end of each year for fiveyears at 8% compounded annually, that the payment will cancel the debtand principal interest. What is the annual payment?

"Since you have asked multiple question ,we will solve first question for you.If you want any…

1. Jessica buys a television set from a merchant who asks P14,000.00 at the end of 80 days. She wishes to pay the merchant immediately and the money assumed 10% of simple interest. What is the cash price today? Draw the cash flow diagram.

1. Jessica buys a television set from a merchant who asks P14,000.00 at the end of 80 days. She wishes to pay the merchant immediately and the money assumed 10% of simple interest. What is the cash price today? Draw the cash flow diagram.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. Jessica buys a television set from a merchant who asks P14,000.00 at
the end of 80 days. She wishes to pay the merchant immediately and the
money assumed 10% of simple interest. What is the cash price today?
Draw the cash flow diagram.
2.How long does it takes a principal of P25,000 at a simple interest rate
of 5% per year to become P30,000? Draw the cash flow diagram.
3. Determine the ordinary and exact simple interest on $5,000 for the
period from January 15 to June 20,2015 if the rate of simple interest is
14%
4. 13. What payment X 10 years from now is equivalent to a payment of
P500,000 7 years from now, if interest rate is 12% compounded
semi-annually?
5. A factory operator bought a diesel generator set for P10,000 and
agreed to pay the dealer uniform sum at the end of each year for five
years at 8% compounded annually, that the payment will cancel the debt
and principal interest. What is the annual payment?

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